Constellation refocuses

Loss-making firm Constellation Energy looks to restructure and focus on power generation after rejecting a merger deal with MidAmerican

Constellation Energy Group plans to restructure to focus on generating and selling power, after announcing fourth-quarter losses of $1.4 billion.

Constellation listed merger termination and strategic alternative costs of $1.2bn in its 2008 annual results, after it rejected a merger deal with MidAmerican Energy. The merger was originally agreed in September 2008 to assuage credit concerns over Constellation's exposure to liquidity risk. Instead, Constellation sold a 49.99% stake in its nuclear operations to EDF in December.

To further reduce exposures, Constellation sold its London-based international commodities unit and its downstream gas trading platform in Houston. It will continue to scale back its energy trading activities, with use primarily limited to hedging its generation assets and customer supply business.

Constellation said it will now focus on owning and operating generation assets, selling energy to wholesale and retail customers and providing a regulated utility service to Baltimore Gas and Electric customers.