October 18, 2010

CARDIN, HOYER, O'MALLEY, AND MIKULSKI SEND LETTER TO CONSTELLATION, EDF URGING CONTINUED NEGOTIATION ON LOAN GUARANTEE FOR CALVERT CLIFFS PROJECT

WASHINGTON, DC - U.S. Senator Benjamin L. Cardin (D-MD), Congressman Steny H. Hoyer (MD-5), Governor Martin O'Malley, and Senator Barbara A. Mikulski sent a letter today to Mayo A. Shattuck III, President and Chief Executive Officer of Constellation Energy Group, and Henri Proglio, Chairman and Chief Executive Officer of Électricité de France, requesting that the two companies engage in active negotiations immediately in order to reach agreement on a plan to proceed with the development of Calvert Cliffs III.

 

"Over many frank discussions with all the parties involved in Calvert Cliffs III, it has been clear that we share a commitment to finding a way to advance this project," said Senator Cardin. "The quality jobs and economic opportunities for communities in Maryland are undeniable, but the benefits that next-generation nuclear facilities like this will bring to our nation are even greater. Nuclear energy is an essential component of a new, clean-energy economy and an energy-independent United States.  Projects like Calvert Cliffs III will strengthen our national security, economic security and our environment. I stand ready, along with Governor O'Malley and our Maryland Congressional delegation, to work with EDF, Constellation, or whatever future partners step forward, to help make Calvert Cliffs a successful part of our nuclear renaissance."

 

 "The Calvert Cliffs III project is extremely important to the State of Maryland, and especially the Fifth District, for its promise to create jobs and invest in the next generation of nuclear energy," stated Congressman Hoyer. "After talking with Constellation and meeting with EDF over the past week, I am optimistic that they will be able to work together quickly to help resolve this matter in a way that benefits the companies, the project, and our communities. As we have throughout the last year, I will continue working with the Maryland delegation and Governor O'Malley to do all we can to help the companies and facilitate the project moving forward." 

 

 

The letter as sent is below.

 


October 15, 2010

 

 

Mayo A. Shattuck III

President and Chief Executive Officer

Constellation Energy Group

100 Constellation Way

Baltimore , MD 21202      

 

Henri Proglio

Chairman and Chief Executive Officer

Électricité de France

22/30 Avenue de Wagram

75008 Paris, France

 

Dear Mr. Shattuck and Mr. Proglio:

 

As senior elected officials in Maryland, we write to share our deep concern regarding the current status of the Calvert Cliffs III nuclear reactor project proposed to be built in our state. Late last week, the Obama Administration provided a clear and long-awaited indication that they were willing to issue a conditional federal loan guarantee covering 80% of the project costs. This action was not met with corporate acceptance as we had hoped, but with concern that the terms exceeded the financial resources of at least one of the project partners, concern that has now been widely reported in the Maryland and national press to be the abandonment or cessation of the project. We find such perception to be deeply troubling as it is incorrect and confusing to the public; in fact, neither corporate partner in UNISTAR nor the Administration has withdrawn the loan guarantee application. It is our understanding that the Administration remains committed to the project and to working on the loan guarantee.

 

This reactor project is extremely important to the State of Maryland, and we have been united, and remain united, in our commitment to its development. The project will generate 1,600 megawatts of carbon-free electricity and will create 4000 construction and 400 permanent union jobs in Calvert County, Maryland alone. The jobs impact of this project for Maryland, however, is much larger than the employment created in one county. The design and production of this reactor, and its associated supply chain, will support nearly 10,000 jobs in Maryland and throughout the Mid-Atlantic region. This project would be the first U.S. deployment of the European Pressurized Reactor (EPR), and AREVA has located its corporate headquarters in Maryland and has committed to locating its production and supply chain for the reactor in the U.S.

 

In your capacity as the heads of the corporate parent companies that form the UNISTAR partnership, we urgently request that you engage in active negotiations immediately to develop a financing and corporate arrangement that allows UNISTAR to accept a conditional loan guarantee commitment and proceed with the development of Calvert Cliffs III. We believe such discussions cannot wait, and that active talks could help resolve the matter in a way that benefits your companies and the project. It would be extremely unfortunate to let this project languish on which we have all worked so hard and which would have such positive consequences for Maryland, for our nation, and for those who would be able to secure excellent jobs constructing and operating this plant. The accomplishment of this objective serves the interest of our state, energy independence and national security, and our global environment.

 

We are prepared to do all we can to move this project successfully forward, and we appreciate your personal attention in bringing this matter to a resolution. Please let us hear as soon as possible the direction you feel is attainable and necessary to accomplish our mutual objective.

 

Sincerely yours,

 

STENY H. HOYER, MAJORITY LEADER             
U.S. HOUSE OF REPRESENTATIVES

MARTIN O'MALLEY, GOVERNOR

STATE OF MARYLAND                      

 

BARBARA A. MIKULSKI    
UNITED STATES SENATOR                                     

BENJAMIN L. CARDIN

UNITED STATES SENATOR