Investment in Constellation Energy Nuclear Group, LLC (CENG)

9 Months Ended

Sep. 30, 2011

Investment in Constellation Energy Nuclear Group, LLC (CENG)

Investment in Constellation Energy Nuclear Group, LLC (CENG)

Investment in Constellation Energy Nuclear Group, LLC (CENG)

We own a 50.01% interest in CENG, a nuclear generation and operation business. Our total equity in earnings of our investment in CENG is as follows:

	Quarter Ended September 30,						Nine Months Ended September 30,

	2011			2010			2011			2010

	(In millions)
CENG	$	79.4		$	95.1		$	107.1		$	158.7
Amortization of basis difference in CENG		(43.7	)		(52.4	)		(112.9	)		(156.6	)

Total equity investment earnings (losses)—CENG¹	$	35.7		$	42.7		$	(5.8	)	$	2.1

1 For the quarters ended September 30, 2011 and 2010, total equity investment earnings in CENG include $0.2 million and $0.5 million, respectively, of expense related to the portion of cost of certain share-based awards that we fund on behalf of EDF Group and affiliates (EDF). For the nine months ended September 30, 2011 and 2010, total equity investment (losses) earnings in CENG include $1.0 million and $2.1 million, respectively, of expense related to the portion of cost of certain share-based awards that we fund on behalf of EDF.

The basis difference is the difference between the carrying amount of our investment in CENG and our share of the underlying equity in CENG, because the underlying assets of CENG were retained at their historical carrying value. See Note 2 to our 2010 Annual Report on Form 10-K for a more detailed discussion.

Summarized income statement information for CENG for the quarters and nine months ended September 30, 2011 and 2010 is as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,

	2011		2010		2011		2010

	(In millions)
Revenues	$	438.0	$	456.2	$	1,151.1	$	1,193.2
Expenses		283.0		276.2		958.2		902.5
Income from operations		155.0		180.0		192.9		290.7
Net income		159.1		191.1		216.2		321.5

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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