Constellation's fall

Several have proposed that the State should buy the company. Where will the State get $4.7 billion? Are we not facing an almost billion dollar deficit?

MidAmerican Energy is a private company. As such, they will be taking Constellation behind the curtain. No more Sarbanes-Oxley driven transparency of finances. So for those people who are clamoring for more information on how the trading operation works, where the money from your increased bill is going, etc., you are SOL when this deal goes through (and it should!).

Well, again, BGE rate payers just got a rebate of $170 per household to compensate for Constellation's BS about Calvert Cliff Nuclear power plant's stranded costs (which turned out to be a cash cow for Constellation), and for Constellation over charging us during the 72% rate hike. It added up to over two billion dollars in overcharges.

So, we, the people of Maryland, could buy BGE for that price as it is only a part of Constellation which was sold for 4.7 billion.

Or the consumers and rate payers living in Central Maryland could buy BGE for three billion and be stockholders in the company. It would cost about $300 per household. If you moved, could sell your share.

Or a consortium of local investors could buy BGE and run it under the watchful eye of the people.

If not, with a AAA bond rating, Maryland could borrow the money and keep it as a for-profit state-run company--that means it would make money for the state.

Frankly, if we can raise money to build a $200 million dollar stadium for an NFL football team that few of us regular people will ever use, the state can definitely raise money to keep the lights on in our businesses and homes. It is too important.

Truthwill Setufree wrote:

Several have proposed that the State should buy the company. Where will the State get $4.7 billion? Are we not facing an almost billion dollar deficit?
MidAmerican Energy is a private company. As such, they will be taking Constellation behind the curtain. No more Sarbanes-Oxley driven transparency of finances. So for those people who are clamoring for more information on how the trading operation works, where the money from your increased bill is going, etc., you are SOL when this deal goes through (and it should!).

He's savior alright. Employees had a dollar in their hand and he took it and gave them 25 cents. A lot off people were hurt in this deal. No one has mentioned the retirees that have lost 75 percent of their 401K. And the governor has the nerve to say that it was a good deal. Give me a break. This deal was just dumb. The very next day the government bails everyone out.

Mark Truslow wrote:

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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.

From the posts here,it seems to be the concensus that this will be bad all over for energy rates there. The bottom line is, how much are you willing to pay for electricity and when your fed up, what are you going to do about it?

Buffett's a cheapskate - he is buying CEG at a huge discount - do the math - Mid American is on the hook for 4.7 for purchase assumed debt of 4.8 and equity infusion of 1 - total of 10.5 --- the ulitity operations of CEG - plant,property and equipment value at 10.5 and the operations generate about 2 billion of revenue - use a multiple of 5 05 six and the utility operations are worth abot 10 to 12 billion or a total of 20 to 22.5 billion -- Mid American's offer is a 55% discount from fair value - vote NO on the sale solicitation - it's a bad deal

CEG lost their nerve. In another week or two the "crunch crunch" will diminish if not end. I don't want to sell my $80 a share stock for $25!