Constellation Energy's 2007 annual report discusses its commitment to responsible leadership. The report outlines how the company meets the energy needs of customers through innovative solutions, creates partnerships within communities, and delivers value to shareholders while protecting the environment. It highlights initiatives such as demand response programs, energy efficiency tools, renewable energy projects, and efforts to reduce emissions from power plants. The report emphasizes the company's responsibility to consider the needs of investors, customers, employees, communities, and the environment in its business decisions.

1. Responsible Leadership
2007 Annual Report
Responsible Leadership Constellation Energy 2007 Annual Report

2. Financial Highlights
In millions, except per share amounts 2007 2006 % Change
Common Stock Data
Reported (GAAP) earnings per share $ 4.50 $ 5.16
(Loss) Income from discontinued operations $ (0.01) $ 1.04
Special Items1 $ (0.09) $ 0.51
Earnings per common share from continuing operations
and before special items (adjusted earnings per share)2 $ 4.60 $ 3.61 27.4%
Dividends declared per common share $ 1.74 $ 1.51 15.2%
Average shares outstanding—assuming dilution 182.5 181.4
Market price per share—year-end $ 102.53 $ 68.87 48.9%
Financial Data
Total Revenues $ 21,193 $ 19,285
GAAP net income $ 822 $ 936
(Loss) Income from discontinued operations $ (1) $ 188
Special items (after-tax)1 $ (16) $ 93
Net income from continuing operations before special items2 $ 839 $ 655
Total assets $ 21,946 $ 21,802
Total debt $ 5,041 $ 5,101
Total common equity $ 5,340 $ 4,609
Capital expenditures $ 1,665 $ 1,149
1 Includes impairment losses and other costs, mark-to-market gains from certain economic, non-qualifying hedges, earnings (losses) from our synthetic fuel
processing facilities, deferred income tax expenses and benefits related to 2007 increase in Maryland’s corporate tax rate, workforce reduction costs, gain on the sale of
gas-fired plants and merger-related costs.
2 Represents a measure that is not determined in accordance with generally accepted accounting principles (GAAP). However, we believe the impact of
discontinued operations, accounting changes and special items obscures trends in our results and that it is useful to consider our results excluding these items.
2005 Earnings: Our GAAP earnings per share were $3.47. Excluding special items of $0.58, our earnings per share were $2.89.
$1.91 $4.60 $21.2
$19.3
$1.74
$17.0
$1.51 $3.61
$2.89
06 07 08 05 06 07 05 06 07
Dividend Growth Adjusted Earnings Per Share Revenues
(Annual amount per share) (In billions of dollars)
Our commitment to shareholders has Our adjusted earnings per share grew Total revenues increased to $21.2 billion
included increasing dividends. Since to another record high of $4.60, up in 2007.
2004, our annual dividend payments have 27 percent from 2006.
increased by more than 67 percent. Note: See Financial Highlights, including the GAAP
reconciliation, above, for more details.
Contents
Responsible Leadership 1 Meeting the Energy Needs of Our Customers 9 Creating Enduring Partnerships With Our Communities 10
Protecting and Preserving Our Environment 11 Giving Exceptional People Opportunity for Growth 12 Delivering Performance for Our
Shareholders 13 Letter to Shareholders 14 Constellation Energy at a Glance 16 Leadership 18 Understanding Our Form 10-K 19
Glossary 24 Form 10-K 25 Shareholder Information Inside Back Cover

3. With the needs and demands
of our investors, customers,
employees, communities and
the environment in mind…
responsible leadership means
making responsible choices.
Our opportunities must be in
balance with our obligations.
It’s a guiding philosophy for our
business. On this foundation,
we’ve built our company into
one of the most influential—and
successful—energy companies.
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4. Our retirees built our
company’s strong
foundation. Today,
retirees like Richard
Presberry, who had
35 years of service
with the company,
remain focused on
our performance
as shareholders.
Performance SHAREHOLDERS
Shareholders invest their trust and hard-earned capital in our company. In turn, we’re invested in
meeting and exceeding their expectations, year after year, and we have. For the last six years, we’ve
consistently delivered superior results for our shareholders and have become a leading energy company.
2 RESPONSIBLE LEADERSHIP

5. right right
Marcus Boston, Minh Tran,
distribution construction manager, billing
trainee, BGE and payments,
Constellation
NewEnergy Power
right
Laura Szivos,
engineering analyst,
Constellation
Power Generation
far right
LaMetrice Dopson,
director, business
performance
improvement
left to right
Lydia Obeng,
associate—
origination, Global
Commodities Group
Todd Mercer,
energy sales
consultant,
Constellation
NewEnergy Gas
John Fitzpatrick,
I&C technician,
Constellation Energy
Nuclear Group
Opportunity EMPLOYEES
Our employees truly make Constellation Energy outstanding. Our people are inspired by opportunity,
challenge and growth, and we value and reward their contributions. We have a responsibility to create
and foster an environment where personal development and professional success remain two of the
most important results we produce.
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6. We provide tools to
help customers
better manage their
energy use. BGE
Product-Program
Manager Cynthia
Edwards discusses
BGE’s PeakRewards
program with
customer Gordon
Curtis, who
participated in our
demand response
pilot program.
Solutions RESIDENTIAL CUSTOMERS
The cost and consumption of energy are rapidly rising across the globe. As an energy leader,
Constellation Energy’s responsibility to our customers is to provide more than power or natural gas.
We promote innovative ideas that help lower demand, increase use of renewable energy and improve
reliability. And, we provide customers with tools to help manage their energy use in today’s challenging
energy marketplace.
4 RESPONSIBLE LEADERSHIP

7. right
Greg Fox (right),
business development
manager,
Constellation Energy
Projects & Services,
works with Rob
below
Taylor, Washington
Reviewing the U.S. EPR engineering deputy,
Suburban Sanitary
design plans for UniStar procurement and
Commission’s (WSSC)
Nuclear Energy’s engineering, UniStar
energy manager, to
possible fleet of new Nuclear Energy; and
help WSSC expand its
nuclear reactors in the Eric de Fraguier,
energy portfolio to
United States are (left senior vice president,
include wind power.
to right) Ron Affolter, procurement and
vice president, U.S. EPR engineering, UniStar
deployment, AREVA NP, Nuclear Energy.
Inc.; Mark Finley,
right right
Ron Melchior (left), Michael Kagan (right),
director—project president, Constellation
management, NewEnergy, and
Constellation Energy Jonathan Kraft,
Projects & Services, president and chief
and Rob Threlkeld, operating officer
energy manager of The Kraft Group,
for General Motors, work together to
know the value of reduce emissions from
the newly built solar electricity used at
power rooftop system every New England
for GM’s facility in Patriots’ home game
Fontana, Calif. The by using renewable
new system reduces energy certificates.
GM’s energy costs
and carbon footprint.
Innovation BUSINESS CUSTOMERS
Our products and services help commercial, industrial and public-sector customers effectively
manage their energy costs and protect their bottom lines against uncertain and volatile energy prices.
Our responsibility is to help our customers expand their vision from today to tomorrow, enabling
them to proactively shape their energy future.
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C O N S T E L L AT I O N E N E R G Y

8. left
Brenda Pettigrew (left),
BGE senior community
relations specialist,
discusses energy-
efficiency measures with
customer Edith Wroten
at a BGE energy
conservation workshop.
above
Monique Gibson (left),
legal secretary,
volunteered her time
to help provide energy-
efficient compact
fluorescent lighting
in a Baltimore
neighborhood as part
of a larger effort to
improve life in our
home city. Shown with
Monique is resident
Daisy McClean.
far left
Christopher Boone,
BGE distribution
construction trainee,
donates his time
and talent to help
build a Habitat for
Humanity home.
left
Katie Bellezza (right),
analyst—origination,
Global Commodities
Group, helps high
school student
Rebecca Crawford
understand the
college application
process as part
of our support for
the B4 Students
mentoring program.
Partnerships OUR COMMUNITIES
The decisions and investments we make today will have a meaningful effect on future generations.
Our goal—and responsibility—is to make a tangible and positive difference in the communities where
we live, work and do business. Our company and our employees establish enduring partnerships that
help us live up to this commitment.
6 RESPONSIBLE LEADERSHIP

9. We’re investing in
cleaner energy
by installing state-of-
the-art emissions-
control equipment at
our Brandon Shores
Power Plant in
Maryland. Tom
Schwaller, construction
management
supervisor, Constellation
Power Generation,
has been overseeing
this important project,
which will make
the plant one of the
cleanest coal-burning
facilities of its size in
the country.
Commitment THE ENVIRONMENT
We understand it is important to do what is right for our planet. We are committed to using
natural resources responsibly, reducing pollution, improving energy efficiency and enhancing
environmental stewardship. We embrace these challenges and continue to apply our knowledge,
skills and creativity toward meeting them. We are focusing our capital spending on initiatives to
reduce emissions at our fossil-fuel power plants, and we’re a leader in the potential renaissance of
new nuclear power plants in the U.S. We’ve made significant progress, but there’s more to be done.
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10. As a leading energy company,
Constellation Energy has a
responsibility to our shareholders,
customers, employees,
communities and the world
around us. We evaluate and execute
business decisions based on
considering the needs of all those
to whom we are responsible.
8 RESPONSIBLE LEADERSHIP

11. Meeting the Energy Needs of Our Customers
The customers and communities we serve need innovative and effective solutions to keep
pace with rising energy demands. We’re committed to meeting these needs… it’s the very
foundation of responsible leadership.
BGE HOME Certified usage during high-priced, high-usage peak demand and peak prices. Load
Technician Barry
periods can mean lower customer response rewards customers for
Roysdon explains
utility bills and more available energy. saving energy, improves electric grid
the benefits of the
high-efficiency heating In addition, BGE plans to conduct a reliability and lessens the need for
and air conditioning
pilot program in 2008 of its Advanced new power plants.
system to customer
Metering Infrastructure, also known
Joia Nagy. BGE HOME
technicians work as smart meters. This initiative Many large commercial and industrial
hard to help make
uses advanced technology to read users have well-established plans
customers more
meters remotely, virtually eliminating for lowering their carbon footprint.
comfortable in their
homes by delivering estimated bills and leading to faster Constellation NewEnergy is a leader
superior service
restoration of power outages. in the market for renewable energy
and products.
Residential customers also will be certificates, a popular tool for
able to participate in an expanded supporting environmentally friendly
time-of-use pilot program, offering generation sources. For example,
Today’s energy challenges are global.
lower electric rates during off-peak we have an agreement to match
And where others see only challenge,
hours and encouraging lower power consumption with renewable
we see opportunity. Recently, there’s
consumption during peak periods. energy at each New England Patriots’
been a sea change in the current
home game.
energy environment, driven, in part,
Our subsidiary, BGE HOME, offers
by rising prices. But this change also
residential customers customized We’re also building green energy
has been fueled by environmental
energy-management solutions solutions, including a rooftop solar
concerns. Energy is an asset, a
to help increase energy efficiency panel project for General Motors.
precious one especially in a time of
and comfort in their homes. At Washington Suburban Sanitary
rising demand and prices. It must
BGE HOME offers a full suite of Commission, the eighth-largest water
be managed wisely, and we provide
products and services, including and wastewater utility in the nation,
customers the tools to do so.
the sale and service of heating and we successfully incorporated green
cooling systems, water heaters, technology into its energy portfolio
Baltimore Gas and Electric (BGE),
plumbing and electrical systems, through wind power. This initiative
our regulated utility, offers residential
window and siding replacement earned Constellation Energy a 2007
customers a variety of energy-
and appliance repair. Green Power Leadership award from
management solutions through its
Smart Energy Savers ProgramSM. the U.S. Department of Energy.
Other innovations allow commercial,
As part of the Smart Energy Savers
ProgramSM, PeakRewards, BGE’s industrial and public-sector A common thread in the latest wave of
customers to manage energy as a innovation in environmentally friendly
demand response infrastructure
strategic asset. These include risk energy solutions is the power of the
program, offers participating
management programs to help competitive marketplace. Competition
customers either a smart thermostat
business customers maintain budget spurs companies like ours to offer
or a load switch that cycles air
certainty through times of volatile new products and services that
conditioning units during periods
prices. New load response programs meet—and exceed—the needs of
of peak demand and provides
allow customers to capitalize on the our customers.
customers with bill credits. Less
financial advantages of reducing
their electricity load during times of
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12. Creating Enduring Partnerships With Our Communities
Part of responsible leadership is facing, head on, the most difficult questions. For example,
what does it mean to be a valuable and vital corporate citizen? How can our company be a
meaningful contributor in our local communities?
Global Commodities
Constellation Energy has a long- multiple community outreach efforts,
Group employees
standing history and heritage of we are able to help our customers Lindsay Klaus,
caring for the communities where better manage their energy bills by analyst—application
development, and
we live, work and do business. providing education about energy
Antonio Biondo,
It’s a core value—one that our assistance and energy conservation, analyst—credit, were
company and our employees take as well as through the installation among employee
volunteers who
very seriously. Creating lasting of weatherization measures in
participated in a
partnerships and helping our their homes. company-sponsored
communities are among the most clean-up effort to
help restore the
valuable things we do. Since 2003, Constellation Energy
Chesapeake Bay
has provided approximately watershed.
Whether it’s supporting the American $2.6 million in support to
Red Cross through multiple blood Maryland-based charitable
drives each year, building homes organizations, resulting from our Living Classrooms and the National
with Habitat for Humanity, mentoring sponsorship of PGA TOUR and Aquarium. In 2007, employees
at-risk youth, providing energy Champions Tour golf events in volunteered more than 45,000 hours
assistance to those who need it the greater Baltimore, Md., of their time to service organizations
most, or leading Central Maryland— community. Most recently, we and charitable causes throughout
our corporate home—in United Way served as the title sponsor of the the country.
giving, Constellation Energy and our 2007 Constellation Energy Senior
employees generously give their time Players Championship, which We also make valuable contributions
and resources. Responsible citizenship was also the first-ever PGA TOUR toward a variety of environmental
is part of our corporate DNA. or Champions Tour event to be initiatives—like providing funding
powered by 100 percent renewable to the Chesapeake Bay Trust,
Constellation Energy’s ongoing energy. Constellation Energy Center for Watershed Protection,
partnerships with more than 50 employed various strategies to ensure Clean Air Partners, Trust for
network-wide, community-based that all of the tournament’s energy Public Land, Maryland Association
assistance organizations deliver needs were offset with clean, for Environmental and Outdoor
financial help with gas and electric renewable energy. Education and Alliance for the
bills for residential customers in Chesapeake Bay. In 2007, employee
Maryland, as well as a wide variety Through our Power of Caring volunteers participated in company-
of human service assistance program, Constellation Energy sponsored clean-up activities
programs. BGE’s Community provides employees with the to help restore the Chesapeake
Assistance Fund also supports local opportunity to connect to our core Bay watershed.
organizations that focus on energy value of social responsibility by
assistance, poverty solutions and means of both employee giving and
conservation initiatives for limited- community volunteer initiatives.
income families in Central Maryland. We’ve established partnerships with
Through these programs and many local and national agencies
such as Catholic Charities,
CollegeBound Foundation, the
Independent College Fund of
Maryland, Kennedy Krieger Institute,
10 RESPONSIBLE LEADERSHIP

13. Protecting and Preserving Our Environment
Being a responsible leader is recognizing the effect we have on the global neighborhood,
while maintaining our commitment to meeting the energy needs of our customers and
minimizing the impact of our business on the environment.
Nuclear power We believe nuclear power can and policy because of our low-emitting
produces electricity
must make a meaningful contribution generation fleet and clean energy
with minimal
in the world’s efforts to deal with solutions. Our efforts to produce
greenhouse gas
emissions, meaning threats posed by human influence on electricity in cleaner and more
cleaner air and
climate change. The result will be a sustainable ways also create
reduced impact on
dramatic lessening of our country’s— significant emission-reduction
the environment.
Shown is our Calvert and the world’s—reliance on fossil opportunities for other industry
Cliffs Nuclear Power
fuels. In 2007, we announced a joint sectors through electric technology
Plant, located on the
venture with the world’s largest applications that replace fossil-
western shores of
the Chesapeake Bay, nuclear plant operator, EDF Group. fuel uses.
which has been
This venture, called UniStar Nuclear
generating electricity
Energy, is focusing on the potential Not only are we addressing the
safely, reliably and
cleanly for more than
development and deployment of the increasing need for more
30 years.
first fleet of new nuclear power environmentally friendly products,
plants in the United States in almost solutions and power sources
BGE HOME’s new
three decades. nationally and globally, but we also
headquarters is
the company’s first
have implemented green building
office designed to
In addition to our new nuclear practices at our new BGE HOME
meet the LEED green
building standard. activities, we have an equally robust headquarters. The building’s interior
BGE HOME Manager
program to limit emissions across was designed to meet Leadership
of Inventory Control
our fossil fleet. Nearly $1 billion in Energy and Environmental Design
and Logistics Jeff
Cavallo can now bike in capital expenditures have been (LEED) Green Facility standards
to work, taking
authorized for construction of for commercial interiors—the first
advantage of some of
a state-of-the-art flue gas of its kind among Constellation
the building’s new
green design features desulfurization system—also Energy locations. A program of the
like low-flow
called a scrubber system—at our U.S. Green Building Council, LEED
showerheads and
On the most important environmental Brandon Shores Power Plant and promotes a whole-building approach
faucets, and bike
racks installed to issue of our time, climate change, other environmental upgrades. to minimize the environmental
encourage alternative
our company’s policy is unequivocal. The scrubber system will footprint of a building by recognizing
transportation. The
We believe it is imperative to slow, substantially reduce sulfur dioxide performance in sustainable site
new building also
features non-CFC, stop and then reverse the growth of and mercury emissions and is development, water conservation,
high-efficiency
greenhouse gas emissions. Our expected to be fully operational lighting, recycling, energy efficiency,
heating and cooling
generation fleet emits less carbon in early 2010. materials selection and indoor
equipment.
than many others in our industry. environmental quality.
More than 60 percent of the electricity Over time, we expect a federal policy
we produce comes from nuclear will be implemented to supersede
and hydro power sources, which regional initiatives and align the U.S.
generate electricity with minimal with a global effort to reduce
greenhouse gas emissions. greenhouse gas emissions. In fact,
we are active in helping to accelerate
a federal policy and make it stronger.
We believe Constellation Energy is
well poised to benefit from a national
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14. Giving Exceptional People Opportunity for Growth
What drives our company’s success? Our people. Constellation Energy employees embrace
challenges and have an intense focus on execution. In many fields, particularly new nuclear
development and carbon trading markets, we are on the cutting edge in our industry. Our
teams are helping to shape the future.
Safety is the most
Our employees share a commitment as leadership effectiveness, learning
important part of our
to continuing to deliver exceptional and development opportunities, jobs. BGE crews,
results for our shareholders. For all and teamwork. As a result of survey like the one shown
here, begin each job
of us at Constellation Energy, it’s our feedback, we have implemented
by discussing safety
key responsibility. To retain our talented company-wide and business-unit procedures. Shown
team, we’ve established a competitive initiatives that have helped to (left to right) are
Dan Moser, overhead
Total Rewards program that goes increase employee engagement.
mechanic; Vernon
beyond salary. Our compensation Mitchell, cable splicer;
philosophy is built upon the concept We also are committed to creating Jason Frith, cable
splicer trainee;
of pay for performance. Employees an environment that values diversity
Patrick McBurney,
know that at Constellation Energy, and inclusion as strategic assets cable splicer; and
hard work and results pay off. for the future of our company. We Dave Wisniewski,
senior construction
have a number of major initiatives
inspector.
We strive to be a top-tier employer under way to ensure that we continue marked the launch of our newest
in terms of competitive compensation to attract, retain and develop top flagship leadership development
and work-life balance. In November talent that is diverse in background, program, the Transformational
of 2007, BusinessWeek named skills and experience. One of Leadership Program, created in
Constellation Energy as one of the our initiatives is the creation of our partnership with the University of
best 95 places in the nation to launch Diversity Council, a cross-functional Virginia’s Darden Business School,
a career. More than 90 percent team of leaders from across the well-known for delivering world-
of new graduates remain with our enterprise. The council is dedicated class executive education. In 2007,
company five years or more. Few to developing and implementing Constellation Energy was named to
employers can match that statistic best-practice initiatives that Training magazine’s Top 125 list for
and we’re very proud of it. promote diversity and inclusion in excellence in workplace learning
all that we do at Constellation Energy. and development.
Employee engagement is critical to Our ability to value different
business success. We believe the perspectives and leverage the talents What’s more, we’re as committed to
best way to find out what our of a diverse workforce is crucial to the safety of our people as we are
employees think about working at our continued success. to their career fulfillment. Regardless
Constellation Energy is to ask them of where our people work or what
and to listen to their feedback. Since At Constellation Energy, growth jobs they do, we foster a culture that
2003, we have been conducting is both a business imperative and a values and promotes safety. In fact,
biennial employee engagement personal commitment. We invest safety is the one underlying principle
surveys to give our employees an considerably in our most important on which all of our business priorities
opportunity to share their insights asset—the skills, talents and are built. It has to be. Just recently,
about working for our company. capabilities of our people. Employees our Calvert Cliffs Nuclear Power Plant
In the past four years, we've seen can access a variety of learning was recognized as a Maryland Voluntary
significant increases in the overall programs on business-relevant Protection Program Star level site
engagement levels of our employees, topics, resources and tools. by the state of Maryland and the
including through the results of our Thousands of employees participate Occupational Safety and Health
most recent survey in 2007. We also in our suite of online courses, Administration for exemplifying
continue to score well above the U.S. classroom training and college commendable safety and
database norms in many areas such degree programs each year. 2007 health programs.
12 RESPONSIBLE LEADERSHIP

15. Delivering Performance for Our Shareholders
We believe responsible leadership translates into outstanding performance. In 2007,
continued strong performance and execution of our business strategy once again translated
into superior total return of more than 50 percent for our shareholders.
$151.88
1-Year Total
Over both one- and Through our focus on performance
five-year periods, Return To Shareholders and risk management, we have
we have delivered
been and remain diligent stewards
significantly better Constellation Energy
returns than our S&P 500
of the capital we manage. In 2007,
S&P 500 Utilities Index
peers and the major
our Board of Directors authorized
market indices. Over
$123.13
a share repurchase program of up
the past year, an
investment of $100 in to $1 billion, which provides us the
Constellation Energy
ability to effectively return capital
stock on Dec. 31, $105.50
$100.00 to our shareholders. We executed
2006, was worth—
with dividends on $250 million of this program in
reinvested—$151.88
2007. At the same time, the program
on Dec. 31, 2007. 12/31/06 Q1 ‘07 Q2 ‘07 Q3 ‘07 Q4 ‘07
enables us to maintain our financial
flexibility to continue to pursue
higher value-added strategic
5-Year Total
Over the past
investments and opportunities.
five years, an $419.51
Return To Shareholders
investment of $100 in
Constellation Energy Constellation Energy
Throughout our company we are
stock on Dec. 31, S&P 500
focused on consistently and
S&P 500 Utilities Index
2002, was worth—
$280.30
with dividends appropriately managing risk, while
reinvested—$419.51
making significant investments
on Dec. 31, 2007.
for future growth. Some examples
$182.85
include our pursuit of new nuclear
$100.00
development in North America,
environmental improvements in
‘02 ‘03 ‘04 ‘05 ‘06 ‘07
our power plants, continued
investments in our transmission and
As we see it, our commitment to Our growth has been driven by the distribution network to ensure
maintaining a responsible balance continued solid performance of our reliable service and growth through
among the priorities of our business units and our ability to strategic acquisitions.
stakeholders is a key driver of move forward on several key strategic
shareholder value for our company. objectives, while appropriately When we evaluate and execute
The commitment has paid off for managing risk. We believe that our business decisions based on
our investors. We have delivered expertise in managing risk is a key considering the needs of all those
significantly better returns than our differentiator that sets us apart from to whom we are responsible—our
peers and the major market indices. our peers. We’ve had the vision shareholders, customers, employees,
In 2008, we also announced a to see opportunities and ways to communities and the environment—
10 percent increase in our dividend, grow our business—and even more we position ourselves squarely to
raising it to $1.91 per share annually important—our people have had the deliver exceptional performance and
from an annual rate of $1.74 per courage to take those growth steps drive future growth.
share in 2007. and execute on our business plans.
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16. energy sector so unique, and often
Dear Fellow Shareholders,
so challenging, is that we must
make long-term investment decisions
During the past six years, we have
in the face of considerable uncertainty.
transformed Constellation Energy
How do we ensure new generation
from a mid-sized, Baltimore-based
is as environmentally friendly as
utility into one of the nation’s most
possible? If “green” energy sources
diverse and successful integrated
cost more—and today they do—how
energy companies. Today,
do we help to ease the financial
Constellation Energy owns a low-cost,
burden on lower-income residential
environmentally advantaged
Mayo A. Shattuck III
customers? Finally, how do we
baseload generation fleet, and is Chairman,
balance environmental and economic
North America's leading competitive President and CEO
concerns, while still meeting our
power supplier, a top gas marketer
growth objectives for shareholders? United States. While a decision to
and a leader in advancing America’s
build a new nuclear facility has yet to
new nuclear renaissance.
As a CEO, I don’t have a right to be made, UniStar Nuclear Energy
answer these challenging questions… is moving ahead with the licensing
We’re very proud of these
I have the responsibility to do so. and permitting processes to site
achievements, which have been
And so does our company. This is a potential new unit at our existing
recognized and rewarded by
the essence of Responsible Calvert Cliffs Nuclear Power Plant
investors, particularly during 2007
Leadership at Constellation Energy. in Southern Maryland. A similar
when our total return for shareholders
application is in the works to develop
was 52 percent. Investors aren't the
Translating Responsible Choices another potential nuclear unit at
only ones taking notice. In 2008—for
into Exceptional Performance our Nine Mile Point Nuclear Station
the second consecutive year—
It begins with our own financial in upstate New York. UniStar Nuclear
Constellation Energy was named to
performance and obligations to Energy is also working with
the prestigious BusinessWeek 50
our shareholders. established and emerging energy
list of the best-performing
companies to develop potential new
companies within the S&P 500.
In 2007, we generated $21.2 billion nuclear units in Pennsylvania,
in revenues and grew adjusted Missouri and at other sites throughout
Our success is gratifying, and yet
earnings by 27 percent to $4.60 per the country. We believe nuclear
it tells only part of our story. The
share, our highest earnings level energy, with low emissions and its
priorities of our shareholders must
to date. Our 2007 earnings growth ability to meet increasing demand,
be balanced with those of our
rate exceeded both the S&P electric must play a vital role in securing
customers and communities that
utility index and the S&P 500 by at our nation’s energy future.
rely on our vital energy services.
least 10 percentage points. During
There are many important policy
each of the last three years, we Our existing nuclear and fossil plants
issues and industry trends that
outpaced our industry peers in total are located in high-value asset
affect our business. Our nation is
shareholder return— 52 percent markets and are well managed. In
eager to reduce dependency on
in 2007, 23 percent in 2006 and 2007, Calvert Cliffs achieved the
foreign energy sources to improve
35 percent in 2005. We continue to be highest capacity factor rating for a
our energy security, while addressing
disciplined stewards of investor nuclear power plant in the world.
the challenges of global climate
capital. During the fourth quarter of
change. Today, we compete globally
2007, we executed on $250 million of Our wholesale and retail competitive
for energy commodities—natural
an up to $1 billion stock repurchase power and natural gas supply
gas, oil, coal and others—and we
program and, for 2008, we increased businesses continue to set the bar
are facing increasing price volatility
shareholder dividends by 10 percent for our industry. During the past
due to the influence of growing
to an annual $1.91 per share from year, we made several acquisitions,
demands from developing countries
$1.74 per share in 2007. enabling us to grow our wholesale
like China and India, as well as the
load-serving business in the
increasing competition for capital.
We’ve made great strides on several Southeast market, adding upstream
business initiatives in 2007, gas reserves and expanding the
Against this backdrop,
particularly related to the potential geographic footprint of our retail
Constellation Energy is poised to
development of new nuclear units. gas operations in the Midwest
make the most significant capital
Our joint venture with EDF Group, market. To meet the needs of
investments in our history to develop
UniStar Nuclear Energy, is our business customers, we’re
the power generation sources
establishing itself as a comprehensive, significantly broadening the scope
needed to meet growing consumer
robust international partnership of our renewable energy portfolio.
and business demand. To meet
that is well-positioned as a leader in We announced several innovative
the needs of future generations, we
the new nuclear renaissance in the renewable energy projects, and
must act today. What makes the
14 RESPONSIBLE LEADERSHIP

17. are helping our corporate clients, management and performance. We distinguishing us once again as
large and small, reduce their impact have made considerable progress the No. 1 contributor in Central
on the environment with solutions on the construction of the Brandon Maryland and a leading contributor
such as renewable energy products, Shores scrubber that will make it in other markets where we
and wind and solar power. one of the cleanest coal-burning conduct business.
facilities of its size in the country—
BGE is addressing the demand side part of a nearly $1 billion investment For the third consecutive year,
of the energy equation, as well, in environmental upgrades. We have Constellation Energy has been named
with a comprehensive program of one of the lowest-emitting generation to the Dow Jones Sustainability
customer-oriented conservation and fleets in our industry. That’s an North America Index, based on
demand response initiatives. important plus for our environment companies that operate in a socially
Combined, these programs should and, from a business standpoint, responsible and sustainable way.
help play a significant role in reducing positions us well to benefit in a In early 2008, we also were named
energy usage. Customers who carbon-constrained economy. to the 100 Best Corporate Citizens
use less electricity can experience list by CRO (Corporate Responsibility
significant savings on their bills. Recently, we negotiated a Officer) Magazine.
Lower demand also improves grid comprehensive settlement agreement
reliability and yields environmental with political and regulatory leaders We believe that the future bodes
dividends. The demand response in our home state of Maryland. This well for Constellation Energy. Our
program—PeakRewards—is quickly agreement enhances our strategic management team has a superior
gaining traction—BGE's goal is to flexibility and delivers meaningful track record of driving significant
enroll 50 percent of its residential benefits for both our company and earnings growth and delivering
customers, making this potentially BGE customers. Equally important, substantial total shareholder return.
one of the nation's largest and most it allows for all parties to move We have a proven generation fleet
significant residential programs. forward with a focus on meeting and high-quality assets in high-
BGE also plans to soon launch the Maryland’s future energy needs. By value markets, providing us with
pilot phase of a leading-edge settling past disputes, we are clear and substantial earnings growth.
advanced metering initiative to help moving to a more stable regulatory With greenhouse gas regulation
customers better manage their environment that is a fundamental on the horizon, our low-emitting
energy usage. This technology takes building block as we consider fleet is well-positioned to drive
the guesswork out of estimating significant capital investments in long-term earnings.
electricity usage, and remote Maryland such as a new nuclear
monitoring provides information facility at Calvert Cliffs. Responsible leadership at
that can lead to faster restoration Constellation Energy is about
Delivering Continued Excellence
during outages. accountability. It encompasses our
Consistently, the driver of our financial and environmental
Investing For Future Growth and success has been our employees’ performance and the full scope of
Environmental Sustainability dedication to operational excellence— our business activities. It extends
Across the energy industry, we’re for our customers, investors and all from our shareholders to the
entering a phase that will feature of our stakeholders. This includes a communities and stakeholder groups
significant capital investment in demonstrated commitment to we serve. I’m proud to say this
new generation, distribution and safety—an absolute imperative for commitment is embedded in our core
transmission systems and energy our company across all lines of values, and it has played a pivotal
conservation programs to keep pace business. Calvert Cliffs was recently role in creating what I believe is
with increasing demand. Through recognized as a Maryland Voluntary an extraordinary company with an
2010, we plan to invest $380 million Protection Program (VPP) Star level extremely bright future. I want
in capacity expansion and reliability site by the state of Maryland and the to thank all of you—employees,
enhancements in our generation Occupational Safety and Health shareholders, customers and
fleet. For 2008, we expect to invest Administration. Less than one percent partners—for your ongoing support
more than $440 million in BGE of the eight million worksites in the and contributions to our success.
to meet anticipated customer U.S. achieve the VPP level of safety
growth and increased reliability, performance, and we are using this
which we believe will lead to future as a model for our other generation
earnings growth for BGE. And, plants and operation facilities.
through UniStar Nuclear Energy, we
will continue to be at the forefront of I am particularly proud of the Mayo A. Shattuck III
new nuclear development. generosity of our company’s more April 8, 2008
than 10,000 employees. Their
Constellation Energy is committed contributions to the United Way
to improving our environmental in 2007 topped a record $5.1 million,
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C O N S T E L L AT I O N E N E R G Y

18. Constellation Energy at a Glance
We are North America’s largest competitive provider of power to wholesale, commercial, industrial
and public-sector customers, one of the top gas marketers and a leading supplier of coal to customers
around the world. Our customers include more than two-thirds of the FORTUNE 100 companies, as well
as some of the world’s largest producers and consumers of power, natural gas, oil and coal. We own a
diverse fleet of power plants and are a leader in the potential development of new nuclear plants in the
U.S. Through our regulated utility, Baltimore Gas and Electric, we deliver electricity and natural gas to
customers in Central Maryland.
Our Vision Our Foundational Values Our Performance Values
To be the first-choice provider for customers These values guide our actions: These values measure our results:
seeking energy solutions in the complex and Integrity Speed
changing energy marketplace. Teamwork Accountability
Social & Environmental Responsibility Passion for Excellence
Customer Focus Creation of Value
Corporate Social Responsibility
Our Accomplishments
Ranked No. 39 on the 2008 BusinessWeek 50 Best Performers list Named to the Dow Jones Sustainability North America Index for the
•
•
third consecutive year
Moved up to No. 119 on the FORTUNE 500 list in 2007
•
Advanced to No. 363 on the FORTUNE Global 500 list in 2007 Received a 2007 Green Leadership award from the U.S. Department of
•
•
Energy for successfully incorporating green power into the overall energy
Named one of America’s Most Admired Companies by FORTUNE
•
portfolio for the Washington Suburban Sanitary Commission
magazine in 2007
Ranked as a Platts Top 250 Global Energy Company Named by CRO (Corporate Responsibility Officer) Magazine to its
•
•
100 Best Corporate Citizens list
Recognized as one of the Best Places to Launch a Career by BusinessWeek
•
Named one of the Top 50 Military-Friendly Employers by Ranked the largest corporate philanthropist in the Baltimore, Md., area
•
•
G.I. Jobs Magazine by the Baltimore Business Journal
Named to Training magazine's annual Top 125 list for our outstanding
•
Learning & Organizational Development team
Operating a Strategic Generation Fleet
Our generating facilities are strategically located and use a variety of
fuels. More than 60 percent of our generating output is from nuclear power
that generates electricity with minimal greenhouse gas emissions.
16

19. Our Businesses Our Focus Our Customers
Constellation Energy Resources
Constellation Energy Serving as an intermediary, managing price Energy producers and intensive energy
Global Commodities Group and supply risk between producers and users worldwide
Wholesale marketing, risk management, and consumers of electricity, coal, natural gas,
portfolio management and trading operation freight and oil. Helping producers manage the
risk associated with selling their output and
helping consumers manage the price risk
associated with buying it. Managing the output
and fuels for our generation fleet.
Constellation NewEnergy Power Meeting our customers’ energy and risk More than 14,000 commercial, industrial and
Retail electricity supply business providing management and sustainability needs through public-sector organizations throughout North
energy products and services innovative products and outstanding service. America, including more than two-thirds of the
Serving as an extension of our customers’ FORTUNE 100 companies, representing more
energy-procurement functions to help them than 16,000 megawatts of peak load
effectively manage energy risk, costs and usage.
Constellation NewEnergy Gas Offering customers superior service and More than 14,000 commercial, industrial,
Natural gas supply and transportation-related expertise by providing reliable and economical municipal and local gas distribution and power
services operation supplies of natural gas. generation facilities in competitive markets
throughout North America
Constellation Energy Power Owning and operating—safely, efficiently Wholesale customers in competitive energy
Generation & Development Group and reliably—a diversified fleet of fossil and markets across North America
Power generation operation renewable energy generating facilities.
Nuclear
Constellation Energy Nuclear Group Owning and operating—safely, efficiently and Wholesale customers in competitive energy
Nuclear energy generation and development reliably—a fleet of nuclear energy generating markets across North America
facilities. Executive oversight of new nuclear
development activities.
Energy Delivery
Baltimore Gas and Electric Safely and reliably delivering electricity and More than 1.2 million electric and 640,000
Regulated utility delivering power and natural gas to our customers. Becoming a natural gas residential, commercial and
natural gas recognized industry leader. Improving the industrial customers in Baltimore and in all,
reliability of our distribution system, reducing or part of, 10 counties in Central Maryland
interruptions and improving our response
to outages.
Energy Consulting Services
Fellon-McCord & Associates Offering clients energy consulting and Serving large commercial, industrial, municipal
Leading provider of energy consulting and management expertise in the physical, and institutional energy users, as well as
management services financial, regulatory and legislative aspects producers, generators, aggregators, third-
of energy markets. party marketers, utilities, storage owners
and operators
Constellation Energy Providing customized energy and environmental Commercial, industrial and public-sector
Projects & Services Group solutions—including energy consulting, energy facilities throughout North America
Full-service energy company projects and energy assets—that reduce
carbon footprint and total energy spend, while
increasing reliability.
BGE HOME Providing customer-centric, energy-focused Residential and small commercial customers
Competitive provider of energy-related solutions for heating, air conditioning, plumbing, in Maryland
products and services electrical and indoor air quality needs, as well
as window replacements and the sale of natural
gas to the residential market.
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20. Leadership
Board of Directors Committees of the Board Executive Team Corporate Governance
Mayo A. Shattuck III Executive Committee Mayo A. Shattuck III We are an industry leader in
Chairman, President and CEO, Mayo A. Shattuck III, Chairman Chairman, President and CEO corporate governance. We conduct
Constellation Energy Edward A. Crooke our business honestly, with respect
Michael J. Wallace
Director since 1999 Robert J. Lawless for our professional obligations,
President and CEO,
and with regard for legal and
Yves C. de Balmann Audit Committee Constellation Energy Nuclear Group
regulatory requirements. The
Co-Chairman, Bregal Investments James T. Brady, Chairman Vice Chairman,
independence of our Board of
Director since 2003 Yves C. de Balmann Constellation Energy
Directors is important to us—12 of
Ann C. Berzin
Douglas L. Becker Henry B. Barron our 13 directors are independent
Edward A. Crooke
Chairman and CEO, Chief Nuclear Officer, according to New York Stock
John L. Skolds
Laureate Education, Inc. Constellation Energy Nuclear Group Exchange listing standards.
All committee members are audit
Director since 1998 Executive Vice President, Michael D. Sullivan, one of our
committee financial experts as defined
Constellation Energy independent directors, serves
Ann C. Berzin by the SEC rules.
as lead director.
Retired Chairman and CEO, Thomas F. Brady
Compensation Committee
Financial Guaranty Executive Vice President, Copies of the charters of each of
Robert J. Lawless, Chairman
Insurance Company Constellation Energy the committees of the Board of
Douglas L. Becker
Director since 2008 Chairman, BGE Directors, as well as copies of our
Dr. Freeman A. Hrabowski III
Corporate Governance Guidelines,
Lynn M. Martin
James T. Brady Thomas V. Brooks
Principles of Business Integrity,
Michael D. Sullivan
Managing Director, President,
Corporate Compliance Program,
Mid-Atlantic, Ballantrae Constellation Energy Resources
All committee members are Insider Trading Policy, Policy
International, Ltd. Executive Vice President,
independent directors.
and Procedures with Respect to
Director since 1999 Constellation Energy
Committee on Nuclear Power Related Person Transactions and
Edward A. Crooke John R. Collins
James R. Curtiss, Chairman Information Disclosure Policy
Retired Vice Chairman, Executive Vice President and
Edward A. Crooke are available on our Web site at
Constellation Energy Chief Financial Officer
Nancy Lampton www.constellation.com.
Director since 1988 Lynn M. Martin
Irving B. Yoskowitz
Interests Aligned with
John L. Skolds
James R. Curtiss, Esq. Executive Vice President and
Shareholders
All committee members are
Retired Partner, Winston & Strawn General Counsel
independent directors. We maintain guidelines requiring
Director since 1994
Paul J. Allen
our executives and directors
Nominating and
Dr. Freeman A. Hrabowski III Senior Vice President,
to acquire and maintain holdings
Corporate Governance Committee
President, University of Maryland Corporate Affairs and
of Constellation Energy stock to
Michael D. Sullivan, Chairman
Baltimore County Chief Environmental Officer
further align the interests of our
Douglas L. Becker
Director since 1994
Felix J. Dawson executives and directors with
Dr. Freeman A. Hrabowski III
Nancy Lampton Co-Chief Commercial Officer, the interests of our shareholders.
Robert J. Lawless
Chairman and CEO, Constellation Energy Resources
Lynn M. Martin
American Life and Accident Chairman,
All committee members are
Insurance Company of Kentucky Constellation Energy Partners
independent directors.
Director since 1994 Senior Vice President,
Constellation Energy
Robert J. Lawless
Chairman, Kenneth W. DeFontes, Jr.
McCormick & Company, Inc. President and CEO, BGE
Director since 2002 Senior Vice President,
Constellation Energy
Lynn M. Martin
President, Beth S. Perlman
The Martin Hall Group LLC Senior Vice President,
Director since 2003 Chief Administrative Officer and
Chief Information Officer
John L. Skolds
Retired Executive Vice President, George E. Persky
Exelon Corporation Co-Chief Commercial Officer,
Director since 2007 Constellation Energy Resources
Senior Vice President,
Michael D. Sullivan
Constellation Energy
Co-Founder and Chairman,
Life Source, Inc.
Director since 1992
18

21. Understanding Our Form 10 -K
One of our priorities at Constellation Energy is to provide you with clear, easy-to-read and easy-to-understand
information about our company. We want you to know what we do, how we do it and how we’re doing.
This special section is intended to be a guide, describing and summarizing some of the information contained
in our Form 10-K and providing page numbers where more details can be found. Our complete Form 10-K
follows this special section.
Breaking Down Our Form 10-K
Our Form 10-K has four parts:
Part I: In-depth descriptions of our businesses.
Part II: Our financial performance, the information in which investors are usually most interested.
Part III: Directs readers to other filings made with the Securities and Exchange Commission for details about our Board of Directors,
executive compensation, auditor fees, stock ownership information and other matters.
Part IV: A listing of financial statement schedules and exhibits.
Over the next several pages, we provide descriptions and summaries of some of the major topics included in Parts I and II.
Part I: Our Businesses
Part I of our Form 10-K provides details about our businesses:
Our merchant energy business
Our regulated utility—Baltimore Gas and Electric Company
Our other nonregulated businesses
Also included is information about our environmental matters, employees, properties and executive officers
Here’s Where You Look in Part I Highlights of What You’ll Find
Page(s) Item Section
2 1. Business Overview We have a merchant energy business and a regulated utility.
2 Operating Segments Our reportable operating segments are merchant energy, regulated electric and
regulated gas. We also have certain other nonregulated business activities.
3–10 Merchant Energy Our business
Business We provide energy products and services to wholesale and retail customers, including
distribution utilities, cooperatives, aggregators, and commercial, industrial and
governmental customers. We manage contractually controlled physical assets, including
generation facilities, natural gas properties and international coal and freight assets.
We generate electricity and we provide risk management services and trade energy and
energy-related commodities.
Fuel sources
Our electricity generated by fuel type in 2007: nuclear—61 percent; coal, gas and oil —
35 percent; renewable and alternative—four percent.
Our competition
We encounter competition from companies of various sizes with varying levels of experience
and financial and human resources and differing strategies.
Merchant energy business operating statistics for the last five years
The steady increases in revenues reflect the strong growth of our merchant energy business.
10–15 Baltimore Gas and Our business
Electric Company We’re an electric transmission and distribution utility and a natural gas distribution utility
with a service territory that includes the City of Baltimore and parts of Central Maryland.
Electric and gas operating statistics for the last five years
Revenues by type, distribution volumes to our customers and the number of customers.
15 Other Nonregulated We offer energy solutions to residential, commercial, industrial and
Businesses government customers.
Note: This special section is intended to be a guide. You can find more details about all these items in our Form 10-K, which follows this special section.
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