CEG Constellation Energy Grp. Common Stock

Constellation Energy Commodities Group Announces Transaction with Dynegy BALTIMORE, Nov. 18 /PRNewswire-FirstCall/ -- Constellation Energy (NYSE:CEG) today announced that its wholesale origination and risk management arm, Constellation Energy Commodities Group, Inc., has signed a 570-megawatt, four-year power purchase agreement with Dynegy Power Marketing, Inc., a subsidiary of Dynegy Inc. (NYSE:DYN). Under the terms of the agreement, Constellation Energy will receive from Dynegy $117.5 million in cash and effectively assume Dynegy's rights, benefits and obligations under a 570-megawatt power purchase agreement with LSP-Kendall Energy, LLC for a period of four years, commencing Dec. 1, 2004. The power purchase agreement covers power generated by two combined cycle units at the Kendall Plant, located just south of Chicago. In exchange for the cash payment and benefits including energy, capacity and ancillary product revenue, Constellation Energy will pay Dynegy an amount equal to the payment obligations under the Kendall power purchase agreement for the relevant four-year term. Dynegy has retained the rights, benefits, and obligations under the power purchase agreement as of Dec. 2008 running through the remainder of the term. "The physical characteristics of the Kendall plant are particularly good, and the energy products we expect to receive will add an attractively priced new generation resource to our competitive supply portfolio," said Thomas V. Brooks, president of Constellation Energy Commodities Group. "This is beneficial because our competitive supply business continues to grow. Thus far during the fall 2004 utility procurement cycle, we have won about 25-30 percent of the total megawatts awarded, and all of this year's awards have added more to next year's results than we were able to add to 2004 through all of 2003. We're enthusiastic about the opportunity to grow by helping customers such as Dynegy to restructure contractual obligations in a way that results in new power supply positions that fit well into our competitive supply portfolio." 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 or co-owns 107 generating units at 35 locations in 11 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. Forward-Looking Statements We make statements in this news release that are considered forward- looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our Form 10-K under the forward- looking statements section. DATASOURCE: Constellation Energy CONTACT: Larry McDonnell, Constellation Energy, +1-410-234-7433 or +1-410-230-9858 Web site: http://www.constellation.com/ Company News On-Call: http://www.prnewswire.com/comp/084087.html

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