French firm buys 100 percent of rights to build third Oswego County nuclear plant

Electricite de France is also buying Constellation Energy's 50 percent interest in nuclear development company Unistar.

David Lassman / The Post-StandardAerial view looking north towards Lake Ontario of the nuclear power plants at Nine Mile Point near Oswego.

Oswego, NY - A French government-owned company is acquiring 100 percent of the development rights for a potential third nuclear plant at Nine Mile Point station in Oswego County.

Electricite de France SA, or EDF, a utility 85 percent owned by the French government, this week announced it would buy out Constellation Energy Group’s 50 percent interest in nuclear development company Unistar.

Prior to the $140 million buyout, EDF had owned half of Unistar, a company formed in 2005 to build new nuclear plants.

Unistar’s first new reactor is planned at Calvert Cliffs nuclear station in Maryland, but Constellation this month backed out of the project after failing to reach an agreement with the Obama administration over the terms of a federal loan guarantee. EDF wants to go forward, so it will buy out Constellation’s interest.

In addition to the Calvert Cliffs project, Unistar had taken preliminary steps to seek approval from the U.S. Nuclear Regulatory Commission for a third reactor at Nine Mile Point nuclear station in Scriba. Unistar suspended its NRC application last December after the project was not selected for a federal loan guarantee.

Separate from its ownership of Unistar, EDF owns 49.99 percent of Constellation’s five operating nuclear reactors, including the two reactors at Nine Mile Point and the R.E. Ginna plant near Rochester. That relationship has not changed.

To develop new nuclear plants, Unistar would have to find a U.S. partner. Federal law prohibits foreign companies from owning a “controlling interest” in U.S. nuclear plants.

Officials at the Nuclear Regulatory Commission had little to say Wednesday about the Unistar deal.

“We’ll review any proposed changes to ensure they meet applicable NRC requirements,” said Neil Sheehan, speaking for the NRC.

Contact Tim Knauss at tknauss@syracuse.com or 470-3023.