2. Forward-looking Statements Disclaimer
Certain statements made in this presentation are forward-looking statements and may contain words such as “believes,”
“anticipates,” “expects,” “intends,” “plans,” and other similar words. We also disclose non-historical information that
represents management’s expectations, which are based on numerous assumptions. These statements are not guarantees
of future performance and are subject to risks and uncertainties that could cause actual results to be materially different
from projected results. These risks include, but are not limited to: the timing and extent of changes in commodity prices
for energy including coal, natural gas, oil, electricity, nuclear fuel, and emissions allowances; the timing and extent of
deregulation of, and competition in, the energy markets, and the rules and regulations adopted on a transitional basis in
those markets; the conditions of the capital markets, interest rates, availability of credit, liquidity and general economic
conditions, as well as Constellation Energy’s and BGE’s ability to maintain their current credit ratings; the ability to attract
and retain customers in our competitive supply activities and to adequately forecast their energy usage; the effectiveness
of Constellation Energy’s and BGE’s risk management policies and procedures and the ability and willingness of our
counterparties to satisfy their financial and other commitments; the liquidity and competitiveness of wholesale markets for
energy commodities; uncertainties associated with estimating natural gas reserves, developing properties and extracting
gas; operational factors affecting the operations of our generating facilities (including nuclear facilities) and BGE’s
transmission and distribution facilities, including catastrophic weather-related damages, unscheduled outages or repairs,
unanticipated changes in fuel costs or availability, unavailability of coal or gas transportation or electric transmission
services, workforce issues, terrorism, liabilities associated with catastrophic events, and other events beyond our control;
the inability of BGE to recover all its costs associated with providing electric residential customers service; the effect of
weather and general economic and business conditions on energy s upply, demand, and prices; regulatory or legislative
developments that affect deregulation, transmission or distribution rates, demand for energy, or that would increase costs,
including costs related to nuclear power plants, safety, or environmental compliance; the actual outcome of uncertainties
associated with assumptions and estimates using judgment when applying critical accounting policies and preparing
financial statements, including factors that are estimated in applying mark-to-market accounting, such as the ability to
obtain market prices and in the absence of verifiable market prices, the appropriateness of models and model impacts
(including, but not limited to, extreme contractual load obligations, unit availability, forward commodity prices, interest
rates, correlation and volatility factors); changes in accounting principles or practices; losses on the sale or write-down of
assets due to impairment events or changes in management intent with regard to either holding or selling certain assets;
cost and other effects of legal and administrative proceedings that may not be covered by insurance, including
environmental liabilities; and the inability to complete the proposed merger with FPL Group, Inc., to successfully integrate
the businesses of Constellation Energy and FPL Group after the merger or to achieve anticipated synergies. Given these
uncertainties, you should not place undue reliance on these forw ard-looking statements. Please see our periodic reports
filed with the SEC for more information on these factors. These forward-looking statements represent estimates and
assumptions only as of the date of this presentation, and no duty is undertaken to update them to reflect new information,
2
events or circumstances.
3. Use of Non-GAAP Financial Measures
Constellation Energy presents adjusted earnings per share (adjusted EPS) in addition to its reported earnings per share in
accordance with generally accepted accounting principles (reported GAAP EPS). Adjusted EPS is a non-GAAP financial
measure that differs from reported GAAP EPS because it excludes the cumulative effects of changes in accounting
principles, discontinued operations, special items (which we define as significant items that are not related to our ongoing,
underlying business or which distort comparability of results) included in operations, the impact of certain economic, non-
qualifying hedges, and synfuel earnings. Constellation Energy has excluded from adjusted earnings two categories of non-
qualifying hedges: hedges against the Commodities Group New England fuel adjustment clauses and hedges on gas
transportation and storage contracts. The mark-to-market impact of these hedges is significant to reported results, but
economically neutral to the company in that offsetting gains on underlying accrual positions will be recognized in the
future. We present adjusted EPS because we believe that it is appropriate for investors to consider results excluding these
items in addition to our results in accordance with GAAP. We believe such measures provide a picture of our results that is
comparable among periods since it excludes the impact of items such as workforce reduction costs or gains and losses on
the sale of a business, which may recur occasionally, but tend to be irregular as to timing, thereby distorting comparisons
between periods. However, investors should note that these non-GAAP measures involve judgments by management (in
particular, judgments as to what is classified as a special item or an economic, non-qualifying hedge to be excluded from
adjusted earnings). These non-GAAP measures are also used to evaluate management's performance and for compensation
purposes. Constellation Energy also provides its earnings guidance in terms of adjusted EPS. Constellation Energy is unable
to reconcile its guidance to GAAP earnings per share because we do not predict the future impact of special items,
economic, non-qualifying hedges or synfuel earnings due to the difficulty of doing so. The impact of special items,
economic, non-qualifying hedges, or synfuel earnings could be material to our operating results computed in accordance
with GAAP. We note that such information is not in accordance with GAAP and should not be viewed as an alternative to
GAAP information. A reconciliation of pro-forma information to GAAP information is included either on the slide where the
information appears or on one of the slides in the Non-GAAP Measures section provided at the end of the presentation.
Please see the Summary of Non-GAAP Measures included to find the appropriate GAAP reconciliation and its related
slide(s). These slides are only intended to be reviewed in conjunction with the oral presentation to which they relate.
3
4. Non-Solicitation
This communication is not a solicitation of a proxy from any security holder of FPL Group or Constellation Energy.
Constellation Energy has filed with the Securities and Exchange Commission a registration statement on Form S-4
(Registration No. 333-135278) that includes a preliminary joint proxy statement/prospectus of Constellation Energy and FPL
Group and other relevant documents regarding the proposed transaction. A definitive joint proxy statement/prospectus will
be sent to security holders of FPL Group and Constellation Energy seeking approval of the proposed transaction. WE URGE
INVESTORS TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN
THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FPL GROUP, CONSTELLATION
ENERGY AND THE PROPOSED TRANSACTION. Investors and security holders also will be able to obtain these materials (when
they are available) and other documents filed with the SEC free of charge at the SEC’s website, www.sec.gov. In addition, a
copy of the definitive joint proxy statement/prospectus (when it becomes available) may be obtained free of charge from
Constellation Energy, Shareholder Services, 750 E. Pratt Street, Baltimore, MD 21202, or from FPL Group, Shareholder
Services, P.O. Box 14000, 700 Universe Blvd., Juno Beach, Florida 33408-0420.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there
be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
FPL Group, Constellation Energy, and their respective directors and executive officers of FPL Group and Constellation
Energy and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed
transaction. Information regarding FPL Group’s and Constellation Energy's directors and executive officers is available in the
preliminary joint proxy statement/prospectus contained in the above-referenced registration statement on Form S-4.
4
5. Q2 2006 Adjusted EPS Summary
Q2 2006 Q2 2005
($ per share)
GAAP Earnings $0.52 $0.68
Special Items 0.03 (0.02)
Loss on Economic Non-Qualifying Hedges - 0.02
Synfuel Earnings 0.01 (0.09)
Adjusted Earnings $0.56 $0.59
Q2 Earnings Guidance $0.30 - $0.45
See Appendix
5
6. Q2 2006 Operating Highlights
• Implemented rate stabilization plan for BGE residential
customers
• Business leaders and employees focused on delivering
results amid political and regulatory activity
– Growing wholesale power, gas and coal businesses in line with
expectations
– Generated strong portfolio management and trading earnings
– Leveraging NewEnergy’s scale and national platform to drive higher
returns
§ Realized electric gross margin in Q2 of $3.95 per MWh
– Year-to-date, achieved 70% of full-year productivity objective; on
track to reach 2006 productivity target of $40 million
6
7. Potential Sale of Gas-fired Merchant Plants
• Gas-fired merchant fleet
– High Desert (California) – Holland (Illinois)
– Rio Nogales (Texas) – Wolf Hills (Virginia)
– University Park (Illinois) – Big Sandy (West Virginia)
• Generation asset valuations have increased substantially
• Gas-fired merchant fleet less strategically connected
– Focus on baseload coal and nuclear fleet in the Mid-Atlantic and other
competitive markets
• Expect proceeds will be applied to pay down debt
– Should allow us to be at our target leverage ratios
– Free cash flow in 2007 would be available for reinvestment in the business
or for stock repurchases
• If completed, transaction could close in 2006 and be modestly dilutive
in 2007 and accretive in 2008
7
8. Rate Stabilization Plan (Senate Bill 1)
• Period 1 (July 1, 2006 to May 31, 2007) - 15% increase in total residential electric rate
• Period 2 (June 1, 2007 to December 31, 2007) - Customers either pay full market rate or
opt into a rate at an “intermediate level” to be determined by the PSC
• Period 3 (After December 31, 2007) - Full market rates
• Deferred costs, including carrying costs, may be securitized and recovered through a
non-bypassable, usage-based charge over 10 years beginning January 1, 2007
• BGE to provide rate mitigation credits of $38.7 million per year for 10 years starting on
January 1, 2007
– Suspend collection residential SOS return ($20 million per year)
– Collect and credit back to residential customers nuclear decommissioning revenue ($18.7 million)
• Other provisions of Senate Bill 1
– Matter of replacing PSC remains before the Maryland Court of Appeals
– Instructed PSC to review stranded costs, property tax on generating assets, electric restructuring
and Standard Offer Service
8
9. Proposed Merger Rationale
• Merger creates new FORTUNE 100 company and the U.S. market leader in
competitive energy markets
• Well-matched, complementary contributions from two strong companies create
a balanced footprint
Constellation Energy FPL Group
– Highest load serving market share – Generation assets in NEPOOL and ERCOT
– Leading risk management expertise – Strong wind position
– Strong nuclear capability – Strong nuclear capability
– Focus on cost and operational efficiency – Focus on cost and operational efficiency
• Multiple channels of growth, balanced by solid base of stable, growing earnings
and cash flow
• Combined company will have the strongest balance sheet in the industry
• Remain confident that pre-tax synergies of at least $200 - $250 million per year
by year 3 retained for shareholders is attainable
• Significant increase in dividend for Constellation’s current shareholders
9
10. Merger Update
• Merger approval process continues forward
– Merger proxy filed with SEC on June 23, 2006; comments received on July 21, 2006
– FERC extended date by which they must issue an order to February 2, 2007
– Expect Maryland approval process to be critical path to closing the merger
• Implementation of rate stabilization plan clears one obstacle for Maryland
PSC to consider merger
– Filed new merger application with the Maryland PSC on July 21, 2006 to address
new statutory standards of Senate Bill 1
– PSC scheduled prehearing conference for August 9, 2006, to rule on interveners
and set a procedural schedule for merger review
– Requested a November 2006 decision, but depending on procedural schedule
published by the PSC, closing could be delayed
• Uncertainty surrounding closing of the merger remains
– Integration activity remains on hold until companies have more clarity on timing
and economics
– If risks to closing the merger or economics become unacceptable, Constellation
Energy and FPL Group could agree to terminate the merger
• Constellation Energy remains committed to the merger with FPL, but not at
the expense of shareholder value
10
11. Earnings Outlook
($ per share)
$6.00 5.25-5.75
$5.00 4.40-4.65
$4.00 3.35-3.65
3.28
2.82 2.83
$3.00
2.42
$2.00
$1.00
$0.00
2002 2003 2004 2005 2006E 2007E 2008E
Adjusted EPS EPS Guidance
(1)
(1) Adjusted for the effect of special items, certain economic, non-qualifying hedges and synfuel earnings
Compounded annual growth rate from 2006 to 2008 of 22 to 28%
11
See Appendix
13. Q2 2006 Adjusted EPS Summary
Q2 2006 Q2 2005
($ per share)
GAAP Earnings $0.52 $0.68
Special Items 0.03 (0.02)
Loss on Economic Non-Qualifying Hedges - 0.02
Synfuel Earnings 0.01 (0.09)
Adjusted Earnings $0.56 $0.59
Q2 Guidance $0.30 - $0.45
See Appendix
13
14. Q2 2006 Segment Earnings Per Share (1)
($ per share)
Change
Q2 2006 Q2 2005 EPS %
BGE $0.11 $0.13 ($0.02) -15%
Merchant 0.43 0.45 (0.02) 4%
Other Non-regulated 0.02 0.01 0.01 N.M.
Adjusted Earnings Per Share $0.56 $0.59 ($0.03) -5%
Q2 2006 Earnings Guidance $0.30 - $0.45
(1) Excludes special items, certain economic, non-qualifying hedges and synfuel earnings
See Appendix
14
15. BGE
Adjusted Earnings vs. Guidance
Q2 2006
($ per share)
Actual Guidance
Adjusted Earnings $0.11 $0.08 - $0.13
Adjusted Earnings vs. Prior Year
($ per share)
Q2 2006 Q2 2005 Change
Adjusted Earnings $0.11 $0.13 ($0.02)
See Appendix
15
16. Merchant
Adjusted Earnings vs. Guidance
Q2 2006
($ per share)
Actual (1) Guidance
Adjusted Earnings $0.43 $0.20 - $0.35
Adjusted Earnings vs. Prior Year
Q2 2006 Q2 2005 Change
($ per share)
Adjusted Earnings (1) $0.43 $0.45 ($0.02)
Variance Primarily Due to:
+17¢ Commodities New Business/Backlog -18¢ Mid-Atlantic Fleet Pricing
+6¢ Generation Productivity -3¢ CTC
+3¢ New Energy -8¢ Inflation, Interest, Other
(1) Excludes special items, certain economic, non-qualifying hedges and synfuel earnings
See Appendix
16
17. Merchant – Income Statement (1)
Change
Q2 2006 Q2 2005 $ %
$ in millions
Mid-Atlantic Fleet $154 $221 ($67) -30%
Plants with PPAs 177 171 6 4%
Qualifying Facilities/Other 3 2 1 50%
Wholesale Competitive Supply 266 121 145 120%
NewEnergy 90 68 22 32%
Gross Margin 690 583 107 18%
O&M 409 316 (93) -29%
D&A 73 66 (7) -11%
Other Expense 36 32 (4) -13%
Total Costs below Gross Margin 518 414 (104) -25%
EBIT 172 169 3 2%
Net Interest Expense 46 41 (5) -12%
Pre-Tax Income 126 128 (2) -2%
Income Tax 49 48 (1) -2%
Net Income* $77 $80 ($3) -4%
(1)
Excludes special items, certain economic, non-qualifying hedges and synfuel earnings
17
See Appendix
18. Wholesale Competitive Supply (1)
Change
($ in millions)
Q2 2006 Q2 2005 $ %
Total Already Originated Business (2) $72 $65 $7
New Business
Originated & Realized (2) 29 21 8
Portfolio Management & Trading 148 34 114
Total New Business Realized (2) 177 55 122
Total Contribution Margin (2) $249 $120 $129 108%
(1) Excludes special items, certain economic, non-qualifying hedges and synfuel results
(2) Includes power, gas (non-project), and coal gross margin and gas project margin (projected revenue less operating, depreciation, depletion and
interest expenses incurred at the project level)
See Appendix
18
19. Wholesale Competitive Supply: Origination
Total Wholesale Competitive Supply Origination Value to be Realized (1)
($ in millions)
Q2 2006 Q2 2005 1H 2006 1H 2005
To Be Realized In:
Current Year $196 $72 $423 $136
Future Years 113 216 284 234
Total Originated $309 $288 $707 $370
Current Year Target – January Plan $452 $268
Current Year Target - Revised $536 $268
% of Revised Current Year Target Achieved 79% 51%
Total Origination Target – January Plan $824 $504
(2)
Total Origination Target – Revised $908 $504
(2)
% of Revised Total Origination Target Achieved 78% 73%
(1) Includes power, gas (non-project), and coal gross margin and gas project margin (projected revenue less operating, depreciation, depletion
and interest expenses incurred at the project level)
(2) Includes gross margin originated to be realized in the current year and future years
19
20. Wholesale Competitive Supply Backlog
Backlog (1)
$800
(as of 6/30/06)
$700
New Business Since
$600 12/31/05 (2)
Value as of 12/31/05 (3)
423
$500
($ in millions)
$400
123
$300
71
$200
300
241
$100 194
$0
2006 2007 2008
(1) Includes power, gas (non-project), and coal gross margin and gas project margin (projected revenue less operating, depreciation, depletion
and interest expenses incurred at the project level)
(2) Includes portfolio value changes for downstream gas and coal
20
(3) Reflects portfolio pricing on 12/15/05
21. NewEnergy: Q2 2006 Highlights
Change
Q2 2006 vs. Q2 2005
Electric
Volume Delivered (Megawatt Hours) 16.9 million +9%
Q2 Retention Rate 65%
(1)
Adjusted Q2 Retention Rate 75%
Gas
Market Volume Served (Bcf) 370 +25%
Gas Volume Delivered (Bcf) 82 +24%
Total Gross Margin (2) $90 million +32%
Realized Electric Gross Margin per MWh $3.95 +21%
(1)Excludes customers returning to utility default service
(2)Excludes certain economic, non-qualifying hedges
21
See Appendix
22. NewEnergy: Retail MWh Backlog
Contracted Retail MWh
(as of 6/30/06)
100
80
(MWhs in millions)
60
34
40
64
20
32 31
13
0
2005 2006 2007 2008
Delivered Backlog
89% of 2006 plan MWhs delivered or contracted
22
23. Limiting Variability – Portfolio Management
2007 2008
Percent Hedged as of 6/30/06
Power 86% 83%
Fuel 87% 77%
Sensitivity to Price Changes as of 6/30/06 ($ per share)
Power down $1/MWh, Fuel unchanged $(0.04) $(0.05)
Fuel down $0.10/MMBtu, Power unch. 0.06 0.06
Power down $1/MWh, Fuel down $0.10/MMBtu (1) $0.01 $0.01
MTM portfolio VaR levels remain low at an average $9.9 million for the quarter
(1)
Numbers may not sum due to rounding
Note: Percent hedged includes Mid-Atlantic Fleet, Plants with PPA’s, Wholesale Competitive Supply (excludes upstream gas and coal) and NewEnergy
23
24. Productivity
Annual Productivity
$100
Annual Target
Realized
40
$50
90
($ in millions)
60
28
$0
(40)
-$50
2004 2005 2006 2007
Year-to-date, we have realized $28 million, or 70% of our 2006 productivity target
24
25. Q2 2006 Consolidated Cash Flow
Other
Merchant Utility Non-Reg Total
($ in millions)
Net Income Before Special Items $75 $21 $2 $98
Depreciation & Amortization 90 59 9 158
Capital Expenditures & Investments (172) (84) (17) (273)
Net CapEx (82) (25) (8) (115)
(1) (1)
232 250
Asset Dispositions & Contract Restructuring - 18
Working Capital & Other (267) 95 19 (153)
Pension Adjustment (pre-tax) 22
Free Cash Flow ($42) $91 $31 102
Dividends (68)
Equity Issuances – Benefit Plans 22
Net Cash Flow before Debt Issuances/(Payments) $56
Includes $218 million Aquila transaction
(1)
25
See Appendix
26. Collateral Positions
B/(W) vs
($ in millions)
12/31/05 3/31/06 6/30/06 Q1 06
Cash Collateral Held $ 401 $ 216 $ 167 $ (49)
Collateral Posted
Exchanges $ 281 $ 461 $ 539 $ (78)
3rd Parties 86 150 166 (16)
Subtotal Posted $ 367 $ 611 $ 705 $ (94)
Net Cash Posted Subtotal $ (34) $ 395 $ 538 $ (143)
Letters of Credit $ 2,486 $ 1,947 $ 1,802 $ 145
Change in Liquidity $ 2
Shift from letters of credit to cash collateral has had no impact on our liquidity
26
27. Balance Sheet
Actual
($ in billions) 3/31/06 6/30/06
Debt
Total Debt $5.2 $4.9
Less: Cash (0.4) (0.2)
Net Debt 4.7 4.7
Capital
50% Trust Preferred 0.1 0.1
Equity 4.5 4.4
(1)
Total Capital $9.4 $9.2
Net Debt to Total Capital 50.4% 50.7%
AOCI Balance $1.0 $1.2
(2)
3rd Party Cash Collateral $0.2 $0.2
Adjusted Net Debt to Adjusted Total Capital (3) 46.6% 45.9%
(1) Includes preferred stock and minority interest
(2) Related to cash flow hedges of commodity transactions
(3) Excludes AOCI Balance related to cash flow hedges of commodity transactions and 3r d Party Cash Collateral
See Appendix
27
28. BGE Rate Stabilization Financing Plan
Deferrals
$ Mil Interval Comments
$ 324 7/1/06 - 12/31/06 $54 million per month deferrals
280 1/1/07 - 5/31/07
84 6/1/07 - 12/31/07 Assumes opt-in plan with rate increase 1/2 way
to market rates; conservative 50% opt-in
$ 688 Maximum Possible Deferral
Funding Plan
• July – December 2006 deferrals will be funded by the company
• Expect securitization program to be complete by early in 2007
– Securitization will cover first 11 months of deferrals of $604 million
– Recovered and repaid through non-bypassable surcharge to customers
28
29. Credit Metrics
Projected (1)
Actual
12/31/01 12/31/03 12/31/05 12/31/06
Net Debt to Total Capital 54.6% 49.9% 42.8% 48% - 52%
Adjusted Net Debt
54.8% 50.6% 43.7% 43% - 47%
to Capital (2)
Excess Liquidity
$0.6 $1.9 $2.1
($ billions)
• Metrics much stronger than when current credit ratings were established
• 19 quarters of dependable performance from highly hedged deregulated business model
• Significantly larger company with more powerful liquidity profile
(1)Assumes no sale of gas-fired merchant plants
(2)Net debt adjusted to exclude 3r d party collateral. Total capital adjusted to exclude AOCI balance related to cash flow hedges of commodity
transactions, 3r d party collateral and AOCI balance related to changes in pension and post-retirement accounting
See Appendix
29
30. 2006 EPS Walk
($ per share)
$4.50
Comp.
Transition Inflation
Charge
$4.25 HQ &
Wholesale Productivity
Fleet Price
CGG
Comp. HQ & CGG
NewEnergy (0.21)
Supply New 0.10
Outages
Business 0.13 (0.10)
0.12
$4.00
(0.12)
Other
0.31
Wholesale
(0.16)
Comp. Supply
$3.75 BGE
Backlog
(0.07)
0.27 3.35-3.65
$3.50
(1)
3.28
• For 2006, strong commercial business growth more than
$3.25
offsets headwinds of loss of CTC
• Compared to January 2006 forecast, stronger Commodities
and NewEnergy, offset by extended Calvert Cliffs outage
$3.00
and additional costs
$2.75
2005 2006
(1) Excludes special items, certain economic, non-qualifying hedges and synfuel results
30
See Appendix
31. Long-Term Earnings Outlook
($ per share)
$6.00 5.25-5.75
$5.00 4.40-4.65
$4.00 3.35-3.65
3.28
2.82 2.83
$3.00
2.42
$2.00
$1.00
$0.00
2002 2003 2004 2005 2006E 2007E 2008E
Adjusted EPS EPS Guidance
(1)
(1) Adjusted for the effect of special items, certain economic, non-qualifying hedges and synfuel earnings
Compounded annual growth rate from 2006 to 2008 of 22 to 28%
31
See Appendix
32. Q3 2006 Earnings Per Share Guidance
Guidance Actual
Q3 2006 Q3 2005
($ per share)
Merchant $0.90 - $1.05 $0.84
BGE 0.17 - 0.22 0.24
Other (0.01) - 0.01 -
Adjusted Earnings Per Share (1) $1.10 - $1.25 $1.08
Synfuels ($0.01) $0.08
(1) Excludes special items, certain economic, non-qualifying hedges and synfuel earnings
See Appendix
32
34. Synfuel Update
2006
YTD 6/30/06 Estimate
($ in millions, except per share amounts)
Pre-Phase-out:
Pre-tax Loss on Production ($55) ($70)
Tax Benefit of Pre-tax Loss 21 26
Tax Credits 76 93
Net Income (Pre-Phase-out) $42 $49
Synfuel EPS (Pre-Phase-out) $0.23 $0.27
Impact of Phase-out (as of 6/30/06)
Tax Credit Phase-out Percentage 68% 68%
Production Expenses, Net of Tax $9 $10
Tax Credits (49) (61)
Net Income ($40) ($51)
Synfuel EPS Phase-out Impact ($0.22) ($0.28)
Net Synfuel EPS (Post Phase-out) $0.01 ($0.01)
34
35. Pace Synfuel (1)
Q2 2006
($ in millions, except per share amounts) Actual YTD 2006 Actual 2006 Estimate
Pre-Phase-out:
Pre-tax Loss on Production ($11) ($22) ($25)
Tax Benefit of Pre-tax Loss 4 8 9
Tax Credits 16 29 32
Net Income (Pre-Phase-out) $9 $15 $16
Synfuel EPS (Pre-Phase-out) $0.05 $0.08 $0.09
Impact of Expected Phase-out (as of 6/30/06)
Production Exp., Net of Tax $4 $6 $6
Tax Credits (13) (19) (21)
Net Income ($9) ($13) ($15)
Synfuel EPS Impact ($0.05) ($0.07) ($0.08)
Net Synfuel EPS (Post Phase-out) - $0.01 $0.01
Expected Tax Credit Phase-out Percentage 68% 68%
Production (tons in millions) 0.5 1.0 1.1
Pace synfuel ceased production in July
35
(1) Numbers may not sum due to rounding
36. South Carolina Synfuel (1)
Q2 2006
($ in millions, except per share amounts) Actual YTD 2006 Actual 2006 Estimate
Pre-Phase-out:
Pre-tax Loss on Production ($15) ($33) ($45)
Tax Benefit of Pre-tax Loss 6 13 17
Tax Credits 26 47 61
Net Income (Pre-Phase-out) $17 $27 $33
Synfuel EPS (Pre-Phase-out) $0.09 $0.15 $0.19
Impact of Expected Phase-out (as of 6/30/06)
Production Exp., Net of Tax $2 $3 $4
Tax Credits (20) (30) (40)
Net Income ($18) ($27) ($36)
Synfuel EPS Impact ($0.10) ($0.15) ($0.20)
Net Synfuel EPS (Post Phase-out) ($0.01) $- ($0.01)
Expected Tax Credit Phase-out Percentage 68% 68%
Production (tons in millions) 0.6 1.5 2.1
• In July, South Carolina synfuel production reduced from 250,000 tons/month to 80,000 tons/month
• Operating costs lowered to result in higher breakeven tax credit phase-out percentage
• Now running low production levels near breakeven to enable quick ramp up should oil prices fall
36
(1) Numbers may not sum due to rounding
38. Summary of Non-GAAP Measures
Slide(s) Where Used Slide Containing
Non-GAAP Measure in Presentation Most Comparable GAAP Measure Reconciliation
Adjusted EPS Reported GAAP EPS
Q206 Actual 5, 13, 14, 15, 16 39
Q205 Actual 5, 13, 14, 15, 16 39
EPS Guidance 5, 11, 13, 14, 15, 16, 30, 31 39
2005 YTD Actual 11, 31 40
2004 YTD Actual 11, 31 40
2003 YTD Actual 11, 31 40
2002 YTD Actual 11, 31 40
Q305 Actual 32 41
Q206 Merchant Gross Margin 17, 18, 21 Income from Operations / Net Income 42
Q205 Merchant Gross Margin 17, 18 43
Q206 Merchant Below Gross Margin 17 42
Q205 Merchant Below Gross Margin 17 43
Net Cash Flow before Debt Issuances/(Payments) 25 Operating, Investing and Financing Cash Flow 44
Free Cash Flow 25 44
Debt to Total Capital 27, 28 Debt Divided by Total Capitalization 45
Projected Debt to Total Capital 28 45
38
39. Adjusted EPS Q206 and Q205
We exclude special items and certain economic, non-qualifying fuel adjustment clause and gas transportation hedges because we believe that it is
appropriate for investors to consider results excluding these items, in addition to our results in accordance with GAAP. We have also adjusted earnings to
exclude synfuel results due to the potential volatility and phase-out of the tax credits. We believe such a measure provides a picture of our results that is
comparable among periods since it excludes the impact of items, which may recur occasionally, but tend to be irregular as to timing and magnitude, thereby
distorting comparisons between periods. However, investors should note that this non-GAAP measures involve judgment by management (in particular,
judgments as to what is or is not classified as a special item). We also use these measures to evaluate performance and for comp ensation purposes.
RECONCILIATION:
Merchant Regulated Regulated Other
Energy Electric Gas BGE Nonreg. Total
A B C D = (B+C) E F =(A+D+E)
2Q06 ACTUAL RESULTS:
Reported GAAP EPS $ 0.40 $ 0.11 $ (0.01) $ 0.10 $ 0.02 $ 0.52 GAAP MEASURE
Special Items, Non-qualifying Hedges, and Synfuel Results Included in Operations:
Synthetic fuel facility results (0.01) - - - - (0.01)
Merger-related costs (0.02) (0.01) - (0.01) - (0.03)
Non-qualifying Hedges - - - - - -
Total Special Items, Non-qualifying Hedges, and Synfuel Results (0.03) (0.01) - (0.01) - (0.04)
Adjusted EPS $ 0.43 $ 0.12 $ (0.01) $ 0.11 $ 0.02 $ 0.56 NON-GAAP MEASURE
2Q05 ACTUAL RESULTS:
Reported GAAP EPS $ 0.53 $ 0.14 $ (0.01) $ 0.13 $ 0.02 $ 0.68
Income from Discontinued Operations 0.01 - - - 0.01 0.02 GAAP MEASURES
EPS Before Discontinued Operations 0.52 0.14 (0.01) 0.13 0.01 0.66
Special Items, Non-qualifying Hedges, and Synfuel Results Included in Operations:
Non-qualifying Hedges (0.02) - - - - (0.02)
Synthetic fuel facility results 0.09 - - - - 0.09
Total Special Items, Non-qualifying Hedges, and Synfuel Results 0.07 - - - - 0.07
Adjusted EPS $ 0.45 $ 0.14 $ (0.01) $ 0.13 $ 0.01 $ 0.59 NON-GAAP MEASURE
EARNINGS GUIDANCE
Constellation Energy is unable to reconcile its earnings guidance excluding special items, Non-qualifying hedges, and Synfuel results to GAAP
earnings per share because we do not predict the future impact of special items such as the cumulative effect of changes in accounting
principles, the disposition of assets, economic, nonqualifying hedges or synfuel results. 39
40. Adjusted EPS YTD 2005, 2004, 2003, 2002
We exclude special items and certain economic, non-qualifying fuel adjustment clause and gas transportation hedges because we believe that it is
appropriate for investors to consider results excluding these items, in addition to our results in accordance with GAAP. We have also adjusted earnings to
exclude synfuel results due to the potential volatility and phase-out of the tax credits. We believe such a measure provides a picture of our results that is
comparable among periods since it excludes the impact of items, which may recur occasionally, but tend to be irregular as to timing and magnitude, thereby
distorting comparisons between periods. However, investors should note that this non-GAAP measures involve judgment by management (in particular,
judgments as to what is or is not classified as a special item). We also use these measures to evaluate performance and for comp ensation purposes.
RECONCILIATION:
Total Total
2005 ACTUAL RESULTS: 2003 ACTUAL RESULTS:
Reported GAAP EPS $ 3.47 Reported GAAP EPS $ 1.66
Income from Discontinued Operations 0.13 GAAP MEASURES Income from Discontinued Operations 0.11 GAAP MEASURES
Cumulative Effects of Changes in Accounting Principles (0.04) Cumulative Effects of Changes in Accounting Principles (1.19)
EPS Before Discontinued Operations and Cumulative EPS Before Discontinued Operations and Cumulative
Effects of Changes in Accounting Principles Effects of Changes in Accounting Principles
3.38 2.74
Special Items and Non-qualifying Hedges Included in Operations: Special Items and Non-qualifying Hedges Included in Operations:
Non-qualifying Hedges (0.14) Non-qualifying Hedges (0.17)
Merger related transaction costs (0.09) Net Gain on Sales of Investments and Other Assets 0.10
Workforce Reduction Costs (0.01) Workforce Reduction Costs (0.01)
Total Special Items and Non-qualifying Hedges (0.24) Total Special Items and Non-qualifying Hedges (0.08)
Adjusted EPS 3.62 NON-GAAP MEASURE Adjusted EPS $ 2.82 NON-GAAP MEASURE
Synthetic fuel facility earnings 0.34 Synthetic fuel facility earnings -
Adjusted EPS excluding Synfuel results $ 3.28 NON-GAAP MEASURE Adjusted EPS excluding Synfuel results $ 2.82 NON-GAAP MEASURE
2004 ACTUAL RESULTS: 2002 ACTUAL RESULTS:
Reported GAAP EPS $ 3.12 Reported GAAP EPS $ 3.20
(Loss) Income from Discontinued Operations (0.16) GAAP MEASURES Income from Discontinued Operations 0.06 GAAP MEASURES
EPS Before Discontinued Operations 3.28 EPS Before Discontinued Operations and Cumulative 3.14
Special Items Included in Operations: Special Items Included in Operations:
Recognition of Prior Year Synthetic Fuel Tax Credits 0.21 Net Gain on Sales of Investments and Other Assets 1.02
Workforce Reduction Costs (0.03) Impairment Losses and Other Costs (0.11)
Impairment Losses and Other Costs (0.01) Workforce Reduction Costs (0.23)
Net Loss on Sales of Investments and Other Assets (0.01) Total Special Items 0.68
Total Special Items 0.16 Adjusted EPS $ 2.46 NON-GAAP MEASURE
Adjusted EPS $ 3.12 NON-GAAP MEASURE Synthetic fuel facility earnings 0.04
Synthetic fuel facility earnings 0.29 Adjusted EPS excluding Synfuel results $ 2.42 NON-GAAP MEASURE
Adjusted EPS excluding Synfuel results $ 2.83 NON-GAAP MEASURE
40
41. Adjusted EPS 3Q05
We exclude special items and certain economic, non-qualifying fuel adjustment clause and gas transportation hedges because we believe
that it is appropriate for investors to consider results excluding these items, in addition to our results in accordance with GAAP. We have
also adjusted earnings to exclude synfuel results due to the potential volatility and phase-out of the tax credits. We believe such a
measure provides a picture of our results that is comparable among periods since it excludes the impact of items, which may recur
occasionally, but tend to be irregular as to timing and magnitude, thereby distorting comparisons between periods. However, investors
should note that this non-GAAP measures involve judgment by management (in particular, judgments as to what is or is not classified as a
special item). We also use these measures to evaluate performance and for compensation purposes.
RECONCILIATION:
Merchant Regulated Regulated Other
Energy Electric Gas BGE Nonreg. Total
A B C D = (B+C) E F =(A+D+E)
3Q05 ACTUAL RESULTS:
Reported GAAP EPS $ 0.78 $ 0.28 $ (0.04) $ 0.24 $ 0.01 $ 1.03
Income from Discontinued Operations - - - - 0.01 0.01 GAAP MEASURES
EPS Before Discontinued Operations 0.78 0.28 (0.04) 0.24 - 1.02
Special Items, Non-qualifying Hedges, and Synfuel Results Included in Operations:
Non-qualifying Hedges (0.13) - - - - (0.13)
Synthetic fuel facility results 0.08 - - - - 0.08
Workforce Reduction Costs (0.01) - - - - (0.01)
Total Special Items, Non-qualifying Hedges, and Synfuel Results (0.06) - - - - (0.06)
Adjusted EPS $ 0.84 $ 0.28 $ (0.04) $ 0.24 $ - $ 1.08 NON-GAAP MEASURE
41
42. Q206 Merchant Gross Margin and Below Gross Margin
We utilize the non-GAAP financial measure of Gross Margin to highlight the relationship between the costs of and prices for energy in our Merchant Energy
business categories (i.e., Mid-Atlantic Fleet, Plants with PPAs, Wholesale Competitive Supply, NewEnergy, and QFs/Other). We believe this non-GAAP measure
helps investors to better understand the changes in the level of our Merchant Energy operating results for these categories from period to period.
RECONCILIATION: Quarter Ended June 30, 2006
GAAP Adjustments Merchant
GAAP Fuel & Purchased In Arriving Gross Margin
Merchant Revenue & Expense Categories Revenues Energy Expenses Difference At Gross Margin Notes (Non-GAAP)
($ millions)
Mid-Atlantic Fleet $ 651.6 $ 398.9 $ 252.7 $ (99) a, b, c $ 154
Plants with PPAs 194.0 18.6 175.4 2a 177
Wholesale Competitive Supply 1,249.9 1,088.9 161.0 105 a , d, e 266 **
NewEnergy 1,845.9 1,751.8 94.1 (4) d 90
QFs / Other 9.6 - 9.6 (6) e, f 3
Total Merchant $ 3,951.0 $ 3,258.2 $ 692.8 $ (2) $ 690
Adjustments Merchant Below
Arriving At Merchant Gross Margin
Total Merchant: GAAP Below Gross Margin (Non-GAAP)
Revenues less fuel and purchased energy expenses $ 692.8 $ 690
Operations and maintenance expenses (423.0) 14 g, h, i (409)
Merger related transaction costs (5.0) 5j -
Depreciation, depletion, and amortization (72.1) (1) h, i (73)
Taxes other than income taxes (31.5) 32 k -
Accretion of asset retirement obligations (16.7) 17 k -
Income From Operations 144.5 208
Other income / (expense) 15.9 (51) b, k, l (36)
EBIT N/A 172
Fixed charges (54.1) 8 i, l (46)
Income Before Income Taxes 106.3 126
Income tax expense (34.6) (15) i, j (49)
Net Income $ 71.7 $ 77
Details of Adjustments Made in Arriving at Merchant Gross Margin:
a Adjustment to remove ($98 million) gain from Mid-Atlantic Fleet and $2 million loss from Plants with PPA's of estimated gross margin created through active portfolio
management more appropriately categorized as a competitive supply activity.
b Adjustment to remove ($5 million) of decommissioning revenues from non-GAAP gross margin measure and included in Other Income. The offsetting decommissioning
expense was recorded in accretion of asset retirement obligations.
c Adjustment to remove $4 million of other indirect costs have been removed from non-GAAP gross margin as they are more appropriately categorized as operating expenses.
d Adjustment to remove $4 million loss in Wholesale Competitive Supply and ($4 million) gain in NewEnergy related to economic, non-qualifying hedges of
gas transport contracts.
e Adjustment to remove synfuel losses from Wholesale Competitive Supply gross margin of $4 million and Other gross margin of $5 million
f Adjustment to reflect ($11 million) of direct costs in Other for purposes of non-GAAP gross margin measure.
Details of Adjustments Made in Arriving at Merchant Below Gross Margin:
g Adjustment detailed in quot;cquot; and quot;fquot; above are offset by adjustments made to O&M costs.
h Adjustment to reclassify certain allocated costs totaling $5 million from O&M to Depreciation and Amortization
i Adjustment to remove Synfuel results, which are not included in determining Merchant Below Gross Margin - $2 million in O&M, $4 million in D&A, $1 million in Fixed Charges,
and ($14 million) from income tax expense
j Adjustment to remove Special Items and related taxes, which are not included in determining Merchant Below Gross Margin.
k Adjustment to reflect management's view of these items as Other Income / Expense.
l Adjustment to move Interest Income of $7 million recorded in Other Income / Expense to Fixed Charges (to show a fixed charge amount net of interest income).
** Excludes $17 million of operating expenses, depreciation, depletion and amortization, and interest expense associated with our Upstream Gas properties
PROJECTED GROSS MARGIN AND RESULTS BELOW GROSS MARGIN:
42
Constellation Energy is unable to reconcile its projected gross margin or results below gross margin to GAAP because we do not predict the future impact of
reconciling items or special items such as the cumulative effect of changes in accounting principles and the disposition of assets.
43. Q205 Merchant Gross Margin and Below Gross Margin
We utilize the non-GAAP financial measure of Gross Margin to highlight the relationship between the costs of and prices for energy in our Merchant Energy
business categories (i.e., Mid-Atlantic Fleet, Plants with PPAs, Wholesale Competitive Supply, NewEnergy, and QFs/Other). We believe this non-GAAP measure
helps investors to better understand the changes in the level of our Merchant Energy operating results for these categories from period to period.
RECONCILIATION: Quarter Ended June 30, 2005
GAAP Adjustments Merchant
GAAP Fuel & Purchased In Arriving Gross Margin
Merchant Revenue & Expense Categories Revenues Energy Expenses Difference At Gross Margin Notes (Non-GAAP)
($ millions)
Mid-Atlantic Fleet $ 495.4 $ 227.8 $ 267.6 $ (46) a, b, c $ 221
Plants with PPAs 191.9 18.6 173.3 (2) a 171
Wholesale Competitive Supply 929.1 863.9 65.2 5 7 a , d, e 121 **
NewEnergy 1,403.0 1,335.4 67.6 - 68
QFs / Other 2.7 - 2.7 (1) e, f 2
Total Merchant $ 3,022.1 $ 2,445.7 $ 576.4 $ 8 $ 583
Adjustments Merchant Below
Arriving At Merchant Gross Margin
Total Merchant: GAAP Below Gross Margin (Non-GAAP)
Revenues less fuel and purchased energy expenses $ 576.4 $ 583
Operations and maintenance expenses (328.5) 1 4 g, h, i (316)
Depreciation, depletion, and amortization (65.4) - h, i (66)
Taxes other than income taxes (25.5) 26 j -
Accretion of asset retirement obligations (15.3) 15 j -
Income From Operations 141.7 201
Other income / (expense) 8.2 (40) b, j, k (32)
EBIT N/A 169
Fixed charges (44.6) 4k (41)
Income Before Income Taxes 105.3 128
Income tax benefit / (expense) (12.6) (36) i, l (48)
Income from Continuing Operations 92.7 80
Income from discontinued operations 2.7 (3) m -
Net Income $ 95.4 $ 80
Details of Adjustments Made in Arriving at Merchant Gross Margin:
a Adjustment to remove gains of ($45 million) from Mid-Atlantic Fleet and gains of ($2 million) from PPAs of estimated gross margin created through active
portfolio management more appropriately categorized as a competitive supply activity.
b Adjustment to remove ($5 million) of decommissioning revenues from non-GAAP gross margin measure and included in Other Income. The offsetting
decommissioning expense was recorded in accretion of asset retirement obligations.
c Adjustment to remove $4 million of other indirect costs have been removed from non-GAAP gross margin as they are more appropriately categorized as
operating expenses.
d Adjustment to remove $6 million loss related to economic, non-qualifying hedges of fuel adjustment clauses and gas transport contracts
e Adjustment to remove synfuel losses from Wholesale Competitive Supply gross margin of $4 million and Other gross margin of $9 million
f Adjustment to reflect ($11 million) of direct costs in Other for purposes of non-GAAP gross margin measure.
Details of Adjustments Made in Arriving at Merchant Below Gross Margin:
g Adjustment detailed in quot;cquot; and quot;fquot; above are offset by adjustments made to O&M costs.
h Adjustment to reclassify certain allocated costs totaling $6 million from O&M to Depreciation and Amortization
i Adjustment to remove Synfuel results, which are not included in determining Merchant Below Gross Margin - $2 million in O&M, $6 million in D&A, ($34 million) from
income tax expense
j Adjustment to reflect management's view of these items as Other Income / Expense.
k Adjustment to move Interest Income of $4 million recorded in Other Income / Expense to Fixed Charges (to show a fixed charge amount net of interest income).
l Adjustment to remove tax benefit ($2 million) related to losses on economic, non-qualifying hedges of fuel adjustment clauses and gas transport contracts
m Adjustment to remove income from discontinued operations which is treated as a special item
** Excludes $1 million of operating expenses, depreciation, depletion and amortization, and interest expense associated with our Upstream Gas properties
PROJECTED GROSS MARGIN AND RESULTS BELOW GROSS MARGIN:
43
Constellation Energy is unable to reconcile its projected gross margin or results below gross margin to GAAP because we do not predict the future impact of
reconciling items or special items such as the cumulative effect of changes in accounting principles and the disposition of assets.
44. Cash Flows
The following is a reconciliation of the non-GAAP financial measures of Net Cash Flow before Debt Issuances/Payments and Free Cash Flow
for the six months ended June 30, 2006. We utilize these non-GAAP measures because we believe they are helpful in understanding our
ability to reduce debt by existing cash.
RECONCILIATION:
2006
($ millions)
QTD JUNE ACTUAL RESULTS:
Net cash used in operating activities (GAAP measure) 70
Adjustment for derivative contracts presented as financing activities under SFAS 149 25
Adjusted Net Cash Used in Operating Activities $ 95 NON-GAAP MEASURE
Net cash used in investing activities (GAAP measure) (215)
Net Cash Used in Financing Activities (Excl. Debt-Related Sources & Uses) *
Common stock dividends paid (68)
Proceeds from issuance of common stock 22
Net proceeds from acquired contracts 221
Other financing activities, excluding SFAS 149 activities included in operating 1
Adjusted Net Cash Used in Financing Activities 176
Net Cash Flow before Debt Issuances/(Payments) 56 NON-GAAP MEASURE
Less: Proceeds from issuance of common stock (22)
Add: Common stock dividends paid 68
Free Cash Flow $ 102 NON-GAAP MEASURE
* Total GAAP Cash Used in Financing Activities (incl. debt-related sources & uses) was $52 million QTD June 06.
PROJECTED CASH FLOWS:
Constellation Energy is unable to provide a reconciliation of these measures for Projected 2006 because it does not prepare a
forecasted statement of cash flows on a GAAP basis. 44
45. Debt to Total Capital
Debt to Total Capital is a non-GAAP ratio that excludes unamortized discounts and premiums, reduces debt by our cash balance, and
includes minority interests in equity. In addition, we reflect a 50 percent equity credit for our trust preferred securities, similar to the
evaluation performed by major credit rating agencies. Management believes this non-GAAP measures provide investors useful information on
our leverage because it is consistent with the evaluation performed by rating agencies, takes into account minority equity interests in our
consolidated affiliates and cash available to reduce debt, and facilitates comparability between periods.
RECONCILIATION:
June 30, 2006 March 31, 2006 December 31, 2005 December 31, 2003 December 31, 2001
GAAP
GAAP Balances Non-GAAP Ratio Balances Non-GAAP Ratio GAAP Balances Non-GAAP Ratio GAAP Balances Non-GAAP Ratio GAAP Balances Non-GAAP Ratio
($ millions)
Total long-term debt (gross of current portion) $ 4,590.9 $ 4,590.9 $ 4,589.5 $ 4,589.5 $ 4,610.9 $ 4,610.9 $ 5,134.9 $ 5,134.9 $ 3,874.4 $ 3,874.4
Fair value decrease in fixed to floating rate swap included in
long-term debt 21.7 6.5 0.9 - -
6.20% deferrable interest subordinated debentures due
October 15, 2043 to BGE wholly owned BGE Capital
Trust II relating to trust originated preferred securities 257.7 257.7 257.7 257.7 257.7 257.7 257.7 257.7 250.0 250.0
50% Equity credit to trust preferred securities - (125.0) - (125.0) - (125.0) - (125.0) - (125.0)
Adjustment to include High Desert Lease on Balance Sheet at
December 31, 2001 - - - - - - - - - 221.0
Short-term borrowings 155.0 155.0 425.0 425.0 0.7 0.7 9.6 9.6 975.0 975.0
Unamortized discount and premium (6.0) - (7.6) - (8.0) - (10.2) - (5.2) -
Subtotal 4,997.6 4,900.3 5,264.6 5,153.7 4,861.3 4,745.2 5,392.0 5,277.2 5,094.2 5,195.4
LESS: Cash - 228.1 - 424.8 - 813.0 - 721.3 - 72.4
Total Net Debt 4,997.6 4,672.2 50.7% 5,264.6 4,728.9 50.4% 4,861.3 3,932.2 42.8% 5,392.0 4,555.9 49.9% 5,094.2 5,123.0 54.6%
BGE Preference Stock Not Subject To Mandatory Redemption 190.0 190.0 190.0 190.0 190.0 190.0 190.0 190.0 190.0 190.0
Minority Interests - 21.6 - 22.0 - 22.4 - 113.4 - 101.8
Common shareholders' equity 4,208.5 4,208.5 4,324.0 4,324.0 4,915.5 4,915.5 4,140.5 4,140.5 3,843.6 3,843.6
Subtotal 4,398.5 4,420.1 4,514.0 4,536.0 5,105.5 5,127.9 4,330.5 4,443.9 4,033.6 4,135.4
50% Equity credit to trust preferred securities - 125.0 - 125.0 - 125.0 - 125.0 - 125.0
Total Equity 4,398.5 4,545.1 49.3% 4,514.0 4,661.0 49.6% 5,105.5 5,252.9 57.2% 4,330.5 4,568.9 50.1% 4,033.6 4,260.4 45.4%
Total Capitalization $ 9,396.1 $ 9,217.3 100.0% $ 9,778.6 $ 9,389.9 100.0% $ 9,966.8 $ 9,185.1 100.0% $ 9,722.5 $ 9,124.8 100.0% $ 9,127.8 $ 9,383.4 100.0%
Exclude commodity hedge AOCI Balance from common
shareholders' equity 1,157.0 996.6 323.0 (9.6) (30.0)
Counterparty cash collateral held reflected as a reduction of
cash balance (167) (216) (388) (120) -
Adjusted Net Debt to Total Capital 45.9% 46.6% 43.7% 50.6% 54.8%
PROJECTED LEVERAGE RATIOS:
Constellation Energy is unable to provide a reconciliation of this measure for Projected 2006 because it does not prepare a forecasted balance sheet on a GAAP basis.
45
