Wall Street is keeping a close eye on State Circle today as the General Assembly continues to work through a bill that would finalize a proposed settlement between the state and Constellation Energy Group Inc.
The deal is in trouble because the Senate’s version of the bill includes requirements for new power plants in Maryland to be regulated by the Public Service Commission. The Senate gave final passage to its version of the bill Friday morning, but must still agree with the House on a bill to send to Gov. O’Malley.
Constellation is distributing copies of analyst research Friday morning, and from what I’ve seen, investors don’t like the look of the move by the Senate.
“The amendment, if passed by the full legislature, would kill the deal. It would also put power plant investments planned in the state by CEG (a new nuclear plant at Calvert Cliffs) and others in doubt, worsening the supply/demand backdrop,” Citigroup Global Markets wrote in a research note issued Friday.
