With Baltimore Gas and Electric Co.’s (BGE) deregulationsettlement in hand, parent Constellation Energy Group isanticipating the transfer of BGE non-nuclear generating plants andmaking organizational changes.

“We’ve already established a significant presence in NorthAmerica’s wholesale power marketing and generation businesses,”said Christian H. Poindexter, CEO of Constellation Energy Group.”With Constellation Power Source ranked among the top powermarketers, we’re on course of achieving our goal of being anindustry leader.”

As part of the deregulation settlement that was approved by theMaryland Public Service Commission, BGE’s non-nuclear generatingplants will transfer on July 1 to a non-regulated subsidiaryfocused on wholesale merchant generation and power marketing.

“The transfer of these plants energizes Constellation EnergyGroup’s domestic strategy,” said Charles W. Shivery, CEO ofConstellation Power Source. “We have top-notch experience andexpertise at building and operating power plants, trading theoutput on the open market, and managing the risk of fluctuatingenergy prices. We will continue to aggressively play to ourstrengths as we pursue this winning strategy.”

A number of planned organizational changes were announced insupport of Constellation’s strategy. Jan. 1, ConstellationEnterprises Inc. will be reorganized following the retirement ofChairman, President and CEO Edward A. Crooke. Domestic operationsfrom Constellation Power Inc. will join Constellation Power Sourceto form a new merchant generation company under Shivery. LatinAmerican operations in Constellation Power Inc. will berestructured into a new subsidiary, Constellation Power -International, with Jack Walter as president. Constellation EnergySource will continue to offer commercial energy management serviceswith Greg Jarosinski as its president. Diane Featherstone,currently president of Constellation Energy Source, will beresponsible for strategic planning at Constellation Power Source.

BGE Home will continue to pursue the unregulated retail marketin gas, appliances, and home improvement services in Maryland andthe surrounding region. BGE Home will also be the ConstellationEnergy Group subsidiary that markets electricity to retailcustomers. William H. Munn will continue as president.

Constellation Energy Group will form Constellation Nuclear topursue nuclear-related ventures. Calvert Cliffs Nuclear PowerPlant, which will be deregulated July 1, will be transferred toConstellation Nuclear. Robert E. Denton, currently BGE’s executivevice president of generation, will be president of this neworganization. Constellation Power Source will market the powergenerated by Calvert Cliffs.

Also effective July 1, Frank O. Heintz, executive vice presidentin charge of utility operations, will become president of BaltimoreGas and Electric.

Constellation Energy Group is a holding company whosesubsidiaries include energy-related businesses focused on powermarketing, generation, and portfolio management, plus BGE, whichprovides service to 1.1 million electric customers and 570,000 gascustomers in Central Maryland. In 1998, Constellation Energy Groupreported combined revenues of nearly $3.4 billion and assets of$9.2 billion.

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