French firm seeks nuclear business of Constellation

"This is the kind of competitive situation that Senator E.J. Pipkin and I have been urging for two months," said state Sen. Jim Rosapepe, a Prince George's Democrat. "The best way for ratepayers to get a good deal is for there to be competition between potential acquirers of Constellation and its assets."

The PSC has said it would take a broad look at the effect of MidAmerican's offer on Maryland ratepayers, including weighing arguments about whether a "concrete and viable" alternative buyer would be a better choice.

"It does sound like they [EDF] might be putting some money where their mouth is," said Paul Patterson, an analyst with Glenrock Associates in New York. "I'm not sure how this fits with the political and regulatory environment in Maryland."

If it terminates its deal with MidAmerican, Constellation would have to repay MidAmerican's $1 billion investment, plus 14 percent interest, on Dec. 31, 2009, and also immediately pay a $175 million "break-up" fee. MidAmerican would get a 9.9 percent stake in the company and $418 million in cash for stock that cannot be issued due to regulatory limits.

Constellation shares rose $1.22, or 5.1 percent, to close at $25.15 yesterday.

Baltimore Sun writers Jay Hancock and Laura Smitherman contributed to this article.