Exhibit No. 99
Constellation Energy Group and Subsidiaries
Consolidated Statements of Income (Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
(In Millions, Except Per Share Amounts)
Revenues
Nonregulated revenues $ 340.5 $ 345.6 $ 1,214.4 $ 1,114.0
Regulated electric revenues 415.6 446.8 2,039.6 2,134.7
Regulated gas revenues 145.8 230.9 674.3 603.8
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Total revenues 901.9 1,023.3 3,928.3 3,852.5
Expenses
Operating expenses 567.4 652.0 2,392.2 2,311.4
Workforce reduction costs 105.7 - 105.7 7.0
Impairment losses and other costs 426.9 - 426.9 -
Depreciation and amortization 110.6 99.2 419.1 470.0
Taxes other than income taxes 57.0 59.6 226.6 221.5
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Total expenses 1,267.6 810.8 3,570.5 3,009.9
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(Loss) Income from Operations (365.7) 212.5 357.8 842.6
Other (Expense) Income (4.0) (1.4) 1.3 4.2
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(Loss) Income Before Fixed Charges and Income Taxes (369.7) 211.1 359.1 846.8
Fixed Charges
Interest expense 66.4 77.3 283.2 282.4
Interest capitalized and allowance for borrowed funds
used during construction (11.5) (11.1) (57.6) (24.2)
BGE preference stock dividends 3.3 3.3 13.2 13.2
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Total fixed charges 58.2 69.5 238.8 271.4
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(Loss) Income Before Income Taxes (427.9) 141.6 120.3 575.4
Income Tax (Benefit) Expense
Current (126.3) (15.5) 72.5 196.4
Deferred (39.5) 73.1 (26.5) 42.1
Investment tax credit adjustments (2.0) (2.1) (8.1) (8.4)
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Total income tax (benefit) expense (167.8) 55.5 37.9 230.1
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(Loss) Income Before Cumulative Effect of Change
in Accounting Principle (260.1) 86.1 82.4 345.3
Cumulative Effect of Change in Accounting Principle,
Net of Taxes of $5.6 - - 8.5 -
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Net (Loss) Income $ (260.1) $ 86.1 $ 90.9 $ 345.3
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Earnings Applicable to Common Stock $ (260.1) $ 86.1 $ 90.9 $ 345.3
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Average Shares of Common Stock Outstanding 163.7 150.5 160.7 150.0
EARNINGS PER COMMON SHARE
Merchant energy $ 0.31 $ 0.32 $ 1.81 $ 1.43
Regulated electric 0.07 0.06 0.53 0.71
Regulated gas 0.06 0.08 0.24 0.20
Other nonregulated 0.02 0.11 0.02 0.09
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Total earnings per share before nonrecurring items 0.46 0.57 2.60 2.43
Contract termination related costs * (0.85) - (0.87) -
Loss on sale of Guatemalan operations * (0.17) - (0.17) -
Workforce reduction costs * (0.40) - (0.40) (0.03)
Deregulation transition cost * - - - (0.10)
Write-down of financial investment * (0.02) - (0.02) -
Write-downs of domestic power projects * (0.19) - (0.19) -
Write-downs of real estate, international,
and senior living investments * (0.42) - (0.43) -
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Earnings Per Share of Common Stock and Earnings Per Share
of Common Stock - Assuming Dilution Before
Cumulative Effect of Change in Accounting Principle (1.59) 0.57 0.52 2.30
Cumulative effect of change in accounting principle,
net of income taxes - - 0.05 -
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Earnings Per Share of Common Stock and Earnings Per Share
of Common Stock - Assuming Dilution $ (1.59) $ 0.57 $ 0.57 $ 2.30
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Equity investment in nonregulated businesses at end of period $ 2,721.6 $ 2,315.7 $ 2,721.6 $ 2,315.7
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Equity investment in utility business at end of period $ 1,123.9 $ 796.9 $ 1,123.9 $ 796.9
================================================
Certain prior-period amounts have been reclassified to conform with the current
period's presentation.
* Nonrecurring items included in earnings from operations.
Constellation Energy Group and Subsidiaries
Consolidated Balance Sheets (Unaudited)
December 31,
2001 2000
ASSETS (In Millions)
Current Assets
Cash and cash equivalents $ 72.4 $ 182.7
Accounts receivable (net of allowance for uncollectibles of
$22.8 and $21.3 respectively 738.9 792.6
Trading securities 178.2 189.3
Assets from energy trading activities 1,854.2 2,108.5
Fuel stocks 108.0 78.2
Materials and supplies 196.3 151.3
Prepaid taxes other than income taxes 93.4 73.5
Other 74.6 52.8
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Total current assets 3,316.0 3,628.9
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Investments And Other Assets
Real estate projects and investments 210.7 290.3
Investments in power projects 499.1 510.6
Investment in Orion Power Holdings, Inc. 442.5 192.0
Financial investments 60.7 161.0
Nuclear decommissioning trust fund 683.5 228.7
Net pension asset - 93.2
Other 207.4 123.0
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Total investments and other assets 2,103.9 1,598.8
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Property, Plant and Equipment
Regulated property, plant and equipment 4,948.7 4,860.1
Nonregulated generation property, plant and equipment 6,551.1 5,286.8
Other nonregulated property, plant and equipment 192.9 147.0
Nuclear fuel (net of amortization) 169.5 128.3
Accumulated depreciation (4,161.8) (3,756.7)
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Net property, plant and equipment 7,700.4 6,665.5
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Deferred Charges
Regulatory assets (net) 463.8 514.9
Other 129.5 117.3
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Total deferred charges 593.3 632.2
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Total Assets $ 13,713.6 $ 12,525.4
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LIABILITIES AND CAPITALIZATION
Current Liabilities
Short-term borrowings $ 975.0 $ 243.6
Current portion of long-term debt 1,406.7 906.6
Accounts payable 534.4 750.0
Liabilities from energy trading activities 1,435.8 1,580.6
Dividends declared 23.0 66.5
Other 297.1 250.8
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Total current liabilities 4,672.0 3,798.1
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Deferred Credits And Other Liabilities
Deferred income taxes 1,431.0 1,353.2
Net pension liability 173.3 -
Postretirement and postemployment benefits 330.9 265.2
Deferred investment tax credits 93.4 101.4
Other 266.9 484.2
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Total deferred credits and other liabilities 2,295.5 2,204.0
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Long-Term Debt
Long-term debt of Constellation Energy 935.0 1,000.0
Long-term debt of nonregulated businesses 769.1 670.0
First refunding mortgage bonds of BGE 1,040.7 1,174.7
Other long-term debt of BGE 1,129.6 976.6
Company obligated mandatorily redeemable trust preferred securities
of subsidiary trust holding solely 7.16% debentures of BGE
due June 30, 2038 250.0 250.0
Unamortized discount and premium (5.2) (5.4)
Current portion of long-term debt (1,406.7) (906.6)
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Total long-term debt 2,712.5 3,159.3
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BGE Preference Stock Not Subject To Mandatory Redemption 190.0 190.0
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Common Shareholders' Equity
Common stock 2,042.2 1,538.7
Retained earnings 1,611.5 1,592.3
Accumulated other comprehensive income 189.9 43.0
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Total common shareholders' equity 3,843.6 3,174.0
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Total capitalization 6,746.1 6,523.3
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Total Liabilities And Capitalization $ 13,713.6 $ 12,525.4
===========================
Certain prior-year amounts have been reclassified to conform with the current
year's presentation.
Constellation Energy Group and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
Year Ended
December 31,
2001 2000
(In Millions)
Cash Flows From Operating Activities
Net income $ 90.9 $ 345.3
Adjustments to reconcile to net cash provided by
operating activities
Cumulative effect of accounting change (8.5) -
Depreciation and amortization 468.9 524.8
Deferred income taxes (26.5) 42.1
Investment tax credit adjustments (8.1) (8.4)
Deferred fuel costs 37.6 2.8
Accrued pension and postemployment benefits 55.3 27.9
Gain on sale of investments (40.7) (64.1)
Loss (gain) on sale of subsidiaries and plant assets 33.8 (13.3)
Deregulation transition cost - 24.0
Workforce reduction costs 105.7 7.0
Impairment losses and other costs 184.9 -
Equity in earnings of affiliates and joint ventures (net) 2.0 (5.3)
Changes in assets from energy trading activities 254.3 (1,796.4)
Changes in liabilities from energy trading activities (144.8) 1,416.8
Changes in other current assets (57.7) (230.7)
Changes in other current liabilities (218.8) 406.2
Other (155.0) 172.2
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Net cash provided by operating activities 573.3 850.9
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Cash Flows From Investing Activities
Purchases of property, plant and equipment and
other capital expenditures (1,318.3) (1,079.0)
Acquisition of Nine Mile Point (382.7) -
Sale of (investment in) Orion 26.2 (101.5)
Contributions to nuclear decommissioning trust fund (22.0) (13.2)
Purchases of marketable equity securities (33.2) (80.8)
Sales of marketable equity securities 132.6 110.2
Proceeds from the sale of property, plant and equipment 112.0 20.8
Other investments 12.7 37.0
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Net cash used in investing activities (1,472.7) (1,106.5)
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Cash Flow From Financing Activities
Net issuance (maturity) of short-term borrowings 731.4 (127.9)
Proceeds from issuance of
Long-term debt 1,175.2 1,374.0
Common stock 504.4 35.9
Reacquisitions of long-term debt (1,510.2) (697.0)
Common stock dividends paid (120.7) (250.7)
Other 9.0 11.3
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Net cash provided by financing activities 789.1 345.6
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Net (Decrease) Increase in Cash and Cash Equivalents (110.3) 90.0
Cash and Cash Equivalents at Beginning of Period 182.7 92.7
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Cash and Cash Equivalents at End of Period $ 72.4 $ 182.7
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Other Cash Flow Information:
Interest paid (net of amounts capitalized) $ 238.3 $ 268.2
Income taxes paid $ 101.5 $ 184.7
Non-Cash Transaction:
In connection with our purchase of Nine Mile Point, the fair value of the net
assets purchased was $382.7 million including settlement costs and a sellers'
note of $388.1 million.
Certain prior-year amounts have been reclassified to conform with the current
year's presentation.
Constellation Energy Group and Subsidiaries
Utility Operating Statistics
Three Months Ended Year Ended
December 31, December 31,
2001 2000* 2001 2000*
ELECTRIC
Revenues (In Millions)
Residential--with househeating $ 76.5 $ 92.1 $ 357.8 $ 379.2
--other 103.3 107.6 527.5 543.4
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--total 179.8 199.7 885.3 922.6
Commercial 185.6 192.0 903.0 926.2
Industrial 42.8 49.6 218.1 203.6
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System Sales 408.2 441.3 2,006.4 2,052.4
Interchange and Other Sales - - - 53.8
Other 7.4 5.5 33.6 29.0
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Total $ 415.6 $ 446.8 $2,040.0 $2,135.2
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Sales (In Thousands) - MWH
Resident--with househeating 1,143 1,410 5,075 5,122
--other 1,412 1,519 6,639 6,553
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--total 2,555 2,929 11,714 11,675
Commercial 3,324 3,385 14,147 14,042
Industrial 1,074 1,100 4,445 4,476
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System Sales 6,953 7,414 30,306 30,193
Interchange and Other Sales - - - 2,064
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Total 6,953 7,414 30,306 32,257
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GAS
Revenues (In Millions)
Resident--excluding delivery service $ 82.6 $ 125.7 $ 378.4 $ 328.4
--delivery service 4.3 8.8 16.3 23.5
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--total 86.9 134.5 394.7 351.9
Commerci--excluding delivery service 22.8 36.6 115.5 97.9
--delivery service 5.9 7.4 21.4 25.8
Industri--excluding delivery service 2.0 4.0 12.8 10.9
--delivery service 3.5 4.3 13.8 16.3
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System Sales 121.1 186.8 558.2 502.8
Off-System Sales 23.8 44.9 113.6 101.0
Other 1.7 2.1 8.9 7.8
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Total $ 146.6 $ 233.8 $ 680.7 $ 611.6
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Sales (In Thousands) - DTH
Resident--excluding delivery service 9,352 12,864 33,147 34,561
--delivery service 1,652 3,370 7,201 9,209
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--total 11,004 16,234 40,348 43,770
Commerci--excluding delivery service 3,216 4,518 12,334 13,186
--delivery service 6,456 6,833 25,037 22,921
Industri--excluding delivery service 294 501 1,386 1,386
--delivery service 5,905 7,346 23,872 32,382
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System Sales 26,875 35,432 102,977 113,645
Off-System Sales 7,003 7,331 20,012 22,456
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Total 33,878 42,763 122,989 136,101
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Utility operating statistics do not reflect the elimination of intercompany
transactions.
* Electric operating results reflect generation function as part of
regulated operations through June 30, 2000.
Heating/Cooling Degree Days (Calendar-Month Basis)
Heating degree days -- Actual 1,460 1,978 4,514 4,936
-- Normal 1,675 1,682 4,725 4,771
Cooling degree days -- Actual 30 22 787 736
-- Normal 24 25 839 840
Generation Statistics - Assets Transferred to Nonregulated Businesses on
July 1, 2000
Year Ended December 31,
Purchased
Hydro & Power Net of
Nuclear Coal Oil Gas Energy Sales Total
Generation by Fuel Type(%)
2001 40.9 52.5 3.3 1.8 1.5 100.0
2000 42.3 53.5 1.9 2.7 (0.4) 100.0
Thousands of MWH
2001 13,649 17,520 1,089 601 488 33,347
2000 13,826 17,506 605 899 (156) 32,680
Average Cost of Fuel All Fuels
(Cents per Million Btu)
2001 43.25 138.38 445.50 - - 109.48
2000 42.44 134.98 401.61 - - 100.00
Constellation Energy Group and Subsidiaries
Supplemental Financial Statistics
Year Ended
December 31,
2001 2000
Capitalization*
Long-term debt 42.4% 49.7%
Company obligated mandatorily redeemable
trust preferred securities of BGE 2.7% 3.2%
Short-term borrowings 10.7% 3.2%
BGE Preference stock 2.1% 2.5%
Common equity 42.1% 41.4%
Return on Average Common Equity
Reported 2.5% 11.3%
Excluding nonrecurring items * * 15.5% 11.9%
Ratio of Earnings to Fixed Charges (SEC Method) 1.18 2.78
Effective Tax Rate 28.4% 39.1%
Certain prior-year amounts have been reclassified to conform with the
current year's presentation.
* Capitalization includes current portions of long-term debt and BGE
preference stock.
** Includes nonrecurring items that are presented in earnings from
operations on the Consolidated Statements of Income.
Common Stock Data
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Common Stock Dividends - Per Share
--Declared $0.12 $0.42 $0.48 $1.68
--Paid $0.12 $0.42 $0.78 $1.68
Market Value Per Share
--High $28.21 $50.50 $50.14 $52.06
--Low $20.90 $37.88 $20.90 $27.06
--Close $26.55 $45.06 $26.55 $45.06
Shares Outstanding--End of Period (In Millions) 163.7 150.5 163.7 150.5
Book Value per Share--End of Period $23.48 $21.09 $23.48 $21.09
Certain prior-year amounts have been reclassified to conform with the
current year's presentation.
Inquires concerning this summary should be directed to:
Follin Smith Investor Relations Department Constellation Energy Group
Senior Vice President, 410-783-3670 P. O. Box 1475
Chief Financial Officer Baltimore, Maryland 21203
410-234-5000