| Page 2 of 2 < |
Constellation in Quick Deal With Buffett
|
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
"We're a very big proponent of nuclear energy," Abel said.
Abel said Constellation's energy-trading business would continue, but that it would probably be scaled down.
MidAmerican owns six energy firms, including ones in California and Britain. Constellation is one of the Washington area's largest employers, with 7,500 workers in Maryland. It also owns 83 power plants, which were a big draw for MidAmerican.
"We think they have exceptional assets," Abel said.
Constellation's problems are likely to revive the debate over deregulation of utilities, which helped pave the way for expanded energy trading by utility holding companies and investment banks. In Maryland, the switch to competitive electricity markets also triggered a political battle between Constellation executives and Gov. Martin O'Malley (D). When O'Malley took office last year, he faced a consumer revolt over a 72 percent rate increase for BGE customers. In April, O'Malley and the company reached a legal settlement to give 1.1 million customers in the Washington-Baltimore area a one-time $170 credit and other rate relief. To head off a threat of blackouts in three years if the demand for electricity outpaces supply, the Maryland Public Service Commission has threatened to force BGE and other utilities to build new power plants.
Yesterday, O'Malley praised the sale as good news for Maryland customers.
"Given the volatility of the markets we've seen this week and the wreckage of this mismanaged economy, this appears to be a pretty good result," O'Malley said. "You couldn't find a more reputable, stronger white knight than Warren Buffett."
Buffett is on the board of The Washington Post Co.
The deal ended speculation that Electricite de France, the French nuclear power giant, would make an offer for Constellation.
Because BGE is a regulated utility, the Maryland Public Service Commission must approve the deal. The commission said it would weigh whether the sale is "consistent with the public interest" and does not harm consumers.
The companies said the deal is expected to close within nine months.
Staff writer John Wagner contributed to this report.
