CEG Constellation Energy Grp. Common Stock

BALTIMORE, May 16 /PRNewswire-FirstCall/ -- Constellation Energy (NYSE:CEG) and its subsidiary Baltimore Gas and Electric Company (BGE) today released the following statement regarding BGE's appeal to the Maryland Court of Special Appeals concerning a lower court ruling prohibiting the utility from communicating the specifics of a Maryland Public Service Commission (PSC) approved rate stabilization plan. "It is extremely unfortunate, particularly for BGE's customers, that certain elected officials continue to use the issue of higher energy costs for nothing more than political gain and advantage, while at the same time, offering no viable alternative to the increase. "In this case, the important option to phase-in market prices is being forestalled by a legal challenge by the City of Baltimore, the net effect of which continues to deprive BGE's residential customers - not only those in Baltimore City, but all its customers throughout Central Maryland - of the opportunity to phase-in market prices under favorable terms. "Despite what others may say, the increase in electric bills is real and is a reflection of nothing more than the transition from rates frozen at 6.5 percent below 1993 levels to market prices during a global energy crisis. That is why throughout the past several months, we have remained steadfast in our commitment to work with all stakeholders in an effort to find a viable solution for the benefit of our customers, while at the same time, ensuring the continued financial strength of BGE. We believe that the rate stabilization plan, as approved by the Maryland Public Service Commission, achieves these objectives by offering BGE customers an attractive option for easing the transition to market prices beginning July 1, 2006. "Unfortunately, the recent court order preventing BGE from communicating with its customers will only serve to confuse an already frustrated customer base. It is our hope that through today's appeal, the court will lift the stay on communications related to the rate stabilization plan, thereby permitting BGE the opportunity to provide its customers with the information they need to make a timely and informed decision. Time is of the essence. Denying communications with less than 60 days to go before the increase in electric costs becomes effective, against a backdrop of politically charged rhetoric, is counterproductive and only serves to confuse our customers." Yesterday in a filing with the Circuit Court for Baltimore City, BGE also requested that the case be remanded back to the PSC for cross examination pertaining to the Rate Stabilization Plan. BGE contends that the PSC order approving the optional rate stabilization plan is valid as it stands. However, BGE is seeking to expedite resolution of the rate stabilization plan so that its customers will have the option to phase-in the market prices on July 1. 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. DATASOURCE: Constellation Energy CONTACT: Robert L. Gould of Constellation Energy, +1-410-234-7433 Web site: http://www.constellation.com/ Company News On-Call: http://www.prnewswire.com/comp/084087.html

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