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&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;Various factors can have a
significant impact on our results for interim periods. This means that the
results for this quarter are not necessarily indicative of future quarters or
full year results given the seasonality of our business. &lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT
size=2&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Our interim financial
statements on the previous pages reflect all adjustments that management
believes are necessary for the fair statement of the results of operations for
the interim periods presented. These adjustments are of a normal recurring
nature. &lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT
size=2&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;We have evaluated events
or transactions that occurred after June&amp;nbsp;30, 2009 for inclusion in these
financial statements through August&amp;nbsp;7, 2009, the date these financial
statements were issued. &lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT size=3&gt;&lt;B&gt;Basis of Presentation
&lt;/B&gt;&lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;This Quarterly Report on
Form&amp;nbsp;10-Q is a combined report of Constellation Energy Group,&amp;nbsp;Inc.
(Constellation Energy) and Baltimore Gas and Electric Company (BGE). References
in this report to "we" and "our" are to Constellation Energy and its
subsidiaries, collectively. References in this report to the "regulated
business(es)" are to BGE. &lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT size=3&gt;&lt;B&gt;Reclassifications &lt;/B&gt;&lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;We have reclassified certain
prior-period amounts: &lt;/FONT&gt;&lt;/P&gt;
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    &lt;DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;&amp;#149;&lt;/FONT&gt;
    &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;In accordance with Statement of
    Financial Accounting Standards (SFAS) No.&amp;nbsp;160, &lt;/FONT&gt;&lt;FONT
    size=2&gt;&lt;I&gt;Noncontrolling Interests in Consolidated Financial Statements, an
    amendment of ARB No.&amp;nbsp;51&lt;/I&gt;&lt;/FONT&gt;&lt;FONT size=2&gt;, which we adopted on
    January&amp;nbsp;1, 2009, we have separately presented: &lt;/FONT&gt;
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      &lt;DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;&amp;#149;&lt;/FONT&gt;

      &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;"Net income (loss)
      attributable to noncontrolling interests" on our, and BGE's, Consolidated
      Statements of Income (Loss), &lt;/FONT&gt;
      &lt;DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;&amp;#149;&lt;/FONT&gt;

      &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;"Noncontrolling interests" and
      "BGE Preference Stock Not Subject to Mandatory Redemption" as
      noncontrolling interests on our Consolidated Balance Sheets, &lt;/FONT&gt;
      &lt;DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;&amp;#149;&lt;/FONT&gt;

      &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;"Comprehensive income
      attributable to noncontrolling interests, net of taxes" in our Statements
      of Comprehensive Income (Loss), and &lt;/FONT&gt;
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      &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;"BGE preference stock
      dividends paid" in the financing section of our Consolidated Statements of
      Cash Flows. &lt;/FONT&gt;&lt;/DD&gt;&lt;/DL&gt;&lt;/DD&gt;&lt;/DL&gt;&lt;/UL&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT
size=2&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;We discuss our adoption
of SFAS No.&amp;nbsp;160 in more detail on page&amp;nbsp;41. &lt;/FONT&gt;&lt;/P&gt;
&lt;P style="FONT-FAMILY: times"&gt;&lt;FONT
size=2&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;We also made the
following reclassifications: &lt;/FONT&gt;&lt;/P&gt;
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    &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;We have separately presented
    "Amortization of nuclear fuel," "Amortization of energy contracts," and "All
    other amortization" that were previously reported within "Depreciation,
    depletion, and amortization" on our Consolidated Statements of Cash Flows.
    &lt;/FONT&gt;
    &lt;DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;&amp;#149;&lt;/FONT&gt;
    &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;We have separately presented
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    working capital accounts on our Consolidated Statements of Cash Flows.
    &lt;/FONT&gt;
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    &lt;DD style="FONT-FAMILY: times"&gt;&lt;FONT size=2&gt;We have separately presented
    "Other amortization" that was previously reported within "Depreciation and
    amortization" on BGE's Consolidated Statements of Cash Flows.
&lt;/FONT&gt;&lt;/DD&gt;&lt;/DL&gt;&lt;/UL&gt;&lt;/BODY&gt;&lt;/HTML&gt;
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