BALTIMORE, March 27 /PRNewswire-FirstCall/ -- Constellation Energy
(NYSE: CEG) today confirmed that it is working with Maryland political and
regulatory leaders on the terms of a comprehensive settlement of prior
legal, regulatory and legislative issues. Under discussion is a broad
settlement that includes a number of financial and regulatory agreements.
The settlement includes terms that are contingent upon passage of
legislation by the Maryland General Assembly during its current session,
which ends April 7, 2008.
"This agreement would provide far-reaching benefits for our customers,
our shareholders and the State of Maryland," said Mayo A. Shattuck,
chairman, president and chief executive officer, Constellation Energy. "All
parties gain meaningful benefits in this carefully crafted settlement, and
the overarching value is a return to regulatory stability and normalcy.
This settlement will allow our company and all Maryland stakeholders to
move forward confidently on the many energy-related challenges and
opportunities that lie ahead, including the potential for a new nuclear
unit at our Calvert Cliffs Nuclear Power Plant."
Pending signing of the settlement agreement and subsequent legislative
action by the Maryland General Assembly, the parties would agree to dismiss
pending state and federal litigation.
Certain terms of the tentative agreement under discussion include:
-- Reaffirmation by the State of Maryland of the 1999 settlement and
dismissal of all ongoing PSC proceedings related to the 1999 settlement
and other investigations.
-- One-time bill credit to BGE residential customers ($170 per customer),
totaling $187 million.
-- Elimination of BGE ratepayer liability for decommissioning Calvert
Cliffs Nuclear Power Plant in Southern Maryland.
-- Restoration of 90 percent of Senate Bill 1 credits (enacted into law
during the 2006 Special Session of the Maryland Legislature) and
settlement of lawsuits related to the 1999 settlement agreement ($346
million of original $386 million).
-- All things being equal, Constellation Energy will work to develop a new
nuclear power plant at its Calvert Cliffs site before development at
any other site it controls.
-- Modernization of Maryland's laws (PUC, Sections 6-101, 6-105) governing
investment in holding companies of gas and electric utilities.
-- Strengthened PSC oversight capability through codification of federal
authority to examine the books and records of any Maryland electric
utility and its affiliates.
-- Enhanced corporate governance of BGE through the addition of two
independent directors to the BGE Board.
-- Phase-in of future BGE Electric Distribution Rate Changes and early
implementation by BGE of accelerated depreciation accrual methodology
as recommended by PSC Staff in case 9096.
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
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Related links:
http://www.constellation.com
http://www.prnewswire.com/comp/084087.html/
CONTACT:
Media: Robert L. Gould, +1-410-470-7433, or
Investors: Kevin Hadlock, +1-410-470-3647, or Janet Mosher,
+1-410-470-1884, all of Constellation Energy
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