Another short-sighted deal by Constellation, Shattuck

The October 27 by Hannah Cho, "Constellation, EDF reach deal on nuclear ventures describes how Constellation Energy has avoided the high cost of a federal government loan guarantee, an uncertain policy environment regarding regulation of carbon emissions, and yielded to the pressure of a temporary abatement in the cost of fossil fuel-based electricity generation by selling its share of Unistar to EDF, its French partner. The joint venture was forged to build additional nuclear power generation at Calvert Cliffs with the assistance and support of a well capitalized and experienced business partner.

This new development leaves EDF "holding the bag" for construction and ownership of the new facility, while requiring EDF to find another American owned company to serve as a partner — a regulatory requirement for the construction and ownership of nuclear plants in this country. The deal also confers to EDF land in New York for additional nuclear power plant construction, retention of most of its Constellation stock and equal ownership in the existing Constellation Energy nuclear facilities.

The article seems to suggest that Constellation has struck a good deal. On the contrary, it looks like another sweetheart deal forged at the desk of Mayo Shattuck that does little to help the residents of Maryland or other consumers of energy produced by Constellation. Mr. Shattuck and the Constellation board have again shown their preference for serving shareholders over customers, making short-sighted decisions regarding energy generation, and a general disregard for serving as responsible stewards of energy generation.

A. I. Schneiderman

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