As of October, the loan guarantee request for $1.6 billion has reportedly passed an initial review. Now, negotiations will continue regarding specific details of the funding. The company has previously said $1.6 billion would cover all the costs needed to reopen the nuclear facility.
If approved, the funding would essentially be backstopped by taxpayers, who would bear much of the risk of a default. It would also reportedly save Constellation Energy upward of $122 million in borrowing costs the company could incur by reopening the plant. “Rest assured that to the extent we may seek a loan, Constellation will guarantee full repayment,” the company said. “Any notion that taxpayers are taking on risk here is fanciful given that any loan will be backstopped by Constellation’s entire $80-billion-plus value,” said Constellation Energy.a $1.52 billion loan to help reopen the Palisades nuclear power plant in Michigan. The site is expected to become the first-ever decommissioned plant to come back online in the United States.
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