Constellation Energy Group Inc. / CEG

About Constellation Energy Group Inc.

750 E. Pratt St., Baltimore, Md. 21202
www.constellation.com | 410-783-2800 | Founded: 1816

Industry: Energy | Category: Top Companies Headquartered in Maryland

Constellation's chief executive, Mayo A. Shattuck, said it was a year of "turmoil," and that was an understatement. The company triggered political upheaval in Maryland early last year with a 72 percent increase in electricity rates, which was partly deferred. The uproar led to the cancellation of Constellation's proposed $12.4 billion merger with FPL Group, owner of Florida's biggest utility. The end of the merger plan was a setback for Shattuck, who has worked to take advantage of the deregulation of the utility industry. Constellation has separated Baltimore Gas and Electric from its power plants, turning the Maryland utility into a buyer of energy and the rest of Constellation into a wholesaler and broker.
Constellation has benefited from its transformation. It now sells power in three dozen states, focusing on deregulated markets. About 60 percent of its generating capacity comes from nuclear plants with relatively low operating costs. That has boosted profit as energy prices have soared. Operating earnings, after subtracting one-time items at its merchant energy business, soared 42 percent in 2006, while adjusted operating earnings at BGE slumped 28 percent. The increase in electricity rates is scheduled to be fully phased in by January 2008, but state legislators and regulators might yet reconsider that. To reduce its debt levels, Constellation also sold six natural-gas-fueled generating plants for $1.6 billion.

Chairman and CEO: Mayo A. Shattuck III

2006 Financial Data

Revenues: $19,284,900,000 | Net Income: $936,400,000
Asssets: $21,801,600,000 | Earnings Per Share: $5.16
Stockholder Equity: $4,609,300,000 | Annual Dividend: $1.51
Total employees: 9,736 | Local employees: 6,894