In matching Shattuck's contribution, MidAmerican would give a total of $36 million to the foundation. As Constellation's charitable arm, the foundation has given money to area nonprofits including the Kennedy Krieger Institute, the B&O Railroad Museum, Maryland Food Bank and United Way.
"He thought it was appropriate, and we have a great deal of respect for that," Abel said of Shattuck's decision to donate the $18 million he waived. "We're basically matching what he's agreed to waive. We don't want to benefit from that; we would like the community to benefit from that."
Asked about Shattuck's future at Constellation, Abel said he and Shattuck still haven't discussed that issue.
The two companies also said that customers will not pay any costs related to the transaction through higher utility rates. That includes any severance or change-of-control payments, the companies said.
MidAmerican also said it was committed to Constellation's involvement in a joint venture for nuclear energy projects and that it hopes to build a new unit at Constellation's Calvert Cliffs plant in Lusby.
The shotgun takeover of Constellation marked a stunning decline for the company, one of only two Baltimore-area Fortune 500 companies. It came amid a Wall Street meltdown that emerged last month with the fall of Lehman Brothers. Constellation came under extraordinary pressure as investors lost confidence in the company's ability to access cash and credit to operate its business.
As credit-rating agencies prepared to downgrade Constellation bonds, company lawyers began preparing bankruptcy papers and executives continued talking with potential rescuers, the proxy reveals.
In the end, though, Buffett's MidAmerican moved quickly to provide an immediate infusion of $1 billion that the company needed to stay alive.
MidAmerican Chairman David Sokol demanded a steep price, however: the right to acquire all of Constellation at only one-fourth the company's market value from earlier in the year.
Baltimore Sun reporters Jay Hancock, Lorraine Mirabella and Andrea K. Walker contributed to this article.
the proposal
Highlights of MidAmerican Energy Holdings' acquisition of Constellation Energy, if approved by regulators:
* Constellation CEO Mayo A. Shattuck III would waive $18 million in cash severance but still would be eligible for millions
* MidAmerican would match Shattuck's severance and donate $36 million to the Constellation Energy Group Foundation
* Baltimore Gas and Electric Co. customers would be eligible for savings of up to $70 million through minimal and delayed gas and electric base distribution rate increases through the first half of 2011
* BGE's charitable and community-related contributions would be maintained at no less than $2.9 million annually through 2013
* There would be no BGE layoffs as a result of merger
Source: Documents filed with the Maryland Public Service Commission
