Constellation Energy Statement on Baltimore Circuit Court Ruling
BALTIMORE, Jul 02, 2009 (BUSINESS WIRE) -- Constellation Energy (NYSE:CEG) issued the following statement regarding today's ruling by the Baltimore Circuit Court:
"We're disappointed by today's ruling in Baltimore Circuit Court. This is not a final ruling on the merits of our appeal. The judge determined that Constellation Energy's appeal was premature and should be reheard, if needed, after the Maryland Public Service Commission completes its current proceeding related to the Constellation Energy-EDF Group nuclear joint venture. We continue to believe there is strong legal merit to our position that Maryland Public Service Commission approval of Constellation Energy's pending nuclear joint venture with EDF Group is not required as a matter of law. Furthermore, the PSC order mandating this additional review on top of an already exhaustive and compelling record violates both the letter and spirit of the agreement Constellation Energy signed with Maryland in 2008.
"Last year, the governor and chairman of the PSC signed an agreement specifically allowing a minority investment of this kind in our business in exchange for more than $2 billion in BGE customer benefits. Then, they challenged the very agreement they negotiated and signed. As such, we felt compelled to protect our legal rights, which is what any business or individual would do under the circumstances.
"This investment by EDF is highly time-sensitive; nearly all regulatory authorities with legal standing have cleared EDF's minority investment in Constellation Energy's nuclear subsidiary, with the Nuclear Regulatory Commission (NRC) expected to issue its approval in the near future.
"It's important to also recognize that completing the proposed EDF nuclear joint venture is essential to Constellation Energy being able to work through the next set of challenges related to a potential new nuclear energy facility at Calvert Cliffs. It is unrealistic to think that Constellation Energy will be able to raise the capital required for a project of this magnitude -including billions of dollars of private investment, thousands of new jobs and new, clean energy - if the perception persists that Maryland's business, regulatory and political environment is hostile to such transactions. Simply put, Constellation Energy's potential investment in a new nuclear facility at Calvert Cliffs 3 and the successful close of the Constellation-EDF joint nuclear venture are inseparable.
"In this case, there is a real danger that justice delayed could be justice denied. Constellation Energy is reviewing its options and committed to defending its legal rights in this matter. Furthermore, we are committed to ensuring Maryland officials honor the agreement they signed with our company just last year, which clearly permits a transaction of this kind without PSC pre-approval. For the state of Maryland to be attractive to business now and into the future, it must honor its agreements. What could be more fundamental for representatives of state government than to honor the laws they adopt?"
About Constellation Energy
Constellation Energy (www.constellation.com) is a leading supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located throughout the United States, totaling approximately 9,000 megawatts of generating capacity, and is among the leaders pursuing the development of new nuclear plants in the United States. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation Energy had revenues of $19.8 billion in 2008.
SOURCE: Constellation Energy
Constellation Energy
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