WBAL.com

WBAL News has learned that talks between O’Malley Administration officials and Constellation Energy to settle a pair of lawsuits, have led to an out of court settlement.

Governor Martin O’Malley is expected to announce details of the settlement, this afternoon.

Sources tell WBAL-TV that BGE customers will see short-term and long term rate relief under the settlement, which will have to be approved by the Maryland General Assembly.

Both the Baltimore Sun and Washington Post report this morning the deal includes a one time $170 rebate to customers.

Customers would also not pay as much for the decommissioning of the Calvert Cliffs nuclear plant, which is due to take place in 2034.

As WBAL News first reported last week, both parties confirmed they had been talking to settle lawsuits related to a 2006 law that requires the company give its 1.2-million BGE electric customers $3-monthly credits.

In January, the company issued a formal notice that it would sue the state, because it argued the 2006 law, which will cost the company $386-million, violates the U.S. Constitution.

The state filed its own lawsuit in Baltimore City Circuit Court last month, in response to the company’s notice.

The company formally filed its lawsuit in U.S. District Court earlier this month.

The private discussions, which included a meeting between Governor O’Malley and Constellation CEO Mayor Shattuck, have been taking place for the last two weeks.

News of the possible settlement comes one day after members of the Senate Finance Committee changed their mind , about using $130-million in energy conservation money to give BGE customers a $5 monthly credit on their bills.

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