Constellation Energy Group shook up its leadership ranks yesterday, announcing the departure of two top executives overseeing its competitive energy businesses, including the commodities trading unit, and it appointed an insider to lead those operations.
The shake-up is part of a series of management and other changes at Constellation since the Baltimore company agreed in September to sell itself to Warren Buffett's MidAmerican Energy Holdings Co. for $4.7 billion to avoid possible bankruptcy.
Thomas V. Brooks, president of Constellation Energy Resources, resigned effective immediately, as did George E. Persky, chief commercial officer of Constellation Energy Resources. Brooks also was executive vice president for the corporate parent; Persky was senior vice president.
They could not be reached yesterday to comment.
Constellation named Kathleen W. Hyle, senior vice president of finance, to lead Constellation Energy Resources as chief operating officer. Constellation Energy Resources oversees the trading group as well as retail and wholesale energy supply operations.
Since joining the company in 2001, Brooks and Persky had helped develop Constellation's energy marketing and commodities trading business, which became the source of concern as the credit crunch widened this summer. Questions about whether the trading operations had enough access to cash and credit contributed to Constellation's takeover in September.
Hyle, a Baltimore native who joined Constellation in 2003, also served as chief financial officer for Constellation Energy Nuclear Group.
"Since the announcement of our merger ... we have been working diligently to de-risk our portfolio and reshape our businesses to address a radically changed environment," Constellation Chief Executive Officer Mayo A. Shattuck III said in a statement.
"As we continue to execute on these strategic objectives, it is imperative to appoint a leadership team that embraces our vision, is agile in capitalizing on new strategies and is committed to achieving our collective goals."
Last week, Constellation announced it is selling its Houston gas-trading business, on top of previously announced sales of another portion of its natural gas assets and international coal and freight business. Constellation expects the moves to increase its liquidity by up to $1.5 billion through the return of collateral, which is required in its trading operations.
