10/02/2025 | Press release | Distributed by Public on 10/02/2025 12:09
ANNAPOLIS, MD (Oct. 2, 2025) - Governor Wes Moore today announced a historic agreement with Constellation Energy to fund and implement operational improvements and environmental projects at the Conowingo Dam. The commitments-valued at more than $340 million and negotiated in partnership with Waterkeepers Chesapeake and Lower Susquehanna Riverkeeper Association-will meet enforceable water quality standards by mitigating the impacts associated with the dam's operation.
"The Chesapeake Bay is the keystone to Maryland's prosperity," said Gov. Moore. "This agreement will lead to real improvements in water quality in the biggest tributary of the Chesapeake Bay, while securing the future of one of our state's largest clean energy producers. By bringing everyone to the table, we have struck an agreement that is good for the environment, good for energy production, and good for Marylanders."
The agreement clears the way for the re-licensing and continued operation of the dam's hydroelectric facility on the Susquehanna River, which is the largest source of renewable energy in the state. The terms of the agreement, announced today at the dam, include operational improvements and upfront and ongoing annual payments:
"This historic agreement ensures that our children and grandchildren will inherit a Chesapeake Bay and Susquehanna River that are cleaner and healthier than they are today," said Attorney General Anthony G. Brown. "I'm proud of our office's tireless efforts in this case to improve water quality and protect the lives and livelihoods of Marylanders who depend on these essential waterways for recreation and work."
The commitments are contained in a Revised Water Quality Certification issued by the Maryland Department of the Environment and a companion settlement agreement. The department issues certifications pursuant to authority from Section 401 of the Clean Water Act. For a dam, a certification works like a permit and has conditions and requirements for the operation of the dam.
An initial certification was issued in 2018, but legal challenges led to a 2019 waiver of that certification and settlement, requiring the dam owner to invest in improvements valued at $230 million. The terms were dependent on the facility's receipt of a 50-year federal license, but an appeals court vacated that license in 2022.
To reach the agreement announced today, the extensive reconsideration process included a public comment period and more than a year of mediation involving the State, Constellation, Lower Susquehanna Riverkeeper Association and Waterkeepers Chesapeake, leading to the agreement announced today. A Revised Water Quality Certification will be filed with the federal government for the dam's license to be renewed.
"With this agreement, we are protecting clean water and vibrant ecosystems for generations to come while supporting jobs, commerce, and energy security," said Maryland Department of the Environment Secretary Serena McIlwain. "All parties-including environmental groups who challenged a previous framework-have signed on. From restored fisheries to enhanced recreation and tourism, the benefits of a healthier Susquehanna River flow through our communities, our industries, and the Chesapeake Bay."
"The Susquehanna watershed is home to one of the largest concentrations of clean energy generation in America, and Constellation is proud to build on that nearly century-old legacy, investing heavily in clean generation, protecting water quality and powering Maryland's economy," said Constellation President and Chief Executive Officer Joe Dominguez. "But it's not just the scale of the investments we are making that makes us proud, it's how we are investing. Some utility monopolies are claiming they can lower your electricity costs by building new generation, but they want you to guarantee their profits. That's just not fair, especially now, when many families are already struggling to pay higher electricity bills. In the last decade, Constellation has invested more than $1 billion in Maryland clean energy projects, from wind and hydro to state-of-the-art nuclear energy, and we will never ask Maryland families to bear business risks that we won't."
Cleaner waterways bolster tourism in Maryland, which generates about $3.2 billion a year in economic activity. Improved water quality and habitat also benefits Maryland's seafood industry, which contributes nearly $600 million to the state's economy each year.
"The relicensing of Conowingo Dam is critical to the health of the Susquehanna River and the overall restoration of the Chesapeake Bay," said Waterkeepers Chesapeake Acting Executive Director Robin Broder. "Today's agreement marks a new era for the dam and a new commitment for clean water. The funding for water quality projects, a pathway to dredging, and investments in living resources such as the freshwater mussel hatchery are significant steps forward. Though more than a decade in the making, this agreement is not the end of our efforts, but rather the beginning of an important new chapter. Waterkeepers Chesapeake and Lower Susquehanna Riverkeeper look forward to providing oversight on the implementation of this important agreement."
"Today's announcement marks 16 years of tremendous effort and perseverance by our organization to assure Conowingo Dam is relicensed with proper conditions that protect the health of the Lower Susquehanna River and Chesapeake Bay," said Lower Susquehanna Riverkeeper and Lower Susquehanna Riverkeeper Association Executive Director Ted Evgeniadis. "Without the unwavering commitment of the Lower Susquehanna Riverkeeper, dredging the reservoir to stop harmful pulses of sediment and pollution from reaching the bay would not have been considered. In partnership with Waterkeepers Chesapeake, our successful appeal of the license and the 2019 Settlement brought the parties back together to renegotiate far better terms that will improve water quality and protect our aquatic species for the next 50 years."
Once the conditions of the Revised Water Quality Certification are incorporated in the dam's operating license, Maryland will ensure that the obligations in the Certification are fully and effectively enforced.
"Restoring the Chesapeake Bay is both an environmental and economic imperative for Maryland - countless lives and livelihoods throughout the watershed depend on it," said U.S. Senator Chris Van Hollen. "This agreement marks a major step toward a healthier Bay and a stronger Maryland. With it we are poised to make important strides in improving water quality and bolstering our seafood and outdoor recreation - while securing a key source of clean energy for our state for years to come."
"I am looking forward to this $340 million agreement which will invest in environmental projects over the next 50 years to support the health of the Susquehanna River and the beating heart of our state - the Chesapeake Bay," said U.S. Senator Angela Alsobrooks. "This settlement will continue to provide reliable, clean energy for Maryland, clean up our environment by removing trash and debris, control invasive species, protect our ecosystem, and improve our state's water quality."
"I am proud that all parties, under the leadership of Governor Wes Moore and his administration, reached an agreement on the Conowingo Dam that balances the needs of all Marylanders," said U.S. Congressman Steny Hoyer. "The Conowingo Dam settlement represents an important investment in the health of our treasured Chesapeake Bay, something I have spent my career fighting for, as well as a clear path forward for Conowingo to continue providing clean, reliable power for Maryland and the broader region."
"The Conowingo Dam, while an important renewable source of energy for the State of Maryland, has also played a role in sediment reaching the Chesapeake Bay," said U.S. Congressman Kweisi Mfume. "I commend Governor Wes Moore and the Maryland Department of the Environment's success in bringing all parties together for a new Conowingo Dam settlement agreement which will increase investment into environmental remediation and restoration."
"The new Conowingo Dam settlement is an excellent example of solutions-oriented stakeholder engagement," said U.S. Congresswoman Sarah Elfreth. "The impact of this historic investment in water quality and the Chesapeake Bay ecosystem will have generational impacts, including the development of a new freshwater mussel hatchery, water quality monitoring, and combating invasive species like the blue catfish. I look forward to the implementation of these exciting projects."
"It is critical we protect and invest in the Chesapeake Bay - a cultural and economic lifeline for our state," said U.S. Congressman Johnny Olszewski. "I applaud our state agencies and Constellation for their collaboration with local conservation organizations to reach a deal that will strengthen the health of the Bay for years to come. I thank all of the stakeholders who understood the urgent need to support this essential Chesapeake tributary and clean energy source."
"With this historic agreement, we're making a commitment to better protect our state's water quality and vital ecosystems all while creating a brighter future for clean energy," said U.S. Congresswoman April McClain Delaney. "The Conowingo Dam's re-licensing and operational improvements mean our environment and waterways are better off - along with the Maryland communities that depend on them for everything from commercial prosperity to hydroelectric power. This is a win for innovation, for our Maryland businesses, and for protecting our water resources."
"The Conowingo Dam has been providing the lowest cost renewable energy electricity to Marylanders for decades, and, with this agreement, will be allowed to continue to do so," said U.S. Congressman Andy Harris.
"This deal ensures we balance the importance of generating renewable energy while protecting water quality standards and the broader ecosystem," said Maryland Department of Natural Resources Secretary and Chesapeake Bay Program Principals' Staff Committee Chair Josh Kurtz. "The settlement will allow us to apply the innovative strategies we developed restoring oysters in Chesapeake Bay tributaries to bring back water-filtering mussels in the Susquehanna River basin and other freshwater rivers in Maryland. Thank you to everyone who helped us reach this agreement."
Governor Moore included more than $400 million in his FY26 budget for Chesapeake Bay and clean water projects that create local jobs, improve public spaces, and enhance property values. Building on this commitment, Maryland has taken action to decrease pollution and crafted a new bay strategy focused on industry best practices.
In May, Governor Moore signed the Chesapeake Bay Legacy Act, which supports sustainable farming, expands oyster restoration, and modernizes water quality programs. Key provisions include creating a certification program for farmers who use practices that reduce runoff, establishing a unified water quality monitoring program, and strengthening oyster aquaculture leasing. To further advance these efforts, the Moore Administration has expanded funding for enhanced nutrient removal upgrades, provided resources to farmers and local governments, and financed innovative projects like the $200 million Piscataway Bioenergy facility serving Prince George's and Montgomery counties.
For more information visit mde.maryland.gov.
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Press release source: Office of Maryland Governor Wes Moore
About Constellation
Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the nation's largest producer of reliable, emissions-free energy and a leading energy supplier to businesses, homes and public sector customers nationwide, including three-fourths of Fortune 100 companies. With annual output that is nearly 90% carbon-free, our hydro, wind and solar facilities paired with the nation's largest nuclear fleet have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation's clean energy. We are committed to investing in innovative technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.