Constellation Energy Group Inc. (CEG) signed an agreement with U.S. Postal Service (‘USPS’) facilities in New York, Massachusetts and Maine to provide electricity.
This competitively bid agreement will further extend the six-year relationship with USPS.
Per the agreement, Constellation Energy will supply electricity to USPS facilities in the three Northeast states through July 2012. In addition to New York, Maine and Massachusetts, Constellation Energy also provides electricity to USPS in Connecticut, Pennsylvania, Illinois and Ohio.
Constellation Energy is a leading provider of energy products and services that help customers to manage energy costs and meet sustainability goals. Other than USPS, the company also serves a wide range of public-sector customers that include more than 150 federal government sites ranging from the U.S. Capitol to the Smithsonian Institution. Also, recently, Constellation signed a 20-year Energy Savings Agreement with the U.S. State Department that will spur the development of renewable energy generation projects.
In April 2011, Exelon Corporation (EXC) and Constellation Energy signed a definitive agreement to combine the two companies in a stock-for-stock transaction. The new company will retain the Exelon name and be headquartered in Chicago.
Constellation Energy Group Inc. is a diversified energy company with regulated and merchant businesses. The visibility of its underlying earnings strength is enhanced by a geographically disparate customer base and diversified power generation portfolio, as well as a strong balance sheet.
All these positives, however, are offset by the company’s significant Maryland exposure, risks in the merchant power space, and pending regulatory cases. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Constellation Energy is expected to release its second quarter results on August 3, 2011. The Zacks Consensus Estimates for the second quarter 2011 and fiscal year 2011 are currently at 86 cents per share and $3.22 per share, respectively.
Based in Baltimore, Constellation Energy is a leading competitive supplier of power, natural gas and energy products and services for homes and businesses across the continental United States. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company, its regulated utility in Central Maryland.
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