Constellation plays ball again with Maryland
Call me stupid, but it's difficult to see how Electricité de France's minority stake in a subsidiary of the holding company that owns Baltimore Gas and Electric -- and one seat on the holding company's board -- gives it "substantial influence" over BGE. Whether or not EDF would obtain substantial influence is the test of whether its deal to invest billions in Constellation Energy's nuclear operation is subject to approval by the Public Service Commission.
Constellation is BGE's holding-company owner. It would have a good case if it told the PSC, the governor and the legislature to jump in the Inner Harbor. But once again Constellation is negotiating with policymakers rather than litigating, as Laura Smitherman and Hanah Cho report in today's Baltimore Sun. The governor wants price reductions for BGE customers, investment in clean energy, protection of BGE against financial raids by outsiders and "absolute transparency" on compensation to Constellation boss Mayo Shattuck. Whatever "absolute transparency" means.
I'm not saying Constellation's executive pay policies and the experience of BGE and its customers in the wake of deregulation aren't a problem. Maryland policymakers have tried to hold previous Constellation deals hostage to try to get concessions for BGE customers. This time the legal ground looks more slippery. It doesn't seem to matter to Constellation. The hostage could probably walk out the door and hail a cab. But instead he's negotiating the ransom.
Comments
Jay, using your same logic that Electricité de France's minority stake in a subsidiary of the holding company that owns Baltimore Gas and Electric, I can then conclude that there is no real takeover thus also negating Shattuck's appeal for $ 87 Million in change of control extortion. If he loses his job, then he deserves 2 weeks severance just like the rest of us working smucks.
Posted by: afmca | May 29, 2009 11:18 AM
O'Malley and the other politicians are doing their best to run Constellation out of town. They could care less about people's BGE bills. They just see an opportunity to grab votes. I want to be at the press conference when CEG finally throws in the towel and moves out of MD. Thats just what baltimore needs.
Posted by: JM | May 29, 2009 11:33 AM
Hi afmca: That's exactly the case. There is no takeover, and Shattuck is not due $87 million. Nobody is arguing that the $87m is at stake in the EDF deal except the governor's office.
Posted by: Jay | May 29, 2009 12:27 PM
OK Jay. Based on your columns I switched juice suppliers and locked in for a couple of years. So today's front page says rate relief coming from BGE. Please don't tell me you're going to pull an "Emily Latela" on us.
Posted by: Bob W. | May 29, 2009 1:05 PM
Hi Bob: If rate relief comes it will be applied against the BGE portion of your bill, and it wont' matter whether you buy electricity from WGES or anybody else. It's supplier neutral.
Posted by: Jay | May 29, 2009 1:12 PM