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Constellation Energy Nuclear Group To Be Integrated Into Exelon Nuclear Fleet

Stocks in this article: EXC

The three commercial nuclear power plants operated by the Constellation Energy Nuclear Group (CENG) in New York and Maryland will be operationally integrated into the Exelon Generation nuclear fleet over the next nine months, CENG co-owners announced today.

The consolidation of the two commercial U.S. nuclear fleets includes transferring the operating licenses of the plants to Exelon Generation, Exelon and Électricité de France (EDF) said in a joint announcement.

“This is a logical step forward in the overall integration of Exelon and Constellation following our 2012 merger,” said Michael Pacilio, president and chief nuclear officer of Exelon Nuclear, the division that operates the company’s commercial nuclear fleet. “CENG is a strong nuclear operator with excellent results and safety performance that fits well with our existing operations. This consolidation will benefit both Exelon and our partner EDF and allows us to take advantage of additional synergies and streamlining.”

Under the terms of the agreement, the CENG plant operating licenses will be transferred to Exelon; Exelon will integrate the CENG fleet under its management model; Exelon will lend $400 million to CENG to support a special dividend to EDF; and EDF will retain an option to sell its CENG stake to Exelon at fair market value between 2016 and 2022.

CENG will remain a legal entity governed by a board of directors comprising five EDF and five Exelon board members. Exelon will continue to own 50.01 percent of CENG, EDF 49.99 percent. CENG’s chief nuclear officer Maria Korsnick will become acting chief executive officer of CENG in addition to her CNO role.

Exelon Generation is the largest operator of commercial nuclear plants in the U.S., with 17 reactors in 10 locations. EDF is the world’s largest nuclear operator, with 58 reactors with one under construction in France. Following the CENG consolidation, Exelon Generation will operate 22 nuclear units at 13 locations in Illinois, Pennsylvania, New York, New Jersey and Maryland, with a total owned generating capacity of 19,165 megawatts and employ more than 11,000 workers.

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