By contrast, the company said the 1999 deal provided more than $2 billion in benefits to consumers through rate cuts and other concessions that the PSC failed to properly calculate.
Terms of the 1999 settlement were twice upheld in state court cases. The latest dispute over decommissioning costs heads to federal court, which will probably be asked to review the matter in the context of the entire settlement.
The $386 million in decommissioning credits are a holdover from Constellation's 2006 dispute with lawmakers over its proposed $12 billion merger with Juno Beach, Fla.-based FPL Group Inc. Lawmakers sought to link approval of the merger with concessions for BGE ratepayers. At one point, Constellation offered $600 million in concessions - including the decommissioning credits - as an enticement to get the deal done. The company planned to pay for the concessions with merger- related cost savings.
But lawmakers later made the credits part of legislation separate from the deal. When the merger fell apart later that year amid regulatory hangups, Constellation cried foul.
Absent the merger, the company said, the credits amount to an unconstitutional taking of property.
However, Constellation struck a deal with the attorney general not to sue until it had an opportunity to negotiate that and other issues with a new PSC headed by O'Malley appointees. The "standstill" agreement, which allows either party to back out with 30 days' notice, was extended in April last year.
Raquel M. Guillory, a spokeswoman for the attorney general, confirmed that the company has signaled its intent to sue.
If the company prevails, BGE customers would again pay the decommissioning fee as part of their rates. Legal experts say the company has a strong case, given that lawmakers knew the credits were originally linked to approval of the FPL merger.
paul.adams@baltsun.com
