Constellation Energy Group grows 8 new plants for national market

BALTIMORE, April 23, 2001 — Constellation Energy Group 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,, 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.