By Baltimore Business Journal

Add the Sparrows Point steel mill to the list of parties seeking more out of a proposed merger between Constellation Energy Group Inc. and Exelon Corp.

RG Steel Sparrows Point LLC had already asked the companies for a $1.2 million bill credit, since they proposed giving residential customers $100 apiece in bill credits. The companies countered with an offer of up to $20,000 for use toward energy efficiency upgrades. But Sparrows Point wasnâ¿¿t pleased with that response.

Thatâ¿¿s because the steel mill spends about $20,000 every day on gas and electric service, RG Steel consultant Nicholas Phillips Jr. said in testimony filed Wednesday with the Maryland Public Service Commission. On top of that, energy upgrades would cost significantly more than $20,000, he said â¿¿ replacing lights in the millâ¿¿s main office building would cost $220,000, for example, he said.

Sparrows Point joins officials from the Maryland Office of Peopleâ¿¿s Counsel and Maryland Energy Administration in opposition to benefits Chicago-based Exelon (NYSE: EXC) and Baltimore-based Constellation (NYSE: CEG) are offering to Maryland as part of their proposed $7.9 billion merger deal. The companies have been reluctant to add to a $250 million package of investment in Maryland, including the residential bill credits, development of 25 megawatts of renewable energy generation in Maryland, and construction or renovation of a new Constellation headquarters in Baltimore.

The Public Service Commission will hold hearings on the merger, and whether it will benefit or harm customers of Constellation subsidiary Baltimore Gas and Electric Co., starting Oct. 31.

Copyright 2011 American City Business Journals

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