SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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): December 30, 1996




                       BALTIMORE GAS AND ELECTRIC COMPANY
             (Exact name of registrant as specified in its charter)




                 Maryland              1-1910            52-0280210
        (State of incorporation)    (Commission         (IRS Employer
                                    File Number)      Identification No.)




           39 W. Lexington Street Baltimore, Maryland      21201
            (Address of principal executive offices)    (Zip Code)




                                  410-783-5920
              (Registrant's telephone number, including area code)




                                 Not Applicable
         (Former name, former address and former fiscal year, if changed
                               since last report)



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ITEM 5.  Other Events
- ---------------------

Charge to Earnings for Settlement of Fuel Rate Proceedings  about Calvert Cliffs
- --------------------------------------------------------------------------------
Nuclear Power Plant Extended Outage
- -----------------------------------

As reported in our 1995 Annual Report on Form 10-K,  during 1989 through 1991 we
experienced  extended  outages at our Calvert  Cliffs  Nuclear Power Plant.  The
replacement energy costs associated with these extended outages are estimated to
be $458 million. The extended outages have been the subject of ongoing fuel rate
proceedings  before the Maryland  Public  Service  Commission  (PSC) for several
years.

On December 30,  1996,  we entered into a  settlement  agreement  with  People's
Counsel (the advocates for residential ratepayers) and the PSC Staff proposing a
resolution to these fuel rate  proceedings.  We agreed that  ratepayers will not
fund a total of $118 million of deferred electric fuel costs associated with the
extended  outages.  This  represents  $83 million in addition to the $35 million
reserve for possible  disallowance  of  replacement  energy costs we recorded in
1990. Under the accounting  rules, the agreement results in a charge to earnings
in the fourth  quarter of 1996  totaling $58 million  after tax, or 39 cents per
share.  Technically,  the  accounting  entries are as follows:  we will record a
reserve to write off $83 million of deferred electric fuel costs (in addition to
the previous  $35 million  reserve).  Additionally,  we will record a reserve to
write off $5.5 million of accrued  carrying charges related to the deferred fuel
balances.
                                
                                
  


                                    SIGNATURE

     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 thereunto duly authorized.

                                              BALTIMORE GAS AND ELECTRIC COMPANY
                                                        (Registrant)


Date  December 30, 1996                                 /s/    C.W. Shivery
                                                 C. W. Shivery, Vice President
                                                on behalf of the Registrant and
                                                 as Principal Financial Officer



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