Baltimore Gas & Electric 10-Q 7 Aug 09 2009 Q2 Quarterly 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	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Revenues
Nonregulated revenues	3097.3	4124.3	6209.6	7836.2
Regulated electric revenues	655.7	448.7	1462.5	1,158
Regulated gas revenues	111.1	183.1	495.4	574.1
Total revenues	3864.1	4756.1	8167.5	9568.3
Expenses
Fuel and purchased energy expenses	2631.6	3559.4	5904.8	7302.5
Operating expenses	561.2	711.5	1142.9	1301.6
Merger termination and strategic alternatives costs	4		46.3
Impairment losses and other costs	67.2		95.8
Workforce reduction costs	0.4		11.2
Depreciation, depletion, and amortization	148.9	141.9	297.5	290.2
Accretion of asset retirement obligations	18.2	17	36.1	33.6
Taxes other than income taxes	72.4	71.1	150.3	145.9
Total expenses	3503.9	4500.9	7684.9	9073.8
Net (loss) gain on divestitures	-129.6	76.5	-464.1	91.5
Income from Operations	230.6	331.7	18.5	586
Other Income (Expense)	12.1	15.3	-15.4	58
Fixed Charges:
Interest expense	133.2	73.5	277.1	152.3
Interest capitalized and allowance for borrowed funds used during construction	-21.6	-8.6	-43.2	-15.7
Total fixed charges	111.6	64.9	233.9	136.6
Income (Loss) from Continuing Operations Before Income Taxes	131.1	282.1	-230.8	507.4
Income Tax Expense (Benefit)	102.8	107.1	-139.4	183
Net Income (Loss)	28.3	175	-91.4	324.4
Less: Net Income Attributable to Noncontrolling Interests and BGE Preference Stock Dividends	20.2	3.5	24	7.2
Net Income (Loss) Attributable to Common Stock	8.1	171.5	-115.4	317.2
Average Shares of Common Stock Outstanding - Basic (in shares)	199.2	178.4	198.9	178.3
Average Shares of Common Stock Outstanding - Diluted (in shares)	200	180.2	198.9	180.2
Earnings (Loss) Per Common Share - Basic (in dollars per share)	0.04	0.96	-0.58	1.78
Earnings (Loss) Per Common Share - Diluted (in dollars per share)	0.04	0.95	-0.58	1.76
Dividends Declared Per Common Share (in dollars per share)	0.24	0.4775	0.48	0.955

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net Income (Loss)	28.3	$175	-91.4	324.4
Hedging instruments:
Reclassificiation of net loss (gain) on hedging instruments from OCI to net income (loss), net of taxes	399.5	(99)	859.4	78
Net unrealized (loss) gain on hedging instruments, net of taxes	-48.7	511.8	-384.9	873.4
Available-for-sale securities:
Reclassification of net (gain) loss on sales of securities from OCI to net income (loss), net of taxes	-0.2	1.9	29.5	1.6
Net unrealized gain (loss) on securities, net of taxes	45.6	16.4	18.9	-28.7
Defined benefit obligations:
Amortization of net actuarial loss, prior service cost, and transition obligation included in net periodic benefit cost, net of taxes	14.2	5.4	22.1	10.5
Net unrealized gain (loss) on foreign currency, net of taxes	2.5	2.1	4.5	-0.4
Comprehensive income	441.2	613.6	458.1	1258.8
Less: Comprehensive income attributable to noncontrolling interests, net of taxes	20.2	3.5	24	7.2
Comprehensive Income Attributable to Common Stock	$421	610.1	434.1	1251.6

CONSOLIDATED BALANCE SHEETS (Co

CONSOLIDATED BALANCE SHEETS (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	961.6	202.2
Accounts receivable (net of allowance for uncollectibles of $260.2 and $240.6, respectively)	2429.2	3389.9
Fuel stocks	310.2	717.9
Materials and supplies	222.3	224.5
Derivative assets	1036.4	1,465
Unamortized energy contract assets	138	81.3
Restricted cash	26	1030.5
Deferred income taxes	290.2	268
Other	240.5	815.5
Total current assets	5654.4	8194.8
Investments and Other Noncurrent Assets
Nuclear decommissioning trust funds	1079.8	1006.3
Other investments	333.6	421
Regulatory assets (net)	454.5	494.7
Goodwill	4.6	4.6
Derivative assets	747.2	851.8
Unamortized energy contract assets	223.9	173.1
Other	312.2	421.3
Total investments and other noncurrent assets	3155.8	3372.8
Property, Plant and Equipment
Property, plant and equipment	15817.7	15285.6
Nuclear fuel (net of amortization)	482.4	443
Accumulated depreciation	-5111.9	-5012.1
Net property, plant and equipment	11188.2	10716.5
Total Assets	19998.4	22284.1
Current Liabilities
Short-term borrowings	339.9	855.7
Current portion of long-term debt	1830.6	2591.5
Accounts payable and accrued liabilities	1582.5	2370.1
Customer deposits and collateral	114.9	120.3
Derivative liabilities	1272.8	1241.8
Unamortized energy contract liabilities	428.7	393.5
Accrued expenses	278.3	373.1
Other	456.6	514.2
Total current liabilities	6304.3	8460.2
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	937.1	677
Asset retirement obligations	1022.6	987.3
Derivative liabilities	937.5	1,115
Unamortized energy contract liabilities	853.7	906.4
Defined benefit obligations	1061.3	1354.3
Deferred investment tax credits	41.1	44.1
Other	256	249.6
Total deferred credits and other noncurrent liabilities	5109.3	5333.7
Long-term Debt, Net of Current Portion	4,817	5098.7
Common shareholders' equity:
Common stock	3191.5	3164.5
Retained earnings	2002.7	2228.7
Accumulated other comprehensive loss	-1662.3	-2211.8
Total common shareholders' equity	3531.9	3181.4
BGE preference stock not subject to mandatory redemption	190	190
Noncontrolling interests	45.9	20.1
Total equity	3767.8	3391.5
Commitments, Guarantees, and Contingencies (see Notes)
Total Liabilities and Equity	19998.4	22284.1

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
BALANCE SHEETS
Allowance for uncollectibles	260.2	240.6

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash Flows From Operating Activities
Net (loss) income	-91.4	324.4
Adjustments to reconcile to net cash provided by operating activities
Depreciation, depletion, and amortization	297.5	290.2
Amortization of nuclear fuel	67	59.1
Amortization of energy contracts	-86.7	-117.1
All other amortization	74.9	8.3
Accretion of asset retirement obligations	36.1	33.6
Deferred income taxes	-121.6	39.2
Investment tax credit adjustments	(3)	-3.2
Deferred fuel costs	32.4	19.7
Defined benefit obligation expense	64.7	55.5
Defined benefit obligation payments	-328.6	-100.3
Workforce reduction costs	11.2
Impairment losses and other costs	95.8
Impairment losses on nuclear decommissioning trust assets	62.4	12.5
Merger termination and strategic alternatives costs	37.2
Loss (gain) on divestitures	464.1	-99.2
Gains on termination of contracts		-68.9
Accrual of Maryland settlement agreement credit		188.2
Equity in earnings of affiliates less than dividends received	18.5	7.4
Derivative contracts classified as financing activities under SFAS No. 149	785.3	0.5
Changes in:
Accounts receivable, excluding margin	599.2	-521.7
Derivative assets and liabilities, excluding collateral	185.2	-700.6
Net collateral and margin	1094.9	525.9
Materials, supplies, and fuel stocks	323.4	-235.5
Other current assets	237	11.2
Accounts payable and accrued liabilities	-786.1	1051.7
Other current liabilities	(156)	-247.1
Other	51	6.2
Net cash provided by operating activities	2964.4	540
Cash Flows From Investing Activities
Investments in property, plant and equipment	-809.1	-869.5
Asset and business acquisitions, net of cash acquired		-312.4
Investments in nuclear decommissioning trust fund securities	-233.4	-282.7
Proceeds from nuclear decommissioning trust fund securities	214.7	264
Proceeds from sales of investments and other assets	80.9	217
Contract and portfolio acquisitions	-2153.7
Decrease (increase) in restricted funds	1004.4	-196.9
Other	-1.8	12.9
Net cash used in investing activities	(1,898)	-1167.6
Cash Flows From Financing Activities
Net (repayment) issuance of short-term borrowings	-515.8	103.7
Proceeds from issuance of common stock	13.6	8.3
Proceeds from issuance of long-term debt	109	1,100
Repayment of long-term debt	-1180.3	-265.1
Debt issuance costs	-62.8	-15.6
Common stock dividends paid	-133.7	(165)
BGE preference stock dividends paid	-6.6	-6.6
Proceeds from contract and portfolio acquisitions	2243.1
Derivative contracts classified as financing activiites under SFAS No. 149	-785.3	-0.5
Other	11.8	3.2
Net cash (used in) provided by financing activities	(307)	762.4
Net Increase in Cash and Cash Equivalents	759.4	134.8
Cash and Cash Equivalents at Beginning of Period	202.2	1095.9
Cash and Cash Equivalents at End of Period	961.6	1230.7

Basis of Presentation, Reclassi

Basis of Presentation, Reclassifications
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Basis of Presentation, Reclassifications	Various factors can have a significant impact on our results for interim periods. This means that the results for this quarter are not necessarily indicative of future quarters or full year results given the seasonality of our business. Our interim financial statements on the previous pages reflect all adjustments that management believes are necessary for the fair statement of the results of operations for the interim periods presented. These adjustments are of a normal recurring nature. We have evaluated events or transactions that occurred after June30, 2009 for inclusion in these financial statements through August7, 2009, the date these financial statements were issued. Basis of Presentation This Quarterly Report on Form10-Q is a combined report of Constellation Energy Group,Inc. (Constellation Energy) and Baltimore Gas and Electric Company (BGE). References in this report to "we" and "our" are to Constellation Energy and its subsidiaries, collectively. References in this report to the "regulated business(es)" are to BGE. Reclassifications We have reclassified certain prior-period amounts: In accordance with Statement of Financial Accounting Standards (SFAS) No.160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.51, which we adopted on January1, 2009, we have separately presented: "Net income (loss) attributable to noncontrolling interests" on our, and BGE's, Consolidated Statements of Income (Loss), "Noncontrolling interests" and "BGE Preference Stock Not Subject to Mandatory Redemption" as noncontrolling interests on our Consolidated Balance Sheets, "Comprehensive income attributable to noncontrolling interests, net of taxes" in our Statements of Comprehensive Income (Loss), and "BGE preference stock dividends paid" in the financing section of our Consolidated Statements of Cash Flows. We discuss our adoption of SFAS No.160 in more detail on page41. We also made the following reclassifications: We have separately presented "Amortization of nuclear fuel," "Amortization of energy contracts," and "All other amortization" that were previously reported within "Depreciation, depletion, and amortization" on our Consolidated Statements of Cash Flows. We have separately presented "Net collateral and margin" that was previously reported within other working capital accounts on our Consolidated Statements of Cash Flows. We have separately presented "Other amortization" that was previously reported within "Depreciation and amortization" on BGE's Consolidated Statements of Cash Flows.

Investment Agreement with EDF G

Investment Agreement with EDF Group
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Investment Agreement with EDF Group	Investment Agreement with EDF Group On December17, 2008, we entered into an Investment Agreement with EDF Group and related entities (EDF) under which EDF will purchase from us a 49.99% membership interest in our nuclear generation and operation business for $4.5billion (subject to certain adjustments). We discuss the Investment Agreement with EDF in more detail in Note15 of our 2008 Annual Report on Form10-K.

Merger Termination and Strategi

Merger Termination and Strategic Alternatives Costs
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Merger Termination and Strategic Alternatives Costs	Merger Termination and Strategic Alternatives Costs We incurred costs during the quarter and six months ended June30, 2009 related to the terminated merger agreement with MidAmerican Energy Holdings Company (MidAmerican), the conversion of our SeriesA Preferred Stock, the transactions related to EDF, and other strategic alternatives costs. These costs totaled $4.0million pre-tax and $46.3million pre-tax for the quarter and six months ended June30, 2009, respectively, and primarily relate to the first quarter of 2009 write-off of the unamortized debt discount associated with the 14% Senior Notes (Senior Notes) that were repaid in full to MidAmerican in January 2009.

Variable Interest Entities

Variable Interest Entities
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Variable Interest Entities	Variable Interest Entities As of June30, 2009, we consolidated three variable interest entities (VIE) in which we were the primary beneficiary, and we had significant interests in seven VIEs for which we did not have controlling financial interests and, accordingly, were not the primary beneficiary. We discuss our VIEs in more detail in Note4 of our 2008 Annual Report on Form10-K. Consolidated Variable Interest Entities In 2007, BGE formed RSB BondCoLLC (BondCo), a special purpose bankruptcy-remote limited liability company, to acquire and hold rate stabilization property and to issue and service bonds secured by the rate stabilization property. In June 2007, BondCo purchased rate stabilization property from BGE, including the right to assess, collect, and receive non-bypassable rate stabilization charges payable by all residential electric customers of BGE. These charges are being assessed in order to recover previously incurred power purchase costs that BGE deferred pursuant to Senate Bill 1. We discuss Senate Bill 1 in more detail in Management's Discussion and Analysis section of our 2008 Annual Report on Form10-K. BGE determined that BondCo is a VIE for which it is the primary beneficiary. As a result, BGE, and we, consolidated BondCo. The BondCo assets are restricted and can only be used to settle the obligations of BondCo. Further, BGE is required to remit all payments it receives from customers for rate stabilization charges to BondCo. During the quarter and six months ended June30, 2009, BGE remitted $17.6million and $42.1million, respectively, to BondCo. BGE did not provide any additional financial support to BondCo during the quarter and six months ended June30, 2009. Further, BGE does not have any contractual commitments or obligations to provide additional financial support to BondCo unless additional rate stabilization bonds are issued. The BondCo creditors do not have any recourse to the general credit of BGE in the event the rate stabilization charges are not sufficient to cover the bond principal and interest payments of BondCo. During the second quarter of 2009, our retail gas customer supply operation formed two new entities and combined them with our existing retail gas customer supply operation into a retail gas entity group for the purpose of entering into a collateralized gas supply agreement (GSA) with a third party gas supplier. While we own 100% of these entities, we determined that the retail gas entity group is a VIE because we provide additional credit support to the gas supplier in the form of a letter of credit and a parental guarantee. We are the primary beneficiary of the retail gas entity group; accordingly, we consolidate the retail gas entity group as a VIE, including the existing retail gas customer supply operation, which we formerly consolidated as a voting interest entity. The gas supply arrangement is collateralized as follows: The assets of the retail gas entity group must be used to settle obligations under the third party gas supply agreement before it can make any distributions to us, The third party gas supplier has a collateral interest in all of the assets and

Impairment Losses and Other Cos

Impairment Losses and Other Costs
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Impairment Losses and Other Costs	Impairment Losses and Other Costs Available for Sale Securities We evaluated certain of our investments in equity securities during the six months ended June30, 2009. The investments we evaluated included our nuclear decommissioning trust fund assets and other marketable securities. We record an impairment charge if an investment has experienced a decline in fair value to a level less than our carrying value and the decline is "other than temporary." In making this determination, we evaluate the reasons for an investment's decline in value, the extent and duration of that decline, and factors that indicate whether and when the value will recover. For securities held in our nuclear decommissioning trust fund for which the market value is below book value, the decline in fair value is considered other than temporary and we write them down to fair value. We discuss our impairment policy for our nuclear decommissioning trust fund assets and other marketable securities in more detail in Note1 to our 2008 Annual Report on Form10-K. The fair values of certain of our marketable securities and certain of the securities held in our nuclear decommissioning trust fund declined below book value. As a result, we recorded a $1.9million pre-tax impairment charge for the quarter ended June30, 2009 and a $62.4million pre-tax impairment charge for the six months ended June30, 2009 for our nuclear decommissioning trust fund assets in the "Other income (expense)" line in our Consolidated Statements of Income (Loss). In addition, we recorded all other changes in the fair value of our nuclear decommissioning trust fund assets that are not impaired in other comprehensive (loss) income. We also recorded an impairment charge of $0.5million for other marketable securities during the six months ended June30, 2009. The estimates we utilize in evaluating impairment of our available for sale securities require judgment and the evaluation of economic and other factors that are subject to variation, and the impact of such variations could be material. Equity Method Investments Shipping Joint Venture We record an impairment if an equity method investment has experienced a decline in fair value to a level less than our carrying value and the decline is "other than temporary." During the quarter ended June30, 2009, we contemplated several potential courses of action together with our partner relating to the strategic direction of our shipping joint venture and our continuing involvement. This led to a decision to explore a plan to sell our 50% interest to a party related to our joint venture partner for negligible proceeds. During July 2009, a definitive purchase and sale agreement was executed between the parties and we expect the transaction to close in the third quarter of 2009. Upon completion, we will have no further continuing involvement associated with the activities of the joint venture. As a result of the events that occurred during the second quarter of 2009, it became apparent that a decline in fair value to a level below the carrying value existed and that this decline was "other than temporary." As such, we recorded a pre-tax impai

Workforce Reduction Costs

Workforce Reduction Costs
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Workforce Reduction Costs	Workforce Reduction Costs We incurred workforce reduction costs during the six months ended June30, 2009 primarily related to the divestiture of a majority of our international commodities operation as well as some smaller restructurings elsewhere in our organization. We recognized an $11.2million pre-tax charge during the six months ended June30, 2009 related to the elimination of approximately 180 positions. We expect these restructurings will be completed within the next 12months. The following table summarizes the status of the involuntary severance liability at June30, 2009: (In millions) Initial severance liability balance $ 10.8 Additional expense recorded in the second quarter of 2009 0.4 Amounts recorded as pension and postretirement liabilities Net cash severance liability 11.2 Cash severance payments (8.1 ) Other Severance liability balance at June30, 2009 $ 3.1 We also incurred costs related to workforce reduction efforts initiated across all of our operations in 2008. The following table summarizes the status of this involuntary severance liability at June30, 2009: (In millions) Initial severance liability balance $ 19.7 Amounts recorded as pension and postretirement liabilities (3.0 ) Net cash severance liability 16.7 Cash severance payments (10.5 ) Other Severance liability balance at June30, 2009 $ 6.2 We discuss our 2008 workforce reduction costs in more detail in Note2 of our 2008 Annual Report on Form10-K.

Earnings Per Share

Earnings Per Share
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Earnings Per Share	Earnings Per Share Basic earnings per common share (EPS) is computed by dividing earnings applicable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Our dilutive common stock equivalent shares consist of stock options and other stock-based compensation awards. The following table presents stock options that were not dilutive and were excluded from the computation of diluted EPS in each period, as well as the dilutive common stock equivalent shares: Quarter Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions) Non-dilutive stock options 5.0 1.3 5.3 0.9 Dilutive common stock equivalent shares 0.8 1.8 0.5 1.9 As a result of the Company incurring a loss for the six months ended June30, 2009, dilutive common stock equivalent shares were not included in calculating diluted EPS. We issued to MidAmerican 19,897,322 shares of Constellation Energy's common stock upon the conversion of the SeriesA Preferred Stock, which happened upon the termination of the merger agreement with MidAmerican on December17, 2008. We discuss the conversion feature of the SeriesA Preferred Stock in more detail in Note9 of our 2008 Annual Report on Form10-K. These additional shares impacted our earnings per share for the quarter and six months ended June30, 2009.

Accretion of Asset Retirement O

Accretion of Asset Retirement Obligations
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Accretion of Asset Retirement Obligations	Accretion of Asset Retirement Obligations We discuss our asset retirement obligations in more detail in Note1 of our 2008 Annual Report on Form10-K. The change in our "Asset retirement obligations" liability during 2009 was as follows: (In millions) Liability at January1, 2009 $ 987.3 Accretion expense 36.1 Liabilities incurred 0.1 Liabilities settled (0.3 ) Revisions to cash flows (0.4 ) Other (0.2 ) Liability at June30, 2009 $ 1,022.6

Divestitures

Divestitures
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Divestitures	Divestitures In 2009, we continued to implement many of the strategic initiatives we identified in 2008 to improve liquidity and reduce our business risk. We discuss these initiatives in the Strategy section of our 2008 Annual Report on Form10-K. The transactions to sell a majority of our international commodities, our Houston-based gas trading and other operations were structured in two parts: the assignment and transfer of a majority of the portfolio, and the execution of a Total Return Swap (TRS) mechanism for the remainder of the portfolio. Under the TRS, we entered into offsetting trades with the buyers that matched the terms of the remaining third party contracts for which we were unable to complete assignment to the buyers as of the transaction dates. This structure transferred the risks associated with changes in commodity prices as of the transaction dates to the buyers in all instances. However, the trades under the TRS are newly executed transactions, and we remain the principal under both the unassigned third party trades and the matching trades with the buyers under the TRS with no right of either financial or legal offset. We continue to pursue the assignment of these remaining contracts to the buyers. The matching contracts under the TRS include both derivatives and non-derivatives and were executed at prices that differed from market prices at closing, which resulted in a net cash payment to/from the buyers. We recorded the underlying contracts at fair value on a gross basis as assets or liabilities in our Consolidated Balance Sheets depending on whether the contract prices were above- or below-market prices at closing. As a result, the derivative contracts have been included in "Derivative Assets and Liabilities" and the nonderivative contracts have been included in "Unamortized Energy Contract Assets and Liabilities." The derivative contracts are subject to mark-to-market accounting until they are realized or assigned. The nonderivative contracts will be amortized into earnings as the underlying contracts are realized, or sooner if those contracts are assigned. We record the cash proceeds we pay or receive at the inception of energy purchase and sale contracts based upon whether the contracts are in-the-money or out-of-the-money as follows: In-the-money contractsproceeds paid Investing Outflow Out-of-the-money contractsproceeds received Financing Inflow After inception, we record the cash flows from all energy purchase and sale contracts as operating activities, except for out-of-the-money derivative contracts that were liabilities at inception. We record the ongoing cash flows from these out-of-the-money derivative contracts as financing activities, regardless of whether they are purchase or sale contracts. International Commodities Operation In January 2009, we entered into a definitive agreement to sell a majority of our international commodities operation. We completed this transaction on March23, 2009 and recognized the following impacts during the six months ended June30, 2009: a pre-tax loss of approximately $334.5million representing net consideration paid to th

Investments Classified as Avail

Investments Classified as Available-for-Sale
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Investments Classified as Available-for-Sale	Investments Classified as Available-for-Sale We classify the following investments as available-for-sale: nuclear decommissioning trust funds, marketable equity securities, and trust assets securing certain executive benefits. This means we do not expect to hold these investments to maturity, and we do not consider them trading securities. We record these investments at fair value on our Consolidated Balance Sheets. We show the fair values, gross unrealized gains and losses, and adjusted cost basis for all of our available-for-sale securities in the following tables. We use specific identification to determine cost in computing realized gains and losses. At June30, 2009 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value (In millions) Money market funds $ 12.3 $ $ $ 12.3 Marketable equity securities 196.0 70.3 266.3 Mutual fund / common collective trusts 478.5 49.6 528.1 Corporate debt 159.4 18.6 178.0 U.S. agencies 42.4 2.2 44.6 U.S. treasuries 19.6 0.8 20.4 State municipal bonds 45.3 2.8 48.1 Totals $ 953.5 $ 144.3 $ $ 1,097.8 The unrealized gains in the preceding table consist primarily of $143.2million at June30, 2009 associated with the nuclear decommissioning trust funds. The investments in our nuclear decommissioning trust funds are managed by third parties who have independent discretion over the purchases and sales of securities. We recognize impairments for any of these investments for which the fair value declines below our book value. We recognized $1.9million and $62.4million in pre-tax impairment losses on our nuclear decommissioning trust investments during the quarter and six months ended June30, 2009, respectively. These impairments are included as part of gross realized losses in the following table. Gross and net realized gains and losses on available-for-sale securities were as follows: Quarter Ended June30, 2009 Six Months Ended June30, 2009 (In millions) Gross realized gains $ 4.3 $ 15.2 Gross realized losses (3.7 ) (72.0 ) Net realized gains $ 0.6 $ (56.8 ) The corporate debt securities, U.S. Government agency obligations, and state municipal bonds mature on the following schedule: At June30, 2009 (In millions) Less than 1year $ 11.9 1-5years 90.7 5-10years 93.8 More than 10years 94.7 Total maturities of debt securities $ 291.1

Information by Operating Segmen

Information by Operating Segment
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Information by Operating Segment	Information by Operating Segment Our reportable operating segments areMerchant Energy, Regulated Electric, and Regulated Gas: Our merchant energy business is nonregulated and includes: fossil, nuclear, and interests in hydroelectric generating facilities and 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 home improvements, service electric and gas appliances, service heating, air conditioning, plumbing, electrical, and indoor air quality systems, and provide 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 is expected to be divested in the third quarter of 2009. Additionally, we entered into an Investment Agreement with EDF on December17, 2008. See Note15 of our 2008 Annual Report on Form10-K for more detail on the Investment Agreement with EDF. We believe that the successful execution of these initiatives, as well as our other initiatives that we have undertaken to reduce risk in our merchant energy business, 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. We discuss these strategies and their effect on liquidity in Note8 of our 2008 Annual Report on Form10-K. Our Merchant Energy, Regulated Electric, and Regulated Gas reportable segments are strategic businesses based principally upon regulations, products, and services that require different technologies and marketing strategies. We evaluate the performance of these segments based on net income. We account for intersegment revenues using market prices. A summary of informatio

Pension and Postretirement Bene

Pension and Postretirement Benefits
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Pension and Postretirement Benefits	Pension and Postretirement Benefits We show the components of net periodic pension benefit cost in the following table: Quarter Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions) Components of net periodic pension benefit cost Service cost $ 14.4 $ 12.8 $ 29.6 $ 27.8 Interest cost 31.1 22.7 58.3 50.2 Expected return on plan assets (38.9 ) (25.0 ) (68.5 ) (55.9 ) Recognized net actuarial loss 11.1 6.5 21.7 12.4 Amortization of prior service cost 2.5 2.6 5.8 5.5 Amount capitalized as construction cost (2.8 ) (2.1 ) (5.4 ) (4.8 ) Net periodic pension benefit cost1 $ 17.4 $ 17.5 $ 41.5 $ 35.2 1 BGE's portion of our net periodic pension benefit cost, excluding amounts capitalized, was $4.9million for the quarter ended June30, 2009 and $4.2million for the quarter ended June30, 2008. BGE's portion of our net periodic pension benefit cost, excluding amounts capitalized, was $9.9million for the six months ended June30, 2009 and $8.7million for the six months ended June30, 2008. Net periodic pension benefit costs exclude settlement charges of $7.7million in the quarter and six months ended June30, 2009. We show the components of net periodic postretirement benefit cost in the following table: Quarter Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions) Components of net periodic postretirement benefit cost Service cost $ 2.0 $ 1.9 $ 3.6 $ 3.6 Interest cost 6.3 7.2 12.1 13.9 Amortization of transition obligation 0.6 0.7 1.1 1.2 Recognized net actuarial loss 0.4 0.1 1.1 1.1 Amortization of prior service cost (1.0 ) (1.1 ) (1.8 ) (2.0 ) Amount capitalized as construction cost (1.8 ) (1.9 ) (3.3 ) (4.0 ) Net periodic postretirement benefit cost1 $ 6.5 $ 6.9 $ 12.8 $ 13.8 1 BGE's portion of our net periodic postretirement benefit cost, excluding amounts capitalized, was $3.5million for the quarter ended June30, 2009 and $4.0million for the quarter ended June30, 2008. BGE's portion of our net periodic postretirement benefit costs, excluding amounts capitalized, was $6.7million for the six months ended June30, 2009 and $7.7million for the six months ended June30, 2008. Our non-qualified pension plans and our postretirement benefit programs are not funded; however, we have trust assets securing certain executive pension benefits. We estimate that we will incur approximately $22million in pension benefit payments for our non-qualified pension plans and approximately $30million for retiree health and life insurance benefit payments during 2009. As of June30, 2009, we contributed $297million to our qualified pension plans. We contributed an additional $20million in July 2009.

Financing Activities

Financing Activities
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Financing Activities	Financing Activities 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. Constellation Energy Constellation Energy had bank and other lines of credit under committed unsecured credit facilities totaling $5.6billion at June30, 2009 for short-term financial needs. We enter into these facilities to ensure adequate liquidity to support our operations. 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. These facilities can issue letters of credit, commercial paper, if available, and/or cash borrowings up to approximately $5.6billion as shown below. As of June30, 2009, we had approximately $2.8billion in letters of credit issued against those facilities. We have also included in the table below the pro forma effect on our credit facilities, which are reduced or terminated upon the closing of the transactions contemplated by the Investment Agreement with EDF, which is expected to occur in the fourth quarter of 2009: Facility Expiration Facility Size Facility Size Upon Completion of the EDF Transaction (In billions) July 2012 $ 3.85 $ 2.32 November 20091 1.23 September 2013 0.35 December 2009 0.15 Total $ 5.58 $ 2.32 1 Size of facility may be reduced by proceeds received from certain securities offerings or asset sales. BGE BGE has a $400.0million five-year 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. As of June30, 2009, BGE had $0.5million in letters of credit issued under this facility. In addition, at June30, 2009, BGE had $339.9million in commercial paper outstanding. Net Available Liquidity The following table provides a summary of our net available liquidity at June30, 2009: As of June30, 2009 Constellation Energy BGE Total Consolidated (In billions) Credit facilities $ 5.6 $ 0.4 $ 6.0 Less: Letters of credit issued (2.8 ) (2.8 ) Less: Cash drawn on credit facilities Undrawn facilities 2.8 0.4 3.2 Less: Commercial paper outstanding (0.3 ) (0.3 ) Net available facilities 2.8 0.1 2.9 Add: Cash 1.0 1.0 Add: EDF put arrangement 1.1 1.1 Net available liquidity $ 4.9 $ 0.1 $ 5.0 Other Sources of Liquidity In December 2008, we executed an Investment Agreement with EDF that includes an asset put arrangement that p

Income Taxes, Unrecognized Tax

Income Taxes, Unrecognized Tax Benefits
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Income Taxes, Unrecognized Tax Benefits	Income Taxes We compute the income tax (benefit) expense for each quarter based on the estimated annual effective tax rate for the year. The effective tax rate was 78.3% and 60.4% for the quarter and six months ended June30, 2009, respectively, compared to 38.0% and 36.1% for the same periods of 2008. The higher effective tax rate for the quarter and six months ended June30, 2009 reflects the impact of unfavorable nondeductible adjustments (primarily related to nondeductible dividends on the SeriesB Preferred Stock and the write-off of the unamortized debt discount on the Senior Notes) in relation to the lower estimated 2009 taxable income (primarily attributable to losses on the divestiture of a majority of our international commodities and our Houston-based gas trading operations). The BGE effective tax rate was 39.8% and 39.6% for the quarter and six months ended June30, 2009, respectively, compared to 33.1% and 36.7% for the same periods of 2008. This reflects the impact of the lower 2008 taxable income related to the Maryland settlement agreement, which increased the relative impact of favorable permanent tax adjustments on BGE's 2008 effective tax rate. Unrecognized Tax Benefits The following table summarizes the change in unrecognized tax benefits during 2009 and our total unrecognized tax benefits at June30, 2009: At June30, 2009 (In millions) Total unrecognized tax benefits, January1, 2009 $ 189.7 Increases in tax positions related to the current year 3.0 Reductions in tax positions related to prior years (7.8 ) Reductions in tax positions as a result of a lapse of the applicable statute of limitations (0.8 ) Total unrecognized tax benefits, June30, 20091 $ 184.1 1 BGE's portion of our total unrecognized tax benefits at June30, 2009 was $3.9million. Increases in current year and reductions in prior year tax positions are primarily due to unrecognized tax benefits for repair and depreciation deductions measured at amounts consistent with prior IRS examination results and state income tax accruals. Statutes of limitations lapsed for 2003 and 2004 tax positions related to Maryland taxes on the gas plant sale that occurred in 2006. If the total amount of unrecognized tax benefits of $184.1million were ultimately realized, our income tax expense would decrease by approximately $158million. However, the $158million includes state tax refund claims of approximately $48million that have been disallowed by tax authorities and we believe that there is a remote likelihood of ultimately realizing any benefit from these refund claim amounts. These state refund claims may be resolved by December31, 2009. For this reason, we believe it is reasonably possible that reductions to our total unrecognized tax benefits in the range of $40 to $50million may occur by June30, 2010, although these reductions are not expected to materially impact income tax expense. Interest and penalties recorded in our Consolidated Statements of Income (Loss) as tax expense relating to liabilities for unrecognized tax benefits were as follows: Quarter Ended June30,

Taxes Other Than Income Taxes

Taxes Other Than Income Taxes
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Taxes Other Than Income Taxes	Taxes Other Than Income Taxes BGE collects from certain customers franchise and other taxes that are levied by state or local governments on the sale or distribution of gas and electricity. We include these types of taxes in "Taxes other than income taxes" in our Consolidated Statements of Income (Loss). Some of these taxes are imposed on the customer and others are imposed on BGE. We account for the taxes imposed on the customer on a net basis, which means we do not recognize revenue and an offsetting tax expense for the taxes collected from customers. We account for the taxes imposed on BGE on a gross basis, which means we recognize revenue for the taxes collected from customers. Accordingly, we record the taxes accounted for on a gross basis as revenues in the accompanying Consolidated Statements of Income (Loss) for BGE as follows: Quarter Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions) Taxes other than income taxes included in revenuesBGE $ 18.5 $ 14.3 $ 40.1 $ 35.2

Guarantees

Guarantees
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Guarantees	Guarantees Our guarantees do not represent incremental Constellation Energy obligations; rather they primarily represent parental guarantees of subsidiary obligations. The following table summarizes the maximum exposure by guarantor based on the stated limit of our outstanding guarantees: At June30, 2009 Stated Limit (In billions) Constellation Energy guarantees $ 13.7 Merchant energy business guarantees 0.1 BGE guarantees 0.3 Total guarantees $ 14.1 At June30, 2009, Constellation Energy had a total of $14.1billion in guarantees outstanding related to loans, credit facilities, and contractual performance of certain of its subsidiaries as described below. Constellation Energy guaranteed a face amount of $13.7billion as follows: Constellation Energy guaranteed a face amount of $12.7billion on behalf of our merchant energy subsidiaries to allow those subsidiaries the flexibility needed to conduct business with counterparties without having to post other forms of collateral. Our estimated net exposure for obligations under commercial transactions covered by these guarantees was approximately $2.5billion at June30, 2009, which represents the total amount the parent company could be required to fund based on June30, 2009 market prices. For those guarantees related to our derivative liabilities, the fair value of the obligation is recorded in our Consolidated Balance Sheets. Constellation Energy guaranteed $0.9billion primarily on behalf of our nuclear generating facilities for nuclear insurance and credit support to ensure these plants have funds to meet expenses and obligations to safely operate and maintain the plants. Constellation Energy guaranteed $0.1billion to its other nonregulated businesses. Our merchant energy business guaranteed $72.0million for loans, performance guarantees and other payment obligations primarily related to certain power projects in which we have an investment. BGE guaranteed the Trust Preferred Securities of $250.0million of BGE Capital Trust II.

Commitments and Contingencies,

Commitments and Contingencies, Long-Term Power Sales Contracts, Litigation
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Commitments and Contingencies, Long-Term Power Sales Contracts, Litigation	Commitments and Contingencies 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 2009 and 2028. 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 2009 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 June30, 2009, these contracts expire during 2009, 2010, and 2011 and represent BGE's estimated requirements for residential customers as follows: Contract Duration Percentage of Estimated Requirements From June30, 2009 to May 2010 100 % From June 2010 to September 2010 75 From October 2010 to May 2011 50 From June 2011 to September 2011 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 2009 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 of our 2008 Annual Report on Form10-K. 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 June30, 2009, the total amount of commitments was $4,973.4million. These commitments are primarily related to our merchant energy business. Long-Term Power Sales Contracts We enter into long-term power sales contracts in connection with our load-serving activities. We also enter into long-term power sales contracts associated with certain of our power plants. Our load-serving power sales contracts extend for terms through 2019 and provide for the sale of energy to electricity distribution utilities and certain retail customers

Environmental Matters

Environmental Matters
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Environmental Matters	Environmental Matters Solid and Hazardous Waste In 1999, the EPA proposed to add the 68thStreet Dump in Baltimore, Maryland to the Superfund National Priorities List, which is its list of sites targeted for clean-up and enforcement, and sent a general notice letter to BGE and 19 other parties identifying them as potentially liable parties at the site. In March 2004, we and other potentially responsible parties formed the 68thStreet Coalition and entered into consent order negotiations with the EPA to investigate clean-up options for the site under the Superfund Alternative Sites Program. In May 2006, a settlement among the EPA and 19 of the potentially responsible parties, including BGE, with respect to investigation of the site became effective. The settlement requires the potentially responsible parties, over the course of several years, to identify contamination at the site and recommend clean-up options. BGE is fully indemnified by a wholly owned subsidiary of Constellation Energy for costs related to this settlement, as well as any clean-up costs. The clean-up costs will not be known until the investigation is closer to completion. However, those costs could have a material effect on our financial results. Air Quality In May 2007, a subsidiary of Constellation Energy entered into a consent decree with the Maryland Department of the Environment to resolve alleged violations of air quality opacity standards at three fossil fuel plants in Maryland. The consent decree requires the subsidiary to pay a $100,000 penalty, provide $100,000 to a supplemental environmental project, and install technology to control emissions from those plants. In January 2009, the EPA issued a notice of violation (NOV) to a subsidiary of Constellation Energy, as well as the other owners and the operator of the Keystone coal-fired power plant in Shelocta, Pennsylvania. We hold an approximately 21% interest in the Keystone plant. The NOV alleges that the plant performed various capital projects beginning in 1984 without complying with the new source review permitting requirements of the Clean Air Act. The EPA also contends that the alleged failure to comply with those requirements are continuing violations under the plant's air permits. The EPA could seek civil penalties under the Clean Air Act for the alleged violations. The owners and operator of the Keystone plant are investigating the allegations and have entered into discussions with the EPA. We believe there are meritorious defenses to the allegations contained in the NOV. However, we cannot predict the outcome of this proceeding and it is not possible to determine our actual liability, if any, at this time. Water Quality In October 2007, a subsidiary of Constellation Energy entered into a consent decree with the Maryland Department of the Environment relating to groundwater contamination at a third party facility that was licensed to accept fly ash, a byproduct generated by our coal-fired plants. The consent decree requires the payment of a $1.0million penalty, remediation of groundwater contamination resulting from the ash placement operations at the site, replacement of drinking

Derivative Instruments, Account

Derivative Instruments, Accounting for Derivative Instruments, Quantitative Information about Derivatives and Hedging Activities
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Derivative Instruments, Accounting for Derivative Instruments, Quantitative Information about Derivatives and Hedging Activities	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 or direction 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 exchange risks. Non-Risk Management Act

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Fair Value Measurements	Fair Value Measurements SFAS No.157, Fair Value Measurements, (SFAS No.157) defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. Fair value is the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). SFAS No.157 also creates a fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of the fair value hierarchy are as follows: Level1Unadjusted quoted prices available in active markets at the measurement date for identical assets or liabilities. Level2Pricing inputs, other than quoted prices included within Level1, which are either directly or indirectly observable as of the reporting date. Level3Significant inputs that are generally not observable from market activity. We determine the fair value of our assets and liabilities using unadjusted quoted prices in active markets (Level1) or pricing inputs that are observable (Level2) whenever that information is available. We use unobservable inputs (Level3) to estimate fair value only when relevant observable inputs are not available. We classify assets and liabilities within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement of each individual asset and liability taken as a whole. We determine fair value for assets and liabilities classified as Level1 by multiplying the market price by the quantity of the asset or liability. We primarily determine fair value measurements classified as Level2 or Level3 using the income valuation approach, which involves discounting estimated cash flows using assumptions that market participants would use in pricing the asset or liability. We present all derivatives recorded at fair value net with the associated fair value cash collateral. This presentation of the net position reflects our credit exposure for our on-balance sheet positions but excludes the impact of any off-balance sheet positions and collateral. Examples of off-balance sheet positions and collateral include in-the-money accrual contracts for which the right of offset exists in the event of default and letters of credit. We discuss our letters of credit in more detail in the Financing Activities section. Recurring Measurements BGE's assets and liabilities measured at fair value on a recurring basis are immaterial. Our merchant energy business segment's assets and liabilities measured at fair value on a recurring basis consist of the following: As of June30, 2009 Assets Liabilities (In millions) Cash equivalents $ 746.3 $ Debt and equity securities 1,111.4 Derivative instruments: Classified as derivative assets and liabilities: Current 1,036.4 (1,272.8 ) Noncurrent 747.2 (937.5 ) Total classified as derivative assets and liabilities 1,783.6 (2,210.3 ) Classified as accounts receivable* (843.3 ) Total derivative instruments 940.3 (2,210

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Fair Value of Financial Instruments	Fair Value of Financial Instruments We show the carrying amounts and fair values of financial instruments included in our Consolidated Balance Sheets in the following table: At June30, 2009 Carrying Amount Fair Value (In millions) Investments and other assetsConstellation Energy $ 1,253.6 $ 1,253.5 Fixed-rate long-term debt: Constellation Energy (including BGE) 5,974.3 5,794.1 BGE 2,238.5 2,177.0 Variable-rate long-term debt: Constellation Energy (including BGE) 677.4 677.4 BGE We use the following methods and assumptions for estimating fair value disclosures for financial instruments: cash and cash equivalents, net accounts receivable, other current assets, certain current liabilities, short-term borrowings, current portion of long-term debt, and certain deferred credits and other liabilities: because of their short-term nature, the amounts reported in our Consolidated Balance Sheets approximate fair value, investments and other assets: the fair value is based on quoted market prices where available, and long-term debt: the fair value is based on quoted market prices where available or by discounting remaining cash flows at current market rates.

Accounting Standards Issued, Ac

Accounting Standards Issued, Accounting Standards Adopted
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Accounting Standards Issued, Accounting Standards Adopted	Accounting Standards Issued SFAS No.167 In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46R, which is effective for interim and annual reporting periods beginning after November15, 2009. The standard includes the following significant provisions: requires an entity to qualitatively assess the determination of the primary beneficiary of a VIE based on whether the entity (1)has the power to direct matters that most significantly impact the activities of the VIE, and (2)has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE, requires an ongoing reconsideration of the primary beneficiary instead of only upon certain triggering events, amends the events that trigger a reassessment of whether an entity is a VIE, and for an entity that is the primary beneficiary of a VIE, requires separate balance sheet presentation of (1)the assets of the consolidated VIE, if they can be used to only settle specific obligations of the consolidated VIE, and (2)the liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary. We are currently evaluating the impacts of this standard on our, and BGE's, financial results, which could be material. SFAS No.168 In June 2009, the FASB issued SFAS No.168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, which is effective for financial statements issued for interim and annual periods ending after September15, 2009. The FASB Accounting Standards Codification (Codification) will become the sole source of authoritative generally accepted accounting principles in the United States of America (GAAP) and will supersede all existing non-SEC accounting and reporting standards. Once the Codification is in effect, all of its content will carry the same level of authority, and any accounting guidance not contained within the Codification will become non-authoritative. Because the Codification is not intended to change GAAP, the adoption of this standard will not have an impact on our, or BGE's, financial results. However, our disclosures and references to accounting standards will change to reflect the new Codification structure beginning with our Form10-Q for the quarter ending September30, 2009. Accounting Standards Adopted SFAS No.160 In December 2007, the FASB issued SFAS No.160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.51. SFAS No.160 provides that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. This presentation is based upon the view of the consolidated business as a single economic entity and considers minority ownership interests in consolidated subsidiaries as equity in the consolidated entity. SFAS No.160 requires that companies: present noncontrolling interests (formerly described as "minority interests") in the consolidated balance sheet as a separate line item within equity, separately presen

Related Party Transactions

Related Party Transactions
	6 Months Ended Jun. 30, 2009 USD / shares
NOTES TO FINANCIAL STATEMENTS
Related Party Transactions	Related Party Transactions 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 September30, 2011. The cost of BGE's purchased energy from nonregulated subsidiaries of Constellation Energy to meet its standard offer service obligation was as follows: Quarter Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions) Purchased energy $ 142.5 $ 186.0 $ 346.8 $ 457.3 In addition, Constellation Energy charges BGE for the costs of certain corporate functions. Certain costs are directly assigned to BGE. We allocate other corporate function costs based on a total percentage of expected use by BGE. We believe this method of allocation is reasonable and approximates the cost BGE would have incurred as an unaffiliated entity. Other nonregulated affiliates of BGE also charge BGE for the costs of certain services provided. The following table presents the costs Constellation Energy charged to BGE in each period. Quarter Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions) Charges to BGE $ 35.5 $ 35.0 $ 65.1 $ 70.1 BGEBalance Sheet BGE participates in a cash pool under a Master Demand Note agreement with Constellation Energy. Under this arrangement, participating subsidiaries may invest in or borrow from the pool at market interest rates. Constellation Energy administers the pool and invests excess cash in short-term investments or issues commercial paper to manage consolidated cash requirements. Under this arrangement, BGE had invested $154.0million at June30, 2009 and had invested $148.8million at December31, 2008. BGE's Consolidated Balance Sheets include intercompany amounts related to BGE's purchases to meet its standard offer service obligation, BGE's gas purchases, BGE's charges to Constellation Energy and its nonregulated affiliates for certain services it provides them, Constellation Energy and its nonregulated affiliates' charges to BGE for certain services provided to BGE, and the participation of BGE's employees in the Constellation Energy defined benefit plans. We believe our allocation methods are reasonable and approximate the costs that would be charged to unaffiliated entities.

Document and Entity Information

Document and Entity Information (Constellation Energy Group, Inc. and Subsidiaries) (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 31, 2009	Jun. 30, 2008
Document and Entity Information
Entity Registrant Name	CONSTELLATION ENERGY GROUP INC
Entity Central Index Key	0001004440
Document Type	10-Q
Document Period End Date	2009-06-30
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			$14,585,929,431
Entity Common Stock, Shares Outstanding		200,630,389