Constellation Energy Group, owner of BGE, reported a 23 percent increase in earnings per share this morning for the second quarter. This missed analysts' estimates, but only because a derivative contract that hedged an offsetting position lost value. Under accounting rules, hedges must be marked to their market price even if they're neutralized by accrued gains in normal operations. The accrued gains will be booked later, so the 14-cents-a-share hedge loss in today's report is really a non-event.

Constellation's gains were especially helped, said CEO Mayo Shattuck, by "continued strong performance from our Merchant business." The merchant business is the former BGE generation plants and other generators that Constellation owns around the country.