EDF Owns Half Of Some Exelon's Nuclear Plant

So why does a giant troubled French utility own half of some Exelon's nuclear plants? Why couldn't they use the US financial system?

Exelon wants full ownership of nuclear plant trio

November 22, 2019

Exelon Generation announced its partner EDF is exercising the put option in their pact to sell its 49.99% interest in the R.E. Ginna, Nine Mile Point and Calvert Cliffs nuclear power plants to Exelon, Kallanish Energy reports.

The put option was established in connection with the joint operating services agreement signed by Exelon and EDF in April 2014, to allow Exelon to take over operations at the three nuclear plants.

Exelon Generation already is the majority owner and operator of the plants, which are located in Upstate New York (R.E. Ginna and Nine Mile Point) and Maryland (Calvert Cliffs).

"Since Exelon Generation took over operations, we have created value for both Exelon and EDF by integrating the three plants into the nation’s largest and best-run nuclear fleet. Leveraging the Exelon management model, we’ve improved overall fleet performance and efficiency while reducing costs in a challenging market environment,” said Chris Crane, Exelon president and CEO.

As part of the acquisition process, EDF and Exelon Generation will seek a negotiated agreement on the sale price. If an agreement can’t be reached, the price will be set through a third-party arbitration process to determine fair market value.

The transaction will require approval by the New York Public Service Commission, the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The process and regulatory approvals could take one to two years or more to complete.

The trio of nuclear power plants include the single-unit R.E. Ginna Nuclear Power Plant (576 megawatts capacity) and the dual-unit Nine Mile Point Nuclear Station (1,907 MW), and the dual-unit Calvert Cliffs Nuclear Power Plant (1,756 MW).

Exelon Generation, a subsidiary of Exelon Corp., is the largest producer of nuclear power in the U.S., operating 12 facilities, 21 reactors, with total capacity of 18,700 MW, located in Pennsylvania, New York State, Maryland and Illinois.