Full Description

Constellation Energy Group Inc. (Constellation Energy) is an energy company that conducts its business through various subsidiaries, including a merchant energy business and Baltimore Gas and Electric Company (BGE). The Company’s merchant energy business is a provider of energy-related products and services for a variety of customers. BGE is a regulated electric transmission and distribution utility company and a regulated gas distribution utility company with a service territory that covers the City of Baltimore and all or part of 10 counties in central Maryland. The Company’s operating segments are Merchant Energy, Regulated Electric and Regulated Gas. Constellation Energy’s remaining non-regulated businesses include design, construct and operate renewable energy, heating, cooling and cogeneration facilities for commercial, industrial and governmental customers throughout North America, as well as provide home improvements, service electric and gas appliances, service heating, air conditioning, plumbing, electrical and indoor air quality systems, and provide natural gas marketing to residential customers in Central Maryland.

In June 2008, Constellation Energy announced that its subsidiary, Constellation Energy Commodities Group Limited, acquired 100% of the shares of Nufcor International Limited (Nufcor) from AngloGold Ashanti Limited and FirstRand International Limited. In February 2008, the Company acquired the Hillabee Energy Center, a partially completed 774-megawatts gas fired combined-cycle power generation facility located in Alabama. In March 2009, the Company completed the divestiture of its Houston-based downstream gas unit, as well as the majority of its London-based coal, freight and international commodities business.

Merchant Energy Business

The Company’s merchant energy business includes a power generation and development operation that owns, operates and maintains fossil and renewable generating facilities, and holds interests in qualifying facilities, fuel processing facilities and power projects in the United States. It has a nuclear generation operation that owns, operates and maintains nuclear generating facilities. Merchant energy business includes a customer supply operation that primarily provides energy products and services to meet the load-serving obligations of wholesale and retail customers, including distribution utilities, cooperatives, aggregators, and commercial, industrial and governmental customers. It also includes a global commodities operation that manages contractually controlled physical assets, including generation facilities, natural gas properties, international coal sourcing and freight operations; provides risk management services and uranium marketing services, and trades energy and energy-related commodities.

During the year ended December 31, 2008, the merchant energy business provided approximately 26,600 megawatts of peak load in the aggregate to distribution utilities, municipalities and commercial, industrial and governmental customers; provided approximately 407,000 million British thermal units of natural gas to commercial, industrial and governmental customers; delivered approximately 25.4 million tons of coal to international and domestic third-party customers and to the Company’s own fleet, and managed approximately 9,136 megawatts of generation capacity as of December 31, 2008.

The Company owns, operates and maintains fossil, nuclear and renewable generating facilities and hold interests in qualifying facilities, and power projects in the United States and Canada totaling 9,136 megawatts. It also provides operation and maintenance services, including testing and start-up, to owners of electric generating facilities. The Company owns 100% of Calvert Cliffs Unit 1 (873 megawatts) and Unit 2 (862 megawatts). The Company owns 100% of Nine Mile Point Unit 1 (620 megawatt) and 82% of Unit 2 (933 megawatt of Unit 2’s total 1,138 megawatts). The Company owns 100% of the Ginna nuclear facility. It holds up to a 50% voting interest in 18 operating energy projects that consist of electric generation (primarily relying on alternative fuel sources), fuel processing, or fuel handling facilities.

Baltimore Gas and Electric Company

BGE is an electric transmission and distribution utility company and a gas distribution utility company with a service territory that covers the City of Baltimore and all or part of 10 counties in central Maryland. BGE is regulated by the Maryland PSC and Federal Energy Regulatory Commission (FERC) with respect to rates and other aspects of its business. BGE’s electric service territory includes an area of approximately 2,300 square miles. There are no municipal or cooperative wholesale customers within BGE's service territory. BGE’s gas service territory includes an area of approximately 800 square miles. BGE’s electric and gas revenues come from many customers, including residential, commercial and industrial. BGE maintains approximately 250 substations and approximately 1,300 circuit miles of transmission lines throughout central Maryland. BGE also maintains approximately 24,500 circuit miles of distribution lines.

BGE also provides customers with meter reading, billing, emergency response, regular maintenance and balancing services. Approximately 50% of the gas delivered on BGE’s distribution system is for customers that purchase gas from alternative suppliers. BGE’s pipeline firm transportation entitlements to serve its firm loads are 338,053 dekatherms (DTH) per day.

Other Non-regulated Businesses

The Company offers energy projects and services designed primarily to provide energy solutions to commercial, industrial and governmental customers. These energy products and services include designing, constructing and operating renewable energy, heating, cooling, and cogeneration facilities; water and energy savings projects and performance contracting; energy consulting and procurement services; services to enhance the reliability of individual electric supply systems, and customized financing alternatives. The Company offers services to customers in Maryland, including home improvements; the service of heating, air conditioning, plumbing, electrical and indoor air quality systems, and the sale of natural gas to residential customers.