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The Maryland Public Service Commission has approved a proposed third reactor at Calvert Cliffs Nuclear Power Plant in Lusby, as the panel turned aside several appeals by environmental groups.

The commission issued a certificate of public convenience and necessity, completing an 18-month process that included several public hearings and private appeals.

In the same June 26 decision, the PSC dismissed four appeals filed by environmental activists and concerned locals who sought to block the reactor. Two of the appeals came with motions to intervene attached, and they were also denied.

UniStar Nuclear Energy, a joint venture by plant owner Constellation Energy of Baltimore and French utility Electricite de France, applied for the certificate, which grants a company the right to provide a region with utility service, in November 2007.

"We see this approval as critical to the state of Maryland's energy future," said Maureen Brown, a spokeswoman for Constellation Energy. "Obviously we're pleased the commission recognized the economic and energy benefits of the new facility."

A commission hearing examiner recommended that the application be accepted on April 28, stating the reactor was in the public's best interest.

The appeals were all filed about one month ago — well past the filing deadline. Each appellant was subsequently deemed a non-party to the proceedings, rendering the appeals invalid. With state support in tow, UniStar will now seek federal approval from the Nuclear Regulatory Commission.

UniStar has yet to decide whether to go forward with the reactor. Michael Wallace, vice chairman and COO of Constellation Energy and chairman of UniStar Nuclear Energy, said in a statement that it would be "unrealistic" to expect that the capital needed for construction could be raised if Constellation's pending merger with EDF, which is under PSC review, does not go through.

"From the beginning of the planning for this project, we have been clear about our intention to seek both state and federal regulatory approvals as we weigh all the factors associated with this project before making a decision," Brown said.

Plans for the reactor could receive a boost from the federal government. On May 19, the Department of Energy selected the reactor as one of four projects to potentially receive a portion of $18.5 billion in federal loan guarantees for advanced nuclear projects.

"A final decision on the proposed reactor is very much tied to final DOE approval for loan guarantees and we think the earliest that would happen is … by the end of this year," Brown said.

UniStar said it hopes the Lusby reactor will be the first in a series of so-called "advanced US-Evolutionary Power Reactors" it builds in the U.S. Four such reactors, which are designed by French industrial conglomerate Areva, are expected to be constructed overseas and serve as a template for the Calvert Cliffs reactor. The reactor would be the nation's first and serve as a model for future "Generation III" reactors, as the reactors have been categorized.

Key differences between such reactors, a few of which are already operating in Japan, and the plant's two Generation II reactors are increased safety and efficiency, according to the hearing examiner's recommendation.

The proposed 1,600-megawatt reactor would provide electricity to 1.3 million Maryland homes and create an estimated 4,000 construction, engineering and craft jobs and 360 permanent positions, Brown said.

Trade unions reached an agreement with Bechtel Construction Co. on June 1 to provide labor for the project.