Change is under way at Constellation Energy Group Inc. — or at least in the way it elects its leaders.

In a Securities and Exchange filing, the company said it would change its election process to yearly all-member elections, with uncontested elections won by a majority vote. Previously, the board’s members were elected to serve staggered three-year terms, meaning only certain members would be up for re-election each year.

“We believe that by declassifying our board and requiring that our directors be elected by a majority vote standard, we are adopting best practices that build on our already strong corporate governance policies and practices,” said Rob Gould, vice president of corporate communications at Constellation.

As a result of the change, actively involved stockholders will get a larger role in the selection of board members and a quicker way to hold members accountable.

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But Gould said the company and stockholders should already be pleased with the “truly superior returns.”

“Since our current management team took the helm in 2001, our stock price is up nearly 300 percent, and $12.1 billion in shareholder value has been created,” he said.

“Constellation is focused on increasing its share in existing markets and entering new underserved markets,” said Paul Justice, equity analyst for Morningstar, in a report.

“In the years ahead, we’ll invest more in (the Baltimore Gas & Electric Co.), more in our gas portfolio and considerably more to upgrade the Maryland plants to meet the requirements of the Healthy Air Act,” Gould said.

Capital expenditures for 2007 will total about $1.9 billion and $1.7 billion for 2008. Since 2003, earnings have grown 10 percent, Gould said.

Constellation Energy Group is a member of The Examiner Top 10, a portfolio of 10 of the largest traded companies in the Baltimore area.

kprahlad@baltimoreexaminer.com

The Examiner Top 10


The Examiner Top 10 portfolio began Jan. 3, the first trading day of the year, with the hypothetical purchase of one share in each company.

Friday’s Closings
Name                Purchase              Price Close,             April 13 Change
Black & Decker   $79.90                      $83.18                           +$3.28
Const. Energy    $68.70                      $87.25*                         +$18.55
Found. Coal        $31.75                      $38.55                           +$6.80
Laureate Ed.      $48.60                       $59.00                           +$10.48
Legg Mason       $95.00                       $95.49                           +$0.49
McCormick          $38.52                       $38.46                             -$0.06
PNC Fin. Serv.    $75.15                       $72.89                             -$2.26
Sinclair Broad.    $10.50                       $17.01*                           +$6.51
T. Rowe Price     $43.75                       $48.95                             +$5.20
W.R. Grace         $19.80                       $29.48*                           +$9.68

*TRADING NOTES: On April 13, Sinclair hit a 52-week high, trading at $16.80 per share. W.R. Grace traded at $29.70 on April 13, also reaching a 52-week high. On April 10, Constellation also hit a 52-week high, trading at $89.30 per share.