Exelon, Constellation Execs Before Md. PSC
BALTIMORE (WJZ) — The two CEOs working to merge Constellation Energy and Exelon spent their day trying to convince state regulators it’s a good deal for BGE customers.
Alex DeMetrick reports the companies are offering a quarter billion dollars to show their good intentions.
Mayo Shattuck is the CEO for Constellation Energy, which owns BGE. Chris Crane is CEO for Exelon, a Chicago-based company looking to buy Constellation in a merger.
Maryland’s Public Service Commission brought them together to answer a very basic questions.
“How will BGE be treated in a post-merged company,” said Rob Gould, Constellation spokesman.
And how will that show up on electric bills.
Consumer groups are watching closely, and some legislators are outright opposed to the merger.
“It is very dangerous. The fact of the matter is when you’re selling off or selling out a Fortune 500 company like Constellation, you better be careful. I don’t think it’s a good deal for Maryland,” said Del. Pat McDonough, (R) Baltimore County.
A merger would benefit Exelon and Constellation. The challenge is convincing state regulators it will benefit BGE customers.
So the companies are offering $250 million in benefits to cover $110 million in credits, which works out to a $100 credit per BGE customer, $70 million for philanthropic gifts and $15 million for low-income assistance.
“BGE customers are not going to be harmed here, and that’s what the PSC process is all about: looking at will customers be harmed and is there a benefit to the public. Public benefits are important to this type of transaction,” said Gould.
Maryland’s Public Service Commission will rule on the merger Jan. 5.