Constellation NewEnergy Renews Power Agreement with South Texas Aggregation Project, Inc.

BALTIMORE, Nov. 2 /PRNewswire-FirstCall/ -- Constellation Energy announced that its subsidiary, Constellation NewEnergy, has renewed its electricity purchase agreement for the third consecutive time with South Texas Aggregation Project, Inc. (STAP), to provide 130 megawatts of electric power for cities and city utility accounts in South Texas. The renewed contract with Constellation NewEnergy is expected to save STAP members more than 20 percent off the current regulated rate in Texas.

"The renewed STAP contract will continue to provide the STAP members with excellent customer service and greater price certainty throughout 2007," said Rob Task, Constellation NewEnergy vice president.

Created to achieve savings and administrative efficiencies by combining the electric load of members' electric utility accounts, STAP is a nonprofit corporation run entirely by public officials with membership available to all political subdivisions in Texas that purchase electricity for public facilities. The STAP members' purchasing power from Constellation NewEnergy include 45 cities and governmental authorities. Since the Texas market was deregulated in 2002, STAP members have participated in programs and realized significant cost savings compared to what they would have paid on regulated rates.

"STAP's ability to aggregate the load of its member municipalities and other governmental entities has resulted in better electricity pricing," said STAP Board Chairman Jim Darling. "The aggregate load and the ability to negotiate with a single entity representing our 45 municipal users make STAP an attractive customer. STAP is very pleased with the contract with Constellation NewEnergy. We feel that the existing relationship with Constellation NewEnergy and the ability to make contracting decisions relating to real-time market conditions has benefited STAP as the customer and Constellation NewEnergy as the REP supplier. Our member cities and entities have gotten acquainted with the intricacies of the deregulated electrical market and appreciate the opportunity to do business with a company like Constellation NewEnergy."

Constellation NewEnergy (http://www.newenergy.com/), a member of Constellation Energy , 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 (http://www.constellation.com/), a FORTUNE 200 company with 2005 revenues of $17.1 billion, 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.

For further information on STAP, call Jim Darling, McAllen City Attorney, at 956-972-7121 or Geoffrey Gay, STAP legal counsel, at 512-322-5875.

Editors' Note: STAP members include Alamo, Alice, Alton, Aransas Pass, Beeville, Bishop, Carrizo Springs, Charlotte, Corpus Christi, Corpus Christi Regional Transit Authority, Dilley, Edna, Fulton, George West, Hidalgo County Water Improvement District Number 3, Housing Authority of Corpus Christi, Ingleside, Ingleside on the Bay, Kingsville, La Feria, Laguna Vista, Lavaca Navidad River Authority, Los Fresnos, Lyford, McAllen, McAllen Housing Authority, Mercedes, Mission, Odem, Orange Grove, Pharr, Pleasanton, Point Comfort, Port Aransas, Port Lavaca, Portland, Refugio, Rockport, San Juan, Sinton, South Padre Island, South Texas Water Authority, Taft, Victoria and Woodsboro.