DOW JONES NEWSWIRES
A Baltimore Circuit Court ruled that Constellation Energy Group
Inc.'s (CEG) court appeal aimed at clearing the way for its deal to
sell half of its nuclear business to Electricite de France SA
(EDF.FR) must wait until Maryland regulators complete their
review.
In mid-June, the Maryland Public Service Commission ordered an
additional review to see if the deal is in the public interest
after finding the $4.5 billion agreement would give the French
state-controlled company "substantial influence" over
Constellation's regulated utility, Baltimore Gas & Electric
Co.
"We're disappointed by today's ruling in Baltimore Circuit
Court. This is not a final ruling on the merits of our appeal," the
company said, adding that it still believes the deal doesn't
require the agency's approval.
Constellation emphasized that EDF's investment is highly
time-sensitive and needed to continue development of a third
nuclear facility at the Calvert Cliffs plant.
The facility itself got approval from the Maryland Public
Service Commission earlier this week. The plant - which would
provide 1,600 megawatts of electricity, enough to power 1.3 million
homes - is part of what is expected to be a wave of nuclear-plant
construction.
In after-hours trading, Constellation shares were up 1.8% at
$26.71.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com