Constellation Energy is a North American energy company which includes a merchant
energy business and BGE, its regulated electric and gas public utility in central
Maryland.'Our merchant energy business is a competitive provider of energy solutions
for large customers in North America. It has electric generation assets located
in various regions of the United States and provides energy solutions to meet
customers needs. Our merchant energy business focuses on serving the full energy
and capacity requirements (load-serving) of, and providing other energy risk management
services for various customers, such as utilities, municipalities, cooperatives,
retail aggregators, and commercial and industrial customers.
Our merchant energy business includes:
a generation operation that owns, operates, and maintains fossil, nuclear,
and hydroelectric generating facilities and interests in qualifying facilities,
fuel processing facilities and power projects in the United States,
a marketing and risk management operation that provides energy products and
services to wholesale customers,
an electric and gas retail operation that provides energy services to commercial
and industrial customers, and
a generation and consulting services operation.
BGE is a regulated electric transmission and distribution utility company and
a regulated gas distribution utility company with a service territory that covers
the City of Baltimore and all or part of ten counties in central Maryland. BGE
was incorporated in Maryland in 1906.
Our other nonregulated businesses:
design, construct, and operate heating, cooling, and cogeneration facilities
for commercial, industrial, and municipal customers throughout North America,
and
provide home improvements, service heating, air conditioning, plumbing, electrical,
and indoor air quality systems, and provide natural gas retail marketing to
residential customers in central Maryland.
In addition, we own several investments that we do not consider to be core
operations. These include financial investments, real estate projects, and interests
in a Latin American power distribution project and in a fund that holds interests
in two South American energy projects.
We analyze the results of our merchant energy business as follows:
Mid-Atlantic Fleet'our fossil, nuclear, and hydroelectric generating facilities
and load-serving activities in the PJM Interconnection (PJM) region for which
the output is primarily used to serve BGE. This also includes active portfolio
management of the generating assets and associated physical and financial arrangements.
Plants with Power Purchase Agreements'our generating facilities with long-term
power purchase agreements, including our Nine Mile Point Nuclear Station (Nine
Mile Point), Oleander, University Park,
and High Desert generating facilities.
Competitive Supply'our wholesale marketing and risk management operation that
provides energy products and services to distribution utilities and other wholesale
customers. We also provide electric
and gas energy services to retail commercial and industrial customers.
Other'our investments in qualifying facilities and domestic power projects
and our generation and consulting services.
Competitive Supply
We are a leading supplier of energy products and services in North America
to wholesale customers and retail commercial and industrial customers. Our competitive
supply activities include 2,015 MW from our Rio Nogales, Holland Energy, Big
Sandy, and Wolf Hills natural gas-fired generating facilities. These four facilities
are not sold forward under long-term agreements, and their output is used to
serve customer requirements.
We face competition in the market for energy, capacity, and ancillary services.
In our merchant energy business, we compete with international, national, and
regional full service energy providers, merchants and producers, to obtain competitively
priced supplies from a variety of sources and locations, and to utilize efficient
transmission or transportation. We principally compete on the basis of the price,
customer service, reliability, and availability of our products.
