Merger

Hannah Cho's recent article ("O'Malley praises Exelon-CEG deal," Dec. 16) reported on a far superior merger agreement between Exelon Corp. and Constellation Energy Group than previous arrangements. Between 1999 and 2009, electricity prices across Maryland doubled, hurting businesses and families across the state. And although prices have fallen in the last two years, it is clear that we not only need the $100 credit that the Exelon-CEG merger will provide, but also a permanent rate relief solution.

Maryland regulators agreed Friday to postpone their decision on the $7.9 billion merger of Constellation Energy Group and Exelon Corp. until Feb. 17, giving themselves more time to evaluate a proposed settlement between the companies and Gov. Martin O'Malley. The extension of the deadline, which was initially set for Jan. 5, was expected after Exelon and Constellation agreed this week to $1 billion in concessions to gain the governor's support for the buyout. The companies promised to provide large renewable energy generation in Maryland, make significant investment for offshore wind development and add money to help low-income electricity customers.

While Maryland business, labor and environmental groups backed a $1 billion settlement between Gov. Martin O'Malley and Exelon Corp. related to the Chicago company's buyout of Constellation Energy Group, not everyone was satisfied. Merger opponent EDF Group renewed calls on Thursday for Maryland energy regulators to reject the proposed $7.9 billion deal. The French utility, which voted against the merger as Constellation's second-largest shareholder, has expressed concern that the proposed merger would hurt local management and autonomy of its nuclear joint venture with Constellation.

John Rowe made no secret of the fact that he badly wanted a signature merger to top off his career as the chief executive of Exelon Corp. How badly can be seen in the settlement he just agreed to in Exelon's bid to purchase Baltimore's Constellation Energy. He'll get his buyout, which will deliver about $7.9 billion to Constellation shareholders. But he'll end up paying close to $1 billion on top of that in energy projects and other benefits to assuage Maryland politicians and regulators, who have a history of blocking these transactions.

Gov. Martin O'Malley may not have gotten Exelon to bump up the $100 rate credit it promised to Baltimore Gas and Electric customers as part of its proposed merger with Constellation Energy, but he secured concessions that will be far more valuable to Maryland ratepayers in the long run. The settlement the governor plans to announce Thursday includes a vastly greater commitment to renewable energy and other new power generation than Exelon had ever...

In a settlement with Gov. Martin O'Malley over the proposed buyout of Constellation Energy Group, Exelon Corp. has promised to develop significantly more natural gas, wind and solar power in Maryland, give more money to help low-income customers and provide more protections for Baltimore Gas and Electric. O'Malley said Wednesday evening that by agreeing to sweeten its commitments to Maryland, Chicago-based Exelon has gained his support. He had opposed the $7.9 billion buyout as it was originally structured.

The University System of Maryland Board of Regents identified two very good reasons not to move forward right now with a merger of Maryland's flagship campus in College Park with its professional schools in Baltimore. The first is that doing a merger right would cost something on the order of a quarter billion dollars — money necessary to integrate data systems, create new research programs and build new facilities. Given the fiscal strain the state is under, that's not a realistic possibility right now. The second good reason is that, as Chancellor William E. "Britt" Kirwan pointed out, mergers do not work well when one side is opposed to it, and that appears inescapably to be the case with the Baltimore schools and virtually all civic leaders in the city.

After months of debate, the University of Maryland's governing board recommended Friday that the system's two largest research campuses, in Baltimore and College Park, remain separate institutions. The Board of Regents voted unanimously against a full merger of the institutions, calling instead for a "strategic alliance. " "The board's recommendation of an alliance should not be seen as a step toward a merger," the regents said in their report, released at an afternoon meeting in College Park.

By Maryland law, for the merger of Exelon and Constellation Energy to be permissible, it must be shown to cause no harm, and to benefit Baltimore Gas & Electric ratepayers and the public interest. Because, to date, Exelon has yet to offer a proposal that sufficiently meets these three thresholds, my administration cannot support the merger at this time. While the state of Maryland stands to lose 600 jobs post-merger, Constellation executives stand to make $34 million off the transaction.