Constellation (An Exelon Company)

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Constellation: An Exelon Company
Subsidiary of Exelon
IndustryEnergy
Founded1999
HeadquartersBaltimore, Maryland, U.S.
Key people
Products
Websitewww.constellation.com

Constellation, an Exelon company, is a competitive energy company that provides power, natural gas, energy management options, and the option of power from clean energy to approximately 2 million customers that include residential homeowners, public sector institutions, and businesses across the continental United States. It is headquartered in BaltimoreMaryland.[2]

Constellation’s retail power business serves individual residences, small businesses, and large commercial customers, including two-thirds of the Forbes Fortune 100. The company’s wholesale operation buys and sells energy to utilities, municipal co-ops and energy retailers. Constellation also features a Distributed Energy business that offers “behind-the-meter” energy management options and a venture capital arm, Constellation Technology Ventures, that invests in growth-stage companies.

The company was known as Constellation Energy Group (former NYSE ticker symbol CEG), until a merger with Exelon  in 2012.[3] When the acquisition was approved by FERC and on March 12, 2012, Constellation Energy’s competitive and wholesale energy supply business was officially re-branded as Constellation, an Exelon company. As part of the 2012 merger, Baltimore Gas and Electric (BGE), the regulated utility operated by Constellation Energy, became a regulated utility operating under Exelon Utilities.[4]

Before merging with Exelon, Constellation Energy Group was a producer, trader, and distributor of energy. The company operated more than 35 power plants in 11 states (mainly Maryland, Pennsylvania, New York, West Virginia, and California). BGE created Constellation as a holding company in 1999.[5] Constellation Energy was a Fortune 500 company and one of the largest electricity producers in the United States.

Services[edit]

Power[edit]

Constellation is a competitive power provider to commercial and industrial customers, offering fixed, index, and blended pricing solutions as well as renewable energy supply. Its wholesale electricity supply business manages the sales, dispatch, and delivery of energy from parent company Exelon’s power generation portfolio to utilities, municipal co-ops, and energy retailers nationwide.[6]

Natural Gas[edit]

Constellation delivers approximately 730 billion cubic feet of gas annually to residential, commercial and industrial customers, making it one of the ten largest natural gas marketers in the United States. The company oversees trading, transport and storage of physical gas supply, pricing, hedging and risk management.

Energy Efficiency[edit]

Constellation offers programs that can help customers monitor and cut their energy usage to meet their sustainability goals. Energy and water conservation projects are often made possible without any upfront cost to the consumer and can help them meet budget and energy use goals that reduce greenhouse gas emissions.

Solar Generation[edit]

As of 2018, Constellation’s portfolio includes around 360 megawatts of solar generation that is either in operation or under construction across the United States, including Maryland[7], California, Arizona, New Jersey, and Texas.

CORe (Constellation Offsite Renewables)[edit]

CORe is designed to provide businesses access to offsite renewable energy projects through a retail power contract. CORe combines location-specific renewable energy purchases and renewable energy certificates (RECs) with a physical load-following energy supply contract. Furniture retailer Herman Miller[8] used CORe to contract for approximately 25,000 megawatt hours of wind energy annually to power their Spring Lake, Mich., facilities -- enough to power more than 2,700 homes for one year. [9] CORe+ supports the development of new-build renewable asset through a customer’s electric supply. One CORe+ customer is Comcast Spectacor[10], which is using Constellation to introduce a 100 percent renewable energy supply to Philadelphia’s Wells Fargo Center.[11]

Constellation Technology Ventures[edit]

Constellation Technology Ventures (CTV), Exelon’s venture capital fund, invests in emerging energy technologies with the goal of providing new solutions to customers. CTV invests in start-up companies whose emerging energy technologies have the potential to transform the industry.[12]

Awards[edit]

In 2013, Constellation received the Platts Global Energy Award in the “Energy Efficiency -- Energy Supplier” category for its Efficiency Made Easy program.[13]

In 2014, Constellation’s Efficiency Made Easy program received the Top Product of the Year Award in the Environmental Leader Product & Project Awards. The Environmental Leader Product & Project Awards recognizes e xcellence in products and services that provide companies with energy and environmental benefits.[14]

Constellation has been recognized by Back on My Feet Baltimore, as a Corporate Challenge Winner and “Baltimore’s Most Philanthropic Company” three years in a row (2016, 2017, 2018).[15]

In 2018, then-CEO Joe Nigro was a finalist for the Ernst & Young Entrepreneur Of The Year Award in the Mid-Atlantic region.[16]

Joint ventures and acquisitions[edit]

On September 15, 2005, Constellation Energy announced a new joint venture, UniStar Nuclear, with Areva to market the European Pressurized Reactor (EPR) in the USA. Constellation Energy had withdrawn its Lusby, Maryland, and Oswego, New York, sites from the NuStart consortium finalist list. However, both sites desire new nuclear units (see Nuclear Power 2010 Program).

On December 19, 2005, FPL Group, Inc. (owner of Florida Power and Light Company in Jacksonville) announced the acquisition of Constellation Energy in a merger transaction valued at more than US$11 billion as well as the fact that it would adopt "Constellation Energy" as its name for the post-merger entity. The merger was canceled on 25 October 2006.[17]

On July 1, 2008, Constellation Energy bought uranium trading firm Nufcor International from AngloGold Ashanti and FirstRand International.[18]

Pursuant to a 2007 agreement, the French power company EDF is permitted to purchase up to 9.9% of Constellation Energy's stock.[19] As of 2008, EDF owned 9.5% of the stock.[19]

In September 2008, reporting that Constellation Energy had exposure to Lehman Brothers following that investment banking firm's bankruptcy filing, Constellation's stock went down 56% in the first day of trading, having started at $67.87. The massive drop in the company’s stock price led the New York Stock Exchange to halt trade of Constellation. The next day, as the stock fell as low as $13 a share, the company announced it was hiring Morgan Stanley and UBS to advise it on "strategic alternatives" suggesting a buyout. While French power company Electricite de France, who already owned 9.5% of Constellation's shares, bid for the company,[20] Constellation ultimately agreed to a buyout by MidAmerican Energy, part of billionaire Warren Buffett's Berkshire Hathaway company.[21][22][23] However, on December 17, 2008, Constellation Energy canceled its merger with Berkshire Hathaway and opted to sell its nuclear energy assets to EDF.[24]

In April 2010, Constellation Energy closed its agreement with Clipper Windpower to acquire the Criterion Wind Project in Garrett County, Maryland, and to purchase 28 Clipper Liberty 2.5MW wind turbines for the project. Construction of the project was completed in December 2010.

In May 2010, Constellation acquired two natural gas combined-cycle generation facilities in Texas from Houston-based Navasota Holdings. The $365 million transaction included the Colorado Bend Energy Center, a 550-megawatt facility near Wharton, Texas, and Quail Run Energy Center, a 550-megawatt facility near Odessa, Texas. The purchase added 1,100 megawatts of capacity to Constellation Energy's generation portfolio. The acquisition of the two Texas plants provided a physical presence of material scale in ERCOT (Electric Reliability Council of Texas), where Constellation Energy’s wholesale and retail supply businesses sell a significant amount of power.

On April 28, 2011, Exelon Corporation announced its intention to purchase Constellation Energy. The merger was completed on March 12, 2012, at which point Exelon took ownership of Constellation's assets and business units.[25]

On May 27, 2011, Constellation Energy announced its intention to purchase StarTex Power, one of the leading retail electricity providers in Houston, Texas. StarTex Power was founded in 2004 by Marcie and Bob Zlotnik and served roughly 170,000 customers in the state of Texas. That purchase of StarTex Power was completed on June 1, 2011. [26] In 2012, StarTex Power was awarded the Better Business Bureau Winner of Distinction Award. In 2018, the StarTex brand was discontinued and its existing customers served by Constellation.[27]

In May, 2011, Constellation acquired MXenergy, a residential and small business energy provider with approximately half a million customers in 15 states. In Dec. 2011, Constellation announced the acquisition of ONEOK Energy Marketing Co., a natural gas company with customers in Kansas, Oklahoma, Texas, Nebraska, Wyoming and Illinois.

In March, 2014, Constellation entered into an agreement to acquire ETC ProLiance Energy[28], a supplier of natural gas to customers in Indiana, Illinois, Ohio, Michigan, Iowa, Missouri, Tennessee, and Kentucky.

In Nov., 2014, Constellation completed its acquisition of Integrys Energy Services, a competitive retail electricity and natural gas subsidiary serving approximately 1.2 million commercial, industrial, public sector and residential customers across 22 Midwest, mid-Atlantic and Northeastern states and the District of Columbia.

In Sept.,2016, Constellation completed its acquisition of the retail electricity and natural gas business from ConEdison Solutions, a subsidiary of Consolidated Edison, Inc. (NYSE: ED).  In the purchase, Constellation acquired ConEdison Solutions’ retail electricity and natural gas customer contracts and associated supply contracts serving approximately 15 TWh of electricity and 1 Bcf of natural gas to more than 560,000 commercial, industrial, public sector and residential customers across 12 Northeastern, mid-Atlantic, and Midwestern states, Texas, and the District of Columbia.

Environmental record[edit]

The Political Economy Research Institute ranks Constellation Energy's parent company Exelon Corp 75th among corporations emitting airborne pollutants in the United States.[29]

However, Exelon also was recognized in 2016 by global not‑for‑profit CDP (formerly the Carbon Disclosure Project) for transparency in sustainability programs relating to corporate governance, risk management and emissions. CDP recognized Exelon with high scores for disclosures in the three areas CDP measures – climate change, water use management and sustainable supply chain efforts. Exelon earned a score of “A minus” in all three categories.[30]

And in 2018, Exelon joined the Climate Leadership Council[31] – a solutions-oriented group supported by major American companies and leaders from across the political spectrum – and gave $1 million[32] to the American for Carbon Dividends campaign, which advocates for a federal policy that would establish the U.S. as a leader in clean energy by requiring polluters to pay a price for the carbon they release into the atmosphere.[33]

Community Service & Corporate Giving[edit]

Constellation has been recognized as one of the largest drivers of corporate philanthropy in the Baltimore area.[34] Constellation’s E2 Energy to Educate[35] grants support hands-on demonstration projects that advance energy innovation and build students’ knowledge and application of science, technology, engineering and math (STEM). Grant awards are available up to $25,000 for partners grades 6-12 and up to $50,000 for 2- and 4- year colleges/universities.

Archives[edit]

Constellation owns the archives of the Baltimore Gas & Electric Company and the former Consolidated Gas Light, Electric Power Company of Baltimore City and its ancient predecessor, the Gas Light Company of Baltimore. The archives are held by the Baltimore Museum of Industry on the southeastern end of the Inner Harbor. The Baltimore Gas & Electric Company's photographic collection consists of approximately 250,000 photographic prints and negatives, in more than 50,000 series[36]

See also[edit]

References[edit]

  1. ^ http://www.baltimoresun.com/news/maryland/crime/bs-md-ci-constellation-ceo-20180508-story.html
  2. ^ https://www.sec.gov/Archives/edgar/data/8192/000119312517039639/d339405d10k.htm#toc339405_6
  3. ^ https://www.bizjournals.com/baltimore/news/2012/03/12/constellation-exelon-close-79b-merger.html
  4. ^ "Archived copy". Archived from the original on 2013-10-18. Retrieved 2012-11-06.
  5. ^ Bloomberg News (1999-05-01). "COMPANY NEWS; BALTIMORE GAS AND ELECTRIC TO SELL 15 NURSING HOMES". The New York Times. ISSN 0362-4331. Retrieved 2017-01-15.
  6. ^ https://www.sec.gov/Archives/edgar/data/8192/000119312517039639/d339405d10k.htm#toc339405_6
  7. ^ https://www.solarpowerworldonline.com/2018/08/constellation-begins-construction-on-10-mw-solar-project-in-maryland/
  8. ^ https://www.hermanmiller.com/press/press-releases/constellation-to-power-herman-millers-spring-lake-manufacturing-locations-with-100-percent-renewable-energy/
  9. ^ https://www.industryweek.com/cloud-computing/herman-millers-spring-lake-campus-will-be-100-renewable-energy
  10. ^ https://www.bizjournals.com/philadelphia/news/2018/08/21/wells-fargo-center-renewable-energy-constellation.html
  11. ^ https://www.bizjournals.com/philadelphia/news/2018/08/21/wells-fargo-center-renewable-energy-constellation.html
  12. ^ https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=260018261
  13. ^ https://geaweb.platts.com/Finalists/finalists2013
  14. ^ http://blog.lnsresearch.com/blog/bid/196909/news-environmental-leader-s-2014-product-project-award-winners
  15. ^ https://give.backonmyfeet.org/sneaks/Corporate-Challenge
  16. ^ https://www.ey.com/us/en/newsroom/news-releases/news-ey-announces-finalists-for-the-entrepreneur-of-the-year-2018-award-in-the-mid-atlantic-region
  17. ^ "FPL, Constellation cancel planned merger". Reuters. Retrieved 2006-10-25.
  18. ^ "US power company buys up uranium trader". World Nuclear News. 2008-07-01. Retrieved 2008-07-08.
  19. ^ a b "SEC SC-13D Filing, General Statement of Beneficial Ownership". 2008-09-08. Retrieved 2008-09-10.
  20. ^ "France's EdF pulls drops bid for US Constellation". AP. International Herald Tribune. 2008-10-15. Retrieved 2008-10-17.
  21. ^ Desmond, Maurna (2008-09-17). "Lehman Ties Dim Constellation". Forbes. Retrieved 2008-09-19.
  22. ^ Thomson, Victoria (2008-09-19). "Power deal delivers new star to Buffett's energy constellation". The Scotsman. Retrieved 2008-09-19.
  23. ^ Gaffen, David (2008-09-18). "Buffett Shoots for Falling Constellation". The Wall Street Journal. Retrieved 2008-09-19.
  24. ^ "Constellation calls off Buffett deal Agreement on EDF's nuclear bid scuttles $4.7 billion MidAmerican offer". The Baltimore Sun. 2008-12-17. Retrieved 2008-12-17.
  25. ^ "Exelon, Constellation Energy to merge". HydroWorld. PennWell Corporation. 2011-04-28. Retrieved 2011-04-28.
  26. ^ "Constellation Energy acquires StarTex Power" (PDF). StarTex Power. 2011-05-27. Archived from the original (PDF) on 2012-05-04.
  27. ^ https://blog.constellation.com/2018/06/20/startex-power-now-constellation/
  28. ^ https://www.fool.com/investing/general/2014/03/19/exelon-corporation-to-buy-natural-gas-supplier-pro.aspx
  29. ^ "PERI: Toxic 100 Air Polluters 2013". Political Economy Research Institute. Archived from the original on 18 November 2015. Retrieved 20 November 2015.
  30. ^ http://www.exeloncorp.com/newsroom/exelon-recognized-for-transparency-in-environmental-practices-and-sustainability-programs
  31. ^ http://www.politico.com/sponsor-content/2018/07/09/exelon-supports-carbon-dividends-plan-to-address-climate-change
  32. ^ https://www.bloomberg.com/news/articles/2018-06-19/exelon-first-solar-bankroll-campaign-to-push-a-u-s-carbon-tax
  33. ^ https://www.axios.com/nuclear-renewable-firms-fund-new-group-pushing-carbon-tax-1529446710-8183d682-e725-4897-b6d8-f8469c09b211.html
  34. ^ https://www.bizjournals.com/baltimore/subscriber-only/2018/07/19/largest-corporate-philanthropists-in.html
  35. ^ https://thejournal.com/articles/2017/05/09/e2%C2%A0energy-to-educate-program.aspx
  36. ^ "The Baltimore Museum of Industry Collections Database". thebmi.org. Retrieved 2017-05-30.

External links[edit]