Baltimore, MD -- The voters of California have spoken in support of the environment and in favor of competitive markets. They've sent a clear signal that the initiative process is the wrong way to develop responsible energy policy for the state.

The Public Utilities Commission and state Legislature can now continue with the development of a competitive wholesale and retail market design that will ensure customer choice and encourage development of much-needed generation capacity. The defeat of Proposition 80 highlights the leadership of the PUC, which forcefully opposed the measure in a courageous and unanimous 5-0 vote Sept. 8, 2005.

Proposition 80 was so poorly crafted and short-sighted that its passage would have significantly set back the PUC's efforts to restore confidence and certainty to the state's energy markets. In addition to the PUC, the measure was rightfully opposed by the Schwarzenegger Administration, environmental and renewable energy groups and the editorial pages of nearly every major California newspaper.

The defeat of Proposition 80 gets the state's energy policy back on track.

Constellation NewEnergy, a member of Constellation Energy (NYSE: CEG), is a leading competitive supplier of electricity, natural gas and energy related services to commercial and industrial customers throughout North America. Constellation NewEnergy operates in all competitive energy markets throughout Canada and the United States, providing products that enable customers to effectively manage and control energy costs. Constellation NewEnergy's regional expertise, coupled with its national presence, provides customers with customized energy products and services while leveraging the assets of one of the strongest integrated energy companies in North America. Constellation NewEnergy, based in Baltimore, serves more than 10,000 commercial and industrial customers throughout 31 states and 3 Canadian provinces representing more than 15,000 megawatts of peak load and more than 300 billion cubic feet of annual natural gas consumption.

Constellation Energy, a FORTUNE 200 company based in Baltimore, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of more than 100 generating units located throughout the United States, totaling approximately 12,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. In 2004, the combined revenues of the integrated energy company totaled $12.5 billion.