CEG Constellation Energy Grp. Common Stock

Constellation NewEnergy Urges Michigan Senate to Preserve Electric Choice for Consumers (The following statement can be attributed to Robert J. Korandovich, Vice President, Constellation NewEnergy) BALTIMORE, Aug. 4 /PRNewswire-FirstCall/ -- Today the Senate Technology and Energy Committee begins review of the package of six bills which would amend Michigan's Electric Choice law, Public Act 141. While we are just at the beginning of this process, it's critically important that committee members, the Legislature and the public understand what's at stake. These legislative proposals would turn back the clock on electric choice in Michigan, with sudden and dramatic results - a return to some of the highest utility rates in the nation. The proposed bills should be summarily rejected by the committee. First and foremost, electric choice in Michigan works. It has saved an estimated $100 million in electricity supply costs for approximately 18,000 customer accounts, representing more than 3,500 MW of peak usage. Choice has introduced healthy competition into a regulated, monopolistic market and the results speak for themselves. Choice means competition. Competition means savings and improved reliability for customers across the state. The law is not broken, and there is no need to fix it. Competition has also fostered the building of new generation facilities to fill the supply gap for some Michigan utilities, which have reported inadequate generation resources to meet peak requirements. The proposed legislation would effectively gut electric choice in our state, and there would be severe economic repercussions for the 18,000 commercial and industrial customers already choosing a provider and contemplating switching to competitive supply. If the law is rescinded or watered down, commercial and industrial ratepayers will return to some of the highest electricity rates in the nation and their $100 million in cost savings will migrate to Detroit Edison and its shareholders. This committee will hear from our state's business community, which is speaking with a virtually unified voice. Commercial and Industrial rate payers have realized dramatic cost savings through electric choice and they are demanding that it be preserved. There are a number of outstanding issues that need to be resolved regarding the long-term future of electric restructuring in Michigan, and Constellation and others began a dialogue well over a year ago with the Michigan Public Service Commission to begin addressing those issues. The MPSC, not the Legislature, is the appropriate forum for resolution. Constellation NewEnergy (http://www.newenergy.com/), a member of Constellation Energy (NYSE:CEG), is a leading competitive supplier of electricity, natural gas and energy related services to commercial and industrial customers throughout North America. Constellation NewEnergy operates in all competitive energy markets throughout the United States and Canada, providing products that enable customers to effectively manage and control energy costs. Constellation NewEnergy's regional expertise coupled with its national presence provides customers with customized energy products and services while leveraging the assets of one of the strongest integrated energy companies in North America. Constellation NewEnergy, based in Baltimore, serves more than 8,000 commercial and industrial customers throughout 31 states and 3 Canadian provinces representing more than 8,000 megawatts of peak load and more than 300 billion cubic feet of annual natural gas consumption. Constellation Energy, a Fortune 500 company based in Baltimore, is the nation's leading competitive supplier of electricity to large commercial and industrial customers and one of the nation's largest wholesale power sellers. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns and operates a diversified fleet of 35 power plants in 12 states. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. In 2003, the combined revenues of the integrated energy company totaled $9.7 billion. DATASOURCE: Constellation NewEnergy CONTACT: Larry McDonnell of Constellation NewEnergy, +1-410-230-9858 Web site: http://www.constellation.com/ http://www.newenergy.com/ Company News On-Call: http://www.prnewswire.com/comp/084087.html

Copyright