BALTIMORE, March 11 /PRNewswire-FirstCall/ -- Constellation Energy
(NYSE: CEG) today announced it has signed a settlement agreement with the
Federal Energy Regulatory Commission (FERC) to address capacity release
violations the company discovered in an internal compliance review at its
retail natural gas subsidiary and thereafter voluntarily reported to FERC.
The self-reported violations related primarily to posting and bidding
requirements for released natural gas pipeline capacity and the
shipper-must- have-title requirement. The company and FERC concluded the
non-compliant transactions at the company's retail natural gas subsidiary
stemmed in part from the rapid growth of Constellation Energy's retail
natural gas business through a series of acquisitions from 2002 through
2006.
Constellation Energy said its retail natural gas unit took prompt self-
corrective action to terminate or restructure contractual arrangements to
ensure compliance with FERC's capacity release regulations. In addition,
the company implemented several organizational changes, including locating
all of the retail natural gas unit's wholesale natural gas functions at the
company's wholesale natural gas platform in Houston; enhancing natural gas
regulatory compliance controls to identify potential violations, and
enhancing the legal and compliance functions for its retail gas subsidiary.
Under the FERC settlement agreement related to the self-reported
violations, Constellation Energy's retail natural gas unit will pay a civil
penalty of $5 million. Additionally, the retail natural gas unit will pay
out, or "disgorge," approximately $1.9 million in revenue associated with
the non- compliant transactions. As directed by the FERC agreement,
disgorged revenues will be contributed to various state energy assistance
programs. The retail natural gas unit and the company's wholesale business
also agreed to submit a semi-annual compliance report to FERC's enforcement
staff for a period of two years.
Constellation Energy (http://www.constellation.com), a FORTUNE 125 company
with 2007 revenues of $21 billion, is the nation's largest competitive
supplier of electricity to large commercial and industrial customers and
the nation's largest wholesale power seller. Constellation Energy also
manages fuels and energy services on behalf of energy intensive industries
and utilities. It owns a diversified fleet of 78 generating units located
throughout the United States, totaling approximately 8,700 megawatts of
generating capacity. The company delivers electricity and natural gas
through the Baltimore Gas and Electric Company (BGE), its regulated utility
in Central Maryland.
SOURCE Constellation Energy
 back to top
Related links:
http://www.constellation.com
http://www.prnewswire.com/comp/084087.html /
CONTACT:
Media, Lawrence McDonnell, +1-410-470-7433,
or Investors, Kevin Hadlock, +1-410-470-3647, both of
Constellation Energy
|
