Nuclear ownership probed

Commission questions French shares of company

Friday, Oct. 10, 2008

The U.S. Nuclear Regulatory Commission is investigating a recent increase in foreign control of Constellation Energy, owner of Calvert Cliffs Nuclear Power Plant, to determine if it impacts the plant's operating license, according to a letter from the head of the Office on Nuclear Reactor Regulation dated Oct. 3.

French energy company EDF's share has risen from 5 percent of Constellation's outstanding stock to 9.5 percent, triggering a review of whether the arrangement violates federal regulations prohibiting nuclear reactor licenses from being "owned, controlled or dominated" by foreign entities, according to the letter to Michael J. Wallace, chairman of Constellation Energy Nuclear Group.

There is no specific percentage of foreign control that "triggers the prohibition. An analysis of foreign ownership, control or domination is made on a case-by-case basis, taking into consideration all relevant facts and circumstances," the letter said.

Constellation spokeswoman Maureen Brown said "we're very confident this is not a concern," and that company attorneys had thoroughly investigated regulations governing foreign control before entering into a partnership with EDF last year. The French company is also Constellation's partner in a proposed third reactor here.

Constellation's confidence stems, in part, from NRC's approval of AmerGen, a joint nuclear venture between Exelon and a British company where the British interest was almost 50 percent, Brown said.

NRC spokesman Neil Sheehan said loss of its operating license for Calvert Cliffs and two other nuclear plants "could be an outcome" of the review but that the agency has examined similar ventures, including the AmerGen deal.

"Our regulations are very clear when it comes to foreign ownership and they basically state the company that is the owner of record for a nuclear power plant cannot be foreign owned," Sheehan said.

Wilson Parran, president of the Calvert County Board of County Commissioners, said the county does not have an official position on the letter.

"I read the letter and, candidly, that's an issue between Constellation and the Nuclear Regulatory Commission. That's part of the normal process they have to go through as they evaluate the agreement between MidAmerican and Constellation," he said. MidAmerican Energy Holdings is an Iowa-based company that has agreed to buy Constellation.

emitrano@somdnews.com