Constellation Energy and Baltimore Gas and Electric Company Propose Aggressive Plan to Dramatically Limit Pending Electricity R
March 28 2006 - 4:41PM
PR Newswire (US)
ANNAPOLIS, Md., March 28 /PRNewswire-FirstCall/ -- Constellation
Energy (NYSE:CEG) today announced that it, along with its
subsidiary, Baltimore Gas and Electric Company (BGE), has proposed
an extremely aggressive and comprehensive plan designed to
significantly ease the financial impact of this summer's shift to
market-based pricing for electricity while at the same time
ensuring the continued financial strength of Baltimore Gas and
Electric Company. "Today, we engaged in a meaningful and productive
bipartisan session with Governor Ehrlich, Senate President Miller
and Speaker Busch as well as several members of the Maryland
Legislature, during which time we presented an aggressive and
equally compelling rate stabilization plan with full securitization
that would dramatically reduce the impact of electric rates paid by
BGE customers this summer," said Mayo A. Shattuck III, president,
chairman and chief executive officer of Constellation Energy. "As
part of our proposal, we have taken the unusual and creative step
of offering substantial economic incentives directly linked to the
closing of our proposed merger with FPL Group to reduce the
residential rate increase to a more affordable amount for our
residential customers. We're drawing upon all resources
company-wide to support a far-reaching plan that is in line with
electric rate increases seen in Maryland during the past two years,
insulates customers from the full impact of skyrocketing fuel
prices, and allows for a manageable phase-in to market pricing. "We
fully recognize the financial impact that the global energy
marketplace is having on our customers in terms of soaring electric
prices. At the same time, it is critical that any agreement provide
for a continued strong and financially healthy BGE thereby assuring
the continued safe and reliable delivery of electricity to our more
than 1.2 million customers. We strongly believe our plan meets
those needs by allowing for a more gradual transition to
market-based electric rates consistent with other parts of the
country while encouraging competition and energy conservation."
Constellation Energy (http://www.constellation.com/), a FORTUNE 200
company with 2005 revenues of $17.1 billion, is the nation's
largest competitive supplier of electricity to large commercial and
industrial customers and the nation's largest wholesale power
seller. Constellation Energy also manages fuels and energy services
on behalf of energy intensive industries and utilities. It owns a
diversified fleet of more than 100 generating units located
throughout the United States, totaling approximately 12,000
megawatts of generating capacity. The company delivers electricity
and natural gas through the Baltimore Gas and Electric Company
(BGE), its regulated utility in Central Maryland. Additional
Information This communication is not a solicitation of a proxy
from any security holder of FPL Group, Inc. or Constellation
Energy. Constellation Energy intends to file with the Securities
and Exchange Commission a registration statement that will include
the joint proxy statement/prospectus of Constellation Energy and
FPL Group and other relevant documents to be mailed to security
holders in connection with the proposed transaction. WE URGE
INVESTORS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY
OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT FPL GROUP, INC.,
CONSTELLATION ENERGY AND THE PROPOSED TRANSACTION. A definitive
proxy statement will be sent to security holders of FPL Group and
Constellation Energy seeking approval of the proposed transaction.
Investors and security holders will be able to obtain these
materials (when they are available) and other documents filed with
the SEC free of charge at the SEC's website, http://www.sec.gov/.
In addition, a copy of the joint proxy statement/prospectus (when
it becomes available) may be obtained free of charge from FPL Group
Shareholder Services (700 Universe Blvd., P.O. Box 14000, Juno
Beach, FL 33408-0420), or from Constellation Energy, Shareholder
Services, 750 East Pratt St., Baltimore, MD 21202. This
communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended. FPL Group, Constellation Energy and their
respective directors and executive officers of FPL Group and
Constellation Energy and other persons may be deemed to be
participants in the solicitation of proxies in respect of the
proposed transaction. Information regarding FPL Group's directors
and executive officers is available in its proxy statement filed
with the SEC by FPL Group on April 5, 2005, and information
regarding Constellation Energy's directors and executive officers
is available in its proxy statement filed with the SEC by
Constellation Energy on April 13, 2005. Information regarding J.
Brian Ferguson, a director of FPL Group elected since the date of
the filing of the 2005 definitive proxy statement, can be found in
FPL Group's filing on Form 10-Q dated Aug. 4, 2005. Other
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the joint
proxy statement/prospectus and other relevant materials to be filed
with the SEC when they become available. DATASOURCE: Constellation
Energy CONTACT: Media Contact: Robert L. Gould, +1-410-234-7433, or
Investor Contact: Kevin Hadlock, +1-410-783-3647, both of
Constellation Energy Web site: http://www.constellation.com/
Company News On-Call: http://www.prnewswire.com/comp/084087.html
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