EDF, a French power company, sells US nuclear power assets

EDF, the French electric power company, will consider selling 49.99% of its stake in Ceng. The company has five nuclear reactors at three nuclear power plants in the United States.

 

 

 

EDF, a French government owned company, said in a statement on Wednesday that the sale of its stake in Ceng was part of the group’s plan to divest the non central property.

 

 

 

Exelon, a US company, holds the remaining 50.01% of Ceng.

 

 

 

In July 2013, EDF and Exelon agreed to transfer the operation license of the reactor owned by Ceng to Exelon. Under the terms of the agreement announced on April 1, 2014, Exelon paid a dividend of $400 million to EDF, which has put options to sell its Ceng shares to Exelon between 2016 and 2022. EDF informed Exelon today of its right to exercise the option.

 

 

 

EDF indicated that “the purchase and sale price will depend on the fair market value of the Ceng shares determined in accordance with the contract provisions of the put option agreement.” The close of the deal depends on regulatory approval.

 

 

 

The three nuclear power plants that Ceng touches are re Gina (single reactor), Nine Mile point 1 and 2, and Calvert cliffs 1 and 2.

 

 

 

In November 2009, EDF and Constellation Energy established the constellation energy nuclear group (Ceng), in which EDF and constellation held 49.99% and 50.01% shares respectively.

 

 

 

EDF and constellation created a 50-50 joint venture, Unistar nuclear energy, in July 2007 to establish and operate a standardized EPR team in North America. Areva has been working with Bechtel to complete the detailed design of the US version of EPR, and ALSTOM has now started to provide steam turbines. Unistar has the location of Calvert cliffs 3, as well as a fourth reactor and other parcels at Nine Mile point and re Ginna plant.

 

 

 

In December 2008, EDF reached a “final investment agreement” with United States utility constellation energy to buy half of its nuclear power generation and operations for $4.5 billion. In October 2010, EDF agreed to buy 50% of constellation’s stake in the joint venture.

 

 

 

In February 2015, AREVA group was subject to the decision of the US Nuclear Regulatory Commission to suspend the EPR design certification application review process. Exelon and Constellation Energy announced a $7.9 billion merger in April 2011. Since the merger in February 2012, constellation’s shares in Ceng have been held by Exelon.