9 September 2002 – Constellation Energy Group today announced it has successfully completed the purchase of NewEnergy from The AES Corporation, which was previously announced in June 2002. The newly re-named company, Constellation NewEnergy, markets electricity to commercial and industrial customers throughout the country.

Under terms of the agreement, Constellation acquired 100 per cent ownership of NewEnergy for approximately $260 million, which includes $120 million for the working capital of the company.

The transaction, which was subject to approval by the Federal Energy Regulatory Commission and to the satisfaction of other closing conditions, was completed in less than 90 days.

As a member company of Constellation Energy Group, NewEnergy will become Constellation’s national competitive electricity supply business, serving commercial and industrial electricity customers in Maine, Massachusetts, New York, New Jersey, Pennsylvania, Ohio, Illinois, Texas, Delaware, Maryland, Rhode Island, New Hampshire, and California.

“We are excited to have NewEnergy as the newest member of Constellation,” stated Mayo Shattuck, Chairman and CEO, Constellation Energy Group. “The company is a good strategic fit and complements our merchant energy strategy. It would be very difficult to find another national competitive supply company that is as experienced, well-run, and compatible in terms of our business strategy, practices and corporate values.

“The purchase significantly extends Constellation’s scope and reach along the value chain by adding the leading business in the competitive energy supply sector — a company that brings with it a portfolio of high-quality customers,” Shattuck added. “NewEnergy’s employees now add their extensive expertise to a Constellation team with a record of success in the competitive energy markets.”

“Constellation NewEnergy will provide its customers the same level of service they have had, with the added strength and stability of Constellation’s national reach and platform,” said Clem Palevich, President, Constellation NewEnergy. “Over the last six years, NewEnergy has developed extensive experience in the competitive energy industry and in partnering with our customers. As part of Constellation, we will continue to serve our customers with the highest degree of integrity, honesty, and value,” he continued.

Constellation NewEnergy is one of the largest competitive electricity suppliers in the country and currently serves 4,000 megawatts of electric load associated with large commercial and industrial customers in competitive energy markets across the country. Verizon, DaimlerChrysler, Amtrak, Sears, Jones Lang Lasalle, HSBC, Boston FleetCenter, and Marriott Hotels are just some of the commercial and industrial customers that the company has sold power to at competitive prices.

Constellation NewEnergy Inc., a leading national competitive energy supplier, provides customized solutions and comprehensive energy services to commercial and industrial electricity customers in Maine, Massachusetts, New York, New Jersey, Pennsylvania, Ohio, Illinois, Texas, Delaware, Maryland, Rhode Island, New Hampshire, and California. A subsidiary of Constellation Energy Group, the company is committed to providing customized energy-related products and services with predictability and flexibility in the competitive electricity marketplace. More information about Constellation NewEnergy is available at www.newenergy.com.

Constellation Energy Group (NYSE: CEG), a Fortune 500 Company based in Baltimore, owns energy-related businesses, including a North American wholesale power marketing and merchant generation business that operates in competitive energy markets across the country, and the Baltimore Gas and Electric Company (BGE), a regulated energy delivery company in central Maryland. BGE provides service to more than 1.1 million electric customers and more than 600,000 natural gas customers. At year-end 2001, Constellation Energy Group reported revenues of $3.9 billion and assets of $14.1 billion. More information on Constellation Energy Group is available at www.constellationenergy.com.