PSC Conditions May Mitigate Some Risk
Statement of Chesapeake Safe Energy Coalition Spokesperson, Johanna Neumann, on the Maryland Public Service Commission’s Conditional Approval of the Deal between Constellation Energy Group and Electricite de France.
“While we are disappointed that the Public Service Commission (PSC) didn’t reject the deal between Constellation Energy and EDF outright, conditions placed on the deal may help safeguard BGE ratepayers from risks associated with the transaction if it moves forward.
“In its ruling the PSC largely ignored the fact that the sale would continue to expose Marylanders to the risk associated with the construction of a new nuclear reactor in the state, including higher utility rates if the plant comes online.
“The reactor likely would result in rates dramatically higher than current market rates. The California Energy Commission recently issued a report projecting nuclear generating costs in 2018, roughly the time Calvert Cliffs III could come online, at a staggering 34.24 cents/kwh, nearly triple current costs in Maryland. In the same study, the commission found that all renewable sources of energy were cheaper than nuclear power in that timeframe.
“Moody’s and other credit rating agencies have indicated their intent to downgrade utilities that build new nuclear reactors because of the high risk involved in the project. The Congressional Budget Office estimates that 50 percent of proposals for new nuclear reactors default before completion.
“While it is disappointing that the PSC has left the door open for construction of an expensive and unnecessary new nuclear reactor in Maryland that diverts resources from faster, cheaper and safer ways to meet our state’s energy needs, the conditions outlined in their brief would take some steps to protect ratepayers from having to assume the project’s risks.”
# # #
