Guarantees

9 Months Ended

Sep. 30, 2011

Guarantees

Guarantees

Guarantees

Our guarantees do not represent incremental Constellation Energy obligations; rather they primarily represent parental guarantees of subsidiary obligations. The following table summarizes the maximum exposure by guarantor based on the stated limit of our outstanding guarantees:

At September 30, 2011	Stated Limit
	(In billions)
Constellation Energy guarantees	$	9.1
BGE guarantees		0.3
Total guarantees	$	9.4

        At September 30, 2011, Constellation Energy had a total of $9.4 billion in guarantees outstanding related to loans, credit facilities, and contractual performance of certain of its subsidiaries as described below.

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  Constellation Energy guaranteed a face amount of $9.1 billion as follows:

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    $8.6 billion on behalf of our Generation and NewEnergy businesses to allow them the flexibility needed to conduct business with counterparties without having to post other forms of collateral. Our estimated net exposure for obligations under commercial transactions covered by these guarantees was approximately $1 billion at September 30, 2011, which represents the total amount the parent company could be required to fund based on September 30, 2011 market prices. For those guarantees related to our derivative liabilities, the fair value of the obligation is recorded in our Consolidated Balance Sheets.

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    $0.5 billion primarily on behalf of CENG's nuclear generating facilities for nuclear insurance and credit support to ensure these plants have funds to meet expenses and obligations to safely operate and maintain the plants. We recorded the fair value of $11.1 million for these guarantees on our Consolidated Balance Sheets.

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BGE guaranteed the Trust Preferred Securities of $250.0 million of BGE Capital Trust II.