1. BGE Smart Grid Initiative Stakeholder Meeting September 17, 2009 Wayne Harbaugh, Vice President, Pricing and Regulatory Services

2. BGE®, A Constellation Energy Company Rebates paid for reducing usage during peak periods – customers saved more than $100 on average during the 2008 pilot Peak Time Rebates funded via PJM capacity and energy revenues Significant opportunities for conserving energy and reducing bills throughout the year by empowered consumers Downward pressure on capacity and energy prices due to lower demand Reduced transmission and distribution capital expenditures Operational savings in meter reading and other functions Peak demand reductions projected to exceed 500 MW Offsets the need to build expensive new generation units Improved performance in BGE PeakRewards SM program via two-way communications network and verification of premise level and system load reductions 2 Smart Grid Initiative Offers Significant Customer Benefits Reliability Lower Energy Bills

3. BGE®, A Constellation Energy Company Automated metering virtually eliminates estimated bills No longer need to visit customers homes to manually read meters Ability to produce on-demand meter reads for starting / stopping service Automated outage notification and energized meter verification, leading to faster response and restoration times Customers receive enhanced information about their energy usage and cost Reduced carbon and other emissions Reduced need for new power plants An infrastructure which can support growing demand for renewable energy resources Supports the emergence of electric vehicles and PHEV’s, allowing for off-peak charging at reduced rates and minimizing the impact on peak demand growth 3 Smart Grid Initiative Offers Significant Customer Benefits Environmental Enhanced Service

4. BGE®, A Constellation Energy Company Total peak demand reduction of 1,750 MW from all programs Potential to improve efficiency of energy delivery and reduce line losses through voltage and power factor optimization A realistic opportunity to achieve the EmPOWER Maryland goals 4 Smart Grid Initiative Offers Significant Customer Benefits Resource Conservation

5. BGE®, A Constellation Energy Company Customer Savings are the Greatest Benefit of Smart Grid 5 Life-cycle savings projected to exceed $2.6 billion – several times greater than project costs Business Case Designed Conservatively Benefits excluded from the business case:  Potential conservation savings in excess of 1%  Value of reduced carbon emissions  Efficiency gains via voltage optimization, reduction in line losses of power delivery  Benefits from PeakRewards SM optimization  Reduced Theft of Energy costs  Additionally, demand reductions were conservatively projected at 30% less than pilot Many of the savings categories apply equally to participating and non- participating customers