O’Malley’s Continued Vendetta Against Constellation Energy

I have been watching the drama unfold between my corporate master, Constellation Energy, Governor Martin O’Malley, and the Public Service Commission. Current events have been focused on the joint venture between France’s Electricite de France (EDF) and Constellation Energy and the impact that this will purportedly have on BGE.

For a surprisingly balanced view of the current row, I recommend taking a look at Jay Hancock’s coverage in the Baltimore Sun and his blog.  I cannot add more to what he has already written.  I have to agree completely with the point he makes here:

Stock ownership and board votes are the alpha and omega of substantial control. All corporate law is predicated on the notion that the people who own companies and the boards that supervise them are the controlling entities. This PSC sentence — “Once a proposed transaction includes elements other than acquisition of stock and board designation rights, it no longer is eligible for the (e)(2) exception.” — is Orwellian in its casual assertion of omnipotence. By such logic, if Constellation wanted to give an ice cream party for EDF or another business partner, the PSC could block the deal.

What the PSC did in deciding to wait until September to provide an approval on the EDF-Constellation merger was to disobey the law passed by the General Assembly in 2008 that allowed such a deal.  Moreover, the rather unfriendly action sets the table for O’Malley and the Attorney General to examine the compensation of Constellation CEO Mayo Shattuck.  Personally, I think CEO pay across the board is a bit excessive, but O’Malley’s comments and the actions of the Attorney General set a dangerous precedent for other large and profitable corporations that wish to setup shop in Maryland.  The takeaway here is no business is safe from the Big Brother that is Maryland state government.

Constellation has started to go on the offensive in getting information out about the venture, and they have been doing it across all of the usual mediums.  There’s a Facebook page, a Twitter account, and a new website as well.  At the end of the day, getting this information out in as many mediums as possible is a laudable effort.

The joint venture is needed for the continued viability of Constellation Energy and the future of power generation in Maryland.  FWIW, nuclear power is an excellent solution to our need for energy that reduces a reliance on foreign oil and appeals to clean energy.  This venture is a step in the right direction for both Maryland and Constellation Energy.