Thursday, December 04, 2008

Open discussion on Constellation situation and what it means for Nuclear

While this article in the Baltimore Sun initially focuses on job cuts, it later gives a good summary of the choices shareholders will have in deciding the fate of Constellation. Here is what I want to talk about:

The EDF proposal unveiled Wednesday called for selling half of Constellation's nuclear power assets to the French firm for $4.5 billion, including an immediate down payment of $1 billion in cash, and also selling several non-nuclear power plants to the company for as much as $2 billion. The rest of Constellation would remain roughly the same, publicly traded and operating out of its Baltimore headquarters.

So how does the fact that a French company is so keen to buy the nuclear assets, but not the entire company, play with a new administration that says it will address energy policy right away? How does it play with Wall Street investors? What would be the effect of a French company owning and operating nuclear power plants in the U.S.?

Discuss among yourselves...

1 comment:

Anonymous said...

Does "half of Constellation's nuclear power assets" mean 100% ownership of 50% of the units, or 50% ownership of 100% of the units, or something else entirely?

Could we be looking at something similar to the original Amergen, half-owned by Exelon and half by British Energy?

What about Unistar?