Constellation Energy

Constellation Energy

Type	Public (NYSE: CEG) S&P 500 Component
Industry	Electric Utility
Founded	1816 (as the Gas Light Company of Baltimore)
Headquarters	Baltimore, Maryland, U.S.
Key people	Mayo A. Shattuck III, CEO, Chairman, & President
Products	Electricity, Natural Gas
Revenue	$13.76 billion (2011)[1]
Website	www.constellation.com

BGE, Constellation Energy's regulated utility

Calvert Cliffs Nuclear Power Plant in Lusby, Maryland

Constellation Energy, headquartered in Baltimore, Maryland, was an energy producer, trader, and distributor. The company operated over 35 power plants in 11 states (mainly Maryland, Pennsylvania, New York, West Virginia, and California) under its operating company Constellation Energy Group. Constellation Energy's regulated utility, Baltimore Gas & Electric, operated in central Maryland. Constellation Energy was a Fortune 500 company and was one of the top electricity producers in the United States.

In April 2011, Exelon announced an intention to purchase Constellation Energy. The merger was approved by FERC and the companies officially combined on March 12, 2012 with Constellation Energy taking the Exelon name and the corporate headquarters moving to Exelon in Chicago, Illinois.

Before its departure, Constellation Energy was the last remaining Fortune 500 company headquartered in Maryland.

Services

Constellation Energy, with 2007 revenues of $21 billion, was the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller.

Constellation NewEnergy, a wholly owned subsidiary of Constellation Energy, was a leading competitive supplier of electricity, natural gas, and energy-related services to commercial, industrial, and institutional customers throughout North America. Constellation NewEnergy served more than 19,000 customers throughout 31 states and three Canadian provinces, representing nearly 14,000 megawatts of peak load and more than 354 billion cubic feet (1.00×10¹⁰ m³) of annual natural gas consumption.

Constellation Energy also managed fuels and energy services on behalf of energy intensive industries and utilities. It owned a diversified fleet of 83 generating units located throughout the United States, totaling approximately 9,000 megawatts of generating capacity.

Constellation Energy's regulated utlity, Baltimore Gas & Electric or BGE, delivered electricity and natural gas to approximately 1.2 million customers in the central Maryland region.

Awards

Constellation Energy employed almost 10,000 people. It was named "2004 Energy Company of the Year" in the Platts Global Energy Awards, and was chosen by its peers as the best in the energy industry when it was awarded Most Admired Energy Company of 2004.

Joint ventures and acquisitions

On September 15, 2005, Constellation Energy announced a new joint venture, UniStar Nuclear, with Areva to market the European Pressurized Reactor (EPR) in the USA. Constellation Energy had withdrawn its Lusby, Maryland, and Oswego, New York, sites from the NuStart consortium finalist list. However, both sites desire new nuclear units (see Nuclear Power 2010 Program).

On December 19, 2005, FPL Group, Inc. (owner of Florida Power and Light) announced the acquisition of Constellation Energy in a merger transaction valued at more than US$11 billion as well as the fact that it would adopt "Constellation Energy" as its name for the post-merger entity. The merger was canceled on 25 October 2006.^[2]

On July 1, 2008, Constellation Energy bought uranium trading firm Nufcor International from AngloGold Ashanti and FirstRand International.^[3]

Pursuant to a 2007 agreement, French power company EDF is permitted to purchase up to 9.9% of Constellation Energy's stock.^[4] As of 2008, EDF owned 9.5% of the stock.^[4]

After Constellation Energy was reported to have exposure to Lehman Brothers following that company's bankruptcy filing Constellation's stock went down 56% in the first day of trading having started at $67.87. The massive drop in stocks led to the New York Stock Exchange halting trade of Constellation. The next day, as the stock plummeted as low as $13 a share, the company announced it was hiring Morgan Stanley and UBS to advise it on "strategic alternatives" suggesting a buyout. While French power company Electricite de France, who already owned 9.5% of Constellation's shares, bid for the company,^[5] Constellation ultimately agreed to a buyout by MidAmerican Energy, part of billionaire Warren Buffett's Berkshire Hathaway company.^[6][7][8] On December 17, 2008, Constellation Energy has canceled its merger with Berkshire Hathaway, instead opting to sell its nuclear energy assets to EDF.^[9]

Recently in April 2010, Constellation Energy has closed its agreement with Clipper Windpower to acquire the Criterion Wind Project in Garrett County, Maryland, and to purchase 28 Clipper Liberty 2.5MW wind turbines for the project.^[10] Construction of the project was completed in December 2010.

On April 28, 2011 Exelon announced an intention to purchase Constellation Energy which was completed on March 12, 2012.^[11]

Environmental record

The Political Economy Research Institute ranks Constellation Energy 33rd among corporations emitting airborne pollutants in the United States. The ranking is based on the quantity (16 million pounds in 2005) and toxicity of the emissions.^[12] Major pollutants indicated by the study include sulfuric acid, chlorine, nickel compounds, and hydrochloric acid.^[13]

See also

• Calvert Cliffs Nuclear Generating Station
• Conemaugh Generating Station
• Ginna Nuclear Generating Station
• Keystone Generating Station
• Nine Mile Point Nuclear Generating Station
• Safe Harbor Dam

References

External links

• Constellation Energy
• Constellation NewEnergy
• Constellation Projects & Services
• Constellation Electric
• Baltimore Gas and Electric