Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Taxes

Schedule disclosing components of income tax expense

Year Ended December 31,	2011			2010			2009
	(Dollar amounts in millions)
Income Taxes
Current
Federal	$	(56.0	)	$	(46.9	)	$	891.5
State		23.2			102.0			260.4
Current taxes charged to expense		(32.8	)		55.1			1,151.9
Deferred
Federal		(134.1	)		(521.4	)		1,474.5
State		(59.7	)		(194.9	)		372.5
Deferred taxes (credited) charged to expense		(193.8	)		(716.3	)		1,847.0
Investment tax credit adjustments		(4.3	)		(4.5	)		(12.1	)
Income taxes per Consolidated Statements of Income (Loss)	$	(230.9	)	$	(665.7	)	$	2,986.8

Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes

Reconciliation of Income Taxes Computed at Statutory Federal Rate to Total Income Taxes
(Loss) Income from continuing operations before income taxes	$	(537.7	)	$	(1,597.5	)	$	7,490.2
Statutory federal income tax rate		35	%		35	%		35	%
Income taxes computed at statutory federal rate		(188.2	)		(559.1	)		2,621.6
Increases (decreases) in income taxes due to
State income taxes, net of federal income tax benefit		(23.8	)		(60.4	)		411.0
Merger-related transaction costs		—			—			(79.3	)
Interest expense on mandatorily redeemable preferred stock		—			—			23.7
Qualified decommissioning impairment losses		—			—			3.1
Amortization of deferred investment tax credits		(4.3	)		(4.5	)		(12.1	)
Noncontrolling interest operating results		(7.1	)		(13.1	)		(16.4	)
Nondeductible international losses		—			—			19.2
Other		(7.5	)		(28.6	)		16.0
Total income taxes	$	(230.9	)	$	(665.7	)	$	2,986.8
Effective income tax rate		42.9	%		41.7	%		39.9	%

Schedule disclosing components of net deferred tax assets and liabilities

	Constellation Energy						BGE
At December 31,	2011			2010			2011			2010
	(In millions)
Deferred Income Taxes
Deferred tax liabilities
Net property, plant and equipment	$	2,020.4		$	1,768.3		$	1,220.1		$	1,152.3
Regulatory assets, net		282.6			256.8			282.6			256.8
Derivative assets and liabilities, net		(84.6	)		(34.1	)		—			—
Investment in CENG		604.5			1,044.3			—			—
Other		156.3			12.1			21.6			(80.0	)
Total deferred tax liabilities		2,979.2			3,047.4			1,524.3			1,329.1
Deferred tax assets
Defined benefit obligations		305.0			249.0			(93.1	)		(79.7	)
Financial investments and hedging instruments		217.6			111.4			—			—
Asset retirement obligations		10.9			10.9			—			—
Deferred investment tax credits		9.6			10.9			3.1			3.2
Other		263.0			118.9			71.1			20.6
Total deferred tax assets		806.1			501.1			(18.9	)		(55.9	)
Total deferred tax liability, net		2,173.1			2,546.3			1,543.2			1,385.0
Less: Current portion of deferred tax liability/(asset)		(132.0	)		56.5			59.0			30.1
Long-term portion of deferred tax liability, net	$	2,305.1		$	2,489.8		$	1,484.2		$	1,354.9

Schedule of change in unrecognized tax benefits

	2011			2010
	(In millions)
Total unrecognized tax benefits, January 1	$	239.8		$	312.5
Increases in tax positions related to the current year		3.1			5.9
Increases in tax positions related to prior years		29.6			26.0
Reductions in tax positions related to prior years		(90.6	)		(104.0	)
Reductions in tax positions as a result of a lapse of the applicable statute of limitations		(0.8	)		(0.6	)
Total unrecognized tax benefits, December 31 (1)	$	181.1		$	239.8

(1)

BGE's portion of our total unrecognized tax benefits at December 31, 2011 and 2010 was $11.4 million and $72.9 million, respectively.

Schedule of interest and penalties recorded as tax expense (benefit) relating to liabilities for unrecognized tax benefits

	For the Year Ended December 31,
	2011		2010			2009
	(In millions)
Interest and penalties recorded as tax expense (benefit)	$	6.1	$	(6.3	)	$	12.8