ML082550481
| ML082550481 | |
| Person / Time | |
|---|---|
| Site: | Calvert Cliffs, Nine Mile Point, Ginna  |
| Issue date: | 09/08/2008 |
| From: | Wallace M Constellation Energy Group |
| To: | Klein D NRC/Chairman |
| References | |
| Download: ML082550481 (1) | |
Text
Michael J. Wallace I22 Cons3!
bladon 'Nay Vice Chairman SiLe 1800P Baltimore. Maryland 21202-52(12 so. 3i7 Sner-j SP 2-244 Sevo4e4t g
'oo 50- 410 Chairman Dale E. Klein U.S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Mail Stop O-*l6G4 Rockville, Maryland 20852-2738 Re: Notification
Dear Chairman Klein:
For your information, we have become aware that &lectricit, de France ("EDF"), a foreign-controlled entity, has increased its stake in Constellation Energy Group, Inc. ("Constellation") from ownership of 4.97% of Constellation's outstanding common stock to 9.5%. This evolution has occurred pursuant to the terms of an investor agreement, dated July 20, 2007 (the "Investor Agreement"), between EDF and Constellation, entered into in connection with a joint venture arrangement between EDF and Constellation with respect to development of new nuclear projects in the United States and Canada.
EDF indicated in a press release issued on August 13, 2008 its intent to "progressively exercise the next level of open market purchases given the opportunity presented by market conditions," and we understand that the investment by EDF in Constellation has been made by means of an accelerated share purchase agreement entered into between EDF and Citibanik, N.A.
On Monday, September 8, 2008, EDF filed a Schedule 13D) with the Securities and Exchange Commission disclosing its increased investment in Constellation. Under the terms of the Investor Agreement, EDF is permitted to acquire only up to 9.9% of Constellation stock and must vote its shares in the manner recommended by the Constellation Board of Directors. Thus, the increased investment by EDF in Constellation conveys no ability to control or direct the operations of'Constellation or the NRC licenses held directly or indirectly by Constellation.
Please contact me should you have any questions or concerns regarding this letter.
Sincerely, Michael J, Wallace cc: Samuel J. Collins (Administrator - U.S. NRC - Region I)
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