8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 6, 2006

1-12869	CONSTELLATION ENERGY GROUP, INC.	52-1964611
(Commission File Number)	(Exact name of Registrant as specified in its charter)	(IRS Employer Identification No.)

Maryland

(State or other jurisdiction of incorporation of Registrants)

750 E. Pratt Street

Baltimore, Maryland 21202

(Address of principal executive offices, including zip code, of Registrants)

410-783-2800

(Registrants’ telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events

On June 6, 2006, Constellation issued a press release announcing that it has engaged advisors to explore the sale of 3,145 MW natural gas-fired generating plants. A copy of the press release is attached and furnished (but not filed) as Exhibit 99.1 to this report and is incorporated herein by reference.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION. We make statements in the attached press release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other important factors that could cause actual performance or achievements to be materially different from those we project. Such forward-looking statements include those regarding (1) expectations that any sale, if completed, will enhance capital returns, (2) whether proceeds from the sale will allow the Company to attain targeted leverage levels, (3) the use of proceeds from any sale (or of free cash flow) for any particular purpose and (4) the effect of any sale, and the use of any proceeds therefrom, on future earnings per share. There is no assurance that we will be able to complete the sale discussed in the attached press release. For a full discussion of risks, uncertainties, and other important factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our Form 10-K under the forward-looking statements section. Except as required by law, we do not  intend to update  or  revise  any  forward-looking statements, whether as a result of new information, future events, or otherwise.

Item 9.01. Financial Statements and Exhibits

(d)           Exhibits

Exhibit No.	Description
99.1	Press Release, dated June 6, 2006

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		CONSTELLATION ENERGY GROUP, INC.
Dated:	June 6, 2006	By:	/s/ Charles A. Berardesco
			Charles A. Berardesco
			Corporate Secretary

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EX-99.1

Exhibit 99.1

News Release

Media Line: 410 234-7433www.constellation.com

Constellation Energy Generation Group
Constellation Energy Commodities Group
Company Constellation Energy Control & Dispatch Group
Constellation Energy Projects & Services Group Constellation NewEnergy
Baltimore Gas and Electric
BGE HOME
Fellon-McCord & Associates

Media Contact:	Robert L. Gould
410 234-7433
Investor Contact:	Kevin Hadlock
410 783-3647

Constellation Energy to Explore Sale of Gas-Fired Generation Plants

BALTIMORE, June 6, 2006 - Constellation Energy (NYSE: CEG) today announced that it has engaged advisors to explore the sale of 3,145 MW natural gas-fired generating plants. The generating assets include the company’s High Desert, Rio Nogales, Holland, University Park, Big Sandy and Wolf Hills plants. These merchant assets are located in California, Texas, Illinois, West Virginia and Virginia, respectively. Of these assets, the High Desert plant in Victorville, California currently has a tolling contract with the California Department of Water Resources that expires in 2011.

“Physical assets have been and will continue to be at the core of our overall business strategy,” said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy. “However, in the current market environment our gas-fired assets offer fewer synergies to our competitive supply portfolios, than our base load coal and nuclear assets.”

“Our employees have been able to optimize the performance of these assets, and with gas-fired assets trading at attractive values and a limited supply of plants of this caliber available for sale, we believe it to be an appropriate time for Constellation Energy to consider the divestiture of these assets,” Shattuck said. “We have a broad array of investment opportunities available and if an attractive value can be realized from this effort, we would look to redeploy this capital in investments more closely aligned with our strategy.”

Constellation Energy believes this effort in the aggregate will enhance capital returns. Consistent with the company’s prior practice, proceeds will be applied to debt reduction. Based on the company’s estimate of the market value of the plants,

Constellation Energy should be at its target leverage ratios upon completion of the divestiture. After the sale is complete, 2007 free cash flow would then be fully available for reinvestment in the business or for the repurchase of shares. In total, we expect the sale of plants, earlier attainment of targeted leverage levels, and availability to begin to fully reinvest free cash flow in the business, to be modestly dilutive in 2007 and accretive in 2008. If market conditions remain favorable, the company expects the transaction to be concluded in 2006.

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.

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