NewEnergy Retail Gas Marketing Activities to Focus on Commodity Sales and
Risk Management
BALTIMORE, May 15 /PRNewswire-FirstCall/ -- Constellation Energy (NYSE:
CEG) today announced the pending sale of its Fellon-McCord & Associates
(Fellon-McCord) energy consulting and management subsidiary to the
company's co-founder, Andrew R. "Drew" Fellon. As part of the agreement,
Constellation Energy's Customer Supply Group unit and Fellon-McCord will
maintain a strategic alliance, allowing the companies to meet the needs of
current customers and pursue joint opportunities.
Since its acquisition by Constellation Energy in 2003, Fellon-McCord
and the related retail gas commodity business has grown successfully.
Constellation Energy said the separation of Fellon-McCord's energy
consulting and management unit and NewEnergy's commodity sales and risk
management services would better position each company to pursue
independent growth strategies.
"These lines of business are complementary but distinct, and this
restructuring allows each company to focus on what it does best," said Mark
P. Huston, co-president of Constellation Energy's Customer Supply Group.
"At Constellation Energy, our expertise is commodity risk management, and
our world-class capabilities provide exceptional value to customers. Our
retail gas unit will gain the independence to pursue growth opportunities
aligned with its core mission, while the strategic alliance allows us to
work jointly with Fellon-McCord to serve existing customers and pursue
cross-selling opportunities."
"The strategic alliance ensures a seamless transition for our existing
customers and provides the flexibility each company needs to pursue
independent transactions or enter new markets," said Drew Fellon,
president, Fellon-McCord & Associates. "The structure allows Fellon-McCord
to preserve the most beneficial elements of a joint working relationship
with an industry leader such as Constellation Energy. We also gain the
freedom to tailor a growth strategy specifically tied to the needs of our
customers and the dynamics of the energy markets."
Closing of the agreement is targeted for June 30, 2008. Fellon-McCord
will maintain its headquarters in Louisville, Ky., in its present location.
The NewEnergy retail gas unit will maintain its headquarters in its
present location in Louisville, and coordinate commodity sales and risk
management activities with Constellation Energy's gas marketing operations
in Houston, Omaha, Waukesha, Wis., and Baltimore. The unit will be led by
Co-Chief Commercial Officers Kevin Watson and Bret Feller.
Constellation NewEnergy Gas is a full-service provider of natural gas
supply and transportation-related services. With headquarters in
Louisville, Ky., Constellation NewEnergy Gas has sales offices across North
America, serving more than 14,000 commercial, industrial, and institutional
facilities that annually consume more than 491 Bcf of natural gas.
Constellation NewEnergy Gas is a division of Constellation Energy and a
sister company to Constellation NewEnergy.
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, Lawrence McDonnell, +1-410-470-7433,
or Investors, Janet Mosher, +1-410-470-1884, both of
Constellation Energy
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