The Maryland Public Service Commission issued a key approval last Friday, June 26 for a proposed new nuclear energy facility at Calvert Cliffs in Southern Maryland, a project that would provide 1,600 megawatts of new, emissions-free electricity, stimulate the region's economy and shape a more secure energy future for the state.

The PSC issued the Certificate of Public Convenience and Necessity after completing a comprehensive, 18-month review that included multiple public hearings. The application for the proposed nuclear energy facility was submitted by UniStar Nuclear Energy, a strategic joint venture of Constellation Energy and EDF Group, the global leader in nuclear power.

"The PSC approval is critical to Maryland's energy future and we applaud the commission for recognizing the vital environmental, economic and energy benefits of a third nuclear energy facility at Calvert Cliffs and the significant benefits it will create for businesses and residents across the state of Maryland," said Michael J. Wallace, vice chairman and chief operating officer of Constellation Energy and chairman of UniStar Nuclear Energy.

Wallace went on to state that in order for Constellation Energy being able to get through the next steps in building the nuclear plant addition a reality that the proposed joint venture with EDF be finalized because of the investment requirement for a project of the magnitude such as the proposed facility.

“Constellation Energy's potential investment in a new nuclear facility at Calvert Cliffs 3 and the successful close of the Constellation-EDF joint nuclear venture are inseparable," said Wallace.

The CPCN is required before any construction work can begin. It addresses a range of potential environmental and reliability impacts of the proposed new reactor, including air, water, wetlands, cultural and historic impacts. Overwhelming public support for the proposed nuclear facility was voiced during PSC public hearings held after UniStar submitted the application in November 2007 and the project has gained considerable momentum in recent months.

A PSC hearing examiner issued a proposed order on April 28, and the full commission issued a final order on Friday. UniStar also is seeking federal regulatory approval through the U.S. Nuclear Regulatory Commission.

On May 19, the Calvert Cliffs project was selected by the U.S. Department of Energy as one of four projects to enter final due diligence and detailed negotiations for a portion of $18.5 billion in federal loan guarantees for advanced nuclear projects. Receipt of a conditional loan guarantee commitment by the end of 2009 would position UniStar to make a final decision to proceed with the project.

On June 1, the Building and Construction Trades Department, AFL-CIO, the National Construction Alliance II and all affiliated international unions, and Bechtel Construction Company, announced they had reached a Project Labor Agreement to supply labor for the Calvert Cliffs 3 project.