Constellation Sues MD PSC Over French Merger

Constellation Energy Group has sued the Maryland Public Service Commission (PSC) over its decision to review the utility's deal to sell nearly half of its nuclear power generation business to Electricite de France (EdF). The Maryland PSC issued an order Thursday saying that the $4.5 billion deal could affect customers at the regulated utility Baltimore Gas & Electric Company, which Constellation owns.

As part of a $2 billion settlement Constellation reached last year with the administration of Governor Martin O’Malley, the state agreed to give up regulatory controls over any deal involving the transfer of up to 20 percent of the company’s stock or control of 20 percent of its board of directors. Larger transactions would be monitored by the state under this “safe harbor” arrangement. The EDF deal would give the French company 9 percent of Constellation’s stock and 9 percent of the seats on its board. (The Daily Record, 6/11/09)