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.
Constellation Energy
Media Contact:
Robert L.
Gould, 410-470-7433
or
Investor Contact:
Carim
Khouzami, 410-470-3544
