Nearly a year after settling lawsuits against each other, state officials and Constellation Energy Group will find themselves back on opposite sides of a hearing table.
The state Public Service Commission on Friday said it would investigate the impact of Constellation’s aborted $4.7 billion merger with a Warren Buffett subsidiary and its $4.5 billion deal to sell half of its nuclear business to French energy giant Electricite de France on local utility Baltimore Gas and Electric Co.
The PSC said it would also determine whether it had the right to approve or deny Constellation’s deal with EDF. Briefs answering a set of PSC questions and responses are due through next month, with oral arguments set for March 6.
The two sides have had a tumultuous few years. Last March, the state and Constellation settled opposing lawsuits stemming from an agreement it made with the state in 2006 to help pave the way for a merger with a Florida power company.
That merger, however, was scuttled when it became uncertain that Maryland regulators would approve it amid pressure from state lawmakers. That same year, Constellation had announced it would raise BGE electricity rates 72 percent as part of Maryland’s move to a deregulated energy market.
In settling the lawsuits, both sides pledged dedication to future cooperation, comments reiterated in a statement Friday by Constellation spokesman Rob Gould.
“We have been open and transparent with the commission, having provided information at its request regarding the proposed nuclear joint venture,” Gould said. “We look forward to continuing to cooperate fully with the commission.”
Gould declined further comment Monday.
Complicating the issue is the prospect of a third reactor at Calvert Cliffs Nuclear Power Plant, a potential boon for both the state and Constellation. Without the EDF investment in Constellation’s nuclear business, that project could be in doubt.
Del. Pat McDonough, a Republican representing parts of Baltimore and Harford counties, praised the PSC investigation, particularly of the breakup benefits paid to Buffett’s company by Constellation.
“They need to be watched at all times,” McDonough said. “I don’t think [Gov.] O’Malley and the leaders of the General Assembly have produced enough scrutiny of this company. This company has always won and the consumer has always lost.”
However, another delegate, Republican Warren Miller of Howard County, disagreed with the PSC’s move.
“It just seems to me like the PSC is trying to make themselves self-important, and that’s unfortunate because taxpayers are paying for it,” Miller said. “I just think they’re going to a place they shouldn’t be going.”
