Constellation: EdF deal good for Maryland

Constellation Energy's proposed deal to sell half of its nuclear assets to a French company is good for Maryland and the company will pursue its case before state regulators and the courts, a company spokesman said Wednesday.

Constellation Energy spokesman Rob Gould made the comments as Maryland's Public Service Commission met to schedule its review of the $4.5 billion deal. Constellation immediately appealed after the commission ruled last week that it has the right to determine whether the acquisition by France's EdF is in the public interest and the state filed a motion Tuesday to dismiss the appeal.

Constellation is not regulated by the PSC, but the commission does have authority over its Baltimore Gas and Electric subsidiary.

Gould said the deal is clearly permitted under an agreement passed by state lawmakers last year and the company is continuing down parallel paths in the courts and before the commission as it seeks to close the deal.

"Our main focus is getting, is closing this transaction in an expedited fashion and whichever path gets us there, we're going down those paths," the spokesman said.

The first filings in the case are expected Friday and PSC Chairman Doug Nazarian said the commission would work to have a ruling before the scheduled Sept. 17 closing of the deal.

Constellation officials have said the EdF deal will help it build a third nuclear reactor at Calvert Cliffs, which will provide needed energy as well as stimulate the economy. Gould said after the hearing that the deal will mean thousand of jobs, billions of dollars of private investment and new, clean energy.

"So, there's no question that this transaction is clearly of benefit to the state," Gould said.

Comments last week by Gov. Martin O'Malley about concerns that Constellation and EdF would use BGE as a cash cow for revenues were "smoke and mirrors," Gould said, adding the company plans to invest heavily in BGE.

The spokesman added the transaction was "clearly permitted" under an agreement signed by state lawmakers last year.

"So, we feel very strongly this transaction not only is structured not to harm BGE customers but there are significant benefits to be realized as a result of his transaction," Gould said.

Under the $2 billion settlement approved by the General Assembly, Constellation agreed to rebates, rate credits and other concessions and lawmaker raised a cap, generally used to decide whether regulatory approval is needed, to those involving at least 20 percent of Constellation's shares or control over more than a fifth of the board.

Constellation officials have said the deal would result in EdF taking a 9 percent stake in Constellation, but the PSC said in its ruling that the 20 percent rule did not apply in this case because EdF will acquire rights and assets other than voting interests.