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Posts Tagged ‘OMB’

DOE/OMB SHOCK: Feds try to get Constellation Back to the Loan Guarantee Table

Tuesday, October 12th, 2010

Platts is reporting via agency spokespeople that the U.S. Department of Energy and Office of Management and Budget feel hornswoggled by Constellation Energy’s late Friday afternoon withdrawal by letter from the Obama Administration’s loan guarantee sweepstakes for a new nuclear reactor at Maryland’s Calvert Cliffs nuclear site.

The White House and the US Department of Energy were purportedly "on the verge of
offering UniStar a new set of loan-guarantee terms," Platts says.

"On Friday, as DOE received this letter, literally, almost simultaneously, DOE and OMB had a whole new set of modified terms to go back to them with," OMB spokesman Kenneth Baer told Platts. "This was very surprising to us, because we were in the middle of a dialogue with them, and they seemed to cut it off."

"We hope that Constellation, or their other business partners in this project, will consider moving forward and working with us in [continuing to find] terms which are good for them and good for the taxpayer," Baer said.

Baer’s DOE counterpart, spokeswoman Stephanie Mueller echoed the sentiment to Platts. "We were surprised to get the letter about Constellation dropping out of this process since DOE has been working closely with them on this complex transaction and even on the day they sent this news had a modified set of loan terms that responded to the concerns they had," Mueller said.

In another development Platts is reporting via Senator Jeff Bingaman’s spokesman, Bill Wicker, that "although DOE has made great strides in improving the process in the last year, there still are too many steps of review with OMB and Treasury; those two agencies simply are not coordinating well enough."

Read more at Platts