The state Public Service Commission on Friday approved the $4.5 billion sale of half of Baltimore-based Constellation Energy’s nuclear business to French company EDF, on the condition that the company gives a one-time credit of approximately $100 to every Baltimore Gas and Electric residential ratepayer by next March.
In an order released Friday afternoon, the commission said its approval also depends on Constellation pumping $250 million into BGE by June 30, and limits the dividends the utility can pay to its parent company. The order would also restrict when BGE could seek rate increases.
The order gave Constellation and EDF until next Friday, Nov. 6 to inform the PSC whether they will proceed with the deal under those conditions.
In a brief statement, Constellation acknowledged the order, but did not provide further comment, pending a review of the order. Company spokesman Rob Gould also declined to comment.
State regulators have approved the construction of a third nuclear reactor at the Calvert Cliffs Nuclear Power Plant in southern Maryland – even as those regulators prepare to review a business deal that could be crucial to getting the new reactor built at all.
The state’s Public Service Commission approved the 1,600 megawatt reactor following an 18-month review including public meetings (which were largely pro-nuke love-fests). The decision was dated Friday but not made public until late Monday evening.
Constellation hasn’t firmly committed to building the new reactor, which wouldn’t come online until sometime next decade and could cost as much as $9 billion to construct. The federal Nuclear Regulatory Commission still has to approve the project and has said it won’t do so until 2012.
The new reactor and three other similar nuke projects around the country were proposed by UniStar Nuclear Energy, a joint venture between Baltimore ...Continue Reading
Delegate Pat McDonough has introduced legislation establishing the Constellation Energy Group (CEG) Review Commission. The purpose of the proposal is to provide a group of experts and consumer advocates with the authority to investigate the reasons for the demise of this company. Delegate McDonough believes that current law and the authority of the Public Service Commission will not provide the opportunity to review why CEG stock tumbled from about $100 per share in January of 2008 all the way down to $24 per share.
Mr. McDonough maintains that shareholders and the public deserve to know what caused the financial troubles at CEG. It is important to know the role that management played and what steps the company’s executive leadership utilized to try and prevent the company’s problems.
The details surrounding the decision made by Constellation CEO Mayo Shattuck to sell the company, at what Delegate McDonough termed “a fire ...Continue Reading
Delegate Pat McDonough has introduced legislation establishing the Constellation Energy Group (CEG) Review Commission. The purpose of the proposal is to provide a group of experts and consumer advocates with the authority to investigate the reasons for the demise of this company. Delegate McDonough believes that current law and the authority of the Public Service Commission will not provide the opportunity to review why CEG stock tumbled from about $100 per share in January of 2008 all the way down to $24 per share.
Mr. McDonough maintains that shareholders and the public deserve to know what caused the financial troubles at CEG. It is important to know the role that management played and what steps the company’s executive leadership utilized to try and prevent the company’s problems.
The details surrounding the decision made by Constellation CEO Mayo Shattuck to sell the company, at what Delegate McDonough termed “a fire ...Continue Reading
Annapolis Update – Energy – Deregulate or Reregulate? – Dec. 16, 2008
The final report to the Public Service Commission, “State Analysis and Survey on Restructuring and Reregulation (Task 2) and Analysis of Options for Maryland’s Energy Future (Task 3)” has been made. My committee, Economic Matters, has just received a briefing on it.
After listening to two hours of testimony by the Public Service Commission, I am still in full support of reregulation of the Maryland utility industry. The report showed that reregulation would be a good thing, starting three years after reregulation. This is supported by all the charts and statistics that were presented to us. In spite of this, unfortunately, the Commission feels that there are risks in reregulating.
One thing for sure, there has definitely been extreme risk in deregulation. The most recent risk is the devaluing of BGE and Constellation stock, which ...Continue Reading
First, the fairy tale. Constellation Energy is the victim of difficult economic times which resulted in the demise of the company. Fortunately, through the leadership of Mayo Shattuck, the company was saved from total destruction by a white knight named Warren Buffett. That’s the fairy tale.
