- The Washington Times - Wednesday, October 25, 2006

11:13 a.m.

BALTIMORE (AP) — Baltimore-based Constellation Energy Group is terminating its proposed $10.8 billion sale to FPL Group, citing uncertainty over regulatory and legal issues in Maryland.

Announced in December as a merger between the two companies, the deal would have created one of the nation’s largest energy conglomerates.

Florida-based FPL Group derives most of its revenue from its utility subsidiary, Florida Power and Light. Constellation operates Baltimore Gas and Electric but gets most of its sales from nonregulated operations.

The companies say they canceled the merger at Constellation’s request.

The deal was delayed by a bill passed during a special summer session of the Maryland General Assembly focusing on increased electric rates.

The Maryland Court of Appeals ruled that the legislature wrongly fired the five members of the Public Service Commission. It let stand a measure barring the sitting commission from approving the merger.

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