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&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="3"&gt;&lt;b&gt;Basis of
Presentation&lt;br /&gt;&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="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;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
September&amp;nbsp;30, 2009 for inclusion in these financial statements
through November&amp;nbsp;6, 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;Reclassifications&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;In accordance with the
requirements for the presentation of noncontrolling interests,
which were effective on January&amp;nbsp;1, 2009 (see page&amp;nbsp;41 for
more details), we have separately presented:&lt;/font&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li style="list-style: none"&gt;
&lt;dl compact="compact"&gt;
&lt;dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;#149;&lt;/font&gt;&lt;/dt&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;/dd&gt;
&lt;dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;#149;&lt;/font&gt;&lt;/dt&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;/dd&gt;
&lt;dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;#149;&lt;/font&gt;&lt;/dt&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;&lt;/dd&gt;
&lt;dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;#149;&lt;/font&gt;&lt;/dt&gt;
&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;/li&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
also made the following reclassifications:&lt;/font&gt;&lt;/p&gt;
&lt;ul&gt;
&lt;li style="list-style: none"&gt;
&lt;dl compact="compact"&gt;
&lt;dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;#149;&lt;/font&gt;&lt;/dt&gt;
&lt;dd style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;We have separately
presented "Income taxes receivable (net)" that were previously
reported within "Other current assets" on BGE's Consolidated
Balance Sheets.&lt;/font&gt;&lt;/dd&gt;
&lt;dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"&gt;
&lt;font size="2"&gt;&amp;#149;&lt;/font&gt;&lt;/dt&gt;
&lt;dd style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;We have also
separately presented "Liability for uncertain tax positions" that
was previously reported within "Other long-term liabilities" on
BGE's Consolidated Balance
Sheets.&lt;/font&gt;&lt;/dd&gt;&lt;/dl&gt;&lt;/li&gt;&lt;/ul&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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This Quarterly Report
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