September Good to C Three Cos, Constellation: No Thanks, Gov

Constellation Energy says it will turn down government guarantees for Calvert Cliffs 3. As part of its Constellation bailout two years ago and to gain entrance to the U.S. nuclear power market, EDF agreed to an option to buy a group of Constellation’s fossils plants for about $2 billion. The plants are valued around $1 billion. When Constellation made noises about exercising a put that would net it $400 million and create a $1 billion loss for EDF, things got nasty. With the unilateral announcement of Constellation’s withdrawal from the loan guarantee program, EDF appears to be left holding the bag without its key entry card to the U.S. nuclear power market. This marriage looks like it cannot be saved. Visit http://cthree.net.

 

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