GRI INDEX

Constellation Energy self-declares that its 2010 Corporate Social Responsibility Report and accompanying web-based
content meets application level A of the Global Reporting Initiative (G3) sustainability reporting guidelines.

 

G3 Description Answer/Location of Answer

1.1

Statement from the most senior decisionmaker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.

 

The statement should present the overall vision and strategy for the short-term, medium-term (e.g., 3-5 years), and long-term, particularly with regard to managing the key challenges associated with economic, environmental, and social performance.

 

The statement should include:

  • Strategic priorities and key topics for the short/medium-term with regard to sustainability, including respect for internationally agreed standards and how they relate to long-term organizational strategy and success;
  • Broader trends (e.g., macroeconomic or political) affecting the organization and influencing sustainability priorities;
  • Key events, achievements, and failures during the reporting period;
  • Views on performance with respect to targets;
  • Outlook on the organization’s main challenges and targets for the next year and goals for the coming 3-5 years; and
  • Other items pertaining to the organization’s strategic approach.

 

See our CEO Letter to Stakeholders

1.2

Description of key impacts, risks, and opportunities. The reporting organization should provide two concise narrative sections on key impacts, risks, and opportunities.

Section One should focus on the organization’s key impacts on sustainability and effects on stakeholders, including rights as defined by national laws and relevant internationally agreed standards. This should take into account the range of reasonable expectations and interests of the organization’s stakeholders. This section should include:

  • A description of the significant impacts the organization has on sustainability and associated challenges and opportunities. This includes the effect on stakeholders’ rights as defined by national laws and the expectations in internationally-agreed standards and norms;
  • An explanation of the approach to prioritizing these challenges and opportunities;
  • Key conclusions about progress in addressing these topics and related performance in the reporting period. This includes an assessment of reasons for underperformance or overperformance; and
  • A description of the main processes in place to address performance and/or relevant changes.

Section Two should focus on the impact of sustainability trends, risks, and opportunities on the long-term prospects and financial performance of the organization. This should concentrate specifically on information relevant to financial stakeholders or that could become so in the future. Section Two should include the following:

  • A description of the most important risks and opportunities for the organization arising from sustainability trends;
  • Prioritization of key sustainability topics as risks and opportunities according to their relevance for long-term organizational strategy, competitive position, qualitative, and (if possible) quantitative financial value drivers;
  • Table(s) summarizing:
  • Targets, performance against targets, and lessons-learned for the current reporting period; and
  • Targets for the next reporting period and mid-term objectives and goals (i.e., 3-5 years) related to key risks and opportunities.
  • Concise description of governance mechanisms in place to specifically manage these risks and opportunities, and identification of other related risks and opportunities.
See our answers to this indicator HERE

G3 Description Answer/Location of Answer

2.1

Name of the organization

Constellation Energy Group, Inc.

2.2

Primary brands, products, and/or services. The reporting organization should indicate the nature of its role in providing these products and services, and the degree to which it utilizes outsourcing.

CSR inside front cover–About Our Business and at Sustainability Approach

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

CSR inside front cover–About Our Business and at Sustainability Approach

2.4

Location of organization’s headquarters.

Baltimore, Md.

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

U.S. and Canada

2.6

Nature of ownership and legal form.

CSR inside front cover–About Our Business and at Sustainability Approach

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

CSR inside front cover–About Our Business and at Sustainability Approach

2.8

Scale of the reporting organization, including:

  • Number of employees;
  • Number of operations;
  • Net sales (for private sector organizations) or net revenues (for public sector organizations);
  • Total capitalization broken down in terms of debt and equity (for private sector organizations); and
  • Quantity of products or services provided.

In addition to the above, reporting organizations are
encouraged to provide additional information, as appropriate, such as:

  • Total assets;
  • Beneficial ownership (including identity and percentage of ownership of largest shareholders).
  • Breakdowns by country/region of the following:

– Sales/revenues by countries/regions that make up 5
percent or more of total revenues;
– Costs by countries/regions that make up 5 percent or more of total revenues;
– Employees.

CSR inside front cover–About Our Businesses, Constellation by the Numbers and at Sustainability Approach

2.9

Significant changes during the reporting period regarding size, structure, or ownership including:

  • The location of, or changes in operations, including facility openings, closings, and expansions; and
  • Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations).
CSR inside front cover–About Our Business and at Sustainability Approach

2.10

Awards received in the reporting period.

CSR, pg.42 and at Awards

EU1

Installed capacity, broken down by primary energy source and by regulatory regime

See EU1

CSR, inside front cover–About Our Business, Constellation by the Numbers and at Sustainability Approach

EU2

Net energy output broken down by primary energy source and by regulatory regime

EU2

Net Generation chart at Sustainability Approach

EU3

Number of residential, industrial, institutional and commercial customer accounts

CSR, inside front cover–About Our Business, Constellation by the Numbers and at Sustainability Approach

CEG:

  • Residential: 80,000
  • Commercial, Industrial, Governmental: 30,000

 

BGE Customers:

  • 1,238,822 Electricity customers
  • 652,594 Natural Gas customers

EU4

Length of above and underground transmission and distribution lines by regulatory regime

CSR inside front cover–About Our Business, Constellation by the Numbers and at Sustainability Approach

US Transmission Lines:

  • Overhead: 1,194 miles
  • Underground: 95 miles

 

Canada Transmission Lines:

  • Overhead: 0 miles
  • Underground: 0 miles

 

Distribution Lines:

  • Overhead 9,398 miles
  • Underground 15,361 miles

Total: 24,759 miles

EU5

Allocation of CO2e emissions allowances or equivalent, broken down by carbon trading framework

Constellation Energy does not receive CO2e emissions allowances or the equivalent as part of any greenhouse gas control program or trading program, so like most affected sources, it acquires allowances necessary to meet the requirements of the Regional Greenhouse Gas Initiative (RGGI) through the market or through participation in the quarterly RGGI auction.

G3 Description Answer/Location of Answer

3.1

Reporting period (e.g., fiscal/calendar year) for information provided

January 1, 2010 to December 31, 2010

CSR, inside front cover–About this Report and at Sustainability Approach

3.2

Date of previous report (if any)

Calendar year 2009, published summer 2010.

CSR, inside front cover–About this Report and at Sustainability Approach

3.3

Reporting cycle (annual, biennial, etc.)

Annually. See CSR, inside front cover–About this Report and at Sustainability Approach

3.4

Contact point for questions regarding the report or its contents

responsibility@constellation.com

CSR, inside front cover–About this Report and at Sustainability Approach

3.5

Process for defining report content, including:

  • Determining materiality;
  • Prioritizing topics within the report; and
  • Identifying stakeholders the organization expects to use the report.

 

Include an explanation of how the organization has applied the “Guidance on Defining Report Content”, the associated Principles and the Technical Protocol–Applying the Report Content Principles.

In developing this CSR report, our challenge is to acknowledge the evolving concerns of external parties. This CSR report was written based on the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines and the accompanying Electric Utility Sector Supplement. This Guidance provides a common framework for the electric utility sector to use in reporting non-financial performance.

In preparing our 2010 sustainability reports, including our responses to this GRI set of indicators, we went through a systematic process to identify the top sustainability-related issues for our company, based on their importance to our business and to internal and external stakeholders. We have identified investors, employees, and other stakeholders as interested in this report.

We used internal subject matter experts and external consultants to help determine materiality and prioritize topics within the report, taking into consideration the “Guidance on Defining Report Content” and the associated principles. As part of this process, we reviewed our SEC disclosures, our press releases, our previous sustainability reports, feedback from stakeholder interviews for our brand assessment process, industry and leading company benchmarking information, and information and perspective from general and trade media around these issues.

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3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance

CSR, inside front cover–About this Report and at Sustainability Approach

Our characterization of sustainability challenges includes strategic objectives and guiding principles, and this information relates not only to our wholly owned operations but also to joint ventures, partially owned operations, and in some cases other stakeholder groups, including industry associations, public policy groups and other business partners. The management approaches described in this report and, in some cases, the operational and performance data reported, are intended to cover business areas where we have significant influence as well as those where we have full operational control.

In following the GRI Reporting Principles, we are working to extend our data collection process beyond our wholly owned facilities to all the facilities in which we own an equity share for all our KPIs. For joint ventures and partially owned operations, it is not yet standard practice to collect all environmental, social and economic indicators at the corporate level, though we are making consistent progress.

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3.7

State any specific limitations on the scope or boundary of the report. If boundary and scope do not address the full range of material economic, environmental, and social impacts of the organization, state the strategy and projected timeline for providing complete coverage.

CSR, inside front cover–About this Report and at Sustainability Approach

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

CSR, inside front cover–About this Report and at Sustainability Approach

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

In our calculations, estimates and data measurement techniques, we follow generally accepted methodologies for each of the metrics we report. In particular, for greenhouse gas emissions, we follow The Climate Registry (TCR) guidelines, which are based on the World Resources Institute Greenhouse Gas Protocol principles. Our corporate environmental metrics generally match the GRI protocols. We clarify details specific to each metric throughout the report.

See the Pricewaterhouse Coopers LLC Limited Assurance Letter of our GHG inventory.

3.10

Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Information has been restated to account for corrections to data and to align with regulatory reporting protocol, as appropriate, within the report.

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

CSR, inside front cover–About our Businesses and About this Report and at Sustainability Approach

3.12

Table identifying the location of the Standard Disclosures in the report. Identify the page numbers or web links where the following can be found:

  • Strategy and Analysis 1.1–1.2;
  • Organizational Profile 2.1–2.10;
  • Report Parameters 3.1–3.13;
  • Governance, Commitments, and Engagement 4.1–4.17;
  • Disclosure of Management Approach, per category;
  • Core Performance Indicators;
  • Any GRI Additional Indicators that were included; and
  • Any GRI Sector Supplement Indicators included in the report.

GRI Index

3.13

Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).

CSR, inside front cover–About this Report, Management StatementPricewaterhouseCoopers’ Limited Assurance Letter and at Sustainability Approach

G3 Description Answer/Location of Answer

4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Describe the mandate and composition (including number of independent members and/or nonexecutive members) of such committees and indicate any direct responsibility for economic, social, and environmental performance.

See our 2011 Proxy Statement, pgs. 12-16; also see our Corporate Governance Guidelines.

4.2

Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).

The board has determined that our CEO should serve as the chairman of the board of directors because the board believes he is the director most capable of effectively identifying strategic priorities and leading the discussion and execution of our strategy. His serving in this role facilitates the flow of information and provides for more effective leadership and management. The board believes that our existing corporate governance practices provide for strong independent leadership and effective oversight. For instance, the board designates a lead director from among the independent directors. The lead director’s responsibilities include serving as a liaison between the chairman of the board and the independent directors, serving as a point of contact for shareholders and conducting meetings of the independent directors. See our 2011 Proxy Statement, pgs. 15-16; also see our Corporate Governance Guidelines.

4.3

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. State how the organization defines ‘independent’ and ‘non-executive’. This element applies only for organizations that have unitary board structures. See the glossary for a definition of ‘independent’.

Nine out of 10 are independent, with CEO Mayo A. Shattuck III serving as Chairman of the Board. Two of the directors are women.

A majority of Constellation Energy’s directors are required to be independent in accordance with New York Stock Exchange (NYSE) listing standards. For a director to be considered independent, the Board of Directors must affirmatively determine that such director has no material relationship with Constellation Energy. When assessing the materiality of a director’s relationship with Constellation Energy, the Board of Directors considers the issue from both the standpoint of the director and from that of persons and organizations with whom or with which the director has an affiliation. The Board of Directors has adopted standards to assist it in determining if a director is independent in accordance with the NYSE listing standards.

See 2011 Proxy Statement, p.10, for a detailed list of criteria for determining the independence of our directors.

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Include reference to processes regarding:

  • The use of shareholder resolutions or other mechanisms for enabling minority shareholders to express opinions to the highest governance body; and
  • Informing and consulting employees about the working relationships with formal representation bodies such as organization level ‘work councils’, and representation of employees in the highest governance body.

Identify topics related to economic, environmental, and social performance raised through these mechanisms during the reporting period.

Any Constellation Energy shareholder or employee who wishes to communicate to the board of directors may submit such communication in writing to the Corporate Secretary, Constellation Energy Group, Inc., 100 Constellation Way, Suite 1800P, Baltimore, Md. 21202, or call (877) 248-1476.

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

Short-term incentive metrics are aligned with and support the corporate strategic plan and provide potential payouts based on meeting annual objectives. As described in Material Elements of Compensation on page 34 of our 2011 Proxy Statement, Constellation Energy met or exceeded all but three of the 33 short-term incentive performance goals, resulting in the creation of the incentive pool from which the short-term incentive award payouts to the named executive officers for 2010 performance were made.

The long-term incentive opportunity rewards sustained total shareholder return and stock price performance. Long-term incentive awards are generally split evenly between performance units that vest at the end of three years and that reward our named executive officers only if the value delivered to Constellation Energy shareholders exceeds the value delivered by the peer companies and stock options that vest ratably over three years and that only create value for the recipients when the stock price increases.

A high proportion of our executive officers’ compensation is “at risk” in the form of short-term and long-term incentive opportunities which maintains a strong link between compensation and performance. For example, in 2010, on average more than 87 percent of our named executive officers’ total direct compensation (i.e., base salary plus short-term plus long-term incentives) was contingent on performance with approximately 44 percent as long-term incentive and 43 percent short-term incentive.1

The Compensation Committee recommends to the board of directors compensation and benefits for directors. The Committee is guided by the following goals: (a) the compensation should fairly compensate directors for the work required for an entity of the size and complexity of the company; and (b) the compensation should align directors’ interests with the long-term interests of shareholders by providing directors a mix of cash and equity compensation.2 Non-employee directors receive a common stock award as part of their annual compensation, in addition to annual retainer fees and meeting attendance fees. Under share ownership guidelines, each non-employee director is required to acquire and maintain holdings of Constellation Energy stock (including deferred stock units) equal to at least five times their annual cash retainer.3 Executive officers are required to acquire holdings of Company common stock with a value equal to multiples of their base salary, which increase according to seniority of title.4

1 See 2011 Proxy Statement Executive and Director Compensation section, pg. 26-55 and Corporate Governance Guidelines.
2 Corporate Governance Guidelines, pg. 6.
3 2010 Proxy Statement, Executive and Director Compensation section, pg. 55.
4 Corporate Governance Guidelines, pg. 6.

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4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Corporate Governance Guidelines, pg. 6; see also Principles of Business Integrity, Policy and Procedures With Respect to Related Person Transactions and 2011 Proxy Statement, pgs. 18-20.

 

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

The board of directors seeks nominees with a broad diversity of experience, professions, viewpoints, skills and backgrounds that will enable them to make a significant contribution to the board of directors, Constellation Energy and its shareholders.  Annually, the Nominating and Corporate Governance Committee reviews the qualifications and backgrounds of the directors, as well as the overall composition of the board of directors, and recommends to the full board of directors the slate of director candidates to be nominated for election at the next annual meeting of shareholders.

Constellation Energy’s Corporate Governance Guidelines include the following criteria that are to be considered by the Nominating and Corporate Governance Committee and board of directors in considering candidates for nomination to the board of directors:

  • Experience, including leadership experience in business or administrative activities; breadth of knowledge about issues affecting Constellation Energy and the industries/markets in which it operates; and the ability and willingness to contribute special competencies to Board of Directors’ activities.
  • Personal attributes, including unquestioned personal integrity; loyalty to Constellation Energy and concern for its success and welfare; willingness to criticize and to apply sound business ethics and independent judgment; awareness of the director’s role in Constellation Energy’s corporate citizenship responsibilities and image; availability for meetings and consultation on Constellation Energy matters; broad contacts with relevant business and political leaders; and willingness to assume broad stewardship responsibility on behalf of all constituents for the management of Constellation Energy.
  • Each Board of Directors member is expected to devote sufficient time to carrying out Board of Directors duties and responsibilities effectively and should be committed to serve on the Board of Directors for an extended period of time.
  • Each Board of Directors member is expected to become a shareholder and have a financial stake in Constellation Energy. In this regard, directors are required to, within five years of their initial appointment as a director of Constellation Energy, own Constellation Energy stock or deferred stock units with a value equal to at least five times the amount of their annual cash retainer for service as a director.
  • Qualified candidates for membership on the Board of Directors will be considered without regard to race, color, religion, sex, sexual orientation, ancestry, national origin or disability. The board of directors has adopted a policy whereby the Nominating and Corporate Governance Committee shall consider the recommendations of shareholders with respect to candidates for election to the board of directors and the process and criteria for such candidates shall be the same as those currently used by Constellation Energy or otherwise suggested by the board of directors or management for director candidates recommended by the board of directors. From time to time, the Nominating and Corporate Governance Committee may retain third party search firms to assist the board of directors in identifying and evaluating potential nominees to the board of directors.

 

2011 Proxy Statement, pgs. 16-17.

 

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Explain the degree to which these:

  • Are applied across the organization in different regions and department/units; and
  • Relate to internationally agreed standards.
Our mission is to be the nation’s leading energy manager and competitive supplier, generating and delivering power and natural gas safely and reliably to our customers while acting in the interests of our communities, employees, shareholders and the environment.

Our vision is to be the first-choice provider for customers seeking energy solutions in the complex and changing energy marketplace.

Our Enterprise-Wide Values: Integrity, Teamwork with Respect for Individuals, Community and Environmental Responsibility, Customer Commitment, Safety and Excellence and Accountability

Corporate leadership and social responsibility have always been cornerstones of our success. We execute on our business strategies and expect our leadership, governance teams and all our employees to adhere to the highest ethical standards in the conduct of our company’s business. To ensure compliance with applicable laws and regulations and to promote a common understanding of our fundamental ethical standards, we have created a Principles of Business Integrity program as a training and certification process for all our employees.

We aim to conduct all aspects of our business according to the highest principles of integrity, ethics and accountability. Our employees, officers and directors are expected to adhere to these standards at all times and to refer to company guidance or resources whenever questions arise.

Our Principles of Business Integrity provide a guidepost for our employees, offices and directors on a wide range of conduct issues. All employees are required to review the principles annually and certify they agree to follow them. Areas covered by our Principles of Business Integrity include: Insider trading policy, disclosure practices, fair dealing, support for nonprofit and community organizations, workplace principles, zero tolerance for harassment and discrimination, legal and regulatory compliance, environmental, health and safety responsibilities, and government relations guidelines. Recent updates to our Principles of Business Integrity include sections on workplace violence, intellectual property, and diversity and inclusion. These updates incorporated actual questions received from employees, providing real-life examples of situations that may arise and guidance on how to handle them.

Constellation Energy’s corporate compliance program is designed to assist the company in preventing, detecting and responding to any violations of our Principles of Business Integrity, including criminal and other illegal or unethical conduct. It is our policy to enforce the standards of conduct set forth in the Principles of Business Integrity through appropriate disciplinary mechanisms when necessary. Employees have a responsibility to report activity that violates our Principles of Business Integrity or other laws, rules or regulations. They may do so by calling or sending an email to our corporate compliance department or, if they wish to remain anonymous, by calling our Business Integrity Helpline, which is operated by an outside firm that specializes in providing confidential reporting services.

For further information on our corporate governance guidelines and principles and to better understand the way we manage these important issues, please refer to the following documents, available on our website: Principles of Business Integrity, Corporate Compliance Guidelines, Corporate Governance Guidelines, and Policy and Procedures With Respect to Related Person Transactions.

When Constellation employees conduct business outside the country, they are subject to federal, state or local laws of the United States or laws of any foreign country. In particular, personnel must comply with the Foreign Corrupt Practices Act (FCPA). The FCPA sets forth anti-bribery provisions and accounting provisions. Constellation Energy also strives to comply with the Human Rights Campaign’s (HRC) Equality Index criteria. This is voluntary, but CE values achieving a 100 percent rating, which we have since 2009.

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Include frequency with which the highest governance body assesses sustainability performance.

Our highest governance bodies, the Management Committee and the board of directors, oversee economic, environmental, EMS and social performance by monitoring, at minimum annually, adherence to our principles of business integrity, our financial performance, auditing results, and company-wide risks. They also review the status of our environmental management systems and environmental performance at these reviews and on an ongoing basis.

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Corporate Governance Guidelines, pg. 10

 

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization. Article 15 of the Rio Principles introduced the precautionary approach. A response to 4.11 could address the organization’s approach to risk management in operational planning or the development and introduction of new products.

Corporate Environmental Policy Statement

 

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Include date of adoption, countries/operations where applied, and the range of stakeholders involved in the development and governance of these initiatives (e.g., multi-stakeholder, etc.). Differentiate between non-binding, voluntary initiatives and those with which the organization has an obligation to comply.

We support the Edison Electric Institute (EEI) Environmental Excellence Principles. Addressing topics ranging from improved environmental performance and public outreach to stewardship and pollution prevention, the principles serve as the foundation for an industry-wide effort to improve environmental performance.

Our businesses’ environmental management systems are tailored for each line of business and must be compliant with Constellation’s Environmental Policy Standards, which are based on ISO 14001. Although we do not formally subscribe to other voluntary principles (e.g., Global Sullivan Principles, UN Global Compact, Equator Principles), we consider these principles when developing and reviewing our programs and policies.

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4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:

American Gas Association

Baltimore City Commission on Sustainability

Center for American Progress’ Business Alliance

Center for Energy Workforce Development

Chesapeake Bay Trust

Clean Air Partners

Clean Energy Group

Combat Climate Change Initiative

COMPETE Coalition

Edison Electric Institute

Electric Power Research Institute

Electric Power Supply Association

Energy Providers Coalition for Education

Maryland Chamber of Commerce

Maryland Commission on Environmental Justice & Sustainable Communities

Maryland Department of Environment Air Quality Control Advisory Committee

Maryland Governor’s Workforce Investment Board

Maryland Industrial and Technology Alliance

National Association of Manufacturers

National Climate Coalition

Nuclear Energy Institute

U.S. Chamber of Commerce’s Institute for 21st Century Energy

Utility Air Regulatory Group

Utility Solid Waste Activities Group

Utility Water Act Group

World Business Council for Sustainable Development

World Resources Institute’s Corporate Council

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4.14

List of stakeholder groups engaged by the organization. Examples of stakeholder groups are:

  • Communities;
  • Civil society;
  • Customers;
  • Shareholders and providers of capital;
  • Suppliers; and
  • Employees, other workers, and their trade unions.
See our Stakeholder Engagement Chart; see also 4.13 response above

4.15

Basis for identification and selection of stakeholders with whom to engage. This includes the organization’s process for defining its stakeholder groups, and for determining the groups with which to engage and not to engage.

See our Stakeholder Engagement Chart.

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. This could include surveys, focus groups, community panels, corporate advisory panels, written communication, management/union structures, and other vehicles. The organization should indicate whether any of the engagement was undertaken specifically as part of the report preparation process.

See our Stakeholder Engagement Chart.

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

See our Stakeholder Engagement Chart.

G3 Description Answer/Location of Answer

 

Management Approach

 

See DMA: Economic

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

See our 2010 10-K, pgs. 2-16
 

 


 

EC2

Financial implications and other risks and opportunities due to climate change.

See 10-K, pgs 14-15, 20, 38-39

EC3

Coverage of the defined benefit plan obligations.

At December 31, 2010, the total projected benefit obligations of our qualified and nonqualified pension plans exceeded the fair value of our qualified pension plan assets by $218.0 million. The $193.7 million improvement in the funded status of our pension plans in 2010 primarily reflects the following: the contribution of $279.7 million into our qualified pension plan trusts during 2010, and $148.8 million in actual returns on qualified pension plan assets during 2010. These increases were partially offset by normal growth in the projected benefit obligations of our qualified and nonqualified pension plans, including a 50 basis point decrease in the discount rate at December 31, 2010 compared to December 31, 2009. For more information see our 10-K, pg. 55.

The Pension Protection Act requires that we fully fund our obligations by 2015. The performance of the capital markets will affect the value of the assets that are held in trust to satisfy our future obligations under our qualified pension plans. A decline in the market value of those assets or the failure of those assets to earn an adequate return may increase our funding requirements for these obligations, which may adversely affect our liquidity and financial results. See 10-K.

EC4

Significant financial assistance received from government.

Constellation Energy does not receive significant financial assistance from the government. BGE was awarded a $200 million federal grant for implementation of the Smart Grid, as is noted in our CSR report and in BGE press releases.

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Constellation Energy utilizes a thorough sourcing process that provides a framework of templates and technology for procuring any good and/or service. The process takes into account all of the potential scenarios and activities to effectively source at any level of the organization. During the sourcing process relevant decision criteria is developed, which frequently includes safety, cost, minority and women-owned business enterprise spend, environmental factors, commercial terms, supply assurance, technical capabilities, and schedule.

Although supplier location is usually not a criteria factor in the decision making process, as a practical matter Constellation Energy contracts with many local businesses resulting in substantial regional spending particularly in the areas with the greatest Constellation Energy presence, such as Maryland and New York. In 2010, Constellation Energy spent $432,964,587(18.4%) in the state of Maryland and $97,662,885 (4.15%) in NY.

Furthermore, in February of 2009, Constellation Energy subsidiary BGE signed a Memorandum of Understanding with the Maryland Public Service Commission with an aspirational goal to ultimately contract 25% of our procurement business with diverse companies. In addition, it should be noted that no specific timetable has been set within the Memorandum of Understanding to achieve this goal.

EC7

Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.

Constellation Energy does not report on this issue since the indicator does not apply to our business. This indicator is relevant for businesses with international operations in which hiring management from local communities is a sustainability issue. Because our operations are located in the U.S. and Canada and because we recruit our senior management from the U.S. and Canada and internationally, this indicator is not applicable to us.

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

See Economic Growth
 

Beginning in the fall of 2010, the College of Southern Maryland will launch a Nuclear Engineering Technology Associates of Applied Science (A.A.S.) degree program and will serve as a hub for nuclear maintenance training in the Mid-Atlantic region. Through the CENG JV, we are providing subject matter experts, curriculum review, adjunct faculty, equipment, marketing and scholarships as part of the NEI Nuclear Uniform Curriculum National Pilot Project, which will result in a reliable pipeline of locally grown skilled workers with industry-specific training ready to enter the energy workforce.

In 2010, the Center for Trades and Energy Training served 1,049 students and 154 of those were welding students, a key skill set for the energy industry. Prior to the opening of this center, CSM did not have its own state of the art welding facility. It used local high schools. Now, welding is offered and associated with college level learning.

EU6

Management approach to ensure short and long-term electricity availability and reliability.

Constellation Energy’s primary business is merchant energy generation and wholesale and retail sales. Insofar as our business strategy entails ensuring that our owned capacity is sufficient to meet projected electricity demand over the long term, we do plan for and purchase an appropriate amount of generating capacity. Our regulated utility business, BGE, purchases power in the wholesale market in order to ensure a sufficient supply of gas and electricity for its customers, but this does not take place within the context of a regulatory regime the way it does for other companies.

EU7

Demand-side management programs including residential, commercial, institutional and industrial programs.

BGE customers can save money, reduce their energy consumption and avoid GHG emissions through BGE’s Smart Energy Savers Program®. This program includes demand response and energy efficiency initiatives. We estimate this program will lead to as much as a 5 percent reduction in residential electricity use and a 15 percent reduction in peak demand, with a corresponding GHG emissions reduction benefit of more than 1 billion pounds per year. This reduction is roughly equivalent to the annual emissions of 400,000 cars.

Launched in 2008, BGE’s demand response program, PeakRewardsSM, offers residential electricity customers a choice of a programmable thermostat, heat pump switch or air conditioner switch, which allows the utility to control usage during times of peak demand in exchange for a utility bill credit.

This residential demand response program had over 325,000 load management devices installed as of the end of 2010 and a demand response capability of 489 MW.  A BGE commercial and industrial demand response program enrolled 90 customer sites with over 135 MW of capacity in PJM’s 2010 Emergency Load Response Program. BGE also provides energy efficiency incentives to commercial, industrial and institutional customers for implementing energy-efficient measures, and offers rebates on certain ENERGY STAR qualified appliances and equipment such as compact fluorescent light bulbs, refrigerators, washing machines, heat pumps and central air conditioners.

Together, as of year end 2010, these measures will produce lifecycle electricity savings of 4.6 million MWh and nearly $650 million in customer lifecycle savings. Among other measures, the program has included discounts on more than 6.3 million compact fluorescent light bulbs (CFLs), rebates for the purchase of more than 85,000 residential energy saving appliances and over 5,000 lighting audits for small businesses. We estimate that in 2010, these programs provided 440,000 MWh in energy savings from ongoing projects.

Constellation’s retail demand response programs allow its commercial customers–among the biggest energy users–to earn payments for voluntarily reducing electricity consumption during times of peak electricity demand. CNE has more than 1600 megawatts–the equivalent of a large power plant–of demand response capacity in electricity markets throughout North America. In 2010, we also acquired CPower and are now the second largest provider of demand response services to commercial and industrial customers. Together, CPower (under Constellation from October 2010) and CNE sold 590 MW of demand response in 2010. The portfolios of these combined businesses now comprise over 1,600 MW of curtailable demand response across North America.

Through Constellation’s retail businesses, we offer energy efficiency services, we provide customers with energy asset and usage evaluations and can design and install solutions to help them save energy, minimize cost and reduce GHG emissions. In 2010 alone, we initiated 175 new energy efficiency projects that resulted in savings during the year of over 150,000 MWh.

Also see our Clean Energy Products & Services table.

EU8

Research and development activity and expenditure aimed at providing reliable electricity and promoting sustainable development.

Please visit our Chesapeake Bay highlight.

Constellation Energy is a member of the Electric Power Research Institute (EPRI), which conducts research and development relating to the generation, delivery and use of electricity. We address challenges in electricity, including reliability, efficiency, health, safety and the environment. We also provide technology, policy and economic analyses to drive long-range research and development planning, and support research in emerging technologies. Additionally, Constellation Energy participates in EPRI’s Energy Sustainability Interest Group and EPRI-GM collaborative projects focused on plug-in hybrid electric vehicles.

In addition to our work with EPRI, Constellation Energy is also exploring a number of innovative technology and research projects. Current initiatives to reduce GHG emissions and carbon footprint include: heat-rate efficiency improvements; solid biomass fuel testing; liquid biomass fuel testing; innovative carbon capture technology pilot plant; algae CO2 capture to biofuel pilot plant; wind energy development; and solar energy development projects. Our studies include sponsorship of several CO2 capture technologies, and our initiatives on environmental stewardship include gypsum curtain technology for mitigation of water pollution and poultry litter for nutrient pollution.

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EU9

Provisions for decommissioning of nuclear power sites.

In November 2009, we completed the sale of 49.99 percent of our nuclear business, Constellation Energy Nuclear Group (CENG), to the EDF Group. As a result, Consolidated Financial Statements for CENG are reported separately and included as Exhibit 99(a) in Constellation Energy’s 10-K.The operation of nuclear generating facilities involves routine operating risks, including uncertainties regarding both technological and financial aspects of decommissioning nuclear generating facilities. CENG is obligated to decommission its plants after they cease operation in accordance with NRC regulations and relevant state requirements. In accordance with NRC regulations, CENG maintains external trust funds to fund the costs expected to be incurred to decommission its plants.

The nuclear decommissioning trust funds and the investment earnings thereon are restricted to meeting the costs of decommissioning the plants in accordance with NRC regulations. Investments by nuclear decommissioning trust funds are guided by the “prudent man” investment principle, and the trusts are prohibited from investing directly in CEG, EDF, their affiliates or any entity owning a nuclear power plant in the U.S. It is expected that decommissioning activities will be undertaken through the 2080 decade. If the actual return on trust fund assets were to be lower than expected, or if the costs or timing of decommissioning activities were to change, CENG could have to provide additional funding, which could have a material adverse effect on the company’s liquidity and financial results. No contributions were made to any of the trust funds during the periods ended December 31, 2010 and 2009, and the only distributions from the trust funds were for ongoing permissible expenses such as taxes, trustee fees and investment management fees.

Every two years, the NRC requires U.S. nuclear power generation companies to report the status of the funds and provide reasonable assurance that funds will be available to decommission their sites. CENG’s most recent funding assurance report to the NRC was submitted in March 2011. The trust fund investments are classified as available-for-sale securities and are reported at fair value in CENG’s Consolidated Balance Sheets as “Nuclear decommissioning trust funds.” As of December 31, 2010, the total fair value of the nuclear decommissioning trust funds for Calvert Cliffs, Nine Mile Point and Ginna was $1,385,559 (thousand $). A more detailed breakdown of trust fund balances can be found in CENG’s Consolidated Financial Statements included as Exhibit 99(a) in Constellation Energy’s 10-K.

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EU10

Planned capacity against projected electricity demand over the long term, broken down by energy source and regulatory regime

Because Constellation Energy is primarily merchant energy generation and wholesale and retail sales, this indicator does not apply to our business. Insofar as our business strategy entails ensuring that our owned capacity is sufficient to meet projected electricity demand over the long term, we do plan and purchase an appropriate amount of generating capacity.

Our regulated utility business, BGE, purchases power in the wholesale market to ensure a sufficient supply of gas and electricity for its customers, but this does not take place within the context of a regulatory regime the way it does for other companies.

EU11

Average generation efficient of thermal plant by energy source and by regulatory regime.

See EU11

We operate in the U.S. and Canada regulatory regimes.

EU12

Transmission and distribution losses as a percentage of total energy.

See EU12

Secondary: 6.667%,
13kV and 4kV: 3.660%,
34 kV: 2.473%,
115 kV: 1.622%,
230 kV: 0.878%

G3 Description Answer/Location of Answer

 

Management Approach

See DMA: Environmental

EN1

Materials used by weight or volume

The raw materials that our company uses on a large scale are fuel inputs to our power plants. For this reason, our response on this indicator is captured under EN3 below.

EN2

Percentage of materials used that are recycled input materials

Small percentage. Because the majority of our input materials are fuels burned in our power plants, we have very few opportunities to use recycled materials as inputs with the exception of our biomass- and waste coal-fired power plants. As a result, the weight or volume of recycled input materials as a percentage of the total input materials used has not been publicly reported. Constellation Energy has interest in three biomass-fired generating facilities in California that use recycled wood as part of their fuel supply. In addition, our office paper procurement is primarily paper with recycled content. Lastly, much of our coal combustion byproducts are beneficially used, including ready-mix concrete. Constellation Energy does not have systems in place to measure this and may determine, upon further examination, that this issue is not material because the opportunities to use recycled materials represents a very small percentage (<5%).

EN3

Direct energy consumption by primary energy source.

See EN3

EN4

Indirect energy consumption by primary source.

See EN4

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

See our Clean Energy Products and Services table.

Constellation sold approximately 1,100,000 MWh of renewable energy to customers in 2010, mostly through selling customers Green-e Certified RECs and retiring those RECs on the customers’ behalf. BGE supplies standard-offer electric service customers with electric supplies containing 3.5% renewable energy under Maryland’s renewable portfolio standard (RPS). Approximately 415 MW, or 4.6%, of Constellation’s current capacity is from renewable sources. We also contract for approximately 780 MW of renewable generation (solar, wind, hydro and biomass) outside our owned facilities.

Click HERE for more information.

EN8

Total water withdrawal by source.

See EN8

EN9

Water sources affected by withdrawal of water.

Our current water footprint analysis did not identify any water body as significantly affected by our withdrawal of water.

EN11

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Particularly since many of our power plants are located along major water bodies and our BGE service territory is in the Chesapeake Bay watershed, it is not uncommon for our owned facilities, including gas and electric linear rights-of-way, to be located within or adjacent to areas with high biodiversity value. We are in the process of developing systems to improve corporate-wide identification and tracking of protected areas in or adjacent to the land we own, lease, or manage. All of our facilities are encouraged to develop land management plans to ensure biodiversity and species protection on lands under our operational control.

A map-based online tool, “Threatened and Endangered Species Online Inventory,” has been deployed corporate-wide which informs employees regarding legally designated endangered or threatened plant and animal species in the USA and Canada. This too is used for “screening” purposes only, and does not replace the need for more detailed due diligence to address specific issues.

EN12

Description of significant impacts of activities, products and services on biodiversity in protected areas, and areas of high biodiversity value outside protected areas.

Constellation and its affiliates are required to assess and plan for biodiversity matters in the construction and operations projects we undertake. Typically, these efforts will be through compliance with U.S. NEPA legislation and state regulatory regimes combined with stakeholder inputs on a project-specific basis. As part of our ongoing commitment to environmental stewardship, Constellation continues to work with the Wildlife Habitat Council (WHC) to certify sites at applicable locations. We currently have two facilities with programs that have been certified by the WHC – Calvert Cliffs Nuclear Power Plant (Lusby, Md.) and Spring Gardens gas operations plant (Baltimore, Md.).

Constellation Energy monitors its rights-of-way for avian populations at risk from nesting on electrical equipment and relocates at-risk birds. In addition, formal Avian Management Program Guidelines, based on the Avian Protection Plan Guidelines developed by U.S. Fish and Wildlife and the Edison Electric Institute, address protection and management of avian populations. We are in the formative stages of implementation of a fully integrated vegetation management (IVM) program on our rights-of-way. Two pilot sites have been developed and a monitoring effort to evaluate the effects of IVM on the flora and fauna are in progress. Additionally, a third site is being contemplated at the Patuxent Wildlife Research Center (North Tract) that will have a research component to evaluate the results of IVM treatments on pollinators and other organisms on the right-of-way.

The impact of our construction projects on biodiversity is typically assessed through our Environmental Impact Assessments, as well as through stakeholder groups, U.S. EPA NEPA Compliance, State CPCN and Plant Licensing.

Importantly, many of our power plants are located on the Chesapeake Bay, which is a water body widely recognized as being of high biodiversity value. We carefully adhere to all laws and regulations regarding water quality and water discharges to help ensure we do our part to protect this valuable natural resource.

BGE operates its transmission lines through areas of high biodiversity value outside protected areas in a responsible manner. Staff foresters oversee the vegetation management of these transmission line corridors using all current forestry management tools. In addition to standard accepted forestry practices, BGE is currently implementing an integrated vegetation management (IVM) practices experimental program for the maintenance of its transmission line right-of-ways. Through IVM, BGE expects to protect native rare species populations affected by rights-of-way establishment, construction or maintenance; manage rights-of-way areas to maintain wildlife habitat and protect threatened and endangered species habitat; reduce the introduction and control the spread of non-native invasive species or noxious weeds in the rights-of-way and adjacent lands; and develop mutually acceptable corridor vegetative management plans. IVM has been shown to reduce the need for pesticides, promote healthy ecosystems and increase natural species diversity.

Additionally, the Wildlife Habitat Council (WHC), which advises landowners on managing land for the benefit of wildlife, partnered with BGE to certify the 72 acre Spring Gardens Facility in Baltimore City as part of the WHC’s Wildlife at Work program. Both plant and animal biodiversity are encouraged on the site through various enhancement projects including boxes for both blue birds and bats, osprey nest platforms and butterfly gardens.

See also our 2010 CSR, pg. 43, regarding voluntary stewardship efforts to reclaim rights-of-way corridors by implementing practices that achieve maintenance requirements while protecting habitats.

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EN14

Strategies, current actions and future plans for managing impacts on biodiversity.

Constellation Energy operates on and interacts with large tracts of land which make up the habitat for a diverse range of species. It is our responsibility to minimize any potential impact we may have on these habitats as we continue to provide the services our customers rely on.To protect habitats and promote biodiversity, we participate in several longstanding efforts in collaboration with other organizations to protect regional species such as the Northeastern Beach Tiger Beetle, the American Shad and the Eastern Bluebird. Protecting the habitats surrounding our facilities. The Wildlife Habitat Council (WHC) is dedicated to creating and enhancing wildlife habitat on public and private lands. The habitat program at the Calvert Cliffs Nuclear Power Plant has been WHC-certified since 1993; last year receiving Wildlife-At-Work re-certification for another 3 years, with 1,900 acres of land available for wildlife habitat projects. Employees at the plant have volunteered almost 200 hours to remove trash from the site’s beaches and install more than 100 bluebird houses.

The habitat program at BGE’s Spring Gardens complex program also recently achieved holds two WHC certifications; Wildlife-At-Work and Corporate Lands for Learning with the WHC program. In addition to our own environmental efforts and environmental business expenditures, we contribute resources to targeted habitat protection projects in cooperation with other environmental groups through our corporate giving and employee volunteerism. Our support extends from programs of local watershed groups and nature centers to efforts of organizations working nationally and internationally.

Efforts in the future will include focusing on a more comprehensive understanding of the land use areas and ecosystem values at and near our existing assets/operations, and identifying appropriate land management activities to sustain business operations while seizing opportunities to enhance biodiversity.

EN16

Total direct and indirect greenhouse gas emissions by weight.

See EN16 & EN17, as well as our GHG Footprint

EN17

Other relevant indirect greenhouse gas emissions by weight.

See EN16 & EN17, as well as our GHG Footprint

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

We offer a variety of clean energy products and services to customers nationwide including energy management, renewables and energy efficiency services but also many others. We are also in the process of implementing these same products within our own operations. According to our estimates, we helped customers avoid approximately 500,000 metrics tonnes of GHGs in 2009 through their use of our products and services. We are in the process of establishing corporate environmental sustainability goals that would include helping customers avoid GHG emissions as a goal for 2015. In addition, we are examining our fleet’s fuel mix and GHG emissions as part of this goal-setting process, with the aim of establishing a goal to reduce these emissions by 2015. The extent of greenhouse gas emissions reductions achieved during the reporting period as a direct result of the initiative(s) in tonnes of CO2 equivalent has not been tracked prospectively and data does not exist for many of our programs. We plan to be able to report on GHG emission reductions achieved as a result of our programs starting in 2012.

EN19

Emissions of ozone-depleting substances by weight.

See EN19

EN20

NOx, SOx and other air emissions by type and weight.

See EN20

EN21

Total water discharge by quality and destination.

See EN21

EN22

Total weight of waste by type and disposal method.

See EN22

EN23

Total number and volume of significant spills. See EN23

EN26

Initiative to mitigate environmental impacts of products

Constellation Energy undertakes a variety of efforts to mitigate the environmental impacts of our businesses. The most comprehensive of these efforts is our environmental management system, which is committed to realizing the principles of our environmental policy statement, including efforts aimed at preventing pollution, managing natural resources wisely and continuously improving. We have also undertaken major capital investments to reduce the impact of our operations on air quality, particularly in the state of Maryland. These efforts and the results of past efforts are detailed in the Environmental Impacts section of our online CSR.

Environmental stewardship initiatives play an important role in our corporate citizenship and provide multiple varied opportunities for our employees to become engaged in hands-on environmental stewardship efforts. These efforts are described under the Community Engagement and Workplace Performance sections of our online CSR. Additionally, our business strategy is meaningfully related to being a clean energy provider and partner for our customers. In the Sustainability and Innovation section of our report, we discuss many different efforts – from demand-response to research and development efforts – aimed at reducing the environmental impact of generating and using electricity while maintaining a standard of commercial reasonableness in our operations.

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EN27

Percentage of products sold and their packaging materials that are reclaimed by category

 

This indicator is not highly relevant to our business because our primary products are electricity and gas, and no packaging materials are involved. Our business areas that do use a very limited amount of packaging materials, such as BGE HOME and BGE, have robust recycling programs.

EN28

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations

See EN28

None of the fines assessed or sanctions received in 2010 are considered to be significant.

EU13

Biodiversity of offset habitat compared to the biodiversity of the affected areas

CENG owns lands that are committed to habitat protection through regulatory compliance agreements for defined periods as well as in perpetuity. There is a wetland area on John’s Creek that has been preserved as a result of impacts from an earlier project.

In addition, we have offsets associated with past construction of power generation as well as gas and electric service installations at other locations.

Follow-up assessments confirm the ongoing viability of areas according to specific compliance offset requirements, but a consistent methodology for assessing broader biodiversity value is still under much discussion.

BGE has many construction projects in any given year. If forested, freshwater or wetland ecosystems must be disturbed during the construction of new facilities, efforts are made to minimize the extent of habitat impacted. Compensatory mitigation may be initiated for wetland/buffer disturbances, forest buffer conservation and Critical Area habitat disturbances. Through monitoring of these mitigation sites, the offset habitats are compared to the originally affected areas.

 

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G3 Description Answer/Location of Answer

 

Management Approach

See DMA: Labor Practices & Decent Work

LA1

Total workforce by employment type, employment contract and region.

See LA1

Note: Information was provided on the number of exempt and non-exempt employees. However, we could not provide any more detailed information about exact contract length (e.g. fixed-term, 1 year, indefinite, etc.) because the information was not available at the time this report was written. We aim to be able to report on this data

LA2

Total numbers and rate of employee turnover by age group, gender and region.

See LA2

LA4

Percentage of employees covered by collective bargaining agreements.

As of 12/31/2010, approximately 2 percent of the approximately 7,600 employees of Constellation Energy and its consolidated subsidiaries were covered by collective bargaining agreements. Of the 2,761 employees of Constellation Energy Nuclear Group LLC, which was deconsolidated from Constellation Energy on Nov. 6, 2009, 21 percent were covered by collective bargaining agreements on 12/31/2010.

LA5

Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

Constellation Energy’s workforce is largely non-union with the exception of employees at our Nine Mile Point Nuclear Power Plant located in Scriba., N.Y. and employees at our Constellation Mystic plants in Boston and several employees at a facility in Kentucky. In the Nine Mile Point agreement, we agree to provide minimum notice of two weeks or two weeks’ pay prior to a layoff. In the Constellation Mystic agreements, we agree to provide 30 days notice.

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region.

See LA7

Minor (first-aid level) injuries are not included in injury/illness rates. Constellation Energy had no workplace fatalities in 2009 for employees or supervised contractors. Some details on what is included in injury/illness rates; rates by region; occupational disease rate; absenteeism rate were not available at the time this report was written.

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

Good health and safe habits are values that should be a part of everything that we do. At Constellation Energy, we look for opportunities to assist our employees with their professional and personal lives by offering a variety of wellness and life programs. Constellation Energy has been recognized for the second consecutive year as a Gold Level Recipient of the American Heart Association’s Start! Fit-Friendly Companies recognition program for our commitment to providing physical activity and wellness opportunities for employees.

Our Employee Assistance Program offers free and confidential counseling and referral services for employees and family members relating to alcohol, drugs, behavioral health, relationships, work issues, eating disorders and gambling.

We promote high standards of employee safety and health to ensure individual and public safety. As part of our commitment, we provide occupational health services that include regulatory physicals, occupational and personal illness and injury care, health promotion, medical consultation, advice and referral at multiple clinic locations. We offer educational programs that promote and protect workers’ health. Regular webinars on a variety of health topics are well attended and our internal site, which is accessible by all employees, is relevant and informative. Our Health & Safety Services staff regularly attends department safety meetings prior to commencing work for the day (also known as “tailgate meetings”) and offers expertise and advice on a variety of topics related to worker safety.

We conduct several health fairs at various company locations annually. Biometric screening for diabetes, high blood pressure and cholesterol occurs throughout the year; we also offer screenings for glaucoma, hearing loss, skin cancer and lung disease. To promote a healthy lifestyle, we offer a Weight Watchers reimbursement program with many sessions being held on-site. Smoking cessation programs and counseling are available through our vendor, Gordian Health Solutions. Some of the benefits for participating in this program are reduced co-pays and the elimination of medications to assist with quitting.

Risk-based intervention programs for asthma, hypertension, mental health, back pain, diabetes and osteoporosis are offered through our disease management vendor (Focused Health) to employees and their eligible dependents. There is an annual influenza vaccination program that is free to all employees and spouses. Activities to promote fitness include onsite fitness centers, yoga classes and the annual 12- week walking program. New parents are eligible for the “Best Beginnings” educational program and gift.

Recently, the company implemented a new absence management program with oversight from Health and Safety Services. Working with our vendor, we are able to effectively assist employees with the management and coordination of care for their absences. We work closely with the vendor to support the employee’s return to work and, if needed, the transition to long-term disability. We will continue to work closely with the vendor to ensure that we are utilizing best practices to assist our employees with managing their absences.

At Constellation Energy, we hold safety among our highest values. We are committed to providing a safe and healthy working environment for all employees. We believe that all injuries and occupational illnesses are preventable. The safety and health of Constellation Energy’s employees will never be compromised by business demands. Our safety programs are compliant with Occupational Safety and Health Administration and state regulations. We monitor employee concerns for safety and our staff performs exposure and indoor air quality assessments and ergonomic evaluations, and maintains a hearing conservation program. We offer training on chemical hazards, confined spaces and hazard compliance.

Our commitment to health, safety and wellness extends not only to employees, but also to our families, customers, contractors, visitors and communities in which we operate.

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LA10

Average hours of training per year per employee by employee category.

See LA10

Note: At the time of writing this report, Constellation Energy tracked employee training, but not by employee category. There is a process underway that should enable us to report this data starting in 2012.

LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

At Constellation Energy, we are committed to developing our people. In 2010, we spent, on average, $4,600 per employee on training. Through our corporate learning and organizational development department as well as specialized technical training programs in each business unit, our employees have access to job and leadership development tools, courses and career planning.

Employees have the opportunity to develop existing skills and acquire new ones on topics ranging from general business and communications to specific functional responsibilities through more than 2,000 in-house traditional classroom courses and more than 1,000 online learning courses. We provide tuition reimbursement for college coursework or the pursuit of a degree and encourage employees and managers to engage in job rotations, special projects and other creative approaches to ensure excellence and accountability for continuous improvement.

LA13

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

See LA13 by Gender, by Age Group and by Minority Group Membership

Note: At the time of writing this report, Constellation Energy did not have this information available for governance bodies. A process is underway that should enable us to report this information starting in 2012.

LA14

Ratio of basic salary of men to women by employee category

Executive/Top Management: 109%
Middle/General management: 115%
First line management/Supervisor: 112%
Other employees: 118% 

Note: Student employees are not included in the data above. CENG employees are included, although CENG was deconsolidated on November 6, 2009.

EU14

Programs and processes to ensure the availability of a skilled workforce

In addition to programs for learning and development of our existing workforce, we are investing in our local communities in a variety of ways to help develop a local workforce with the skills our industry will need to continue to develop. Beginning in the fall of 2010, the College of Southern Maryland will launch a Nuclear Engineering Technology Associates of Applied Science (A.A.S.) degree program and will serve as a hub for nuclear maintenance training in the Mid-Atlantic region. Through the CENG JV, we are providing subject matter experts, curriculum review, adjunct faculty, equipment, marketing and scholarships as part of the NEI Nuclear Uniform Curriculum National Pilot Project, which will result in a reliable pipeline of locally grown skilled workers with industry-specific training ready to enter the energy workforce.

In 2010, the Center for Trades and Energy Training served 1,049 students and 154 of those were welding students, a key skill set for the energy industry. Prior to the opening of this center, CSM did not have its own state of the art welding facility. It used local high schools. Now, welding is offered and associated with college level learning.

With regards to the AAS degree program in Nuclear Engineering Technology (NET), the first cohort of 18 students started in Sept 2010 as declared NET majors. Second cohort started in Jan 2011. Many NET students received a $5,000 scholarship funded by the NRC (75%) and CENG (25%). In addition, 19 eligible students will be offered a paid 6-week summer beginning in July 2011.

In 2010, we made progress on a project started in 2008 with a U.S. DOL-ETA $2 million grant award for construction and energy skilled trades. In 2010, the Community College of Baltimore County (CCBC) opened a temporary facility to train workers in the construction skilled trades. In January 2011, a permanent facility was opened – CCBC Randallstown.

In 2010, CCBC agreed, in partnership with CPG and BGE, to offer the NCCER Power Industry Fundamentals curriculum on top of the NCCER Core Fundamentals (hand tools, power tools, safety, rigging, basic communication and math). CPG and BGE internal training is aligned with NCCER. NCCER offers a portable industry recognized credential. CCBC will expand its NCCER energy offerings thereby creating a pipeline of trained individuals for our non-nuclear Generation, Transmission & Distribution lines of business. Since our in-house training recognizes NCCER credentials, individuals can enter the industry at a higher level requiring less remedial training allowing the individual to work independently more quickly.

CCBC continues to offer an Industrial Aptitude Preparatory Course which is intended as a refresher class to prepare individuals for energy industry pre-employment testing (EEI pre-employment tests) which are a major barrier to employment in the energy industry. Incumbent CPG and BGE employees have taken the course and subsequently passed the appropriate EEI test thereby allowing them to advance their careers.

EU15

Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region

See EU15

EU16

Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors

See CEO Safety Message

We are committed to making our workplaces safe for employees and contractors. Maintaining an alcohol and drug free work environment enables all workers to perform at their best, sustain a safe work environment, ensure public safety, deliver products and services responsibly to our customers and earn the public trust. Our Drug-Free Workplace Policy and supporting programs include Employee Assistance Program services, Fitness for Duty evaluations, drug, and alcohol testing under corporate Department of Transportation and Nuclear Regulatory Commission programs. All employees and contractors are expected to abide by the Drug-Free Workplace policy.

We are committed to providing a healthy and comfortable workplace. In keeping with this intent, smoking is prohibited in all company owned or leased vehicles and property. Smoking is permitted only in Designated Smoking Areas located no less than 25 feet from any entranceway, door, window or intake vent of a building owned or leased by the company, where feasible. Employees who smoke are to use receptacles at all times. This policy pertains to all employees, contractors, vendors, visitors and any other individuals permitted access to Constellation Energy facilities.

See also our OSHA Recordables Chart in CSR, pg.39, and our CEO’s safety message.

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EU17

Days worked by contractor and subcontractor employees involved in construction, operation & maintenance activities

Data for this performance indicator is not available. At this time, Constellation Energy is unable to compile these numbers, though we have initiated a process to compile more complete information on contractors and subcontractors over the next 1-2 years and be able to report on this data starting in 2012.

EU18

Percentage of contractor and subcontractor employees that have undergone relevant health and safety training

At this time, we are unable to compile these numbers, though we have initiated a process to compile more complete information on contractors and subcontractors over the next 1-2 years and be able to report on this data starting in 2012.Contractors are required by the Safety Conditions of Contract to instruct contract personnel in all safety and health regulations (OSHA) to comply with requirements of their work.

In CENG, contractors working in the Protected Area at the sites go through the same training as CENG personnel, including General Employee Training which addresses basic safety requirements. In addition if specialized training is required as confined space contractor who attend our training program. They are also required go through our HU/Safety DLA. This training is documented in the CENG training server.

 

Management Approach

Constellation Energy operations are located solely in the U.S. and Canada, and because human rights provisions are included in labor and other laws in these countries, we address human rights in our business operations as part of our compliance with these laws.

See DMA: Human Rights

HR1

Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

Constellation Energy does not include human rights clauses or conduct human rights screening with regard to significant investment agreements or trust funds. Most of our significant funds are for employee benefits covered under the Employee Retirement Income Security Act (ERISA), a U.S. federal law that regulates a wide range of employee benefit plans for private industry. ERISA requirements make social screens, including human rights screening, difficult or impossible to implement.

HR2

Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

Constellation Energy recognizes the importance of human rights and currently demonstrates this value in various ways. As part of the bid process, contractors are required to submit their company Safety Programs to assure they are technically qualified and capable of performing in accordance with Constellation Energy‘s safety expectations. Constellation Energy also seeks proposals from firms that meet or exceed local and federal Occupational and Safety standards.

In addition to meeting safety standards, Constellation Energy further assesses contractors and their demonstrated ability to provide appropriate training, tools and processes, to achieve exceptional and safe performance. Furthermore, Constellation Energy has created a Safety Committee along with subcommittees for its subsidiaries with a mission to promote Constellation Energy’s safety culture and to provide a formal review process to assess the safety competencies of all contractors coming to work for Constellation Energy and its affiliates in the future.

Additionally, the company’s “Terms and Conditions” require that “Contractor / Supplier warrant that all work performed hereunder and work product generated in connection therewith shall fully comply with all applicable federal, state, and local laws, statutes, regulations, ordinances, orders, and applicable guidance documents from regulatory agencies, judicial decrees and interpretations, codes, standards, permits, and licenses, including, but not limited to, those concerning health, safety, and protection, of environment (collectively, “Governmental Requirements”).” The company’s standard Terms and Conditions contain a “Termination for Cause” clause that would be initiated in cases within the continental U.S. where said contractor or supplier were not in compliance with all laws and regulations governing the work. In addition, a “Termination for Convenience” clause may be utilized in cases outside of the U.S. where we have become aware of a human rights issue, which allows the company to terminate the contract that may violate those rights.

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HR3

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Constellation Energy’s operations are located solely in the U.S. and Canada, and because human rights provisions are included in labor and other laws in these countries, we address human rights in our business operations as part of our compliance with these laws. We aim to be able to report on training in this area starting in 2012.

HR4

Total number of incidents of discrimination and actions taken

Based on available records, there were no substantiated incidents of illegal discrimination in 2010. Constellation Energy defines incidents of discrimination as substantiated findings of a violation of local law and/or Constellation Energy’s internal policies. Our Principles of Business Integrity, which guide our corporate conduct, state that “Constellation has zero tolerance for harassment and discrimination, including sexual harassment or discrimination based on race, color, religion, sex, age, marital status, disability, sexual orientation, gender identity or expression, veteran status, national origin or other bases protected by applicable law, rule or regulation. All personnel must treat their colleagues with respect, fairness and dignity. Constellation personnel at every level have the right to work in an atmosphere that is free from harassment or such discriminatory behavior.”

In order to ensure that our workplace at all levels is free of discrimination, our Principles of Business Integrity require of employees and officers of the company: “If you feel that you have witnessed discrimination or harassment, you must report it immediately to Human Resources and/or Corporate Compliance. Complaints of discrimination or harassment will be investigated promptly, thoroughly, and, to the extent possible, confidentially. Constellation does not tolerate any form of retaliation against employees who raise such concerns in good faith. For further information, employees should refer to the Harassment Free Workplace Policy in the General Policies & Employee Relations section of the company’s handbook or contact the Human Resources Department.”

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HR5

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

Constellation Energy complies with all applicable laws and regulations in the countries where we operate, and the rights to freedom of association and collective bargaining and actions to support these rights are protected in the U.S. and Canada. None of our operations has been identified as being at risk for infringement of these rights.

HR6

Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor

Constellation Energy complies with all applicable laws and regulations in the countries where we operate, and child labor is illegal in the U.S. and Canada. None of our operations has been identified as being at risk for incidents of child labor.

HR7

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.

Constellation Energy complies with all applicable laws and regulations in the countries where we operate, and forced labor is illegal in the U.S. and Canada. None of our operations has been identified as being at risk for incidents of forced labor.

G3 Description Answer/Location of Answer

 

Management Approach

See DMA: Society

SO1

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

See our Stakeholder Engagement chart.

When entering communities for the purpose of constructing major power or gas facilities, Constellation Energy engages directly with community organizations and responsible authorities, typically as part of the public process components of obtaining Certificates of Public Convenience and Necessity. It is our practice to form constructive relationships with communities that are new to us or with existing neighbors when we expand or modify facilities. This sometimes includes arriving at mutually agreeable compacts such as Payments In Lieu of Taxes or conducting formal environmental impact assessments to obtain permits or zoning changes.

SO2

Percentage and total number of business units analyzed for risks related to corruption

100 percent

The fraud risk assessment is performed for all business areas and corporate staff functions. Approximately 30 fraud risk schemes are evaluated by cross-functional teams, which focus on potential perpetration based on:

  • Operating areas, business functions, business units, organizational structure, transaction processing, and roles & responsibilities;
  • Business strategies and market participation;
  • Asset management;
  • Internal and external fraud risk factors and forces.

The fraud risk assessment, which covers all forms of corruption within the company, is conducted by our financial compliance group, Sarbanes-Oxley (SOX), and in conjunction with Operational Risk Management, to ensure sound controls exist to manage the risks and validate the financial results of the company.

SO3

Percentage of employees trained in organization’s anti-corruption policies and procedures

100 percent

Annually, all employees are required to review the principles and certify they agree to follow them. Our computer-based tracking system ensures that all employees review our Principles of Business Integrity online and verify their compliance. The Principles of Business Integrity outlines our anti-corruption policies and procedures in place to prevent all forms of corruption within the company.

SO4

Actions taken in response to incidents of corruption

At Constellation Energy, we have a commitment to integrity and high ethical standards, and to compliance with applicable governmental laws, rules and regulations.1 Our Principles of Business Integrity provide guidance on a wide range of conduct, conflict of interest and legal compliance issues, and are applicable to all Constellation employees, officers and directors. All employees, officers and directors are responsible for following the principles. Employees and officers are also responsible for complying with the policies, procedures and standards of the department or operating unit in which they work.2

Additionally, Constellation Energy’s Corporate Compliance Program is designed to assist the company in preventing, detecting and responding to criminal and other illegal or unethical conduct.3 It is the policy of the company that, if a violation of any applicable law or standard of conduct relating to the business of the company is detected, the company will take reasonable steps to respond appropriately to the violation and to prevent further violations, including any modifications to the compliance program. Whenever the chief compliance officer receives information regarding a possible violation of any applicable law or standard of conduct, the chief compliance officer or designee will take appropriate steps to examine information and conduct the investigation necessary to determine whether an actual violation has occurred. The chief compliance officer or designee will recommend to management an appropriate course of action. The chief compliance officer will consider whether the compliance program or company policies and procedures should be modified to better address the occurrence that resulted in the violation and shall make recommendations to management, as appropriate.4 It is the policy of the company that the standards of conduct set forth in the Principles of Business Integrity will be enforced through appropriate disciplinary mechanisms. Disciplinary actions may include termination of employment and filing of criminal charges, and may extend, as appropriate, to managers responsible for the failure to prevent, detect or respond to an offense.5

1 Principles of Business Integrity, February 2009, pg. 2.
2 Principles of Business Integrity, February 2009, pg. 2.
3 Corporate Compliance Program, October 2003, pg. 1.
4 Corporate Compliance Program, October 2003, pg. 2.
5 Corporate Compliance Program, October 2003, pg. 3.

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SO5

Public policy positions and participation in public policy development and lobbying

We provide thought leadership in our engagement with communities and policymakers at the local, state and national levels. Together our executive vice president (EVP) for corporate affairs, public and environmental policy and SVP for corporate affairs and chief environmental officer (CEnO) oversee the direction of our public policy and advocacy efforts and ensure that our engagement with industry groups and policymakers is conducted ethically. More information about our public policy and advocacy activities can be found in our public lobbying disclosures through the Federal Election Commission and state agencies. Internally, our senior executive council, the Environmental Review Board (ERB), oversees the development, implementation and management of major environmental programs across the company and steers our internal dialogue about business issues with environmental dimensions. See our Environmental Policy Engagement page for further information.

SO8

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

Constellation Energy has not identified any significant fines or non-monetary sanctions for non-compliance with laws and regulations.

See 2010 10-K, Contingencies-Litigation, pgs 136-137.

EU19

Stakeholder participation in the decision-making process related to energy planning and infrastructure development

Because Constellation Energy’s business is primarily merchant energy generation and wholesale and retail sales, this indicator does not apply to our business. Insofar as our business strategy entails ensuring that our owned capacity is sufficient to meet projected electricity demand over the long term, we do plan and purchase an appropriate amount of generating capacity.

Stakeholder involvement in the development of infrastructure is a priority at BGE.  At the state level, stakeholders participate through both formal channels such as public hearings during Certificate for Public Convenience and Necessity (CPCN) proceedings as well as more informal channels including working groups convened to address specific topics. At the federal level, stakeholders participate in various PJM stakeholder meetings and become involved in the early stages of planning for BGE transmission projects through the development of PJM’s Regional Transmission Expansion Plan.  BGE also engages stakeholders in the development of infrastructure beyond the regulatory arena through comprehensive communications with the local communities, governmental agencies and other impacted parties.

Our regulated utility business, BGE, purchases power in the wholesale market to ensure sufficient supply of gas and electricity for its customers, but this does not take place within the context of a regulatory regime the way it does for other companies. See also the Stakeholder Engagement section.

EU20

Approach to managing the impacts of displacement

Because our business operations do not displace people, this indicator is not relevant to our operations.

EU21

Contingency planning measures, disaster/emergency management plan and training programs, and recovery/restoration plans

See Leadership and Governance subsections on Business Continuity and Emergency Preparedness and Reliability.

Constellation Energy understands the importance of preparing for emergencies and is committed to maintaining high standards in order to respond to events quickly and effectively.

A business continuity program exists for all lines of business in order to ensure the effective and rapid response to and recovery from all-hazards, including loss of facilities, IT systems and infrastructure, and health crisis scenarios.

  • CEG has a comprehensive system of responses to disasters and catastrophic events;
  • Crisis Management, Business Continuity, and Emergency Response Organizations are at the core of managing our disaster risks;
  • CEG maintains a Crisis Management Team, including subject matter experts from all corporate functions, which is immediately mobilized at the onset of an emergency.

 

In case of emergencies, we utilize the Disaster Risk Framework, which recognizes various types of incidents (cause) while emphasizing that emergency response focuses on the impact (effect). All plans are reviewed by leadership and updated at least annually. These include: restoration plans, redundant servers at alternate facilities and remote site procedures. Drills and tabletop exercise are performed to review all aspects of emergency situations. 100% of the functional and business unit plan exercises have been conducted in accordance with business continuity guidance.

EU22

Number of people physically or economically displaced and compensation, broken down by type of project

This indicator is not relevant to our operations as our operations and business development activities do not displace people. Guidelines for siting new operations include evaluating economic impact on local economies and communities but our development activities do not displace people.

G3 Description Answer/Location of Answer

 

Management Approach

See DMA: Product Responsibility

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Constellation Energy’s primary product is electricity. We are committed, through our Environmental Policy Statement, to using natural resources responsibly, reducing the impact of our operations on the environment and promoting energy efficiency. In our CSR report, we describe our efforts to reduce the environmental impact of our operations and the sustainability and innovation initiatives under way to adapt our products and services to our customers’ evolving needs to reduce energy consumption and manage energy use with the benefits of new technologies.

PR3

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

Constellation Energy’s products and services are all related to the use and management of electricity and natural gas. As we broaden our customer base and focus on meeting developing markets needs, protecting our customers’ health, safety, and privacy needs remains at the core of our market-facing efforts. It is essential for our credibility in the marketplace that we provide clear, understandable information and labeling for our customers. Transparency and information are essential to a smoothly functioning competitive market, which we believe is critically important to rationalizing our national energy economy and enhancing our national competitiveness in the global energy economy. We have voluntarily decided to provide clearly labeled, transparent information on our products and services.

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

Customer satisfaction is taken very seriously at Constellation Energy and we use this feedback to improve the customer experience across our customer-facing businesses. Specifically:

BGE HOME conducts monthly transactional satisfaction surveys for each of its business lines. Additionally, an annual customer pulse survey is conducted to measure overall customer favorability and satisfaction across various measures including customer service, technician interactions, billing, and problem resolution. Results of the annual survey are tabulated at the BGE HOME business unit and product levels and are communicated internally.

CNE Electric conducts a quarterly Satisfaction Measurement program and CNE Gas measures customer satisfaction annually. Results from both programs are tied into performance to allow for continuous improvement of the customer experience. Customer feedback is obtained on areas such as customer service, online interactions, sales representatives, billing, and problem resolution. Customer feedback is also obtained for demand response/energy curtailment, renewable energy products and energy master planning.

Although not specifically tracked, CEPS obtains customer feedback at the project level. For our government clients, we request the “open ratings” feedback they solicit. Other clients may conduct customer satisfaction surveys about our work, and if we are the selected vendor, we will request these confidential results. All feedback is reviewed and shared with the team.

BGE’s customers are welcome to leave feedback 24-hours a day on our websites, which are monitored daily and customers receive a timely response. We conduct annual customer satisfaction surveys to understand how well we are doing in this arena. The survey we use scores our services on a weighted key-driver customer satisfaction index derived from ratings on a 0–10 scale (10 being the highest) for various performance measures, including reliability, customer service, price and value. In 2010, BGE experienced an improvement in customer satisfaction over 2009. We attribute the rise in BGE customer satisfaction to corporate citizenship efforts, enhanced communication, customer reaction and strong awareness of BGE’s Smart Energy Savers Programs. In response to the survey, BGE has strengthened efforts to improve efficiency, reduce costs, enhance reliability and safety, and improve overall customer satisfaction. In addition, BGE rolled out its WinterReady program to help customers better understand and manage their energy usage.

Also visit Customer Satisfaction.

PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship

Constellation Energy’s retail marking team follows a standard review process for all marketing materials that includes legal review before finalization. Over the past year we have conducted a legal review of our “green product” materials, to ensure these are consistent with emerging standards for energy products and services. We also conducted a legal review of the Dodd/Frank legislation and its impact on our business that included a review of our current marketing material to ensure that the language we use was in agreement with our position relative to this legislation. Our legal team ensures our compliance with all governmental rules and regulations and ethical standards, though we work hard to pre-empt those types of concerns at the inception of the materials development process. Constellation has not identified any non-compliance with regulations and voluntary codes relating to the marketing communications of its products and services.

Constellation Energy has not identified any noncompliance with regulations and voluntary codes relating to the marketing communications of its products and services. The scope of Constellation Energy’s Principles of Business Integrity include adherence to laws and standards. We expect our marketing communications to follow voluntary codes and ethics from organizations such as the American Marketing Association.

PR9

Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services

Per PR6, Constellation Energy has not identified any non-compliance with laws and regulations relating to the marketing communications of its products and services.

EU23

Programs, including those in partnership with government, to improve or maintain access to electricity and customer support services. BGE and our customers provided approximately $7 million in energy assistance contributions to the community in 2010.

Examples of outreach designed to improve or maintain access to electricity and support customer service include:

  • Providing energy bill credits in partnership with the Fuel Fund of Maryland to supplement resources of those experiencing hardships to meet their energy needs;
  • Through the Community Assistance Network, BGE reached more than 300 offices in the region to help disseminate information about energy assistance grants to limited-income households. The information directed customers to sources of help in paying bills or getting service restored;
  • In 2010, BGE provided nearly 1,700 families throughout central Maryland with weatherization services, some of whom received heating system and/or replacements.

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EU24

Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services
  • BGE actively seeks opportunities to educate and assist our customers and neighbors. Our 2010 customer outreach efforts and initiatives included approximately 330 events and workshops designed to educate customers about safety, conservation, available assistance and support services;
  • BGE provides interpreters to address the specific needs of individual customers;
  • All printed materials are translated into other languages upon request.

EU25

Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases See BGE Energy Safety for information provided to the public to prevent injuries and fatalities.

See 10-K, pgs 136-137.

Constellation Energy and its affiliates have a strong safety culture and record. In 2010, the company had no fatalities and no significant injuries to the public involving company assets. In 2010, Constellation Energy and its affiliates incurred in the aggregate an immaterial amount relating to all injury and fatality judgments, settlements and pending legal cases of diseases.

EU26

Percentage of population unserved in licensed distribution or service areas

BGE meets its obligation to serve all customers. There may be some customers who have chosen to disconnect from the grid–but this is a de minimis number.

EU27

Number of residential disconnections for non-payment, broken down by duration of disconnection and by regulatory regime

Residential Cuts: 41,576
Same day restoration/Paid: 9,375
1 day restoration/Paid: 5,821
2 day restoration/Paid: 1,743
3 or more day restoration/Paid: 7,532

EU28

Power outage frequency

BGE’s system-wide power outage frequency (annual interruptions per customer served):

2006: 1.41
2007: 1.35
2008: 1.26
2009: 1.14
2010: 1.35

This data is ‘Excluding 2.5 Major Events’ as defined by IEEE Std. 1366™-2003. Five years of data shown–2005 has dropped off the list, and 2010 was added.

Source: BGE’s OMS (Outage Management System) data archived into PDM (Performance Data Mart).
Note: Average Power Outage Frequency in annual interruptions per electric customer served.

EU29

Average power outage duration

BGE’s system-wide average power outage duration (annual minutes of interruption per customer served):

2006: 207
2007: 183
2008: 175
2009: 167
2010: 204

This data is ‘Excluding 2.5 Major Events’ as defined by IEEE Std. 1366™-2003. Five years of data shown–2005 has dropped off the list, and 2010 was added.

Source: BGE’s OMS (Outage Management System) data archived into PDM (Performance Data Mart).
Note: Average Power Outage Duration in annual minutes per electric customer served.

EU30

Average plant availability factor by energy source and by regulatory regime

Coal plants: 79.2% average availability factor
Gas plants: 87.4% average availability factor
Nuclear plants: 94.2% average capability factor 

Availability factor values are estimated for 2010. Both natural gas-fired boilers and gas-fired CT units are accounted for. See also Annual Report, pg. 2, Letter to Shareholders.