Constellation

Shareholders for Baltimore-based Constellation Energy Group Inc. and Chicago-based Exelon Corp. today approved the merger of the two energy companies. The confirmation of the $7.9 billion deal by shareholders was widely expected by analysts, but had its critics. Federal and state regulatory reviews are still required for the deal, which company officials say is on track to close in the first quarter of next year. More than three-quarters of Constellation's shareholders submitted votes on the deal; the special shareholders' meeting took place in New York City.

The Federal Energy Regulatory Commission has delayed its decision on the proposed merger between Baltimore's Constellation Energy Group and Exelon Corp., a move that could push back a closing of the deal until April. Exelon and Constellation had anticipated FERC would approve the $7.9 billion transaction by Wednesday, but a settlement related to the deal reached in October has added 180 days to the regulatory review period, the companies revealed Monday in regulatory filings. The companies said they still expected the deal to close in the first quarter of 2012.

Leaders of the financially-strapped company that produced the Baltimore Grand Prix have been interviewing candidates to take the helm of the group, officials said Wednesday. "Believe it or not, there are several people who have expressed interest," said Peter Collier, Baltimore Racing Development's Chief Operating Officer. Felix Dawson, a former executive with Constellation and Goldman Sachs, is among the candidates under consideration, Collier said. "It shows the caliber of the people that we're interviewing and the level of interest that we're getting," Collier said.

The Maryland Public Service Commission's ongoing review of the proposed merger of Constellation Energy Group and Exelon Corp. has uncovered numerous pros and cons for the Baltimore-area consumer, from the loss of a corporate headquarters to the proposed one-time $100 credit on consumer bills. Much more testimony remains to be heard. But if there's one wrinkle to emerge from last week's hearings that demands a PSC response, it's this: Exelon appears interested in investing more in Maryland-based renewable power.

Two years ago, Constellation Energy Group and its French nuclear partner EDF were BFFs. Today, with EDF seeking to torpedo the Baltimore company's plan to sell itself to Chicago-based Exelon Corp., the relationship between the former "best friends forever" has clearly deteriorated. The French utility — Constellation's second-largest shareholder — is pushing Maryland energy regulators to reject the proposed $7.9 billion merger. A consultant hired by EDF is scheduled to testify Wednesday as the second week of hearings continues before the Maryland Public Service Commission.

When asked by the head of the Public Service Commission what would happen if the Exelon-Constellation merger didn't go through, Constellation CEO Mayo A. Shattuck III said it would be bad for shareholders and hurt Constellation's reputation in the world. What he didn't mention was that he would forfeit the enormous bonus he is to get as a result of the merger. Think how devastated he must have been about losing his $20 million bonus when the last merger didn't go through. Of course, the hundreds of regular people who will lose their jobs in the merger, and thus won't be able to pay taxes or contribute to the economy, are only a tiny glitch for Mr. Shattuck.

You might have seen the news footage of the guy in the orange construction vest who a couple of weeks back angrily yelled at the Occupy Baltimore encampment that he was "working his butt off to support you guys," apparently referring to the unemployed among them. If he really wanted to protest where his tax money may be going, he could have walked a couple of blocks from McKeldin Square. The findings of a new study indicate that because of corporate tax breaks, rebates and loopholes, many Fortune 500 companies pay little or no federal income taxes on their profits.

I am no economic expert, but common sense suggests that if Constellation and Exelon merge, most if not all the consequences will be detrimental to Marylanders. Exelon would be buying Constellation, so when the number of workers is reduced - as always happens for cost-cutting reasons when mergers occur - Maryland workers will be the ones laid off. And does anyone doubt that electricity prices, especially in Maryland will go up? Anyone with eyes and ears must know that this will happen.

A top Exelon Corp. executive said Thursday that separating Baltimore Gas and Electric Co. from parent Constellation Energy Group would be a "deal breaker" for the proposed $7.9 billion merger between the two energy giants. Exelon Chief Operating Officer Christopher M. Crane's remark came after two Maryland senators called on state energy regulators to order the spinoff of BGE into an independent, publicly traded company as a condition of merger approval. In a letter sent Thursday to the Maryland Public Service Commission — which has the power to veto the deal — Sens.