Constellation's fall

Constellation's fall

There are 26 comments on the Baltimore Sun story from Sep 19, 2008, titled Constellation's fall. In it, Baltimore Sun reports that:

Our view: Warren Buffett may be just the savior Constellation Energy needed to stay afloat, but the deal and its myriad ramifications merit close scrutiny by Maryland regulators September 19, 2008 T his week ...

Join the discussion below, or Read more at Baltimore Sun.

First Prev
of 2
Next Last
Alex

Miami, FL

#1 Sep 19, 2008
The Baltimore Sun & local radio talk show hosts have decided that Gas & Electric is a Right of the People. So let the government buy the power plants. Two years ago FPL was ready to buy Constelllation Energy for nearly triple ($13 Billion) the price, but Warren Buffet is the "savior?" The State of Marland stopped it - the stockholders were making too much profit. But, its okay for them to take a loss, because this is the only was to "save" the company.

Are they kidding...Buffet will sell off BGE, BGE Home and all the parts of Constellation Energy ASAP. Go find a Baltimore Investor stupid enough to buy a company that the "po folks" of Baltimore have a Right to the "product" (gas & electric) for below cost.
Frank

United States

#2 Sep 19, 2008
"Two years ago, a planned merger between Constellation and FPL Group was met with considerable skepticism in Annapolis a"nd ultimately fell through..."

NO - 2 years ago, this deal was squashed by the General Assembly so that their boy Martin O'Malley could be elected governor.

So...I wonder what these people are scheming to do now that even more corporate tax revenue will be leaving the state.
Alex

Miami, FL

#3 Sep 19, 2008
Warren Buffet is the "Savior" the editors of The Baltimore Sun has been looking for....just like;

Alex. Brown & Sons "savior" was Banker's Trust....
USF&G "savior" was St. Paul Insurance....
Maryland National Bank "savior" was Nations Bank....
First National Bank of Maryland :savior" was Allied Irish....
Loyola Federal Saving & Loan "savior" was Crestar...
Giant Foods "savior" was Ahold LTD.....
Hardware Fair "savior" was Hechinger's.....
and the Best for Last...
The Baltimore Sun "savior" was Times Mirror Company.

Good-bye to Baltimore City's Last Fortune 500 Company.

Alex
Baltimore City (too many years & too good a memory)
Alex

Miami, FL

#4 Sep 19, 2008
Forgot to mention..
Baltimore Gas & Electric's "savior" was Constellation Energy.
Not a political post

Bel Air, MD

#5 Sep 19, 2008
And then there's OWEmalley, who is running around in a powder magazine with a blowtorch while giggling happily.
Laura

Smithsburg, MD

#6 Sep 19, 2008
I lived in Iowa for five years prior to moving to Baltimore 3 years ago, and MidAmerican Energy is an extremely well-run company that provided very excellent service. If the management/business culture of MidAmerican comes to Constellation, everyone will win. I have not found that most Baltimore "home institution" companies competent, in the least.
pkw15

Alexandria, VA

#7 Sep 19, 2008
Clearly, the good ol' boy politics of Maryland's democratic machine are the only winners here (well, and Warren Buffet). This is just another way that Governor O'Malley has screwed Maryland at the expense of his own political gain.
name not important

United States

#8 Sep 19, 2008
Laura wrote:
I lived in Iowa for five years prior to moving to Baltimore 3 years ago, and MidAmerican Energy is an extremely well-run company that provided very excellent service. If the management/business culture of MidAmerican comes to Constellation, everyone will win. I have not found that most Baltimore "home institution" companies competent, in the least.
I hope you are correct Laura; since Mayo Shattuck has been at the helm of Constellation it has been all about making big bucks and no concern about the basic power co. Suspect Jay Hancock is right when he said that these guys will probably do a whole lot of strategic dealings (gambling to us less sophisticated people).

I do hope that Mayo will get his just desserts, which is nothing, and somewhere someone finds something to send him to jail for. This is the second Baltimore institution that he sold out while pocketing millions and having us all suffer his trophy wife cheerleading at Ravens games (while someone might really need that job for a dancing career gig). I know he has cost my family now over 10 grand with this fiasco and I really feel bad for the zillions of people that owned the stock thinking it was still a solid utility concern.
name not important

United States

#9 Sep 19, 2008
re previous post, sorry error, meant to say these new guys will do a lot LESS strategic dealing (gambling).
Magicman

Richmond, TX

#10 Sep 19, 2008
What exactly is the alternative to the sale? The writer speaks as though their are other options available. There really isn't unless you consider letting CEG go bankrupt an option. I'm pretty sure that isn't in anyone's best interest.
name not important

United States

#11 Sep 19, 2008
pkw15 wrote:
Clearly, the good ol' boy politics of Maryland's democratic machine are the only winners here (well, and Warren Buffet). This is just another way that Governor O'Malley has screwed Maryland at the expense of his own political gain.
The anti OMalley and pro Ehrlich guys will all try to blame OMalley for this; try blaming the real culprits, Mayo and his buddies pocketing millions. The legislature and legislators who deregulated this gets second place but I think it was well intentioned.

Do you really think O'Malley wants all these good jobs to leave Maryland?

As of yesterday they were trying to save what they could from a burning building. Mayo has the matches.
name not important

United States

#13 Sep 19, 2008
Magicman wrote:
What exactly is the alternative to the sale? The writer speaks as though their are other options available. There really isn't unless you consider letting CEG go bankrupt an option. I'm pretty sure that isn't in anyone's best interest.
Well, on Monday they said everything was ok, and that they had 2 billion in lines of credit.

On Thursday the "only" buyer they had was for 26 bucks, for a stock worth over 80 not so long ago.

I find it ridiculous to think that they could not find someone to either lend them additional funding if they needed it (Berkshire if they weren't so interested in buying cheap could instead be a good angel), or a better deal.

When you decide you have to sell something in 2 days, you're lucky to get anything.

Here is a question that should be asked: whom did they talk to, who did due diligence.....conversely, if a sale was to be made, would you not get more if the "for sale" sign had been posted conspicously? I don't like the fact that someone got a deal that took 48 hours to make. Then they sealed it with a $170,000,000 penalty to break the deal. I smell a rat. His name is probably Mayo.
Yu Gotabe Jo King

Hampstead, MD

#14 Sep 19, 2008
Cental Maryland is the RICHEST REGION in the RICHEST state in the USA. We are not "poor folks". The consumers in BGE Land could collectively buy BGE from Berkshire and Mid-American for 2-3 Billion Dollars. Buffett can keep Constellation Energy Trading Company which is as worthless as ENRON. The people of Central Maryland could own BGE as stockholders for about $200 per household which is about what we just received as a rebate from BGE. If it took Annapolis to lead the effort, so be it.
Alex wrote:
The Baltimore Sun & local radio talk show hosts have decided that Gas & Electric is a Right of the People. So let the government buy the power plants. Two years ago FPL was ready to buy Constelllation Energy for nearly triple ($13 Billion) the price, but Warren Buffet is the "savior?" The State of Marland stopped it - the stockholders were making too much profit. But, its okay for them to take a loss, because this is the only was to "save" the company.
Are they kidding...Buffet will sell off BGE, BGE Home and all the parts of Constellation Energy ASAP. Go find a Baltimore Investor stupid enough to buy a company that the "po folks" of Baltimore have a Right to the "product" (gas & electric) for below cost.
Jim

Glen Burnie, MD

#15 Sep 19, 2008
Why do the liberal Democrats that run the Sun not allow any comments when they post an article on their fellow liberal Democrat O'Malley?
Mark Truslow

Linthicum Heights, MD

#16 Sep 19, 2008
Laura wrote:
I lived in Iowa for five years prior to moving to Baltimore 3 years ago, and MidAmerican Energy is an extremely well-run company that provided very excellent service. If the management/business culture of MidAmerican comes to Constellation, everyone will win. I have not found that most Baltimore "home institution" companies competent, in the least.
God Laura, I hope you're right..........maybe a rate reduction in electric. I just paid 185.00 for using next to nothing to keep my house cool. Disgusting.
A SAD EMPLOYEE

Clarksville, MD

#17 Sep 19, 2008
How would you like to be one of Constellation's employees today? This was a great company to work for and I was proud to be part of it. We believed our leadership when they said we were "growing and strong". You let us down, Mayo, but we can hold our heads up high. The only mistake we made was trusting you. We now have a street named after the company, but no money in our 401k's. Thanks for looking out for us.
Leadhead

Washington, DC

#18 Sep 20, 2008
name not important wrote:
<quoted text>
I hope you are correct Laura; since Mayo Shattuck has been at the helm of Constellation it has been all about making big bucks and no concern about the basic power co. Suspect Jay Hancock is right when he said that these guys will probably do a whole lot of strategic dealings (gambling to us less sophisticated people).
I do hope that Mayo will get his just desserts, which is nothing, and somewhere someone finds something to send him to jail for. This is the second Baltimore institution that he sold out while pocketing millions and having us all suffer his trophy wife cheerleading at Ravens games (while someone might really need that job for a dancing career gig). I know he has cost my family now over 10 grand with this fiasco and I really feel bad for the zillions of people that owned the stock thinking it was still a solid utility concern.


I wish it could be put to a vote, Shattuck is a Baltimore word for Ken Lay. I hope someone can claw back the bonuses and political contributions Constellation's Board made recently.
Judy Meehan

Baltimore, MD

#19 Sep 20, 2008
Would someone please tell me where the money from the 50% increase in my BG&E bill is going? The whole deal sounds fishy to me. I think it is time to turn everybody's pockets at Constellation Energy and BG&E inside out and see what falls out. Hmm, perhaps my 50% increase?
anonymous

Baltimore, MD

#20 Sep 20, 2008
I heartily agree with everyone who thinks the state of Maryland should buy up Constellation. Buying them up would the state added leverage to re-regulate or at least being a large supplier of electricity and helping to keep pries down.

It won't happen of course. That would make too much sense.(Sort of like the PSC and the state working with residents to install alternative energy sources and take load off the grid)
Yu Gotabe Jo King

Hampstead, MD

#21 Sep 20, 2008
Yes. The State of Maryland could easily buy BGE/Constellation. The State could then have the PSC reregulate it. The State could then implement cleaner power to comply with the Clean Air Act which Constellation never did (ie. constantly violated with impunity) and push for more alternative energy. Then, in answer to the anti-Dem and anti-state ownership crowd, the state could then sell it for a profit down the road as a highly regulated company that exists to serve the consumer not the CEOs. OR, the consumers/rate payers of Central Maryland could each own/buy a share of the company which they could sell when they moved.

Contact your representatives at Annapolis now and make it happen. Control over access to safe and affordable energy is too important. We must act now. United we stand; divided we fall.
anonymous wrote:
I heartily agree with everyone who thinks the state of Maryland should buy up Constellation. Buying them up would the state added leverage to re-regulate or at least being a large supplier of electricity and helping to keep pries down.
It won't happen of course. That would make too much sense.(Sort of like the PSC and the state working with residents to install alternative energy sources and take load off the grid)

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 2
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Constellation Energy Group Discussions

Title Updated Last By Comments
News EDF, Constellation announce deal on US reactor (Oct '10) Nov '11 Johned 11
News Construction Begins On Md.'s Largest Solar Project (Sep '11) Sep '11 eric 1
News Constellation Energy Management Says it Has a P... (Jul '11) Jul '11 Trisha 1
News BGE workers to vote on unionizing (Nov '10) Dec '10 William 2
News BGE's customers to get $170 rebate -- Elections... (Apr '08) Oct '10 SJ Strategies LLC 47
News Constellation Energy Offering Residential Elect... (Sep '10) Sep '10 Skeptical 1
News Deregulation left BGE customers with higher cos... (Jan '08) Jul '10 Scott 26
More from around the web