– Edited By Tom Lamar –
Constellation Energy on October 8 informed the U.S. Department of Energy (DOE) (by this letter… leaked to the Washington Post) that it cannot move forward with the loan guarantee process regarding UniStar Nuclear Energy's Calvert Cliffs 3 loan guarantee application because the proposed terms and conditions are unworkable.
In a letter sent to DOE, Constellation Energy said the cost of the loan guarantee that is calculated by the Office of Management and Budget (OMB) is unreasonably burdensome and would create unacceptable risks and costs for our company. There is a significant problem in the way OMB calculates the credit cost. After repeated unsuccessful attempts to resolve this issue with DOE and OMB, we no longer see a timely path to reaching a workable set of terms and conditions.
The letter represents the views of Constellation Energy. EDF, our partner in UniStar, is aware of our views. UniStar has not withdrawn its application for a federal loan guarantee and no decisions have been made regarding the future of Calvert Cliffs 3. With regards to Calvert Cliffs 3, this is a matter that will have to be discussed by Constellation Energy and EDF and taken under consideration by UniStar's Board of Directors. EDF has not yet informed Constellation Energy of its position related to the pending loan guarantee terms and conditions.
Constellation Energy remains steadfast that new nuclear power facilities are critical to the long-term economic, environmental and national security interests of the United States, which is why we have worked so hard for the past five years to make Calvert Cliffs 3 a reality. We are deeply disappointed that the loan guarantee process did not play out as we had hoped. We are extremely fortunate and grateful to have had a tremendous amount of support from our communities, labor, our state and county government, and our congressional delegation.