Constellation Energy (CEG) has signed a three-year agreement with the Commonwealth of Pennsylvania to supply electricity to 185 more commonwealth customers. This will bring the total number of public sector accounts that the company serves in Pennsylvania to 5,900.
Pursuant to a competitively bid power purchase contract with the state’s Department of General Services, Constellation Energy started supplying energy to the 185 new customers throughout the state on August 1, 2011.
Constellation Energy serves various customers including colleges, local governments and state agencies comprising Department of Transportation, Department of Public Works, the city of Lancaster, Berks County Convention Center and West Chester University.
Constellation Energy serves more than 150 federal agency and institutional customer accounts with electricity and natural gas supply, containing more than 375,000 renewable energy credits, approximately 1.7 BCF (billion cubic feet) of natural gas and approximately 6.9 million MWh of electricity to the U.S. Capitol, Kennedy Center, Smithsonian Institution, FBI and Federal Reserve. Moreover, Constellation Energy has authorization to provide demand response services for both military and civilian government agencies.
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. Looking forward, our bullishness for Constellation Energy stems from the ongoing merger deal with Exelon Corporation (EXC), which paves the way for a utility behemoth coupled with the cleanest power generation fleet in the US.
All these positives, however, are discounted by the company’s significant Maryland exposure, risks in the merchant power space, pending regulatory cases and a low-dividend yield.
Recently, Constellation Energy reported its second-quarter 2011 results. In the quarter, the company reported adjusted earnings per share of 76 cents, which was below the Zacks Consensus Estimate of 82 cents. However, results were ahead of year-ago earnings of 71 cents.
Further, one of its competitors, Duke Energy Corporation (DUK) also announced its second-quarter 2011 operating earnings of 33 cents per share, beating the Zacks Consensus Estimate by 3 cents. However, the results were marginally lower than the year-ago earnings of 34 cents per share.
Headquartered 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. It owns a diversified fleet of generating units, totaling approximately 12,000 megawatts of generating capacity, and is a leading advocate for clean, environmentally sustainable energy sources, such as solar power and nuclear energy. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.
CONSTELLATN EGY (CEG): Free Stock Analysis Report
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EXELON CORP (EXC): Free Stock Analysis Report
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