Judge dismisses Constellation appeal in EdF case
BALTIMORE — Constellation Energy Group Inc. lost a round in its battle with Maryland regulators over its proposed deal to sell half its nuclear operations to France’s EdF when a judge ruled Thursday it could not appeal the decision to review the agreement while the review was under way.
The Maryland Public Service Commission is looking into whether the $4.5 billion deal is in the public interest. The PSC doesn’t regulate Constellation, but regulates its Baltimore Gas and Electric utility subsidiary.
Constellation contends the deal is permitted under a settlement that raised the trigger for state review to 20 percent of Constellation’s shares or its board. EdF would take a 9 percent stake, but the PSC decided the rule doesn’t apply because EdF would acquire other rights and assets.
Constellation Energy issued a statement after Baltimore Circuit Judge Stuart R. Berger issued the ruling saying it was disappointed, but still believes the pending deal does not require state approval. Constellation was highly critical of state officials saying the decision violates “both the letter and spirit” of the agreement with state lawmakers last year.
“Last year, the governor and chairman of the PSC signed an agreement specifically allowing a minority investment of this kind in our business in exchange for more than $2 billion in BGE customer benefits. Then, they challenged the very agreement they negotiated and signed,” the statement said. “As such, we felt compelled to protect our legal rights, which is what any business or individual would do under the circumstances.”
Gov. Martin O’Malley, who has made rising electric rates a key part of his administration and has been critical of Constellation, said he was pleased with the decision.
“We look forward to continuing with the Public Service Commission review and we remain focused on the goal we have held throughout these proceedings: a thorough review of this proposed transaction by professional regulators to ensure that the transaction is consistent with the public interest and adequately protects ratepayers,” O’Malley said.
A telephone call by The Associated Press seeking comment from the Public Service Commission was not immediately returned Thursday afternoon.
Constellation said the deal is highly time-sensitive and is crucial to plans to build a much-needed third nuclear reactor at Calvert Cliffs in southern Maryland. PSC Chairman Doug Nazarian has said the commission would work to complete the review by the deal’s Sept. 17 closing date.
Constellation said in its statement that there was a “real danger that justice delayed could be justice denied,” adding it was reviewing its options.
“Furthermore, we are committed to ensuring Maryland officials honor the agreement they signed with our company just last year, which clearly permits a transaction of this kind without PSC pre-approval,” the statement said. “For the state of Maryland to be attractive to business now and into the future, it must honor its agreements. What could be more fundamental for representatives of state government than to honor the laws they adopt?”
Related News
Constellation, EdF may save $1B in taxes over 15 years under final terms of dealSeptember 30th, 2009 New terms may save Constellation, EdF $1B in taxesBALTIMORE — A Constellation Energy Group executive says the company and its partner Electricite de France will save more than $1 billion in taxes over 15 years under the new terms of a nuclear power transaction
Constellation's Vice President of Integration John Collins said Tuesday that under the new terms, EdF will buy 49 percent of Constellation's nuclear business, but in two pieces to meet federal tax regulations. It will pay $3.809 billion for one portion and $670 million for the other — less than the previously announced $4.5 billion.
Federal judge dismisses Parmalat lawsuits against Bank of America and an auditing firmSeptember 18th, 2009 Parmalat to appeal judge's dismissal of suitsNEW YORK — Italian dairy giant Parmalat says it will appeal a federal judge's ruling tossing out lawsuits seeking to hold Bank of America Corp. and auditing firm Grant Thornton International responsible in Parmalat's collapse.
Federal judge dismisses dress code lawsuit filed by SD tribe; parents may file a new oneSeptember 17th, 2009 Judge dismisses school dress code lawsuit in SDABERDEEN, S.D. — A federal judge has dismissed a lawsuit that sought to prevent a South Dakota school district from imposing a dress code.
Wash. to seek urgent appeal of decision blocking release of gay rights referendum petitionsSeptember 11th, 2009 Wash. to appeal ruling in gay rights referendumSEATTLE — The Washington state attorney general's office says it is appealing a federal judge's decision to keep secret the names of people who signed petitions calling for a public vote on expanded domestic partnership benefits. Spokeswoman Janelle Guthrie says Attorney General Rob McKenna will ask the 9th U.S.
Judge extends deadline to weigh in on Google's digital book deal until Sept. 8September 3rd, 2009 Judge extends deadline to debate Google book dealNEW YORK — A federal judge has extended the deadline to support or protest a class-action settlement that would empower Google to add millions of out-of-print books to its already vast digital library. The new deadline is 10 a.m.
Constellation Energy repays $500M, 6.125 pct bond without refinancingSeptember 2nd, 2009 Constellation Energy repays $500M, 6.125 pct bondBALTIMORE — Constellation Energy Group Inc. on Wednesday said it repaid a $500 million, 6.125 fixed-rate bond without refinancing, as part of its plan to improve liquidity and strengthen its balance sheet.
Mexico's Supreme Court dismisses appeal of military jurisdiction in crimes against civiliansAugust 11th, 2009 In Mexico, challenge of military courts failsMEXICO CITY — Mexico's Supreme Court has dismissed an appeal against the practice of allowing military courts to judge soldiers involved in crimes against civilians. The court says it rejected an appeal by a woman whose husband was shot by soldiers in northern Sinaloa state in 2008 because she lacks legal standing to file the appeal.
Federal judge approves expansion of Smoky Canyon phosphate mine into Idaho roadless areaAugust 6th, 2009 Judge approves phosphate mine expansion in IdahoBOISE, Idaho — A federal judge has given approval for the expansion of the Smoky Canyon phosphate mine into a roadless area near Yellowstone National Park, but an environmental group is already promising to appeal the ruling. In a 53-page decision handed down late Tuesday evening, U.S.
Constellation Energy Group gets contract to supply electricity to Texas school districtJuly 8th, 2009 Constellation Energy gets Texas school contractBALTIMORE — Constellation Energy Group Inc. said Wednesday that its subsidiary, Constellation NewEnergy Inc., has signed an electricity supply agreement with the Fort Bend Independent School District in Fort Bend County, Texas.
Maryland regulators say proposed Constellation-EdF deal requires their approvalJune 11th, 2009 Md. regulators say they must OK nuclear power dealCOLUMBUS, Ohio — Maryland regulators ruled Thursday that they have the right to sign off on French nuclear power company EdF's plan to buy half of Constellation Energy's nuclear power business for $4.5 billion, rejecting the companies' arguments that approval by the regulators was not necessary. Constellation Energy immediately appealed the decision.
Constellation Energy appeals ruling by Maryland regulators over EdF dealJune 11th, 2009 Constellation appeals Md. decision on EdFBALTIMORE — Power company Constellation Energy has appealed a ruling by Maryland regulators that they have the right to approve its proposed $4.5 billion sale of half its nuclear power business to French nuclear company EdF.
Judge agrees to delay legal rights for Bagram detainees until government can appealJune 2nd, 2009 Judge holds Bagram detainee casesWASHINGTON — A federal judge has put a hold on his order allowing detainees at a U.S. air base in Afghanistan access to courts until the government can appeal.
Berkshire Hathaway sells 2.4M more shares of Constellation Energy obtained in failed takeoverMay 14th, 2009 Berkshire sells 2.4M more Constellation sharesOMAHA, Neb. — Billionaire Warren Buffett's company sold more of the 20 million shares of Constellation Energy Group Inc.
Constellation Energy posts 1st-quarter loss, but reaffirms full-year outlookMay 5th, 2009 Constellation Energy posts 1Q loss on itemsBALTIMORE — Utility company Constellation Energy Group Inc. on Tuesday posted a first-quarter net loss on several one-time losses, but reaffirmed its full-year earnings outlook.
Constellation Energy's top executive receives 2008 compensation of $5.7M, says AP tallyApril 29th, 2009 Constellation Energy CEO gets $5.7M 2008 packageCOLUMBUS, Ohio — Constellation Energy Group's top executive, Mayo Shattuck III, received total compensation valued at $5.7 million in 2008, according to Associated Press calculations of data filed with regulators Wednesday. The pay package represents a nearly 56 percent drop in value from his 2007 compensation, and follows a year in which the wholesale power generator was nearly forced into bankruptcy by a liquidity crisis.
Loading ...