New ETF Book by Larry Connors - Click here to read more
The deal's closure ends a difficult chapter for Constellation, which teetered on the edge of bankruptcy amid the meltdown of the financial sector last year. Forced by a severe cash shortage to find a partner, Constellation initially agreed to a takeover by billionaire investor Warren Buffett before switching to the deal with Electricite de France in December.
In completing the deal, the Baltimore company surmounted regulatory hurdles and overcame political pressure. The agreement creates a joint venture to expand the companies' partnership to develop and build the first nuclear power plants in the United States in more than three decades, including a new unit at Calvert Cliffs.
Constellation's nuclear assets include existing Calvert Cliffs units in Southern Maryland and the Nine Mile Point and R.E. Ginna plants in New York.
"With the close of the transaction, the companies look forward to working together to deliver the expected economic, environmental and clean energy benefits created by the joint venture," the two companies said in a statement.
In completing the transaction, Constellation will begin implementing conditions imposed by the Maryland Public Service Commission, including paying a one-time credit of $100 each to residential customers of its regulated utility, Baltimore Gas and Electric Co.
Other concessions include measures to protect BGE from future financial troubles of its parent company. Constellation must make a $250 million cash infusion to BGE by June 30, limit dividend payments from BGE, delay requests for delivery rate increases and establish "ring-fencing" measures to protect the utility from the parent's potential bankruptcy.
It is not clear when ratepayers can expect to see the credit on their bills; the PSC gave Constellation until March 30 to implement the credit totaling $110.5 million.
Constellation is expected to update the PSC on its progress at a hearing Dec. 1.
To see more of The Baltimore Sun, or to subscribe to the newspaper, go to http://www.baltimoresun.com. Copyright (c) 2009, The Baltimore Sun Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
