Constellation Energy Group buys natural gas supplier and energy consulting business

2 January 2003 – Constellation Energy Group and Allegheny Energy, Inc. announced today that they have reached an agreement resulting in the purchase by Constellation Energy of two Allegheny Energy subsidiaries: Alliance Energy Services, a provider of gas supply and transportation services, and Fellon-McCord & Associates, an energy consulting business.

Under the terms of the agreement, Constellation acquired 100 per cent ownership of both companies.

On a combined basis, the acquired companies serve approximately 1000 customer facilities in North America. “We are pleased to reach this arrangement which significantly expands our large commercial and industrial business,” said Mayo A. Shattuck III, President, Chief Executive Officer and Chairman of the Board of Constellation Energy Group. “This acquisition continues our focus on serving the energy cost management needs of large energy users while extending our reach along the energy value chain.” During 2002, the expansion of Constellation’s load serving business, the acquisitions of NewEnergy, Alliance and Fellon-McCord have combined to transform the company into the nation’s largest competitive supplier of energy to large customers.

About Constellation Energy Group:

A Fortune 500 company based in Baltimore, Constellation Energy Group owns energy-related businesses, including a merchant power business that serves electrical load for wholesale and commercial and industrial customers in North America, and the Baltimore Gas and Electric Company (BGE), a regulated energy delivery company which serves more than 1.1 million electric customers and more than 600,000 natural gas customers in central Maryland. At year-end 2001, Constellation Energy Group reported revenues of $3.9 billion and assets of $14.1 billion. SOURCE Constellation Energy Group