Constellation Energy Group Grows 8 New Plants for National Market

Apr 23, 2001, 01:00 ET from Constellation Energy Group

    BALTIMORE, April 23 /PRNewswire Interactive News Release/ -- Constellation
 Energy Group (NYSE:   CEG), one of the nation's fastest growing merchant energy
 companies, is scheduled to bring four "peaking" power plants on line this
 summer with four larger power plants scheduled to enter service in the summers
 of 2002 and 2003.
     The four natural gas-fired peaking plants -- which are designed to provide
 electricity for the wholesale market during times of peak usage in summer and
 winter -- are located in Chicago, Rockland Township, Pa., Bristol, Va., and
 Neal, W.Va.  They are expected to be operational in June and July and will
 combine to add 1,100 megawatts of electricity to Constellation Energy Group's
 domestic generation portfolio, and support the company's nationally ranked
 power marketing and trading business, Constellation Power Source.
     In addition to the four new peaking plants, Constellation Energy Group is
 building four other larger merchant power plants scheduled to begin commercial
 operations over the next two years.  Those plants are under construction in
 California, Florida, Illinois, and Texas.
     Rio Nogales, under construction in Seguin, Texas, is an 800-megawatt plant
 scheduled to come on line June 2002 as is Holland Energy, a 665-megawatt plant
 in Shelby County, Ill.  Oleander, a 680-megawatt plant being built in Cocoa,
 Fla., is scheduled to begin service in the summer 2002.  High Desert, in
 Victorville, Calif., is the first major power plant being built in Southern
 California in 15 years.  Its 750 megawatts of electricity are due to come on
 stream July 2003.
     "We're building in these seven states because they serve regions where
 wholesale electricity is needed and where we can provide energy to support our
 national power marketing business," said Constellation Energy Group Chairman
 and CEO Christian H. Poindexter.  "In addition, these plants will also provide
 numerous benefits to the states and communities themselves, from added tax
 revenues to clean, efficient energy where additional electricity is needed."
     When completed, these plants -- along with the anticipated purchase
 closing later this year by Constellation Energy Group on two Nine Mile Point
 nuclear power plants in Scriba, N.Y. -- will provide Constellation Power
 Source control of more than 13,000 megawatts of power for the North American
 wholesale market.  The merchant energy company, started from scratch in 1997
 in a strategic alliance with Goldman Sachs & Company, ended 2000 as the
 nation's ninth largest wholesale electric power marketer based on megawatt
 hours after climbing as high as fifth for the third quarter.
     Mr. Poindexter also recently announced that Constellation Energy Group,
 www.constellationenergy.com, intends to enhance shareholder value by
 separating its wholesale merchant energy and retail energy businesses into two
 stand-alone, publicly traded corporations later this year.
     Currently, Constellation Energy Group is a holding company with energy-
 related businesses focused mainly on power marketing, generation, and energy
 portfolio management.  It also includes the nation's oldest utility, Baltimore
 Gas and Electric Company, which provides service to more than 1.1 million
 electric customers and nearly 600,000 natural gas customers in Central
 Maryland.  Constellation Energy Group reported combined revenues of
 $3.9 billion and assets of $12.4 billion in 2000.
 
     Forward-Looking Statement
     Statements are made in this press release that are considered forward-
 looking statements within the meaning of the Securities Exchange Act of 1934.
 Sometimes these statements will contain words such as "believes," "expects,"
 "intends," "plans," and other similar words.  These statements are not
 guarantees of future performance and are subject to risks, uncertainties and
 other important factors that could cause actual performance or achievements to
 be materially different from those projected.  These risks, uncertainties and
 factors include, but are not limited to: ability to obtain all regulatory
 approvals necessary to complete the separation of the merchant energy business
 from the retail services business; satisfaction of all conditions precedent to
 the closing on Constellation Energy Group's purchase of the Nine Mile Point
 nuclear power plant; satisfaction of all conditions precedent to a transaction
 with an affiliate of the Goldman Sachs Group. Inc. in which it will buy a
 minority interest in our merchant energy business; general economic, business
 and regulatory conditions; the pace and nature of deregulation nationwide
 (including the status of the California markets) energy supply and demand;
 competition; federal and state regulations; availability, terms and use of
 capital; nuclear and environmental issues; weather; implications of the Order
 issued by the Maryland PSC regarding implementation of customer choice in
 Maryland including appeals of the order; commodity price risk; operating
 generation assets in a deregulated market without the benefit of a fuel rate
 adjustment clause; loss of revenues due to customers choosing alternative
 suppliers; higher volatility of earnings and cash flows; increased financial
 requirements of nonregulated subsidiaries; inability to recover all costs
 associated with providing electric retail customers service during BGE's
 electric rate freeze period; implications from the transfer of BGE's
 generation assets and related liabilities to nonregulated subsidiaries of
 Constellation Energy Group, including the outcome of an appeal of the PSC
 order regarding the transfer, and force majeure-events (events beyond our
 control) such as acts of nature, changes in laws, labor strikes, and work
 stoppages, especially as they could impact plant construction or operation.
 Given these uncertainties, undue reliance should not be placed on these
 forward-looking statements.  Please see periodic reports filed with the
 Securities and Exchange Commission for more information on these factors.
 These forward-looking statements represent estimates and assumptions only as
 of the date of this press release, and no duty is undertaken to update any
 forward-looking statements to reflect new information, events or circumstances
 after the date of this press release or to reflect the occurrence of
 unanticipated events.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X64441532
 
 

SOURCE Constellation Energy Group
    BALTIMORE, April 23 /PRNewswire Interactive News Release/ -- Constellation
 Energy Group (NYSE:   CEG), one of the nation's fastest growing merchant energy
 companies, is scheduled to bring four "peaking" power plants on line this
 summer with four larger power plants scheduled to enter service in the summers
 of 2002 and 2003.
     The four natural gas-fired peaking plants -- which are designed to provide
 electricity for the wholesale market during times of peak usage in summer and
 winter -- are located in Chicago, Rockland Township, Pa., Bristol, Va., and
 Neal, W.Va.  They are expected to be operational in June and July and will
 combine to add 1,100 megawatts of electricity to Constellation Energy Group's
 domestic generation portfolio, and support the company's nationally ranked
 power marketing and trading business, Constellation Power Source.
     In addition to the four new peaking plants, Constellation Energy Group is
 building four other larger merchant power plants scheduled to begin commercial
 operations over the next two years.  Those plants are under construction in
 California, Florida, Illinois, and Texas.
     Rio Nogales, under construction in Seguin, Texas, is an 800-megawatt plant
 scheduled to come on line June 2002 as is Holland Energy, a 665-megawatt plant
 in Shelby County, Ill.  Oleander, a 680-megawatt plant being built in Cocoa,
 Fla., is scheduled to begin service in the summer 2002.  High Desert, in
 Victorville, Calif., is the first major power plant being built in Southern
 California in 15 years.  Its 750 megawatts of electricity are due to come on
 stream July 2003.
     "We're building in these seven states because they serve regions where
 wholesale electricity is needed and where we can provide energy to support our
 national power marketing business," said Constellation Energy Group Chairman
 and CEO Christian H. Poindexter.  "In addition, these plants will also provide
 numerous benefits to the states and communities themselves, from added tax
 revenues to clean, efficient energy where additional electricity is needed."
     When completed, these plants -- along with the anticipated purchase
 closing later this year by Constellation Energy Group on two Nine Mile Point
 nuclear power plants in Scriba, N.Y. -- will provide Constellation Power
 Source control of more than 13,000 megawatts of power for the North American
 wholesale market.  The merchant energy company, started from scratch in 1997
 in a strategic alliance with Goldman Sachs & Company, ended 2000 as the
 nation's ninth largest wholesale electric power marketer based on megawatt
 hours after climbing as high as fifth for the third quarter.
     Mr. Poindexter also recently announced that Constellation Energy Group,
 www.constellationenergy.com, intends to enhance shareholder value by
 separating its wholesale merchant energy and retail energy businesses into two
 stand-alone, publicly traded corporations later this year.
     Currently, Constellation Energy Group is a holding company with energy-
 related businesses focused mainly on power marketing, generation, and energy
 portfolio management.  It also includes the nation's oldest utility, Baltimore
 Gas and Electric Company, which provides service to more than 1.1 million
 electric customers and nearly 600,000 natural gas customers in Central
 Maryland.  Constellation Energy Group reported combined revenues of
 $3.9 billion and assets of $12.4 billion in 2000.
 
     Forward-Looking Statement
     Statements are made in this press release that are considered forward-
 looking statements within the meaning of the Securities Exchange Act of 1934.
 Sometimes these statements will contain words such as "believes," "expects,"
 "intends," "plans," and other similar words.  These statements are not
 guarantees of future performance and are subject to risks, uncertainties and
 other important factors that could cause actual performance or achievements to
 be materially different from those projected.  These risks, uncertainties and
 factors include, but are not limited to: ability to obtain all regulatory
 approvals necessary to complete the separation of the merchant energy business
 from the retail services business; satisfaction of all conditions precedent to
 the closing on Constellation Energy Group's purchase of the Nine Mile Point
 nuclear power plant; satisfaction of all conditions precedent to a transaction
 with an affiliate of the Goldman Sachs Group. Inc. in which it will buy a
 minority interest in our merchant energy business; general economic, business
 and regulatory conditions; the pace and nature of deregulation nationwide
 (including the status of the California markets) energy supply and demand;
 competition; federal and state regulations; availability, terms and use of
 capital; nuclear and environmental issues; weather; implications of the Order
 issued by the Maryland PSC regarding implementation of customer choice in
 Maryland including appeals of the order; commodity price risk; operating
 generation assets in a deregulated market without the benefit of a fuel rate
 adjustment clause; loss of revenues due to customers choosing alternative
 suppliers; higher volatility of earnings and cash flows; increased financial
 requirements of nonregulated subsidiaries; inability to recover all costs
 associated with providing electric retail customers service during BGE's
 electric rate freeze period; implications from the transfer of BGE's
 generation assets and related liabilities to nonregulated subsidiaries of
 Constellation Energy Group, including the outcome of an appeal of the PSC
 order regarding the transfer, and force majeure-events (events beyond our
 control) such as acts of nature, changes in laws, labor strikes, and work
 stoppages, especially as they could impact plant construction or operation.
 Given these uncertainties, undue reliance should not be placed on these
 forward-looking statements.  Please see periodic reports filed with the
 Securities and Exchange Commission for more information on these factors.
 These forward-looking statements represent estimates and assumptions only as
 of the date of this press release, and no duty is undertaken to update any
 forward-looking statements to reflect new information, events or circumstances
 after the date of this press release or to reflect the occurrence of
 unanticipated events.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X64441532
 
 SOURCE  Constellation Energy Group

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