Constellation Energy 10-K 26 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Nonregulated revenues	12024.3	16057.6	17786.5
Regulated electric revenues	2820.7	2679.5	2455.6
Regulated gas revenues	753.8	1004.8	943
Total revenues	15598.8	19741.9	21185.1
Expenses
Fuel and purchased energy expenses	11135.6	15521.3	16473.9
Operating expenses	2,228	2378.8	2447.4
Merger termination and strategic alternatives costs	145.8	1204.4
Impairment losses and other costs	124.7	741.8	20.2
Workforce reduction costs	12.6	22.2	2.3
Depreciation, depletion, and amortization	589.1	583.2	557.8
Accretion of asset retirement obligations	62.3	68.4	68.3
Taxes other than income taxes	290.4	301.8	288.9
Total expenses	14588.5	20821.9	19858.8
Equity Investment (Losses) Earnings	-6.1	76.4	8.1
Gain on Sale of Interest in CENG	7445.6
Net (Loss) Gain on Divestitures	-468.8	25.5
Income (Loss) from Operations	7,981	-978.1	1334.4
Gain on Sales of CEP LLC Equity			63.3
Other (Expense) Income	-140.7	-69.5	157.4
Fixed Charges
Interest expense	437.2	399.1	311.8
Interest capitalized and allowance for borrowed funds used during construction	-87.1	(50)	-19.4
Total fixed charges	350.1	349.1	292.4
Income (Loss) from Continuing Operations Before Income Taxes	7490.2	-1396.7	1262.7
Income Tax Expense (Benefit)	2986.8	-78.3	428.3
Income (Loss) from Continuing Operations	4503.4	-1318.4	834.4
Loss from discontinued operations, net of income taxes of $1.5			-0.9
Net Income (Loss)	4503.4	-1318.4	833.5
Net Income (Loss) Attributable to Noncontrolling Interests and BGE Preference Stock Dividends	60	(4)	12
Net Income (Loss) Attributable to Common Stock	4443.4	-1314.4	821.5
Average Shares of Common Stock Outstanding - Basic (in shares)	199.3	179.1	180.2
Average Shares of Common Stock Outstanding - Diluted (in shares)	200.3	179.1	182.5
Earnings (Loss) Per Common Share from Continuing Operations - Basic (in dollars per share)	22.29	-7.34	4.56
Loss from discontinued operations (in dollars per share)			-0.01
Earnings (Loss) Per Common Share - Basic (in dollars per share)	22.29	-7.34	4.55
Earnings (Loss) Per Common Share from Continuing Operations - Diluted (in dollars per share)	22.19	-7.34	4.51
Loss from discontinued operations (in dollars per share)			-0.01
Earnings (Loss) Per Common Share - Diluted (in dollars per share)	22.19	-7.34	4.5
Dividends Declared Per Common Share (in dollars per share)	0.96	1.91	1.74

1_CONSOLIDATED STATEMENTS OF IN

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Parenthetical) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	12 Months Ended Dec. 31, 2007
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Loss from discontinued operations, income taxes	1.5

CONSOLIDATED BALANCE SHEETS (Co

CONSOLIDATED BALANCE SHEETS (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	$3,440	202.2
Accounts receivable (net of allowance for uncollectibles of $160.6 and $240.6, respectively)	2137.6	3389.9
Fuel stocks	314.9	717.9
Materials and supplies	93.3	224.5
Derivative assets	639.1	1,465
Unamortized energy contract assets (includes $371.3 million related to CENG)	436.5	81.3
Restricted cash	27	1030.5
Deferred income taxes	127.9	268
Other	244.4	815.5
Total current assets	7460.7	8194.8
Investments and Other Noncurrent Assets
Nuclear decommissioning trust funds		1006.3
Investment in CENG	5222.9
Other investments	424.3	421
Regulatory assets (net)	414.4	494.7
Goodwill	25.5	4.6
Derivative assets	633.9	851.8
Unamortized energy contract assets (includes $400.9 million related to CENG)	604.7	173.1
Other	304.2	421.3
Total investments and other noncurrent assets	7629.9	3372.8
Property, Plant and Equipment
Nonregulated property, plant and equipment	5784.6	8866.2
Regulated property, plant and equipment	6749.9	6419.4
Nuclear fuel (net of amortization)		443
Accumulated depreciation	-4080.7	-5012.1
Net property, plant and equipment	8453.8	10716.5
Total Assets	23544.4	22284.1
Current Liabilities
Short-term borrowings	46	855.7
Current portion of long-term debt	56.9	2591.5
Accounts payable and accrued liabilities	1262.4	2370.1
Customer deposits and collateral	103.3	120.3
Derivative liabilities	632.6	1241.8
Unamortized energy contract liabilities	390.1	393.5
Accrued taxes	877.3	51.1
Accrued expenses	297.9	322
Other	374.2	514.2
Total current liabilities	4040.7	8460.2
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	3205.5	677
Asset retirement obligations	29.3	987.3
Derivative liabilities	674.1	1,115
Unamortized energy contract liabilities	653.7	906.4
Defined benefit obligations	743.9	1354.3
Deferred investment tax credits	32	44.1
Other	388.8	249.6
Total deferred credits and other noncurrent liabilities	5727.3	5333.7
Long-term Debt, Net of Current Portion	4,814	5098.7
Equity
Common shareholders' equity	8697.1	3181.4
BGE preference stock not subject to mandatory redemption	190	190
Noncontrolling interests	75.3	20.1
Total equity	8962.4	3391.5
Commitments, Guarantees, and Contingencies (see Note 12)
Total Liabilities and Equity	23544.4	22284.1

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for uncollectibles (in dollars)	160.6	240.6
Unamortized energy contract assets related to CENG, current	371.3
Unamortized energy contract assets related to CENG, noncurrent	400.9

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows From Operating Activities
Net income (loss)	4503.4	-1318.4	833.5
Adjustments to reconcile to net cash provided by operating activities
Depreciation, depletion, and amortization	589.1	583.2	557.8
Amortization of nuclear fuel	117.9	123.9	114.3
Amortization of energy contracts and derivatives designated as hedges	-138.4	-256.3	-222.9
All other amortization	135.7	40.5	11.2
Accretion of asset retirement obligations	62.3	68.4	68.3
Deferred income taxes	1846.9	-122.8	226.2
Investment tax credit adjustments	-12.1	-6.4	-6.7
Deferred fuel costs	68.9	52	(248)
Defined benefit obligation expense	85.3	99.6	111.8
Defined benefit obligation payments	-372.5	-120.4	-165.4
Merger termination and strategic alternatives costs	128.2	541.8
Workforce reduction costs	12.6	22.2	2.3
Impairment losses and other costs	124.7	741.8	20.2
Impairment losses on nuclear decommissioning trust assets	62.6	165	8.5
Gain on sale of 49.99% membership interest in CENG	-7445.6
Gains on sale of CEP LLC equity			-63.3
Loss (gain) on divestitures	468.8	-38.1
Gains on termination of contracts		-73.1
Accrual of BGE residential customer credit	112.4
Equity in earnings of affiliates less than dividends received	15.5	6.3	45.3
Derivative contracts classified as financing activities	1138.3	-107.2	32.2
Changes in working capital
Accounts receivable, excluding margin	543.3	606.7	-664.2
Derivative assets and liabilities, excluding collateral	425.3	-757.9	-138.2
Net collateral and margin	1522.8	-960.3	49.6
Materials, supplies, and fuel stocks	220.6	-33.5	-66.4
Other current assets	217.2	-95.4	-18.5
Accounts payable and accrued liabilities	(1,105)	-225.8	448.8
Liability for unrecognized tax benefits	102.1	79.7	71.9
Other current liabilities	788.8	-238.1	(14)
Other	171.7	-38.5	-53.3
Net cash provided by (used in) operating activities	4390.8	-1261.1	941
Cash Flows From Investing Activities
Investments in property, plant and equipment	-1529.7	-1934.1	-1295.7
Asset acquisitions and business combinations, net of cash acquired	-41.1	-315.3	-347.5
Investments in nuclear decommissioning trust fund securities	-385.2	-440.6	-659.5
Proceeds from nuclear decommissioning trust fund securities	366.5	421.9	650.7
Investments in joint ventures	-201.6
Issuances of loans receivable			(19)
Proceeds from sale of 49.99% membership interest in CENG	3528.7
Proceeds from sales of investments and other assets	88.3	446.3	13.9
Contract and portfolio acquisitions	-2153.7		-474.2
Decrease (increase) in restricted funds	1003.3	-942.8	-109.9
Other	0.1	21.7	-45.3
Net cash provided by (used in) investing activities	675.6	-2742.9	-2286.5
Cash Flows From Financing Activities
Net (maturity) issuance of short-term borrowings	-809.7	813.7	14
Proceeds from issuance of common stock	33.9	17.6	65.1
Proceeds from issuance of long-term debt	136.1	3211.4	698.2
Common stock dividends paid	(228)	-336.3	(306)
Reacquisiton of common stock		-16.2	-409.5
BGE preference stock dividends paid	-13.2	-13.2	-13.2
Proceeds from contract and portfolio acquisitions	2263.1		847.8
Repayment of long-term debt	-1986.8	-577.4	-745.3
Derivative contracts classified as financing activities	-1138.3	107.2	-32.2
Debt and credit facility costs	-98.4	-104.8
Other	12.7	8.3	33.4
Net cash (used in) provided by financing activities	-1828.6	3110.3	152.3
Net Increase (Decrease) in Cash and Cash Equivalents	3237.8	-893.7	-1193.2
Cash and Cash Equivalents at Beginning of Year	202.2	1095.9	2289.1
Cash and Cash Equivalents at End of Year	3,440	202.2	1095.9
Cash paid during the year for:
Interest (net of amounts capitalized)	369.5	341.4	291.8
Income taxes	57.1	119.2	282.4

CONSOLIDATED STATEMENTS OF COMM

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions, except Share data in Thousands	Common Stock		Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Balance (in shares) at Dec. 31, 2006	180,519
Balance at Dec. 31, 2006	2738.6		3474.3	-1603.6	284.5	4893.8
Decrease in noncontrolling interests from deconsolidation					-74.1	-74.1
Comprehensive Income (Loss)
Net income (loss)			821.5		12	833.5
Hedging instruments:
Reclassification of net losses on hedging instruments from OCI to net income, net of taxes of $(898.5), $(120.2) and $(682.3) during 2009, 2008 and 2007, respectively				1124.8		1124.8
Net unrealized loss on hedging instruments, net of taxes of $251.2, $561.6 and $408.2 during 2009, 2008 and 2007, respectively				-671.1		-671.1
Available-for-sale securities:
Reclassification of net gains (losses) on securities from OCI to net income, net of taxes of $(24.6), $(79.1) and $1.0 during 2009, 2008 and 2007, respectively				-1.6		-1.6
Net unrealized (gains) losses on securities, net of taxes of $(78.2), $189.8 and $(25.5) during 2009, 2008 and 2007, respectively				26.5		26.5
Defined benefit plans:
Net (gain) loss arising during period, net of taxes of $(23.9), $229.2 and $(7.8) during 2009, 2008 and 2007, respectively				11.6		11.6
Amortization of net actuarial loss, prior service cost, and transition obligation included in net periodic benefit cost, net of taxes of $(19.8), $(14.9) and $(15.9) during 2009, 2008 and 2007, respectively				24.6		24.6
Deconsolidation of CENG joint venture:
Net unrealized (gains) losses on foreign currency translation, net of taxes of $(2.7), $0.1 and $(1.8) during 2009, 2008 and 2007, respectively				7		7
Other				-10.8		-10.8
Total Comprehensive Income (Loss)			821.5	511	12	1344.5
Effect of adoption of uncertain tax position accounting standard			-7.3			-7.3
BGE preference stock dividends					-13.2	-13.2
Common stock dividend declared ($0.96, $1.91 and $1.74 per share during 2009, 2008 and 2007, respectively)			-368.4			-368.4
Common stock issued and share-based awards	184.2					184.2
Common stock issued and share-based awards (in shares)	1,789
Common stock purchased	-159.5					-159.5
Common stock purchased (in shares)	(1,847)
Common stock purchased and retired	(250)					(250)
Common stock purchased and retired (in shares)	(2,024)
Other			-0.6			-0.6
Balance at Dec. 31, 2007	2513.3		3919.5	-1092.6	209.2	5549.4
Balance (in shares) at Dec. 31, 2007	178,437
Increase in noncontrolling interests from consolidation of a VIE					18.1	18.1
Comprehensive Income (Loss)
Net income (loss)			-1314.4		(4)	-1318.4
Hedging instruments:
Reclassification of net losses on hedging instruments from OCI to net income, net of taxes of $(898.5), $(120.2) and $(682.3) during 2009, 2008 and 2007, respectively				200.6		200.6
Net unrealized loss on hedging instruments, net of taxes of $251.2, $561.6 and $408.2 during 2009, 2008 and 2007, respectively				-875.3		-875.3
Available-for-sale securities:
Reclassification of net gains (losses) on securities from OCI to net income, net of taxes of $(24.6), $(79.1) and $1.0 during 2009, 2008 and 2007, respectively				81.7		81.7
Net unrealized (gains) losses on securities, net of taxes of $(78.2), $189.8 and $(25.5) during 2009, 2008 and 2007, respectively				-197.5		-197.5
Defined benefit plans:
Prior service cost arising during period, net of taxes of $1.0 and $4.9 during 2009 and 2008, respectively				-7.2		-7.2
Net (gain) loss arising during period, net of taxes of $(23.9), $229.2 and $(7.8) during 2009, 2008 and 2007, respectively				-339.9		-339.9
Amortization of net actuarial loss, prior service cost, and transition obligation included in net periodic benefit cost, net of taxes of $(19.8), $(14.9) and $(15.9) during 2009, 2008 and 2007, respectively				21.3		21.3
Deconsolidation of CENG joint venture:
Net unrealized (gains) losses on foreign currency translation, net of taxes of $(2.7), $0.1 and $(1.8) during 2009, 2008 and 2007, respectively				-3.1		-3.1
Other				0.2		0.2
Total Comprehensive Income (Loss)			-1314.4	-1119.2	(4)	-2437.6
Effect of adoption of fair value measurement accounting standard			0.9			0.9
BGE preference stock dividends					-13.2	-13.2
Common stock dividend declared ($0.96, $1.91 and $1.74 per share during 2009, 2008 and 2007, respectively)			-341.3			-341.3
Common stock issued and share-based awards	667.3		-35.8			631.5
Common stock issued and share-based awards (in shares)	21,406	[1]
Common stock purchased	-16.1					-16.1
Common stock purchased (in shares)	(200)
Common stock purchased and retired (in shares)	(514)
Other			-0.2			-0.2
Balance at Dec. 31, 2008	3164.5		2228.7	-2211.8	210.1	3391.5
Balance (in shares) at Dec. 31, 2008	199,129
Contribution from noncontrolling interest					8	8
Other noncontrolling interest activity					0.4	0.4
Comprehensive Income (Loss)
Net income (loss)			4443.4		60	4503.4
Hedging instruments:
Reclassification of net losses on hedging instruments from OCI to net income, net of taxes of $(898.5), $(120.2) and $(682.3) during 2009, 2008 and 2007, respectively				1499.4		1499.4
Net unrealized loss on hedging instruments, net of taxes of $251.2, $561.6 and $408.2 during 2009, 2008 and 2007, respectively				-474.7		-474.7
Available-for-sale securities:
Reclassification of net gains (losses) on securities from OCI to net income, net of taxes of $(24.6), $(79.1) and $1.0 during 2009, 2008 and 2007, respectively				25.4		25.4
Net unrealized (gains) losses on securities, net of taxes of $(78.2), $189.8 and $(25.5) during 2009, 2008 and 2007, respectively				77.7		77.7
Defined benefit plans:
Prior service cost arising during period, net of taxes of $1.0 and $4.9 during 2009 and 2008, respectively				-1.5		-1.5
Net (gain) loss arising during period, net of taxes of $(23.9), $229.2 and $(7.8) during 2009, 2008 and 2007, respectively				26.9		26.9
Amortization of net actuarial loss, prior service cost, and transition obligation included in net periodic benefit cost, net of taxes of $(19.8), $(14.9) and $(15.9) during 2009, 2008 and 2007, respectively				30.3		30.3
Deconsolidation of CENG joint venture:
Net unrealized gains on nuclear decommissioning trust funds, net of taxes of $125.3				-125.3		-125.3
Net unrealized losses on defined benefit plans, net of taxes of $(94.6)				138		138
Net unrealized (gains) losses on foreign currency translation, net of taxes of $(2.7), $0.1 and $(1.8) during 2009, 2008 and 2007, respectively				7.1		7.1
Other comprehensive income - equity investment in CENG, net of taxes of $(11.7)				12.9		12.9
Other comprehensive income related to other equity method investees, net of taxes of $(1.3)				2.1		2.1
Total Comprehensive Income (Loss)			4443.4	1218.3	60	5721.7
BGE preference stock dividends					-13.2	-13.2
Common stock dividend declared ($0.96, $1.91 and $1.74 per share during 2009, 2008 and 2007, respectively)			-192.2			-192.2
Common stock issued and share-based awards	65.1		-18.9			46.2
Common stock issued and share-based awards (in shares)	1,856
Balance at Dec. 31, 2009	3229.6		$6,461	-993.5	265.3	8962.4
Balance (in shares) at Dec. 31, 2009	200,985
[1]Includes 19,897.3 million shares issued to Mid American Energy Holdings Company.

2_CONSOLIDATED STATEMENTS OF CO

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Reclassification of net losses on hedging instruments from OCI to net income, tax	-898.5	-120.2	-682.3
Net unrealized loss on hedging instruments, tax	251.2	561.6	408.2
Reclassification of net gains (losses) on securities from OCI to net income, tax	-24.6	-79.1	1
Net unrealized gains (losses) on securities, tax	-78.2	189.8	-25.5
Prior service cost arising during period, tax	1	4.9
Net gain (loss) arising during period, tax	-23.9	229.2	-7.8
Amortization of net actuarial loss, prior service cost, and transition obligation included in net periodic benefit cost, tax	-19.8	-14.9	-15.9
Net unrealized gains on nuclear decommissioning trust funds, tax	125.3
Net unrealized losses on defined benefit plans, tax	-94.6
Net unrealized gain (loss) on foreign currency translation, tax	-2.7	0.1	-1.8
Other comprehensive income, equity investment in CENG, tax	-11.7
Other comprehensive income related to other equity method investees, tax	-1.3
Dividends Declared Per Common Share (in dollars per share)	0.96	1.91	1.74
Common stock issued and share base awards, issued to MidAmerican Energy Holdings (in shares)		19897.3

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Significant Accounting Policies	1 Significant Accounting Policies Nature of Our Business Constellation Energy Group,Inc. (Constellation Energy) is an energy company that conducts its business through various subsidiaries including a merchant energy business and Baltimore Gas and Electric Company (BGE). Our merchant energy business is a competitive provider of energy solutions for a variety of customers. 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. We describe our operating segments in Note3. This report is a combined report of Constellation Energy and BGE. References in this report to "we" and "our" are to Constellation Energy and its subsidiaries. References in this report to the "regulated business(es)" are to BGE. Subsequent Event Policy We evaluated events or transactions that occurred after December31, 2009 for inclusion in these financial statements through February26, 2010, the date these financial statements were issued. Consolidation Policy We use three different accounting methods to report our investments in our subsidiaries or other companies: consolidation, the equity method, and the cost method. Consolidation We use consolidation for two types of entities: subsidiaries in which we own a majority of the voting stock and exercise control over the operations and policies of the company, and variable interest entities (VIEs) for which we are the primary beneficiary, which means that we have a controlling financial interest in a VIE. We discuss our investments in VIEs in more detail in Note4. Consolidation means that we combine the accounts of these entities with our accounts. Therefore, our consolidated financial statements include our accounts, the accounts of our majority-owned subsidiaries that are not VIEs, and the accounts of VIEs for which we are the primary beneficiary. We have consolidated three VIEs for which we are the primary beneficiary. We eliminate all intercompany balances and transactions when we consolidate these accounts. The Equity Method We usually use the equity method to report investments, corporate joint ventures, partnerships, and affiliated companies where we hold approximately a 20% to 50% voting interest. Under the equity method, we report: our interest in the entity as an investment in our Consolidated Balance Sheets, and our percentage share of the earnings from the entity in our Consolidated Statements of Income (Loss). If our carrying value of the investment differs from our share of the investee's equity, we recognize this basis difference as an adjustment of our share of the investee's earnings. The only time we do not use this method is if we can exercise control over the operations and policies of the company. If we have control, accounting rules require us to use consolidation. The Cost Method We usually use the cost method if we hold less than a 20% voting interest in an investment. Under the cost method, we report our investment at cost in our Consolidated Balanc

Other Events

Other Events
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Other Events	2 Other Events 2009 Events Pre-Tax After-Tax (In millions) Gain on sale of 49.99% membership interest in our nuclear generation and operation business (CENG) to EDF $ 7,445.6 $ 4,456.1 Amortization of basis difference in CENG (29.6 ) (17.8 ) Net loss on divestitures (468.8 ) (293.2 ) Impairment losses and other costs(1) (124.7 ) (96.2 ) Impairment of nuclear decommissioning trust assets through November6, 2009 (62.6 ) (46.8 ) Loss on redemption of Zero Coupon Senior Notes (16.0 ) (10.0 ) Maryland PSC orderBGE residential customer credits (112.4 ) (67.1 ) Merger termination and strategic alternatives costs (145.8 ) (13.8 ) Workforce reduction costs (12.6 ) (9.3 ) Total other items $ 6,473.1 $ 3,901.9 (1) After-tax amount net of noncontrolling interest. Gain on Sale of 49.99% Membership Interest in CENG to EDF On December17, 2008, we entered into an Investment Agreement with EDF under which EDF would purchase from us a 49.99% membership interest in CENG for $4.5billion (subject to certain adjustments). In October 2009, the Maryland PSC issued an order approving our transaction with EDF subject to the following conditions: Constellation Energy is to fund a one-time per customer distribution rate credit for BGE residential customers, before the end of March 2010, totaling $110.5million, or approximately $100 per customer, for which we recorded a liability in November 2009. In December 2009, BGE filed a tariff with the Maryland PSC stating we would give residential customers a rate credit of exactly $100 per customer. As a result, we accrued an additional $1.9million for a total fourth quarter 2009 accrual of $112.4million. Constellation made a $66million equity contribution to BGE in December 2009 to fund the after-tax amount of the rate credit as ordered by the Maryland PSC. Constellation Energy is required to make a $250million cash capital contribution to BGE by no later than June30, 2010. We made this contribution in December 2009. BGE will not pay common dividends to Constellation Energy if (a)after the dividend payment, BGE's equity ratio would be below 48% as calculated pursuant to the Maryland PSC's ratemaking precedents or (b)BGE's senior unsecured credit rating is rated by two of the three major credit rating agencies below investment grade. BGE may file an electric distribution rate case at any time beginning in January 2010 and may not filea subsequent electric distribution rate case until January 2011. Any rate increase in the first electric distribution rate case will be capped at 5% as agreed to by Constellation Energy in its 2008 settlement with the State of Maryland and the Maryland PSC. The timing of any gas distribution rate filing will also occur no earlier than the electric case. Constellation Energy will be limited to allocating no more than 31% of its holding company costs to BGE until the Maryland PSC reviews such cost allocations in the context of BGE's next rate case. Constellation Energy and BGE are required to implement "ring fencing" measures design

Information by Operating Segmen

Information by Operating Segment
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Information by Operating Segment	3 Information by Operating Segment Our reportable operating segments areMerchant Energy, Regulated Electric, and Regulated Gas: At December31, 2009, our merchant energy business is nonregulated and includes: fossil and renewable generating facilities, interests in nuclear and hydroelectric generating facilities, qualifying facilities, and power projects in the United States, full requirements load-serving sales of energy and capacity to utilities, cooperatives, and commercial, industrial, and governmental customers, gas retail energy products and services to commercial, industrial, and governmental customers, structured transactions and risk management services for various customers (including hedging of output from generating facilities and fuel costs), upstream (exploration and production) natural gas operations, and generation operations and maintenance. Our regulated electric business purchases, transmits, distributes, and sells electricity in Central Maryland. Our regulated gas business purchases, transports, and sells natural gas in Central Maryland. Our remaining nonregulated businesses: design, construct, and operate renewable energy, heating, cooling, and cogeneration facilities for commercial, industrial, and governmental customers throughout North America, provide energy performance contracting and energy efficiency engineering services, provide home improvements, service electric and gas appliances, service heating, air conditioning, plumbing, electrical, and indoor air quality systems, and provide electric and natural gas marketing to residential customers in Central Maryland, and develop and deploy new nuclear plants in North America. Prior to June30, 2009, our merchant energy business segment included additional activities that have been divested as part of our strategy to improve our liquidity and reduce our business risk. The divested activities include: our international commodities operation, which was divested in March 2009, our gas trading operation, which was divested on April1, 2009, our ownership of a uranium market participant, which was divested on June30, 2009, and our investment in a shipping joint venture, which was divested in the third quarter of 2009. On November6, 2009, we sold a 49.99% membership interest in CENG. As a result, we deconsolidated CENG and removed all of the assets and liabilities from this business from our merchant energy segment. We now account for our retained investment as an equity method investment. We discuss this transaction in more detail in Note2. As a result of the successful execution of these initiatives, as well as our other initiatives that we have undertaken to reduce risk in our merchant energy business, we have reduced our exposure to activities that require contingent capital support and improved our liquidity. In turn, the results for our merchant energy business segment will be materially different from prior periods. Our Merchant Energy, Regulated Electric, and Regulated Gas reportable segments are strategic businesses based principally upon regulations, products, and services that require different technolog

Investments

Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Investments	4 Investments Investments in Joint Ventures, Qualifying Facilities and Power Projects, and CEP Investments in joint ventures, qualifying facilities, domestic power projects, and CEP consist of the following: At December31, 2009 2008 (In millions) Joint Ventures: CENG $ 5,222.9 $ UNE 122.0 51.0 Shipping JV 59.9 Qualifying facilities and domestic power projects: Coal 119.7 119.5 Hydroelectric 55.2 55.6 Geothermal 40.0 37.0 Biomass 56.2 58.2 Fuel Processing 24.3 15.0 Solar 6.9 6.9 CEP 17.7 Other 0.2 Total $ 5,647.2 $ 421.0 Investments in joint ventures, qualifying facilities, domestic power projects, and CEP were accounted for under the following methods: At December31, 2009 2008 (In millions) Equity method $ 5,640.3 $ 414.1 Cost method 6.9 6.9 Total $ 5,647.2 $ 421.0 We are actively involved in our nuclear joint ventures, qualifying facilities and power projects. Our percentage voting interests in these investments accounted for under the equity method range from 20% to 50.01%. Equity in earnings of these investments is as follows: Year ended December31, 2009 2008 2007 (In millions) CENG $ 33.9 $ $ Amortization of basis difference in CENG (see Note2 for more detail) (29.6 ) Total equity investment earningsCENG 4.3 UNE (24.7 ) (5.9 ) 1.9 Shipping JV (1.8 ) 37.4 (0.6 ) CEP (4.6 ) 7.7 6.1 Qualifying facilities and domestic power projects 20.7 37.2 0.7 Total equity investment earnings $ (6.1 ) $ 76.4 $ 8.1 We describe each of these investments below. Joint Ventures CENG On November6, 2009, we completed the sale of a 49.99% membership interest in CENG, our nuclear generation and operation business, to EDF. As a result of this transaction, we deconsolidated CENG and began to record our 50.01% investment in CENG under the equity method of accounting. Because the transaction occurred on November6, 2009, we recorded $4.3million of equity investment earnings in CENG, which represents our share of earnings from CENG from November6, 2009 through December31, 2009, net of the amortization of the basis difference in CENG. The basis difference is the difference between the fair value of our investment in CENG at closing and our share of the underlying equity in CENG, because the underlying assets and liabilities of CENG were retained at their carrying value. See Note2 for a more detailed discussion. Summarized balance sheet information for CENG is as follows: At December31, 2009 (In millions) Current assets $ 513.0 Noncurrent assets 4,404.2 Current liabilities 556.9 Noncurrent liabilities 1,716.1 Summarized income statement information for CENG is as follows: For the period from November6, 2009 through December31, 2009 (In millions) Revenues $ 217

Intangible Assets

Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Intangible Assets	5 Intangible Assets Goodwill Goodwill is the excess of the cost of an acquisition over the fair value of the net assets acquired. As of December31, 2009, our goodwill balance was primarily related to our other nonregulated businesses. Prior to September30, 2008, our goodwill balance was primarily related to our merchant energy business acquisitions. Goodwill is not amortized; rather, it is evaluated for impairment at least annually. We evaluated our goodwill in 2008 and recorded a $266.5million impairment charge in 2008, which related solely to our merchant energy segment. We discuss this impairment charge in more detail in Note2. The changes in the gross amount of goodwill and the accumulated impairment losses for the years ended December31, 2009 and 2008 are as follows: At December31, 2009 2008 (In millions) Balance as of January1,: Gross goodwill $ 271.1 $ 261.3 Accumulated impairment losses (266.5 ) Net goodwill 4.6 261.3 Goodwill acquired 18.6 9.8 Impairment losses (266.5 ) Other purchase price adjustments 2.3 Balance as of December31, Gross goodwill 292.0 271.1 Accumulated impairment losses (266.5 ) (266.5 ) Net goodwill $ 25.5 $ 4.6 For tax purposes, $18.6million of our goodwill balance at December31, 2009 is deductible. Intangible Assets Subject to Amortization Intangible assets with finite lives are subject to amortization over their estimated useful lives. The primary assets included in this category are as follows: 2009 At December31, 2008 Gross Carrying Amount Accumul- ated Amortiz- ation Net Asset Gross Carrying Amount Accumul- ated Amortiz- ation Net Asset (In millions) Software $ 580.5 $ (347.3 ) $ 233.2 $ 554.9 $ (291.5 ) $ 263.4 Permits and licenses 2.2 (0.8 ) 1.4 64.9 (10.0 ) 54.9 Operating manuals and procedures 38.6 (8.6 ) 30.0 Other 29.0 (13.9 ) 15.1 43.9 (22.6 ) 21.3 Total $ 611.7 $ (362.0 ) $ 249.7 $ 702.3 $ (332.7 ) $ 369.6 BGE had intangible assets with a gross carrying amount of $242.5million and accumulated amortization of $148.8million at December31, 2009 and $217.0million and accumulated amortization of $131.4million at December31, 2008 that are included in the table above. Substantially all of BGE's intangible assets relate to software. We recognized amortization expense related to our intangible assets as follows: Year Ended December31, 2009 2008 2007 (In millions) Nonregulated businesses $ 74.2 $ 66.8 $ 51.9 BGE 23.6 20.1 20.2 Total Constellation Energy $ 97.8 $ 86.9 $ 72.1 The following is our, and BGE's, estimated amortization expense related to our intangible assets for 2010 through 2014 for the intangible assets included in our, and BGE's, Consolidated Balance Sheets at December31, 2009: Year Ended December31, 2010 2011 2012 2

Regulatory Assets

Regulatory Assets (net)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Regulatory Assets (net)	6 Regulatory Assets (net) As discussed in Note1, the Maryland PSC and the FERC provide the final determination of the rates we charge our customers for our regulated businesses. Generally, we use the same accounting policies and practices used by nonregulated companies for financial reporting under accounting principles generally accepted in the United States of America. However, sometimes the Maryland PSC or FERC orders an accounting treatment different from that used by nonregulated companies to determine the rates we charge our customers. When this happens, we must defer certain regulated expenses and income in our Consolidated Balance Sheets as regulatory assets and liabilities. We then record them in our Consolidated Statements of Income (Loss) (using amortization) when we include them in the rates we charge our customers. We summarize regulatory assets and liabilities in the following table, and we discuss each of them separately below. At December31, 2009 2008 (In millions) Deferred fuel costs Rate stabilization deferral $ 477.5 $ 536.3 Other 14.3 24.4 Electric generation-related regulatory asset 102.5 118.0 Net cost of removal (210.1 ) (198.0 ) Income taxes recoverable through future rates (net) 67.6 63.2 Deferred smart energy savers program costs 22.1 15.6 Deferred postretirement and postemployment benefit costs 9.6 12.9 Deferred environmental costs 6.5 7.7 Workforce reduction costs 1.5 Other (net) (4.6 ) (5.7 ) Total regulatory assets (net) 486.9 574.4 Less: Current portion of regulatory assets (net) 72.5 79.7 Long-term portion of regulatory assets (net) $ 414.4 $ 494.7 Deferred Fuel Costs Rate Stabilization Deferral In June 2006, Senate Bill 1 was enacted in Maryland and imposed a rate stabilization measure that capped rate increases by BGE for residential electric customers at 15% from July1, 2006 to May31, 2007. As a result, BGE recorded a regulatory asset on its Consolidated Balance Sheets equal to the difference between the costs to purchase power and the revenues collected from customers, as well as related carrying charges based on short-term interest rates from July1, 2006 to May31, 2007. In addition, as required by Senate Bill 1, the Maryland PSC approved a plan that allowed residential electric customers the option to further defer the transition to market rates from June1, 2007 to January1, 2008. During 2007, BGE deferred $306.4million of electricity purchased for resale expenses and certain applicable carrying charges as a regulatory asset related to the rate stabilization plans. During 2009 and 2008, BGE recovered $51.4million and $57.1million, respectively, of electricity purchased for resale expenses and carrying charges related to the rate stabilization plan regulatory asset. BGE began amortizing the regulatory asset associated with the deferral which ended in May 2007 to earnings over a period not to exceed ten years when collection from customers began in June 2007. Customers who participated in the deferral fro

Pension, Postretirement, Other

Pension, Postretirement, Other Postemployment, and Employee Savings Plan Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Pension, Postretirement, Other Postemployment, and Employee Savings Plan Benefits	7 Pension, Postretirement, Other Postemployment, and Employee Savings Plan Benefits We offer pension, postretirement, other postemployment, and employee savings plan benefits. BGE employees participate in the benefit plans that we offer. We describe each of our plans separately below. Nine Mile Point, owned by CENG, offers its own pension, postretirement, other postemployment, and employee savings plan benefits to its employees. In connection with the deconsolidation of CENG as a result of the investment in CENG by EDF on November6, 2009, the Nine Mile Point plan is no longer included in our consolidated results. In addition, benefit plan assets and obligations relating to CENG employees that previously participated in our plans were transferred into new CENG plans that are no longer included in our consolidated results. Therefore, the tables below include the benefits for the CENG plans, including Nine Mile Point, only through November6, 2009. We use a December31 measurement date for our pension, postretirement, other postemployment, and employee savings plans. The following table summarizes our defined benefit liabilities and their classification in our Consolidated Balance Sheets: At December31, 2009 2008 (In millions) Pension benefits $ 411.7 $ 936.7 Postretirement benefits 322.3 415.4 Postemployment benefits 50.6 59.9 Total defined benefit obligations 784.6 1,412.0 Less: Amount recorded in other current liabilities 40.7 57.7 Total noncurrent defined benefit obligations $ 743.9 $ 1,354.3 Pension Benefits We sponsor several defined benefit pension plans for our employees. These include basic qualified plans that most employees participate in and several non-qualified plans that are available only to certain employees. A defined benefit plan specifies the amount of benefits a plan participant is to receive using information about the participant. Employees do not contribute to these plans. Generally, we calculate the benefits under these plans based on age, years of service, and pay. Sometimes we amend the plans retroactively. These retroactive plan amendments require us to recalculate benefits related to participants' past service. We amortize the change in the benefit costs from these plan amendments on a straight-line basis over the average remaining service period of active employees. We fund the qualified plans by contributing at least the minimum amount required under IRS regulations. We calculate the amount of funding using an actuarial method called the projected unit credit cost method. The assets in all of the plans at December31, 2009 and 2008 were mostly marketable equity and fixed income securities. Postretirement Benefits We sponsor defined benefit postretirement health care and life insurance plans that cover the majority of our employees. Generally, we calculate the benefits under these plans based on age, years of service, and pension benefit levels or final base pay. We do not fund these plans. For nearly all of the health care plans, retirees make contributions to cover a portion of the plan costs. For th

Credit Facilities and Short-Ter

Credit Facilities and Short-Term Borrowings
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Credit Facilities and Short-Term Borrowings	8 Credit Facilities and Short-Term Borrowings Our short-term borrowings may include bank loans, commercial paper, and bank lines of credit. Short-term borrowings mature within one year from the date of issuance. We pay commitment fees to banks for providing us lines of credit. When we borrow under the lines of credit, we pay market interest rates. We enter into these facilities to ensure adequate liquidity to support our operations. Constellation Energy Our liquidity requirements are funded with credit facilities and cash. We fund our short-term working capital needs with existing cash and with our credit facilities, which support direct cash borrowings and the issuance of commercial paper, if available. We also use our credit facilities to support the issuance of letters of credit, primarily for our merchant energy business. Constellation Energy had bank lines of credit under committed credit facilities totaling $4.0billion at December31, 2009 for short-term financial needs as follows: Type of Credit Facility Amount (In billions) Expiration Date Capacity Type Syndicated Revolver(1) $ 2.32 July 2012 Letters of credit and cash Commodity-linked 0.50 August 2014 Letter of credit Bilateral 0.55 September 2014 Letters of credit Bilateral 0.25 December 2014 Letters of credit and cash Bilateral 0.25 June 2014 Letters of credit and cash Bilateral 0.15 September 2013 Letters of credit Total $ 4.02 (1) Facility size was reduced from $3.85billion to $2.32billion as a result of the completion of the transaction with EDF. Collectively, these facilities currently support the issuance of letters of credit and/or cash borrowings up to $4.0billion. At December31, 2009, we had approximately $1.7billion in letters of credit issued and no commercial paper outstanding under these facilities. The commodity-linked credit facility currently allows for the issuance of letters of credit up to a maximum capacity of $0.5billion. This commodity-linked facility is designed to help manage our contingent collateral requirements associated with the hedging of our Customer Supply operations because its capacity increases as natural gas price levels decrease compared to a reference price that is adjusted periodically. As of December31, 2009, there were no letters of credit outstanding under this facility. BGE BGE has a $575.0million revolving credit facility expiring in 2011. BGE can borrow directly from the banks, use the facility to allow commercial paper to be issued, if available, or issue letters of credit. The size of the facility may be increased up to $600million with additional commitments by lenders. At December31, 2009, BGE had $46.0million in commercial paper outstanding with a weighted average effective interest rate of 0.39%. There were immaterial letters of credit outstanding at December31, 2009. Net Available Liquidity The following table provides a summary of our net available liquidity at December31, 2009: As of December31, 2009 Constellation Energy BGE Total Consolidated

Capitalization

Capitalization
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Capitalization	9 Capitalization We detail in the table below our total capitalization, which includes long-term debt, common stock, noncontrolling interests, and preference stock, as of December31, 2009 and 2008. At December31, 2009 2008 (In millions) Long-Term Debt Long-term debt of Constellation Energy Zero Coupon Senior Notes, due June19, 2023 $ $ 256.7 8.625% SeriesA Junior Subordinated Debentures, due June15, 2063 450.0 450.0 8% SeriesB Mandatorily Redeemable Preferred Stock 1,000.0 14% Senior Notes, due December31, 2009 1,000.0 6.125% Fixed-Rate Notes, due September1, 2009 500.0 7.00% Fixed-Rate Notes, due April1, 2012 700.0 700.0 4.55% Fixed-Rate Notes, due June15, 2015 550.0 550.0 7.60% Fixed-Rate Notes, due April1, 2032 700.0 700.0 Fair Value of Interest Rate Swaps 38.6 55.9 Total long-term debt of Constellation Energy 2,438.6 5,212.6 Long-term debt of nonregulated businesses Tax-exempt debt transferred from BGE effective July1, 2000 Port facilities loan, due June1, 2013 10.0 4.10% Pollution control loan, due July1, 2014 20.0 20.0 Floating-rate pollution control loan, due June1, 2027 8.8 Tax-exempt variable rate notes, due April1, 2024 75.0 75.0 Tax-exempt variable rate notes, due December1, 2025 47.0 47.0 Tax-exempt variable rate notes, due December1, 2037 65.0 65.0 District Cooling facilities loan, due December1, 2031 25.0 5.00% Mortgage note, due June15, 2010 0.4 1.6 4.25% Mortgage note, due March15, 2009 0.2 7.3% Fixed Rate Note, due June1, 2012 1.7 1.8 Asset-based lending agreement due July16, 2012 27.1 Total long-term debt of nonregulated businesses 236.2 254.4 Other long-term debt of BGE 6.125% Notes, due July1, 2013 400.0 400.0 5.90% Notes, due October1, 2016 300.0 300.0 5.20% Notes, due June15, 2033 200.0 200.0 6.35% Notes, due October1, 2036 400.0 400.0 Medium-term notes, SeriesE 131.5 143.0 Total other long-term debt of BGE 1,431.5 1,443.0 6.20% deferrable interest subordinated debentures due October15, 2043 to BGE wholly owned BGE Capital Trust II relating to trust preferred securities 257.7 257.7 Rate stabilization bonds 510.9 564.4 Unamortized discount and premium (4.0 ) (41.9 ) Current portion of long-term debt (56.9 ) (2,591.5 ) Total long-term debt $ 4,814.0 $ 5,098.7 Equity: Noncontrolling Interests $ 75.3 $ 20.1 BGE Preference Stock Cumulative preference stock not subject to mandatory redemption, 6,500,000 shares authorized 7.125%, 1993 Series, 400,000 shares outstanding, callable at $101.42 per share until June30, 2010, and at lesser amounts thereafter 40.0 40.0 6.97%, 1993

Taxes

Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Taxes	10 Taxes The components of income tax expense are as follows: Year Ended December31, 2009 2008 2007 (Dollar amounts in millions) Income Taxes Current Federal $ 891.5 $ 2.8 $ 168.2 State 260.4 48.1 40.6 Current taxes charged to expense 1,151.9 50.9 208.8 Deferred Federal 1,474.5 (101.6 ) 184.7 State 372.5 (21.2 ) 41.5 Deferred taxes charged (credited) to expense 1,847.0 (122.8 ) 226.2 Investment tax credit adjustments (12.1 ) (6.4 ) (6.7 ) Income taxes per Consolidated Statements of Income (Loss) $ 2,986.8 $ (78.3 ) $ 428.3 Total income taxes are different from the amount that would be computed by applying the statutory Federal income tax rate of 35% to book income before income taxes as follows: Reconciliation of Income Taxes Computed at Statutory Federal Rate to Total Income Taxes (Loss) Income from continuing operations before income taxes $ 7,490.2 $ (1,396.7 ) $ 1,262.7 Statutory federal income tax rate 35 % 35 % 35 % Income taxes computed at statutory federal rate 2,621.6 (488.8 ) 441.9 Increases (decreases) in income taxes due to State income taxes, net of federal income tax benefit 411.0 17.3 53.4 Merger-related transaction costs (79.3 ) 416.2 Interest expense on mandatorily redeemable preferred stock 23.7 7.8 Qualified decommissioning impairment loss 3.1 (28.5 ) Amortization of deferred investment tax credits (12.1 ) (6.4 ) (6.7 ) Synthetic fuel tax credits flowed through to income (4.5 ) (166.2 ) Estimated synthetic fuel tax credit phase-out 110.3 Nondeductible international losses 19.2 Other (0.4 ) 8.6 (4.4 ) Total income taxes $ 2,986.8 $ (78.3 ) $ 428.3 Effective income tax rate 39.9 % 5.6 % 33.9 % BGE's effective tax rate was 41.3% in 2009, 28.7% in 2008, and 40.7% in 2007. In general, the primary difference between BGE's effective tax rate and the 35% statutory federal income tax rate for all years relates to Maryland corporate income taxes, net of the related federal income tax benefit. The increase in BGE's effective tax rate in 2009 is primarily due to higher taxable income. For 2008, BGE had lower taxable income related to the 2008Maryland settlement agreement, which increased the relative impact of favorable permanent tax adjustments on BGE's 2008 effective tax rate. The major components of our net deferred income tax liability are as follows: Constellation Energy BGE At December31, 2009 2008 2009 2008 (In millions) Deferred Income Taxes Deferred tax liabilities Net property, plant and equipment $ 1,474.6 $ 1,432.5 $ 920.1 $ 604.4 Qualified nuclear dec

Leases

Leases
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Leases	11 Leases There are two types of leasesoperating and capital. Capital leases qualify as sales or purchases of property and are reported in our Consolidated Balance Sheets. Our capital leases are not material in amount. All other leases are operating leases and are reported in our Consolidated Statements of Income (Loss). We expense all lease payments associated with our regulated business. Lease expense and future minimum payments for long-term, noncancelable, operating leases are not material to BGE's financial results. We present information about our operating leases below. Outgoing Lease Payments We, as lessee, lease certain facilities and equipment. The lease agreements expire on various dates and have various renewal options. We also enter into certain power purchase agreements which are accounted for as operating leases. Under these agreements, we are required to make fixed capacity payments, as well as variable payments based on actual output of the plants. We record these payments as "Fuel and purchased energy expenses" in our Consolidated Statements of Income (Loss). We exclude from our future minimum lease payments table the variable payments related to the output of the plant due to the contingency associated with these payments. Through June 2009, we also entered into time charter purchase agreements which entitled us to the use of dry bulk freight vessels in the management of our global coal and logistics services. Certain of these contracts must be accounted for as leases. During 2009 and 2008, we entered into time charter leases with terms ranging in duration from 1 to 60months. These arrangements do not include provisions for material rent increases and do not have provisions for rent holidays, contingent rentals or other incentives. In 2009 and 2008, we recognized aggregate lease expense of approximately $145million and $477million, respectively, related to 31 and 49 dry bulk freight vessels, respectively, hired under time charter arrangements. The average term of these arrangements is approximately 3months. We record the payments as "Fuel and purchased energy expenses" in our Consolidated Statements of Income (Loss). We recognized expense related to our operating leases as follows: Fuel and purchased energy expenses Operating expenses Total (In millions) 2009 $ 385.6 $ 37.2 $ 422.8 2008 664.8 38.0 702.8 2007 758.7 40.1 798.8 At December31, 2009, we owed future minimum payments for long-term, noncancelable, operating leases as follows: Year Power Purchase Agreements Other Total (In millions) 2010 $ 194.5 $ 31.5 $ 226.0 2011 202.1 28.8 230.9 2012 178.5 25.7 204.2 2013 166.3 24.5 190.8 2014 161.5 22.7 184.2 Thereafter 333.8 62.6 396.4 Total future minimum lease payments $ 1,236.7 $ 195.8 $ 1,432.5 Sub-Lease Arrangements We provide time charters of dry bulk freight vessels as part of the logistical services provided to our global customers that qualify as sub-leases of our time charter purc

Commitments, Guarantees, and Co

Commitments, Guarantees, and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Commitments, Guarantees, and Contingencies	12 Commitments, Guarantees, and Contingencies Commitments We have made substantial commitments in connection with our merchant energy, regulated electric and gas, and other nonregulated businesses. These commitments relate to: purchase of electric generating capacity and energy, procurement and delivery of fuels, the capacity and transmission and transportation rights for the physical delivery of energy to meet our obligations to our customers, and long-term service agreements, capital for construction programs, and other. Our merchant energy business enters into various long-term contracts for the procurement and delivery of fuels to supply our generating plant requirements. In most cases, our contracts contain provisions for price escalations, minimum purchase levels, and other financial commitments. These contracts expire in various years between 2010 and 2018. In addition, our merchant energy business enters into long-term contracts for the capacity and transmission rights for the delivery of energy to meet our physical obligations to our customers. These contracts expire in various years between 2010 and 2030. Our merchant energy business also has committed to long-term service agreements and other purchase commitments for our plants. Our regulated electric business enters into various long-term contracts for the procurement of electricity. As of December31, 2009, these contracts expire between 2010 and 2012 and represent BGE's estimated requirements as follows: Contract Duration Percentage of Estimated Requirements From January1, 2010 to September 2010 100 % From October 2010 to May 2011 75 From June 2011 to September 2011 50 From October 2011 to May 2012 25 The cost of power under these contracts is recoverable under the Provider of Last Resort agreement reached with the Maryland PSC. Our regulated gas business enters into various long-term contracts for the procurement, transportation, and storage of gas. Our regulated gas business has gas procurement contracts that expire between 2010 and 2011, and transportation and storage contracts that expire between 2012 and 2027. The cost of gas under these contracts is recoverable under BGE's gas cost adjustment clause discussed in Note1, and therefore are excluded from the table later in this Note. Our other nonregulated businesses have committed to gas purchases, as well as to contribute additional capital for construction programs and joint ventures in which they have an interest. We have also committed to long-term service agreements and other obligations related to our information technology systems. At December31, 2009, we estimate our future obligations to be as follows: Payments 2010 2011- 2012 2013- 2014 Thereafter Total (In millions) Merchant Energy: Purchased capacity and energy $ 160.9 $ 303.5 $ 107.7 $ 208.7 $ 780.8 Purchased energy from CENG(1) 534.7 1,513.3 2,249.8 4,297.8 Fuel and transportation 540.5 437.5 94.3 217.9 1,290.2 Long-term se

Derivatives and Fair Value Meas

Derivatives and Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Derivatives and Fair Value Measurements	13 Derivatives and Fair Value Measurements Use of Derivative Instruments Nature of Our Business and Associated Risks Our business activities primarily include our merchant energy business and our regulated electric and gas business. Our merchant energy business includes: the generation of electricity from our owned and contractually-controlled physical assets, the sale of power, gas, and other energy commodities to wholesale and retail customers, and risk management services and energy trading activities. Our regulated electric and gas businesses engage in electricity and gas transmission and distribution activities in Central Maryland at prices set by the Maryland PSC that are generally designed to recover our costs, including purchased fuel and energy. Substantially all of our risk management activities involving derivatives occur outside our regulated businesses. In carrying out our merchant energy business activities, we purchase and sell power, fuel, and other energy-related commodities in competitive markets. These activities expose us to significant risks, including market risk from price volatility for energy commodities and the credit risks of counterparties with which we enter into contracts. The sources of these risks include, but are not limited to, the following: the risks of unfavorable changes in power prices in the wholesale forward and spot markets in which we sell a portion of the power from our power generation facilities and purchase power to meet our load-serving requirements, the risk of unfavorable fuel price changes for the purchase of a portion of the fuel for our generation facilities under short-term contracts or on the spot market. Fuel prices can be volatile, and the price that can be obtained for power produced from such fuel may not change at the same rate as fuel costs. the risk that one or more counterparties may fail to perform under their obligations to make payments or deliver fuel or power, interest rate risk associated with variable-rate debt and the fair value of fixed-rate debt used to finance our operations; and foreign currency exchange rate risk associated with international investments and purchases of equipment and commodities in currencies other than U.S. dollars. Objectives and Strategies for Using Derivatives Risk Management Activities To lower our exposure to the risk of unfavorable fluctuations in commodity prices, interest rates, and foreign currency rates, we routinely enter into derivative contracts, such as fixed-price forward physical purchase and sales contracts, futures, financial swaps, and option contracts traded in the over-the-counter markets or on exchanges, for hedging purposes. The objectives for entering into such hedging transactions primarily include: fixing the price for a portion of anticipated future electricity sales from our generation operations, fixing the price of a portion of anticipated fuel purchases for the operation of our power plants, fixing the price for a portion of anticipated energy purchases to supply our load-serving customers, and managing our exposure to interest rate risk and foreign currency e

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Stock-Based Compensation	14 Stock-Based Compensation Under our long-term incentive plans, we grant stock options, performance and service-based restricted stock, performance- and service-based units, and equity to officers, key employees, and members of the Board of Directors. In May 2007, shareholders approved Constellation Energy's 2007 Long-Term Incentive Plan, under which we can grant up to a total of 9,000,000 shares. Any shares covered by an outstanding award under any of our long-term incentive plans that are forfeited or cancelled, expire or are settled in cash will become available for issuance under the 2007 Long-Term Incentive Plan. At December31, 2009, there were 5,790,545 shares available for issuance under the 2007 Long-Term Incentive Plan. At December31, 2009, we had stock options, restricted stock, performance units and equity grants outstanding as discussed below. We may issue new shares, reuse forfeited shares, or buy shares in the market in order to deliver shares to employees for our equity grants. BGE officers and key employees participate in our stock-based compensation plans. The expense recognized by BGE in 2009, 2008, and 2007 was not material to BGE's financial results. Non-Qualified Stock Options Options are granted with an exercise price equal to the market value of the common stock at the date of grant, become vested over a period up to three years (expense recognized in tranches), and expire ten years from the date of grant. The fair value of our stock-based awards was estimated as of the date of grant using the Black-Scholes option pricing model based on the following weighted- average assumptions: 2009 2008 2007 Risk-free interest rate 1.95 % 2.57 % 4.69 % Expected life (in years) 4.0 4.0 4.0 Expected market price volatility factor 37.8 % 25.8 % 20.3 % Expected dividend yield 4.83 % 1.85 % 2.5 % We use the historical data related to stock option exercises in order to estimate the expected life of our stock options. We also use historical data (measured on a daily basis) for a period equal to the duration of the expected life of option awards, information on the volatility of an identified group of peer companies, and implied volatilities for certain publicly traded options in Constellation Energy common stock in order to estimate the volatility factor. We believe that the use of this data to estimate these factors provides a reasonable basis for our assumptions. The risk-free interest rate for the periods within the expected life of the option is based on the U.S Treasury yield curve in effect and the expected dividend yield is based on our current estimate for dividend payout at the time of grant. Summarized information for our stock option grants is as follows: 2009 2008 2007 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price (Shares in thousands) Outstanding, beginning of year 6,058 $ 59.99 6,145 $ 55.90 6,051 $ 47.23 Granted with exercise prices at fair market value 3,

Merger and Acquisitions

Merger and Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Merger and Acquisitions	15 Merger and Acquisitions CLT Efficient Technologies Group On July1, 2009, we acquired CLT Efficient Technologies Group (CLT). We include CLT as part of our other nonregulated businesses and have included its results of operations in our consolidated financial statements since the date of acquisition. CLT is an energy services company that provides energy performance contracting and energy efficiency engineering services. We acquired 100% ownership of CLT for $21.9million, of which $20.8million was paid in cash at closing. Our final purchase price allocation related to CLT is as follows: At July1, 2009 (In millions) Current assets $ 5.7 Goodwill(1) 18.6 Other assets 2.3 Total assets acquired 26.6 Current liabilities (4.7 ) Net assets acquired $ 21.9 (1) 100% deductible for tax purposes. The pro-forma impact of the CLT acquisition would not have been material to our results of operations for the years ended December31, 2009, 2008, and 2007. Criterion Wind Project On November30, 2009, we signed an agreement to acquire the Criterion wind project in Garrett County, Maryland. The completed cost of this project is expected to be approximately $140million. This 70 MW wind energy project would be developed, constructed, owned, and operated by us. We expect to close this transaction, subject to certain conditions in the first quarter of 2010 and expect commercial operation of the facility in the fall of 2010. Termination of Merger Agreement with MidAmerican On December17, 2008 Constellation Energy and MidAmerican agreed to terminate the Agreement and Plan of Merger the parties entered into on September19, 2008. In connection with the termination and conversion of our SeriesA Preferred Stock, we made certain payments and issued certain securities to MidAmerican. Specifically, we: paid MidAmerican the $175million merger termination fee, paid MidAmerican approximately $418million in lieu of the number of shares of our common stock (valued at $26.50 per share) that were due to MidAmerican on the conversion of SeriesA Preferred Stock but that could not be issued due to regulatory limitations, issued and delivered a total of 19,897,322 shares of our common stock, representing 9.99% of our total outstanding common shares (after giving effect to the issuance, due upon conversion of the SeriesA Preferred Stock). The fair value of the common stock on the date of issuance was estimated to be $572.6million based on the stock price at the time of issuance. We also delivered to MidAmerican 14% Senior Notes in the aggregate principal amount of $1.0billion, also issued upon the conversion of the SeriesA Preferred Stock. We discuss the merger termination fee in more detail in Note2. Nufcor International Limited On June26, 2008, we acquired 100% ownership of Nufcor International Limited (Nufcor), a uranium market participant that provides marketing services to uranium producers, utilities and an investment fund in the North American and European markets, for $102.8million. We included Nufcor as part of our Global Commodities operations in our merchant

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Related Party Transactions	16 Related Party Transactions Constellation Energy CENG On November6, 2009, upon the sale of a membership interest in CENG, our nuclear generation and operation business, to EDF, we deconsolidated CENG and began accounting for our 50.01% membership interest in CENG as an equity method investment. In connection with the closing of the transaction with EDF, we entered into a power purchase agreement (PPA) with CENG with a fair value of $0.8billion where we will purchase between 85-90% of the output of CENG's nuclear plants that is not sold to third parties under pre-existing PPAs over the five year term of the PPA. For the period from November6, 2009 through December31, 2009, we recognized $122.5million in purchased power costs from CENG. In addition to the PPA, we entered into a power services agency agreement (PSA) and an administrative service agreement (ASA). The PSA is a five-year agreement under which we will provide scheduling, asset management and billing services to CENG and recognize average annual revenue of approximately $16million. For the period from November6, 2009 through December31, 2009, we recognized $2.7million in revenue for services rendered under the PSA with CENG. The ASA is a one year agreement that is renewable annually under which we will provide administrative support services to CENG for a fee of approximately $66million for 2010. The fees for administrative support services will be subject to change in future years based on the level of services provided. The charges under this agreement are intended to represent the actual cost of the services provided to CENG from us. For the period from November6, 2009 through December31, 2009, we recognized $10.0million for services rendered under the ASA with CENG as an offset to operating expenses. UNE We discuss our relationship with UNE in Note4. CEP On March31, 2008, our merchant energy business sold its working interest in 83 oil and natural gas producing wells in Oklahoma to CEP, an equity method investment of Constellation Energy, for total proceeds of approximately $53million. Our merchant energy business recognized a $14.3million gain, net of the minority interest gain of $0.7million on the sale and exclusive of our 28.5% ownership interest in CEP. This gain is recorded in "Gains on Sales of Assets" in our Consolidated Statements of Income (Loss). BGEIncome Statement BGE is obligated to provide market-based standard offer service to all of its electric customers for varying periods. Bidding to supply BGE's market-based standard offer service to electric customers will occur from time to time through a competitive bidding process approved by the Maryland PSC. Our merchant energy business will supply a portion of BGE's market-based standard offer service obligation to electric customers through May31, 2012. The cost of BGE's purchased energy from nonregulated subsidiaries of Constellation Energy to meet its standard offer service obligation was as follows: Year Ended December31, 2009 2008 2007 (In millions) Electricity purchased for resale expenses $ 623.5 $ 802.0 $ 1,139.6 I

Quarterly Financial Data

Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Quarterly Financial Data (Unaudited)	17 Quarterly Financial Data (Unaudited) Our quarterly financial information has not been audited but, in management's opinion, includes all adjustments necessary for a fair statement. Our business is seasonal in nature with the peak sales periods generally occurring during the summer and winter months. Accordingly, comparisons among quarters of a year may not represent overall trends and changes in operations. 2009 Quarterly DataConstellation Energy 2009 Quarterly DataBGE Revenues Income (Loss) from Operations Other (Expense) Income * Total Fixed Charges * Net Income (Loss) Net Income Attributable to Common Stock Earnings (Loss) Per Share from Operations Diluted Earnings (Loss) Per Share of Common Stock Diluted Revenues Income (Loss) from Operations Net Income Net Income Attributable to Common Stock (In millions, except per share amounts) (In millions) Quarter Ended Quarter Ended March31 $ 4,303.4 $ (212.1 ) $ (56.3 ) $ 93.5 $ (119.7 ) $ (123.5 ) $ (0.62 ) $ (0.62 ) March31 $ 1,193.7 $ 168.7 $ 85.0 $ 81.7 June30 3,864.1 230.6 (15.0 ) 84.5 28.3 8.1 0.04 0.04 June30 767.4 54.3 16.0 12.7 September30 4,027.7 534.3 11.6 80.1 167.4 137.6 0.69 0.69 September30 866.5 78.7 32.3 28.6 December31 3,403.6 7,428.2 (81.0 ) 92.0 4,427.4 4,421.2 21.96 21.96 December31 751.4 (33.3 ) (42.6 ) (38.2 ) Year Ended Year Ended December31 $ 15,598.8 $ 7,981.0 $ (140.7 ) $ 350.1 $ 4,503.4 $ 4,443.4 $ 22.19 $ 22.19 December31 $ 3,579.0 $ 268.4 $ 90.7 $ 84.8 The sum of the quarterly earnings per share amounts may not equal the total for the year due to the effects of rounding and dilution. * In the fourth quarter of 2009, we modified our policy for the classification of credit facility fees and we reclassified amounts for the first three quarters of 2009 to conform with that policy. Amounts prior to 2009 were not material. See Note1 for a discussion of our policy for the classification of credit facility fees. First quarter results include: a $184.2million after-tax loss on the sale of a majority of our international commodities operation, the reclassification of losses on previously designated cash-flow hedges from Accumulated Other Comprehensive Loss, and earnings that are no longer part of our core business, a $5.1million after-tax charge for the impairment of our investment in CEPLLC, a $23.8million after-tax charge for the impairment of certain of our nuclear decommissioning trust fund investments, a $6.0million after-tax charge for certain long-lived assets that ceased to be used in connection with the divestiture of a majority of our international commodities operation and our Houston-based gas trading operation, merger termination and strategic alternatives costs totaling $42

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule II - Valuation and Qualifying Accounts
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	CONSTELLATION ENERGY GROUP,INC. AND SUBSIDIARIESANDBALTIMORE GAS AND ELECTRIC COMPANY AND SUBSIDIARIES SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E Additions Description Balance at beginning of period Charged to costs and expenses Charged to Other Accounts Describe (Deductions) Describe Balance at end of period (In millions) Reserves deducted in the Balance Sheet from the assets to which they apply: Constellation Energy Accumulated Provision for Uncollectibles 2009 $ 240.6 $ 71.2 $ (5.0 )(A) $ (146.2 )(C) $ 160.6 2008 44.9 127.1 102.3 (B) (33.7 )(C) 240.6 2007 48.9 31.3 (35.3 )(C) 44.9 Valuation Allowance Net unrealized (gain) loss on available for sale securities 2009 2.1 (3.6 ) (1.3 )(D) (2.8 ) 2008 (17.3 ) 7.0 0.3 (D) 12.1 (E) 2.1 2007 (18.5 ) 1.2 (D) (17.3 ) Net unrealized (gain) loss on nuclear decommissioning trust funds 2009 (49.6 ) (201.0 )(D) 250.6 (F) 2008 (256.7 ) 207.1 (D) (49.6 ) 2007 (206.1 ) (50.6 )(D) (256.7 ) BGE Accumulated Provision for Uncollectibles 2009 34.2 41.8 (28.8 )(C) 47.2 2008 21.1 34.5 (21.4 )(C) 34.2 2007 16.1 21.0 (16.0 )(C) 21.1 (A) Represents amounts recorded as an increase to nonregulated revenues resulting from a settlement with a counterparty that was in default. (B) Represents amounts recorded as a reduction to nonregulated revenues resulting from liquidated damages claims upon termination of derivatives which were determined to be uncollectible. (C) Represents principally net amounts charged off as uncollectible. (D) Represents amounts recorded in or reclassified from accumulated other comprehensive income. (E) Represents sale of a marketable security. (F) Represents decrease due to the deconsolidation of CENG.

Document and Entity Information

Document and Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 29, 2010	Jun. 30, 2009
Document and Entity Information
Entity Registrant Name	CONSTELLATION ENERGY GROUP INC
Entity Central Index Key	0001004440
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$5,309,415,341
Entity Common Stock, Shares Outstanding		201,091,187