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&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="3"&gt;&lt;b&gt;Earnings Per
Share&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;Basic earnings per
common share (EPS) is computed by dividing net income (loss)
attributable to common stock by the weighted-average number of
common shares outstanding for the period. Diluted EPS reflects the
potential dilution of common stock equivalent shares that could
occur if securities or other contracts to issue common stock were
exercised or converted into common stock.&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
dilutive common stock equivalent shares consist of stock options
and other stock-based compensation awards. The following table
presents stock options that were not dilutive and were excluded
from the computation of diluted EPS in each period, as well as the
dilutive common stock equivalent shares:&lt;/font&gt;&lt;/p&gt;
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&lt;td style="FONT-FAMILY: times" width="27"&gt;&lt;/td&gt;
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&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
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&lt;font size="2"&gt;&lt;b&gt;Quarter Ended&lt;br /&gt;
September&amp;nbsp;30,&lt;/b&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;
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&lt;font size="2"&gt;&lt;b&gt;Nine&amp;nbsp;Months&lt;br /&gt;
Ended&lt;br /&gt;
September&amp;nbsp;30,&lt;/b&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;&lt;/tr&gt;
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&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;
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&lt;font size="2"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;
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&lt;font size="2"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;
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&lt;font size="2"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;
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&lt;font size="2"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;&lt;/tr&gt;
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&lt;th style="FONT-FAMILY: times" align="left"&gt;
&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/th&gt;
&lt;th style="FONT-FAMILY: times" align="center" colspan="11"&gt;
&lt;font size="2"&gt;&lt;i&gt;(In millions)&lt;/i&gt;&lt;/font&gt;&lt;br /&gt;&lt;/th&gt;
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&lt;font size="2"&gt;Non-dilutive stock options&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;
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&lt;font size="2"&gt;&lt;b&gt;4.7&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
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&lt;font size="2"&gt;2.6&lt;/font&gt;&lt;/td&gt;
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&lt;font size="2"&gt;1.5&lt;/font&gt;&lt;/td&gt;
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&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
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&lt;font size="2"&gt;Dilutive common stock equivalent
shares&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;
&lt;td style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;
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&lt;font size="2"&gt;1.7&lt;/font&gt;&lt;/td&gt;
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&lt;font size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
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&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&lt;i&gt;As a result of the
Company incurring a loss for the three months ended
September&amp;nbsp;30, 2008, dilutive common stock equivalent shares
were not included in calculating diluted EPS.&lt;/i&gt;&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
issued to MidAmerican 19,897,322 shares of Constellation Energy's
common stock upon the conversion of the Series&amp;nbsp;A Preferred
Stock, which occurred upon the termination of the merger agreement
with MidAmerican on December&amp;nbsp;17, 2008. We discuss the
conversion feature of the Series&amp;nbsp;A Preferred Stock in more
detail in&lt;/font&gt; &lt;font size="2"&gt;&lt;i&gt;Note&amp;nbsp;9&lt;/i&gt;&lt;/font&gt;
&lt;font size="2"&gt;of our 2008&amp;nbsp;Annual Report on Form&amp;nbsp;10-K.
These additional shares impacted our earnings per share for the
quarter and nine months ended September&amp;nbsp;30,
2009.&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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Basic earnings per
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