Constellation Energy Senior Executive Testifies Before Senate Committee on Developing New Nuclear Generating
26 April 2005
Constellation Energy (NYSE: CEG - News) Executive Vice President and President of Constellation Generation Group Michael J. Wallace today urged Congress to support Nuclear Power 2010, an initiative that encourages the development of new nuclear generating plants in the United States.
Speaking before the Senate Energy and Natural Resources Committee, Wallace said that there are compelling public policy reasons for new nuclear generating capacity. "The time has come to create the business conditions under which we can build new nuclear power plants in the United States," he stated during testimony.
"Building new nuclear power plants will help maintain the fuel and technology diversity that is the core of the U.S. electric supply system. New nuclear plants can provide future price stability and can play a leading role in meeting U.S. clean air goals and reducing greenhouse gas emissions."
Nuclear Power 2010 is a Department of Energy multi-year program designed to facilitate the new licensing system for nuclear power plants. The program includes obtaining early site permits, securing combined construction and operating licenses and resolving generic licensing issues.
The initiative includes sharing the cost of the detailed design and engineering work necessary to prepare combined construction operating licenses. The industry's commitment to Nuclear Power 2010 includes a planned investment of $650 million over the next several years and the Bush administration has proposed spending $56 million for the program in fiscal year 2006.
"Limited federal investment in a limited number of new plants for a limited period is necessary and appropriate to overcome the financial and economic hurdles," Wallace said. "Federal investment protection is necessary to manage and contain the one type of risk that we cannot manage - namely, the risk of a regulatory failure, including court challenges, that delays construction or commercial operation."
Wallace added that there is industry and investor concern about the higher first-time costs associated with developing the first new nuclear plants. Federal investment stimulus is necessary to offset these potential costs. Only the successful licensing and commissioning of several new nuclear plants can demonstrate that the licensing risks and uncertainties have been resolved.
Constellation Energy (http://www.constellation.com), a FORTUNE 200 company based in Baltimore, is the nation's leading 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 utilities. It owns 107 generating units at 35 locations in 11 states, totaling approximately 12,500 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.
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Source: Constellation Energy
Source: PR Newswire
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