Jeffries & Co. published a report today saying that a rejection by the Public Service Commission of Electricite de France's proposal to buy half of Constellation Energy Group's nuclear energy business would prevent CEG from building new generators. CEG owns Baltimore Gas and Electric. Some highlights:

If the JV [joint venture] were not approved, the balance sheet of Constellation and BG&E will not support new investment. Instead, the companies will need to use surplus cash to pay down debt.

• BG&E would be unable to build or contract for new generation
because of balance sheet constraints. Although the electric utility
re-regulation proposal would require BG&E to build new power
plants, the utility would need to dedicate its surplus cash generation
to debt pay-down in order to preserve its credit rating.

• Among the projects which BG&E would likely have to abandon
would be the proposed new nuclear power plant at the Calvert
Cliffs site.

I don't know why they're confusing BGE and CEG. The proposed Calvert Cliffs nuclear unit would be built by Constellation, not BGE. But the overall analysis stands. Constellation, after its near-death experience last year, needs outside capital to build plants. Or an order from the PSC that would build capital costs into BGE's rates for residences and businesses.