Constellation Energy Group Inc.'s recent deal with Electricité de France SA to sell twelve coal-fired energy facilities to the french state owned company, may fall through. Constellation Energy Group (CEG) is forcing Electricité de France (EDF) to pay 2 billion dollars for these energy facilities however EDF claims they will sue CEG if they continue to force them to buy. EDF is the largest shareholder in CEG so in order to avoid a confrontation EDF offered to buy CEG out of a joint venture to build a new nuclear facility if CEG doesn't force EDF to buy these twelve coal-fired facilities. EDF originally agreed to buy these twelve facilities when they were outbidding CEG for MidAmerican Energy to buy out their company they agreed to purchase the 12 facilities.
This on going feud between the two companies has also taken an unexpected political turn with pressure from both the US and French governments to resolve this issue. The US has a strong interest in raising the use of alternative energy for the benefit of the world as a whole. France has a government that is more hands on with their economy and because of that they have a vested interest in getting ahead of the recent trend for the increase of alternative energy by spreading alternative energy facilities not only in their own country but also overseas. Governor O'Malley, a candidate running for reelection in the Maryland gubernatorial race, has also tried to get involved in the business issue to secure his political future. If the Governor can help to resolve this issue it will bring an alternative energy source as well as jobs, greatly increasing his chances of winning.
~Tom Langevin
http://online.wsj.com/article/SB10001424052748704763904575550374068530134.html?mod=WSJ_Energy_leftHeadlines
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