ANNAPOLIS, MD—Maryland Governor Wes Moore this week announced a “historic agreement” with Constellation Energy valued at more than $340 million, aimed at mitigating the environmental impact of the Conowingo Dam and bolstering Chesapeake Bay restoration efforts.
The commitments, negotiated in partnership with Waterkeepers Chesapeake and the Lower Susquehanna Riverkeeper Association, are intended to meet water quality standards and clear the way for the re-licensing and continued operation of the hydroelectric facility on the Susquehanna River.
“The Chesapeake Bay is the keystone to Maryland’s prosperity,” Governor Moore said at the dam site. “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.”
Comprehensive Environmental Investment
The $340 million commitment includes operational improvements and both upfront and ongoing annual payments, distributed across several key environmental initiatives over the dam’s license term:
- Water Quality and Resiliency: $87.6 million for pollution reduction efforts, including shoreline restoration, forest buffers, and planting underwater grasses.
- Trash and Debris Removal: $77.8 million to strengthen efforts to clear debris, which currently averages about 600 tons annually.
- Aquatic Life Passage: More than $28 million for fish and eel passage improvements, aimed at helping American shad, river herring, and freshwater mussels rebound.
- Freshwater Mussel Restoration: $23.3 million to build and operate a hatchery to seed the river with mussels, which act as natural water filters.
- Dredging Studies: $18.7 million to support additional studies on dredging the dam’s reservoir.
The agreement resolves a long-standing legal challenge regarding the dam’s environmental impacts. An initial 2018 water quality certification and subsequent 2019 settlement were vacated by an appeals court in 2022, prompting a year of mediation that led to the new deal.
Economic and Clean Energy Impact
Constellation Energy’s President and CEO, Joe Dominguez, noted that the agreement supports the dam’s role as the state’s largest source of renewable energy.
“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,” Dominguez said.
State officials highlighted the economic benefits of a cleaner Bay, which underpins a $3.2 billion annual tourism economy and a seafood industry contributing nearly $600 million to the state each year.
Maryland Attorney General Anthony G. Brown praised the collaborative effort. “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,” he said.
The commitments are contained in a Revised Water Quality Certification issued by the Maryland Department of the Environment (MDE) and a companion settlement agreement. MDE Secretary Serena McIlwain confirmed that all parties, including the environmental groups who had challenged the previous framework, have signed on.
“With this agreement, we are protecting clean water and vibrant ecosystems for generations to come while supporting jobs, commerce, and energy security,” McIlwain said.
Photo via the Maryland Governor’s Office
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