Merger timeline

Merger Unplugged

October 26, 2006|By Stacey Hirsh and Tricia Bishop

Dec. 19, 2005

Constellation and FPL announce a deal to merge.

Feb. 27

Maryland lawmakers say they want more testimony from Constellation and FPL to make sure consumers will be protected.

March 30

The General Assembly votes to give the legislature power to halt the merger if a special investigator decides it won't be good for Marylanders, a move apparently meant to force concessions in talks over a 72 percent increase in BGE electricity rates. Gov. Robert L. Ehrlich Jr. later vetoes the measure.

April

Two major credit agencies downgrade BGE's debt rating based on the legislature's action.

May 1

Constellation CEO Mayo A. Shattuck III pledges to donate millions in merger-related compensation to a charitable foundation if the deal is approved.

May 16

Legislators demand that Constellation disclose how much money executives would make in a merger with FPL and the value of Constellation power plants in Maryland.

May 24

Maryland's Legislative Black Caucus unveils a plan to deal with increasing electricity rates, which includes holding up the Constellation and FPL merger.

May 30

Constellation and FPL temporarily halt merger planning amid the political uproar over rising electric rates. Shattuck says there's no telling whether the deal will survive.

June 1

Constellation discloses that Shattuck and a dozen other executives stand to receive $72.9 million in cash if the FPL merger goes through.

June 6

Constellation says it is planning to sell six natural-gas-fired power plants outside Maryland with an estimated value of $800 million. The move to reduce debt is viewed by some analysts as aimed at shoring up the balance sheet if the FPL merger fails.

June 23

Constellation discloses in regulatory filings that Shattuck is waiving tens of millions of dollars in bonuses and accelerated pension payments that would be triggered by the FPL merger.

Sept. 14

Maryland Court of Appeals blocks the General Assembly's effort to fire members of the Public Service Commission, leaving the FPL merger in limbo.

Sept. 26

Lewis Hay III, chief executive of FPL Group Inc., says his patience with Maryland delays is wearing thin.

Oct. 4

FPL files suit against the state and the Maryland Public Service Commission to force a timely review of the merger.

Oct. 11

Constellation announces it will sell six natural-gas-fired power plants outside Maryland for $1.64 billion

Oct. 25

Constellation and FPL announce they are terminating the merger.

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