Constellation instead agreed to sell half of its nuclear power business to EDF for $4.5 billion. The deal allows Constellation to remain independent and was touted as a better value for stockholders.
State energy regulators are expected to issue a decision next month on whether the deal would have "substantial influence" over Baltimore Gas and Electric Co., which serves 1.2 million customers. The outcome could determine whether the transaction requires the Maryland Public Service Commission's approval.
Gould said the company "strongly believes" the deal is structured to ensure EDF would not have such influence over BGE. Constellation, which is holding its annual shareholder meeting today, wants to close the deal by October.
The compensation that Constellation pays its executives has drawn sharp criticism as electricity rates have risen for customers and many have been unable to pay bills and face service shut-offs.
Amid public outcry in March, Constellation abandoned plans to guarantee up to $32 million in performance and retention payouts for executives, a deal that had been negotiated with MidAmerican but carried over into the EDF transaction.
The potential change-in-control payments were detailed in a recent filing with the Securities and Exchange Commission.
Such payouts are meant to ensure that top executives approve deals that are beneficial for shareholders even if the transactions mean they lose their jobs.
Sen. James C. Rosapepe, a Prince George's County Democrat who has been outspoken on energy policy, said he favors a quick resolution of the EDF transaction, but only "on terms that's beneficial to the ratepayers and not just to Constellation management."
