The blame game, finger-pointing and the question of what?s next began to surface as word spread that Baltimore-based Constellation Energy Group and Florida-based FPL Group called off their planned merger.
Republican Gov. Robert Ehrlich laid blame on the Democrat-controlled Maryland General Assembly for the deal?s demise.
“When you’re creating an unstable regulatory environment like the General Assembly did it makes a lot of people leery of doing business in the state,” Ehrlich said.
“In 20/20 hindsight, it was set up to fail,” said Anirban Basu, chief executive officer of the Sage Policy Group, a Baltimore-based policy and economic consulting firm.
“The merger got wrapped up in the [Baltimore Gas and Electric 72 percent]] rate hike in people?s minds. They became part and parcel in the same thing.”
But he added that there was rose amongst the thorn in the news.
“In the short term, there is a bit of good news. We in the Baltimore area have come to treasure those corporate headquarters that are left in the city.”
But he added: “One of my hopes is that policy makers ? at least after the [November general] election ? will try to create an environment that is positive for business.”
Constellation Energy spokesman Robert Gould said the utility firm will “continue to run our business. We will be an even stronger company that we were a year ago.”
And consumer groups continued to praise the deal?s death because of the uncertainty of FPL?s control over Constellation?s headquarters and power generation from a merger.
“Now, we know our generating capacity will stay under local control and regulate the rate structure will stay in Maryland,” said Johanna Neuman, policy advocate for Maryland Public Interest Research Group.
