Summary
Exelon Corporation, through its subsidiary Exelon Generation Company, LLC, received a notice on November 20, 2019, from EDF Inc. indicating its intention to exercise a put option. This option allows EDF to sell its 49.99% equity interest in Constellation Energy Nuclear Group, LLC (CENG) to Exelon Generation. CENG is a joint venture responsible for operating nuclear plants at three sites: Calvert Cliffs, R.E. Ginna, and Nine Mile Point. The exercise of this put option signifies a significant development for Exelon, potentially leading to the full ownership of its nuclear joint venture. The process for determining the purchase price and securing necessary regulatory approvals is expected to be lengthy, potentially taking one to two years or more. Investors should monitor developments regarding the purchase price negotiation or arbitration and the outcomes of regulatory reviews by the New York Public Service Commission, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission.
Key Highlights
- 1EDF Inc. has exercised its put option to sell its 49.99% stake in Constellation Energy Nuclear Group, LLC (CENG) to Exelon Generation Company, LLC.
- 2CENG is a joint venture for the ownership and operation of nuclear plants at Calvert Cliffs, R.E. Ginna, and Nine Mile Point.
- 3The put option became exercisable on January 1, 2016, and can be exercised until June 30, 2022.
- 4The purchase price will be determined by agreement or through a third-party arbitration process.
- 5The transaction is subject to approval from the New York Public Service Commission, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission.
- 6The entire process, including price determination and regulatory approvals, could take one to two years or longer.
- 7Exelon issued a press release detailing this event, attached as an exhibit to the filing.