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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.

More from Alex DeMetrick

    Are you ready for ANOTHER rate increase? Start turning out the lights and cuddle next to the dogs. . .might be a COLD winter after the small storm we just had.

  • breel

    don’t worry, I’ll just find somebody on the program. I bet the social program recipients will be warm. They’ll just crank the thermostat up to 80 even when they’re not there. Who cares it’s free for them while the working class suffers

    • Gregory Randolph

      Where do you get your information from? Nothing’s free for your so called social program recipients. . they are human beings like youself who just fell on hard times. Remember, It could happen to you. and besides, they are the ones targetd by BGE for shutoffs because of inability to pay there electric bills when it come to choosing between that or food.. So don’t knock them you may be in that position someday.

      • the truth

        Gregory, There are more people gaming the system than those that deserve to be on it. Wake up schmuck.

      • michael


        You are a joke!!!!
        The people that are “eligible” for the social programs are like leaches. Once they get into the system, they pass the knowledge of how to perpetrate fraud on to their children and the cycle continues.
        I agree people fall on hard times. If the government wants to have social programs to bridge a family through a hard time than that is what it should be. There should be a time limit on these programs. The problem is families are on these programs for life and have no intentions of getting off of them.
        So unless the government wants to put a time limit on programs (Section 8, welfare, food stamps, utlility assistance) than they should abolish them.
        You don’t see the people that were actually working and lost their job get to stay on unemployment for the rest of their lives.
        I think you probably live off your baby momma’s free housing and food stamps and are too lazy to work yourself.

  • KottaMan

    Frankly, after reading all that there is out here about this transaction, I conclude as follows. First, this is not a merger. It is a buy-out of BGE/Constellation Energy period. Secondly, Mayo Shattuck only does, historically, what is in HIS best financial interest. Third, the “bill credits” of $100.00 per BGE customer is chickenfeed and only half of what was credited to ratepayers in the PECO buyout in Philadelphia. Exelon’s record is less than stellar in its home state as well in terms of rates and its intentional shutting down of power plants to drive rates artificially higher. Maryland’s ratepayers WILL get hosed big time in my humble opinion and we will lose local control of this utility. Furthermore, Exelon would then own the two Maryland nuclear plants. As far as cost goes, nuclear is, by far, the cheapest way to generate large amounts of steady power. The per kWh cost is around 2 cents. Constellation, as owner of the nuke plants has been selling this cheap electric to NY, NJ, and other states at high prices. I see no reason why Exelon would think compassionately upon Maryland ratepayers even as much as Constellation may have done. This whole deal to sell out is a train wreck waiting to happen.

  • State Roundup, November 1, 2011 | Maryland News & Things to Do Blog

    […] Alex DeMetrick of WJZ also reports on the hearing. […]

  • the truth

    Vote Republican & eliminate all these social programs that just perpetuate section 8, food stamps free medical & cell phones for Hispanics & porch monkeys….This is you only chance to eliminate this sanctuary state & keep you from going under water.

  • Jerry

    When will the state stop selling our businesses to other states. When the hell will OweMalley and the other ********* start keeping businesses in Maryland and keep them owned by Marylanders. If this deal goes threw I’ll bet the unemployment will rise. Also who ever votes for this should be voted out. Also why doesn’t Shattuck cut the cost and stop lining his damn pocket.

  • Just tired of it

    If O”Malley and the other ******** do this and put more Marylanders on the unemployment line, Than the least the rest of us can do is make sure O’Malley and rest are standing there with them.

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