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Constellation Energy announces plans to submit for combined construction and operating License

News brief

ACTIVITIES / NUCLEAR POWER

November 15, 2005

Constellation Energy announced its intent to file with the U.S. Nuclear Regulatory Commission for a combined construction and operating license (COL). This step in the multiphased regulatory process could lead to the development and deployment of a U.S. nuclear power plant - which could be one of the first in more than 30 years.

In September, Constellation Energy and AREVA Inc. announced the formation of UniStar Nuclear. "UniStar is a joint enterprise that provides the business framework through which the first fleet of AREVA-designed reactors could be developed and deployed in North America," said Michael J, Wallace, co-chief executive of UniStar Nuclear and executive vice president of Constellation Energy.

UniStar Nuclear brings together in one team an experienced nuclear fleet operator and owner and a preeminent nuclear reactor vendor. Wallace said that the U.S. EPR, a 1,600 megawatt evolutionary power reactor, will be the technology of choice for all UniStar plants.

"The fleet approach that UniStar Nuclear is taking will generate significant cost savings," said Thomas A. Christopher, co-chief executive officer of UniStar Nuclear and CEO of AREVA Inc. "Standardized plants also create an unprecedented degree of certainty in operations and allow operators career growth opportunities to move from plant to plant" he said.

AREVA Inc., as prime contractor to any potential new nuclear project under the UniStar Nuclear fleet business model, would provide the nuclear reactor and all support systems, instrumentation and control system and the initial load of nuclear fuel. As locations are firmed up, it is envisioned that Constellation Energy would operate the proposed fleet of U.S. EPRs and hold the plant's operating licenses.

In a separate announcement, Constellation Energy also identified its Calvert Cliffs Nuclear Power Plant in Southern Maryland and Nine Mile Point Nuclear Station in upstate New York as the likely sites to be considered for the COL. Final site selection is expected early next year.

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UniStar Nuclear is headquartered in Annapolis, Md.

Constellation Energy, a FORTUNE 200 company based in Baltimore, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and energy companies.

It owns a diversified fleet of more than 100 generating units located throughout the United States, totaling approximately 12,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. In 2004, the combined revenues of the integrated energy company totaled $12.5 billion.

As the leading U.S. nuclear supplier and a key player in the electricity transmission and distribution sector, AREVA's 6000 American employees are commited to serve the nation and pave the way for the future of the electricity market.

The company's commitment to America is reflected in its initial investment of $200 million in the U.S. EPR.

With 40 locations across the nation and about $2 billion in revenues in 2004, AREVA in the U.S. combines homegrown leadership, access to worldwide expertise and a proven track record of performance through its U.S. subsidiary UniStar. In the U.S. and in over 100 countries around the world, AREVA is engaged in the 21st century's greatest challenges: making energy available to all, protecting the planet and acting responsibly towards future generations. AREVA Inc. is headquartered in Bethesda, Maryland.