RS-11-167, Final Effective Joint Proxy Statement/Prospectus Relating to Application for Approval of Indirect Transfer of Control of Licenses

Final Effective Joint Proxy Statement/Prospectus Relating to Application for Approval of Indirect Transfer of Control of Licenses

ML11305A027
Person / Time
Site:	Calvert Cliffs, Nine Mile Point, Ginna
Issue date:	10/11/2011
From:	Rowe J W, Shattuck M A Constellation Energy Group, Exelon Corp
To:	Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
RS-11-167
Download: ML11305A027 (312)

Text

MERGERPROPOSEDYOURVOTEISVERYIMPORTANT

DearShareholders:

TheboardofdirectorsofExelonCorporation,whichwerefertoasExelon,andtheboardofdirectorsofConstellationEnergyGroup,Inc.,whichwerefertoasConstellation,haveagreedtoanall-stockmergerof ExelonandConstellationunderthetermsoftheAgreementandPlanofMerger,datedasofApril28,2011, whichwerefertoasthemergeragreement.Ifwecompletethemerger,BoltAcquisitionCorporation,awholly-ownedsubsidiaryofExelon,willmergewithandintoConstellationandConstellationwillbecomeawholly-ownedsubsidiaryofExelon.Inthemerger,Constellationstockholderswillhavetherighttoreceive0.930sharesofExeloncommonstock,noparvaluepershare,foreachshareofConstellationcommonstock,withoutparvalue,outstandingatthe timeofthemerger,withcashtobepaidinlieuofanyfractionalshares.Basedonthenumberofsharesof commonstockofExelonandConstellationoutstandingonOctober7,2011,therecorddateforthetwo companiesspecialmeetingsofshareholders,Exelonexpectstoissueorreserveforissuanceapproximately 196.8millionsharesofExeloncommonstockinconnectionwiththemerger(includingsharesofExelon commonstockissuabletoConstellationstockholdersandsharesissuablepursuanttoConstellationstockoptions andotherequity-basedawards).Basedonthesenumbers,uponthecompletionofthemerger,Exelon shareholdersandformerConstellationstockholderswouldownapproximately78%and22%oftheoutstanding sharesofExeloncommonstock,respectively,immediatelyfollowingtheconsummationofthemerger.Sharesof ExeloncommonstockwillbelistedontheNewYorkStockExchange.ExelonandConstellationwilleachholdaspecialmeetingofshareholderstoconsidertheproposedmerger.WecannotcompletethemergerunlesstheshareholdersofbothExelonandConstellationapprovetherespective proposalsrelatedtothemerger.Yourvoteisveryimportant,regardlessofthenumberofsharesyouown.

Whetherornotyouexpecttoattendyourcompanysspecialmeetinginperson,pleasevoteyoursharesas promptlyaspossibleby(1)accessingtheInternetwebsitespecifiedonyourproxycard,(2)callingthetoll-freenumberspecifiedonyourproxycardor(3)signingallproxycardsthatyoureceiveandreturning theminthepostage-paidenvelopesprovided,sothatyoursharesmayberepresentedandvotedatthe ExelonorConstellationspecialmeeting,asapplicable.Youmayrevokeyourproxyatanytimebeforethe voteatthespecialmeetingbyfollowingtheproceduresoutlinedintheaccompanyingjointproxy

statement/prospectus.WelookforwardtothesuccessfulcombinationofExelonandConstellation.Sincerely,Sincerely,JohnW.RoweChairmanandChiefExecutiveOfficer ExelonCorporationMayoA.ShattuckIII Chairman,PresidentandChiefExecutiveOfficer ConstellationEnergyGroup,Inc.TheobligationsofExelonandConstellationtocompletethemergeraresubjecttothesatisfactionorwaiverofseveralconditionssetforthinthemergeragreement.MoreinformationaboutExelon,Constellation,the specialmeetings,themergeragreementandthemergeriscontainedinthisjointproxystatement/prospectus.

ExelonandConstellationencourageyoutoreadtheentirejointproxystatement/prospectuscarefully, includingthesectionentitledRiskFactorsbeginningonpage24.

NeithertheSecuritiesandExchangeCommissionnoranystatesecuritiescommissionhasapprovedordisapprovedthemergerandothertransactionsdescribedinthisjointproxystatement/prospectus,nor havetheyapprovedordisapprovedtheissuanceoftheExeloncommonstockinconnectionwiththe merger,ordeterminedifthisjointproxystatement/prospectusisaccurateorcomplete.Anyrepresentation tothecontraryisacriminaloffense.Thisjointproxystatement/prospectusisdatedOctober11,2011,andisfirstbeingmailedtotheshareholdersofExelonandConstellationonoraboutOctober12,2011.

EXELONCORPORATIONNOTICEOFSPECIALMEETINGOFSHAREHOLDERSTOBEHELDONNOVEMBER17,2011TotheShareholdersofExelon:WewillholdaspecialmeetingoftheshareholdersofExelononNovember17,2011at9:00a.m.,Centraltime,inChaseAuditoriumatChaseTower,10South

DearbornStreet,

Chicago,Illinois,toconsiderandvote

upon:(i)aproposaltoapprovetheissuanceofExeloncommonstock,withoutparvalue,toConstellationstockholdersinconnectionwiththemergercontemplatedbythemergeragreement,acopyofwhichis includedasAnnexAtothisjointproxystatement/prospectus,whichwerefertoastheshareissuance proposal;and(ii)aproposaltoadjournthespecialmeetingoftheshareholdersofExelon,ifnecessary,tosolicitadditionalproxiesiftherearenotsufficientvotestoapprovetheproposalabove,whichwerefertoin thisjointproxystatement/prospectusastheExelonadjournmentproposal.Wedonotexpecttotransactanyotherbusinessatthespecialmeeting.

OnlyholdersofrecordofsharesofExeloncommonstockatthecloseofbusinessonOctober7,2011,therecorddateforthespecialmeeting,areentitledtonoticeof,andtovoteat,thespecialmeetingandany adjournmentsorpostponementsofthespecialmeeting.Alistoftheseshareholderswillbeavailablefor inspectionbyanyExelonshareholder,foranypurposegermanetotheExelonspecialmeeting,atsuchmeeting.Wecannotcompletethemergerdescribedinthisjointproxystatement/prospectusunlesswereceivetheaffirmativevoteofatleastamajorityofthevotescastatthespecialmeetingontheshareissuanceproposalby holdersofsharesofExeloncommonstockpresentinpersonorbyproxyandentitledtovoteontheproposal,so longasthetotalvotecastontheproposalrepresentsatleastamajorityofthesharesofExeloncommonstock entitledtovoteontheproposal,assumingaquorumispresent.TheExelonboardofdirectorsunanimouslyrecommendsthattheExelonshareholdersvoteFORtheshareissuanceproposalandtheExelonadjournmentproposal.ForadiscussionofinterestsofExelons directorsandexecutiveofficersinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsof Exelonsshareholdersgenerally,seedisclosureincludedinthisjointproxy/statementprospectusunderthe headingTheMergerAdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMerger.

WhetherornotyouexpecttoattendtheExelonspecialmeetinginperson,pleaseauthorizeaproxytovote yoursharesaspromptlyaspossibleby(1)accessingtheInternetwebsitespecifiedonyourproxycard, (2)callingthetoll-freenumberspecifiedonyourproxycardor(3)signingallproxycardsthatyoureceive andreturningtheminthepostage-paidenvelopesprovided,sothatyoursharesmayberepresentedand votedattheExelonspecialmeeting.Ifyoursharesareheldinthenameofabank,brokerorotherfiduciary,pleasefollowtheinstructionsonthevotinginstructionformfurnishedbytherecordholder.ByOrderoftheBoardofDirectors,BruceG.WilsonSeniorVicePresident,DeputyGeneral CounselandCorporateSecretaryChicago,Illinois October11,2011 IMPORTANTWhetherornotyouplantoattendthemeeting,weurgeyoutovoteyoursharesovertheInternetorviathetoll-freetelephonenumber,aswedescribeinthisjointproxystatement/prospectus.Asanalternative,ifyou receivedapapercopyoftheproxycardbymail,youmaysign,dateandmailtheproxycardintheenvelope provided.NopostageisnecessaryifmailedintheUnitedStates.VotingovertheInternet,viathetoll-free telephonenumberormailingaproxycardwillnotlimityourrighttovoteinpersonortoattendthespecial

meeting.

CONSTELLATIONENERGYGROUP,INC.NOTICEOFSPECIALMEETINGOFSTOCKHOLDERSTOBEHELDONNOVEMBER17,2011TotheStockholdersofConstellation:WewillholdaspecialmeetingofthestockholdersofConstellationonNovember17,2011at9:00a.m.,Easterntime,attheofficesofKirkland&EllisLLP,locatedat601LexingtonAvenue,50 thfloor,NewYork,NewYork,toconsiderandvoteupon:(i)aproposaltoapprovethemergeronsubstantiallythetermssetforthinthemergeragreement,acopyofwhichisincludedasAnnexAtothisjointproxystatement/prospectus,whichwerefertoasthemerger

proposal;(ii)anon-binding,advisoryproposaltoapprovethecompensationthatmaybecomepayabletoConstellationsnamedexecutiveofficersinconnectionwiththecompletionoftheproposedmerger, whichwerefertointhisjointproxystatement/prospectusasthecompensationproposal;and(iii)aproposaltoadjournthespecialmeetingofthestockholdersofConstellation,ifnecessary,tosolicitadditionalproxiesiftherearenotsufficientvotestoapprovethemergerproposal,whichwerefertoin thisjointproxystatement/prospectusastheConstellationadjournmentproposal.Wedonotexpecttotransactanyotherbusinessatthespecialmeeting.

OnlyholdersofrecordofsharesofConstellationcommonstockatthecloseofbusinessonOctober7,2011,therecorddateforthespecialmeeting,areentitledtonoticeof,andtovoteat,thespecialmeetingandany adjournmentsorpostponementsofthespecialmeeting.Wecannotcompletethemergerdescribedinthisjointproxystatement/prospectusunlesswereceivetheaffirmativevoteofamajorityofallthevotesentitledtobecastbyholdersoftheoutstandingsharesof ConstellationcommonstockontherecorddatefortheConstellationspecialmeeting.TheConstellationboardofdirectorsunanimouslyrecommendsthattheConstellationstockholdersvoteFOReachofthemergerproposal,thecompensationproposalandtheConstellationadjournment proposal.ForadiscussionofinterestsofConstellationsdirectorsandexecutiveofficersinthemergerthat maybedifferentfrom,orinadditionto,theinterestsofConstellationsstockholdersgenerally,seedisclosure includedinthisjointproxy/statementprospectusundertheheadingTheMergerAdditionalInterestsof ConstellationExecutiveOfficersandDirectorsintheMerger.Whetherornotyouexpecttoattendthe Constellationspecialmeetinginperson,pleaseauthorizeaproxytovoteyoursharesaspromptlyaspossible by(1)accessingtheInternetwebsitespecifiedonyourproxycard,(2)callingthetoll-freenumberspecified onyourproxycardor(3)signingallproxycardsthatyoureceiveandreturningtheminthepostage-paid envelopesprovided,sothatyoursharesmayberepresentedandvotedattheConstellationspecialmeeting.

Internetandtelephonevotingisavailable24hoursaday.Ifyoursharesareheldinthenameofabank,brokeror otherfiduciary,pleasefollowtheinstructionsonthevotinginstructionformfurnishedbytherecordholder.ByOrderoftheBoardofDirectors,CharlesA.BerardescoSeniorVicePresident,GeneralCounsel andCorporateSecretaryBaltimore,Maryland October11,2011 IMPORTANTWhetherornotyouplantoattendthemeeting,weurgeyoutovoteyoursharesovertheInternetorviathetoll-freetelephonenumber,aswedescribeinthisjointproxystatement/prospectus.Asanalternative,ifyou receivedapapercopyoftheproxycardbymail,youmaysign,dateandmailtheproxycardintheenvelope provided.NopostageisnecessaryifmailedintheUnitedStates.VotingovertheInternet,viathetoll-free telephonenumberormailingaproxycardwillnotlimityourrighttovoteinpersonortoattendthespecial

meeting.

REFERENCESTOADDITIONALINFORMATIONThisjointproxystatement/prospectusincorporatesimportantbusinessandfinancialinformationaboutExelonandConstellationfromotherdocumentsthatwehavenotincludedinordeliveredwiththisjointproxy statement/prospectus.ThisinformationisavailableforyoutoreadandcopyattheSecuritiesandExchange Commissions,ortheSEC,PublicReferenceRoomlocatedat100FStreet,N.E.,Washington,DC20549,and throughtheSECswebsite,www.sec.gov.Youcanalsoobtainthosedocumentsincorporatedbyreferenceinto thisjointproxystatement/prospectusfreeofchargebyrequestingtheminwritingorbytelephonefromthe appropriatecompanyatthefollowingaddressesandtelephonenumbers:ExelonCorporationshareholdersshouldcontactConstellationEnergyGroup,Inc.stockholdersshouldcontactMacKenziePartners,Inc.105MadisonAvenueNewYork,NewYork10016Calltollfree:(800)322-2885orcallcollect:(212)929-5500Email:proxy@mackenziepartners.comInnisfreeM&AIncorporated501MadisonAvenue,20 th FloorNewYork,NewYork10022Stockholderscalltoll-free:(877)800-5182Banksandbrokerscallcollect:(212)750-5833InvestorsmayalsoconsultExelonsorConstellationswebsitesformoreinformationconcerningthemergerdescribedinthisjointproxystatement/prospectus.Exelonswebsiteiswww.exeloncorp.com.Constellations websiteiswww.constellation.com.Informationincludedonthesewebsitesisnotincorporatedbyreferenceinto thisjointproxystatement/prospectus.Ifyouwouldliketorequestdocuments,pleasedosobyNovember9,2011inordertoreceivethembeforethespecialmeetings.Formoreinformation,seeWhereYouCanFindMoreInformationbeginningonpage197.VOTINGINSTRUCTIONSExelonshareholdersofrecordmayattendthemeetinginpersonandvoteormayauthorizeaproxytovoteas follows: Internet.YoucanauthorizeaproxytovoteovertheInternetbyaccessingthewebsiteshownonyourproxycardandfollowingtheinstructionsonthewebsite.Internetvotingisavailable24hoursaday.

Telephone.Youcanauthorizeaproxytovotebytelephonebycallingthetoll-freenumbershownonyourproxycard.Telephonevotingisavailable24hoursaday.

Mail.Youcanauthorizeaproxytovotebymailbycompleting,signing,datingandmailingyourproxycard(s)inthepostage-paidenvelopeincludedwiththisjointproxystatement/prospectus.Constellationstockholdersofrecordmayattendthemeetinginpersonandvoteormayauthorizeaproxytovoteasfollows:

Internet.YoucanauthorizeaproxytovoteovertheInternetbyaccessingthewebsiteshownonyourproxycardandfollowingtheinstructionsonthewebsite.Internetvotingisavailable24hoursaday.

Telephone.Youcanauthorizeaproxytovotebytelephonebycallingthetoll-freenumbershownonyourproxycard.Telephonevotingisavailable24hoursaday.

Mail.Youcanauthorizeaproxytovotebymailbycompleting,signing,datingandmailingyourproxycard(s)inthepostage-paidenvelopeincludedwiththisjointproxystatement/prospectus.Ifyouarenottheholderofrecord:Ifyouholdyoursharesthroughabank,broker,custodianorotherrecordholder,pleaserefertoyourproxycardorvotinginstructionformortheinformationforwardedbyyourbank,broker,custodianorotherrecord holdertoseewhichoptionsareavailabletoyou.

TABLEOFCONTENTSQUESTIONSANDANSWERSABOUTTHEMERGER........................................1

SUMMARY

............................................................................9TheCompanies......................................................................9RiskFactors.........................................................................9TheMerger.........................................................................9RecommendationoftheBoardofExelon..................................................10RecommendationoftheBoardofConstellation.............................................11OpinionsofFinancialAdvisors..........................................................11AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMerger....................13AdditionalInterestsofConstellationExecutiveOfficersandDirectorsintheMerger...............13GovernanceandManagementFollowingCompletionoftheMerger............................13TheMergerAgreement................................................................14AccountingTreatment.................................................................16MaterialUnitedStatesFederalIncomeTaxConsequencesoftheMerger.........................16RegulatoryMatters...................................................................16LegalProceedingsRelatedtotheMerger..................................................17ComparisonofShareholderRights.......................................................17SELECTEDHISTORICALFINANCIALINFORMATION......................................18ExelonSelectedHistoricalFinancialInformation...........................................18ConstellationSelectedHistoricalFinancialInformation......................................19SELECTEDUNAUDITEDPROFORMACOMBINEDCONSOLIDATEDFINANCIALINFORMATION.....................................................................................20COMPARATIVEHISTORICALANDUNAUDITEDPROFORMACOMBINEDPERSHARE INFORMATION......................................................................21MARKETINFORMATIONANDDIVIDENDS................................................22CAUTIONARYSTATEMENTREGARDINGFORWARD-LOOKINGSTATEMENTS...............23RISKFACTORS.........................................................................24RisksRelatedtotheMerger............................................................24RisksRelatedtoExelonandConstellation.................................................30THECOMPANIES.......................................................................31 Exelon.............................................................................31 Constellation........................................................................32BoltAcquisitionCorporation...........................................................33THESPECIALMEETINGOFEXELONSHAREHOLDERS.....................................34 General............................................................................34Date,TimeandPlaceoftheExelonSpecialMeeting.........................................34PurposeoftheExelonSpecialMeeting...................................................34RecordDateandSharesEntitledtoVote..................................................34 Quorum............................................................................34VoteRequired.......................................................................35VotingbyExelonsDirectorsandExecutiveOfficers........................................35VotingofProxies....................................................................35HowtoVote........................................................................36ParticipantsintheExelon401(k)EmployeeSavingsPlan.....................................37RevocabilityofProxies................................................................37ElectronicAccesstoProxyMaterial......................................................37PeoplewithDisabilities................................................................37SolicitationofProxies.................................................................37 Assistance..........................................................................38PROPOSALSSUBMITTEDTOEXELONSSHAREHOLDERS..................................38TheShareIssuanceProposal............................................................38TheExelonAdjournmentProposal.......................................................38OtherBusiness.......................................................................39 i

THESPECIALMEETINGOFCONSTELLATIONSTOCKHOLDERS............................40 General...........................................................................40Date,TimeandPlaceoftheConstellationSpecialMeeting...................................40PurposeoftheConstellationSpecialMeeting.............................................40RecordDateandSharesEntitledtoVote.................................................40 Quorum...........................................................................41VoteRequired......................................................................41VotingbyConstellationsDirectorsandExecutiveOfficers..................................41VotingofProxies...................................................................41HowtoVote.......................................................................42RevocabilityofProxies...............................................................43ElectronicAccesstoProxyMaterial.....................................................43PeoplewithDisabilities...............................................................43SolicitationofProxies................................................................43 Assistance.........................................................................44PROPOSALSSUBMITTEDTOCONSTELLATIONSSTOCKHOLDERS........................44TheMergerProposal.................................................................44TheCompensationProposal...........................................................44TheConstellationAdjournmentProposal.................................................45THEMERGER.........................................................................47GeneralDescriptionoftheMerger......................................................47BackgroundoftheMerger............................................................47RecommendationoftheBoardofDirectorsofExelon;ExelonsReasonsfortheMerger...........63UnauditedFinancialForecasts.........................................................68OpinionsofFinancialAdvisorstoExelon................................................72RecommendationoftheBoardofDirectorsofConstellation;ConstellationsReasonsforthe Merger..........................................................................102OpinionsofFinancialAdvisorstoConstellation...........................................110AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMerger...................127AdditionalInterestsofConstellationExecutiveOfficersandDirectorsintheMerger..............128GovernanceandManagementFollowingCompletionoftheMerger...........................133IndemnificationandInsurance.........................................................134StockExchangeListing...............................................................134MaterialUnitedStatesFederalIncomeTaxConsequencesoftheMerger........................134LegalProceedings...................................................................137AccountingTreatment................................................................138AppraisalRights....................................................................139PrincipalCorporateOffices............................................................139EffectonAwardsOutstandingUnderConstellationStockPlans...............................139ResaleofExelonCommonStock.......................................................139REGULATORYMATTERS..............................................................140Hart-Scott-RodinoAntitrustImprovementsAct............................................140FederalPowerAct...................................................................140AtomicEnergyAct..................................................................142FederalCommunicationsCommission...................................................143StateRegulatoryApprovals...........................................................143THEMERGERAGREEMENT............................................................146TheMerger........................................................................146EffectiveTimeandCompletionoftheMerger.............................................146Post-MergerGovernanceofExelon.....................................................147 ii ConsiderationtobeReceivedintheMerger...............................................148ExchangeProceduresandRelatedMatters................................................148StockOptionsandOtherEquityRights..................................................149ConditionstotheCompletionoftheMerger..............................................150RequisiteRegulatoryApprovals........................................................151TerminationoftheMergerAgreement...................................................151TerminationFees....................................................................152NoSolicitation......................................................................154ChangesinBoardRecommendation.....................................................154CoordinationofDividends............................................................156CharitableContributions..............................................................156Amendment;ExtensionandWaiver.....................................................156EmployeeBenefitMatters.............................................................157RepresentationsandWarranties........................................................157CovenantsofExelonandConstellation..................................................159UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDFINANCIAL STATEMENTS.......................................................................163EXELONCORPORATIONANDCONSTELLATIONENERGYGROUP,INC.UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDSTATEMENTOFOPERATIONS.........164EXELONCORPORATIONANDCONSTELLATIONENERGYGROUP,INC.UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDBALANCESHEET....................166EXELONANDCONSTELLATIONNOTESTOTHEUNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDFINANCIALSTATEMENTS................................168MARKETPRICEANDDIVIDENDDATA..................................................176COMPARISONOFSHAREHOLDERRIGHTS...............................................177LEGALMATTERS.....................................................................195 EXPERTS.............................................................................195SUBMISSIONOFFUTURESHAREHOLDERPROPOSALS...................................195 Exelon............................................................................195 Constellation.......................................................................196WHEREYOUCANFINDMOREINFORMATION...........................................197 ANNEXES AnnexA-AgreementandPlanofMergerAnnexB-OpinionofBarclaysCapitalInc.

AnnexC-OpinionofJ.P.MorganSecuritiesLLC AnnexD-OpinionofEvercoreGroupL.L.C.

AnnexE-OpinionofMorganStanley&Co.Incorporated AnnexF-OpinionofGoldman,Sachs&Co.

iii

QUESTIONSANDANSWERSABOUTTHEMERGERFollowingarebriefanswerstocertainquestionsthatyoumayhaveregardingtheproposalsbeingconsideredatthespecialmeetingofExelonshareholders,whichwerefertoastheExelonspecialmeeting,and thespecialmeetingofConstellationstockholders,whichwerefertoastheConstellationspecialmeeting.Exelon andConstellationurgeyoutoreadcarefullythisentirejointproxystatement/prospectus,includingtheannexes, andtheotherdocumentstowhichthisjointproxystatement/prospectusrefersorincorporatesbyreference, becausethissectiondoesnotprovidealltheinformationthatmightbeimportanttoyou.Unlessstatedotherwise, allreferencesinthisjointproxystatement/prospectustoExelonaretoExelonCorporation,aPennsylvania corporation;allreferencestoConstellationaretoConstellationEnergyGroup,Inc.,aMarylandcorporation; allreferencestothecombinedcompanyaretoExelonafterthecompletionofthemerger;andallreferencesto MergerSubaretoBoltAcquisitionCorporation,aMarylandcorporationandawholly-ownedsubsidiaryof Exelon.AllreferencestothemergeragreementaretotheAgreementandPlanofMerger,datedasofApril28, 2011,byandamongExelon,MergerSubandConstellation,acopyofwhichisattachedasAnnexAtothisjoint proxystatement/prospectus,andwhichisincorporatedhereinbyreference.Allreferencestothemergerareto themergerofMergerSubwithandintoConstellationasaresultofwhichConstellationwillbecomeawholly-ownedsubsidiaryofExelon.Q:WhyamIreceivingthisjointproxystatement/prospectus?A:TheExelonandConstellationboardsofdirectorsareusingthisjointproxystatement/prospectustosolicitproxiesofExelonandConstellationshareholdersinconnectionwiththemergeragreementandthemerger.

Inaddition,weareusingthisjointproxystatement/prospectusasaprospectusforConstellation stockholdersbecauseExelonisofferingsharesofitscommonstocktobeissuedinexchangeforsharesof Constellationcommonstockinthemerger.Inordertocompletethemerger,ExelonshareholdersmustvotetoapprovetheissuanceofnewsharesofExeloncommonstockinconnectionwiththemerger.Inaddition,inordertocompletethemerger, Constellationstockholdersmustvotetoapprovethemergeragreement.ExelonandConstellationwillholdseparatespecialmeetingsofshareholderstoobtaintheseapprovals.Thisjointproxystatement/prospectuscontainsimportantinformationaboutthemergeragreement,themerger andthespecialmeetingsoftheshareholdersofExelonandstockholdersofConstellation,andyoushould readitcarefully.Theenclosedvotingmaterialsallowyoutovoteyourshareswithoutattendingyour respectivemeetingsinperson.Yourvoteisimportant.Weencourageyoutovoteassoonaspossible.Q:Whenandwherearethemeetingsoftheshareholders?

A:ForExelonShareholders:ThespecialmeetingofExelonshareholderswilltakeplaceat9:00a.m.,Centraltime,onNovember17,2011,inChaseAuditoriumatChaseTower,10South

DearbornStreet,

Chicago, Illinois.WeprovideadditionalinformationrelatingtotheExelonspecialmeetingonpage34.ForConstellationStockholders:ThespecialmeetingofConstellationstockholderswilltakeplaceat9:00a.m.,Easterntime,onNovember17,2011,attheofficesofKirkland&EllisLLP,locatedat601 LexingtonAvenue,50 thfloor,NewYork,NewYork.WeprovideadditionalinformationrelatingtotheConstellationspecialmeetingonpage40.Q:Whocanvoteatthespecialmeetings?

A:ForExelonShareholders:IfyouareanExelonshareholderofrecordasofthecloseofbusinessonOctober7,2011,therecorddatefortheExelonspecialmeeting,youareentitledtoreceivenoticeofandto voteattheExelonspecialmeeting.ForConstellationStockholders:IfyouareaConstellationstockholderofrecordasofthecloseofbusinessonOctober7,2011,therecorddatefortheConstellationspecialmeeting,youareentitledtoreceivenotice ofandtovoteattheConstellationspecialmeeting.

1 Q:HowdoIvote?

A:ForExelonShareholders:IfyouareashareholderofrecordofExelonasoftherecorddatefortheExelonspecialmeeting,youmayauthorizeaproxytovoteby:*accessingtheInternetwebsitespecifiedonyourproxycard;

• callingthetoll-freenumberspecifiedonyourproxycard;or

• signingtheenclosedproxycardandreturningitinthepostage-paidenvelopeprovided.

YoumayalsocastyourvoteinpersonatExelonsspecialmeeting.IfyouholdExeloncommonstockinstreetnamethroughabank,brokerorothernominee,pleasefollowthevotinginstructionsprovidedby yourbank,brokerorothernomineetoensurethatyoursharesarerepresentedatyourspecialmeeting.Ifyou holdsharesthroughabank,broker,custodianorotherrecordholderandwishtovoteatthemeeting,you willneedtoobtainalegalproxyfromyourbank,brokerorothernominee.ForConstellationStockholders:IfyouareastockholderofrecordofConstellationasoftherecorddatefortheConstellationspecialmeeting,youmayauthorizeaproxytovoteby:*accessingtheInternetwebsitespecifiedonyourproxycard;

• callingthetoll-freenumberspecifiedonyourproxycard;or

• signingtheenclosedproxycardandreturningitinthepostage-paidenvelopeprovided.

YoumayalsocastyourvoteinpersonatConstellationsspecialmeeting.IfyouholdConstellationcommonstockinstreetnamethroughabank,brokerorothernominee,pleasefollowthevotinginstructions providedbyyourbank,brokerorothernomineetoensurethatyoursharesarerepresentedatyourspecial meeting.Ifyouholdsharesthroughabank,broker,custodianorotherrecordholderandwishtovoteatthe meeting,youwillneedtoobtainalegalproxyfromyourbank,brokerorothernominee.Q:Whatwillhappenintheproposedmerger?A:Priortoenteringintothemergeragreement,Exelonformedanewsubsidiary,BoltAcquisitionCorporation,aMarylandcorporation,whichwerefertoasMergerSub,forpurposesofenteringintothemerger agreementandparticipatinginthemerger.Intheproposedmerger,MergerSubwillmergewithandinto Constellation,followingwhichConstellationwillbecomeawholly-ownedsubsidiaryofExelon.WeprovideadditionalinformationonthemergerundertheheadingTheMerger,beginningonpage47.Q:WhatwillIreceiveformyshares?

A:ForConstellationStockholders:IfyouareaConstellationstockholder,uponcompletionofthemerger,eachshareofConstellationcommonstockthatyouownimmediatelypriortothecompletionofthemergerwill beconvertedintotherighttoreceive0.930sharesofExeloncommonstock,whichwerefertoasthe exchangeratio,togetherwithcashinlieuoffractionalshares(otherthansharesownedbyConstellation, ExelonorMergerSub,whichshareswillbecancelled).Theexchangeratiowillnotbeadjustedasaresult ofanychangesinthetradingpricesofExeloncommonstockorConstellationcommonstockpriortothe completionofthemerger.Weprovideadditionalinformationontheconsiderationtobereceivedinthe mergerundertheheadingsTheMergerAgreementConsiderationtobeReceivedintheMergerand TheMergerAgreementStockOptionsandOtherEquityRights,beginningonpages148and149, respectively.ForExelonShareholders:IfyouareanExelonshareholder,themergerwillnotaffectthenumberofsharesofExeloncommonstockthatyouown.Q:WhatarethematerialUnitedStatesfederalincometaxconsequencesofthemerger?A:ItisaconditiontothemergerthatbothExelonandConstellationreceivelegalopinionsfromtheirrespectivelegalcounseltotheeffectthatforUnitedStatesfederalincometaxpurposesthemergerwill 2

qualifyasareorganizationwithinthemeaningofSection368(a)oftheInternalRevenueCodeof1986,asamended,whichwerefertoastheCode.Providedthatthemergerqualifiesasareorganizationwithinthe meaningofSection368(a)oftheCode,aConstellationstockholderwillnotrecognizegainorlossfor UnitedStatesfederalincometaxpurposesasaresultofsuchstockholdersConstellationcommonstock beingexchangedinthemergerforsharesofExelon,exceptwithrespecttothereceiptofcashinlieuofa fractionalshareofExelon.WeprovideamorecompletedescriptionofthematerialUnitedStatesfederal incometaxconsequencesofthemergerundertheheadingTheMergerMaterialUnitedStatesFederal IncomeTaxConsequencesoftheMergerbeginningonpage134.Q:WhyhaveExelonandConstellationdecidedtomerge?A:ExelonandConstellationbelievethatthecombinationwillprovidesubstantialstrategicandfinancialbenefitstotheirshareholders,customersandemployees.Weexpectthesebenefitswillinclude:*ExelonsandConstellationscomplementarybusinessmodels;

• increasedscaleandscopetoprovide(1)increasedfinancialstability,(2)superioraccesstocapitaland(3)greaterabilitytospreadbusinessstrategyexecutionriskacrossalargerenterprise;and*greatergeographicandfuelsourcediversity.

WeincludeadditionalinformationonthereasonsforthemergerandotherfactorsconsideredbytheExelonandConstellationboardsofdirectorsundertheheadingsTheMergerRecommendationoftheBoardof DirectorsofExelon;ExelonsReasonsfortheMergerandTheMergerRecommendationoftheBoard ofDirectorsofConstellation;ConstellationsReasonsfortheMerger,beginningonpages63and102, respectively.Q:ArethererisksassociatedwiththemergerthatIshouldconsiderindecidinghowtovote?A:Yes.Thereareanumberofrisksrelatedtothemergerthatarediscussedinthisjointproxystatement/prospectusandinotherdocumentsincorporatedbyreference.Inevaluatingthemerger,youshouldread carefullythedetaileddescriptionoftherisksassociatedwiththemergerdescribedundertheheadingRisk Factorsbeginningonpage24andotherinformationincludedinthisjointproxystatement/prospectusand thedocumentsincorporatedbyreferenceinthisjointproxystatement/prospectus.Q:WhatwillChristopherM.CranesrolebewithExelonfollowingcompletionofthemerger?WhatwillMayoA.ShattuckIIIsrolebe?A:ExelonandConstellationhaveagreedthat,uponcompletionofthemerger,Mr.Crane,thecurrentpresidentandchiefoperatingofficerofExelon,willserveaspresidentandchiefexecutiveofficerofExelon,and Mr.ShattuckwillserveasexecutivechairmanofExelon.JohnW.Rowe,thecurrentchiefexecutiveofficer ofExelon,isexpectedtoretireuponcompletionofthemerger.WeprovideadditionalinformationonthegovernanceandmanagementofExelonfollowingthecompletionofthemergerundertheheadingTheMergerGovernanceandManagementFollowingCompletionofthe Merger,beginningonpage133.Q:WhowillserveontheboardofdirectorsofExelonfollowingthecompletionofthemerger?A:Themergeragreementprovidesthatuponcompletionofthemerger,Exelonwilladdtoitscurrent15-memberboardofdirectorsMr.Shattuck,asexecutivechairman,andthreeindependentdirectorsof ConstellationdesignatedbytheboardofdirectorsofConstellation.Themergeragreementprovidesthatby theendof2012,theboardofdirectorswillconsistof16members,including12memberswhowillbe designatedfromtheboardofdirectorsofExelonpriortothemergerandfourfromtheboardofdirectorsof 3

ConstellationwhowillbeaddedtotheboardofdirectorsofExelonattheclosingofthemerger.Exelonsdesigneeswillconsistof11independentdirectorsandMr.Crane.Constellationsdesigneeswillconsistof threeindependentdirectorsandMr.Shattuck.OneExelondirectorisexpectedtoretireattheendof2011 andMr.Roweisexpectedtoretireuponcompletionofthemerger.TwoothercurrentExelondirectorsare expectedtoretirefromtheExelonboardattheendof2012.WeprovideadditionalinformationontheboardofdirectorsofExelonfollowingthecompletionofthemergerundertheheadingTheMergerGovernanceandManagementFollowingCompletionofthe Merger,beginningonpage133.Q:WherewillExelonbeheadquarteredfollowingthecompletionofthemerger?A:ExelonwillmaintainitscurrentheadquartersinChicago,Illinois,followingthecompletionofthemerger.Inadditiontothecorporateheadquarters,IllinoiswillcontinuetobehometoComEdandExelonBusinessServicesCompany(bothinChicago),aswellastheMidwestregionalheadquartersforExelonNuclear(in Warrenville).PennsylvaniawillcontinuetobehometoheadquartersforPECO(inPhiladelphia)andExelon Power(inKennettSquare).ExelonNuclearsheadquarterswillalsobelocatedatKennettSquare.Exelons andConstellationscommercialretailandwholesalebusinesseswillbeconsolidatedundertheConstellation brandandheadquarteredinBaltimore.Thecombinedcompanysrenewablesdevelopmentheadquarterswill alsobelocatedinBaltimore.BGEwillretainitsBaltimoreheadquarters.Q:Whatvoteisrequiredtoapprovethemerger?A:Inordertocompletethemerger,*themergerproposalmustbeapprovedbytheaffirmativevoteofamajorityofallthevotesentitledtobecastbytheholdersoftheoutstandingsharesofConstellationcommonstock;and*theshareissuanceproposalmustbeapprovedbyatleastamajorityofthevotescastbyholdersofExeloncommonstockentitledtovoteontheproposal,solongasthetotalvotecastontheproposal representsatleastamajorityofthesharesofExeloncommonstockentitledtovoteontheproposal.Eachoftheshareholderapprovalslistedabovemustbeobtainedtocompletethemerger.IfyouareanExelonshareholderandfailtovote,itwillhavenoeffectontheshareissuanceproposal,butmaymakeit moredifficulttomeettheNewYorkStockExchange,orNYSE,requirementthatthetotalvotescaston suchproposal(includingabstentions)representamajorityofthesharesofExeloncommonstock outstandingasoftheExelonrecorddate.IfyouareaConstellationstockholderandfailtovote,itwillhave thesameeffectasavoteagainstthemergerproposalthatisrequiredtocompletethemerger.Yourvoteis

important.AsofOctober7,2011,therecorddateforthespecialmeetingsofshareholdersofExelonandConstellation,lessthan1%oftheoutstandingsharesofExeloncommonstockwereownedbythedirectorsandexecutive officersofExelon,andapproximately2%oftheoutstandingsharesofConstellationcommonstockwere ownedbythedirectorsandexecutiveofficersofConstellation.WeprovideadditionalinformationontheshareholderapprovalsrequiredtocompletethemergerundertheheadingsTheSpecialMeetingofExelonShareholdersandTheSpecialMeetingofConstellation Stockholders,beginningonpages34and40,respectively.Q:Whatconstitutesaquorum?

A:ForExelonShareholders:TherepresentationofholdersofatleastamajorityofthetotalnumberofsharesofcommonstockoutstandingasoftherecorddateatthespecialmeetingofExelonshareholders,whether presentinpersonorrepresentedbyproxy,isrequiredinordertoconductbusinessattheExelonspecial meeting.Thisrequirementiscalledaquorum.Abstentionswillbetreatedaspresentforthepurposesof determiningthepresenceorabsenceofaquorum.

4 ForConstellationStockholders:TherepresentationofholdersoftheoutstandingsharesofConstellationcommonstockentitledtocastamajorityofallvotesentitledtobecastmustbepresentinpersonor representedbyproxyinordertoconductbusinessattheConstellationspecialmeeting.Thisrequirementis calledaquorum.Abstentionswillbetreatedaspresentforthepurposesofdeterminingthepresenceor absenceofaquorum.Q:IfIholdmysharesinstreetnamethroughmybroker,willmybrokervotemysharesforme?A:Ifyouholdyoursharesinastockbrokerageaccountorthroughabank,brokerorothernominee(thatis,instreetname),youmustprovidetherecordholderofyourshareswithinstructionsonhowtovoteyour shares.Pleasefollowthevotinginstructionsprovidedbyyourbank,brokerorothernominee.Youmaynot votesharesheldinstreetnamebyreturningaproxycarddirectlytoExelonorConstellationorbyvotingin personatyourspecialmeetingunlessyouprovidealegalproxy,whichyoumustobtainfromyourbroker orothernominee.Further,brokerswhoholdsharesofExeloncommonstockorConstellationcommon stockonbehalfoftheircustomersmaynotgiveaproxytoExelonorConstellationtovotethoseshares withoutspecificinstructionsfromtheircustomers.ForExelonShareholders:IfyouareanExelonshareholderandyoudonotinstructyourbrokeronhowtovoteyourshares,yourbrokermaynotvoteyoursharestoapprovetheshareissuanceproposalortoapprove theExelonadjournmentproposal.Werefertothisasabrokernon-vote.ForanExelonshareholder,a brokernon-vote:*willhavenoeffectontheshareissuanceproposal,butmaymakeitmoredifficulttomeettheNYSErequirementthatthetotalvotescastonsuchproposal(includingabstentions)representamajorityof thesharesofExeloncommonstockoutstandingasoftheExelonrecorddate;and*willhavenoeffectontheExelonadjournmentproposal.

ForConstellationStockholders:IfyouareaConstellationstockholderandyoudonotinstructyourbrokeronhowtovoteyourshares,yourbrokermaynotvoteyoursharesonthemergerproposal,thecompensation proposalortheConstellationadjournmentproposal.ForaConstellationstockholder,abrokernon-vote:*willhavethesameeffectasavoteagainstthemergerproposal;

• willhavenoeffectonthecompensationproposal;and

• willhavenoeffectontheConstellationadjournmentproposal.Q:Whatwillhappentomyfuturedividends?A:Duringtheperioduntilthecompletionofthemerger,thepartieshaveagreedinthemergeragreementthatConstellationwillnotincreaseits$0.24pershareregularquarterlycashdividendwithoutthepriorwritten consentofExelon,andExelonwillnotincreaseits$0.525pershareregularlyquarterlycashdividend withoutthepriorwrittenconsentofConstellation.Undertheprinciplesestablishedinthemergeragreement, ConstellationstockholderswillreceiveadividendattheConstellationrateuntiltheclosingofthemerger andwillbegintoaccruetheregularExelondividendaftertheclosing.Afterthemerger,wecurrentlyexpectthatExelonwillcontinueitsdividendpolicyineffectatthetimeofthemerger,althoughdividendsaresubjecttodeclarationbytheboardofdirectors.AssumingExelon continuesitscurrentdividendpolicy,thiswillresultinanincreaseinthedividendpersharereceivedby ConstellationstockholdersascomparedtothedividendreceivedunderConstellationscurrentdividend

policy.Q:WhatdoIneedtodonow?A:Aftercarefullyreadingandconsideringtheinformationcontainedorincorporatedbyreferenceintothisjointproxystatement/prospectus,pleasevoteyourproxybytelephoneorInternet,orbycompletingand signingyourproxycardandreturningitintheenclosedpostage-paidenvelopeassoonaspossiblesothat yoursharesmayberepresentedatyourspecialmeeting.Inordertoensurethatyourvoteisrecorded,please voteyourproxyasinstructedonyourproxycardevenifyoucurrentlyplantoattendyourspecialmeetingin person.Pleasedonotsendinyoursharecertificatesnow.

5 WeprovideadditionalinformationonvotingproceduresundertheheadingsTheSpecialMeetingofExelonShareholdersHowtoVoteandTheSpecialMeetingofConstellationStockholdersHowto Vote,beginningonpages36and42,respectively.Q:Howwillmyproxybevoted?A:Ifyouvotebytelephone,byInternet,orbycompleting,signing,datingandreturningyoursignedproxycard,yourproxywillbevotedinaccordancewithyourinstructions.Ifyousign,date,andsendyourproxy cardanddonotindicatehowyouwanttovoteonanyparticularproposal,wewillvoteyoursharesinfavor ofthatproposal.WeprovideadditionalinformationonvotingproceduresundertheheadingsTheSpecialMeetingofExelonShareholdersVotingofProxiesandTheSpecialMeetingofConstellationStockholdersVoting ofProxies,beginningonpages35and41,respectively.Q:MayIvoteinperson?A:Yes.IfyouareashareholderofrecordofExeloncommonstockorofConstellationcommonstockatthecloseofbusinessonOctober7,2011,youmayattendyourspecialmeetingandvoteyoursharesinperson, inlieuofsubmittingyourproxybytelephone,Internetorreturningyoursignedproxycard.Ifyouholdyour sharesthroughabank,broker,custodianorotherrecordholder,youmustprovidealegalproxyatthe specialmeeting,whichyoumustobtainfromyourbrokerorothernominee.Q:WhatmustIbringtoattendmyspecialmeeting?A:OnlyshareholdersofExelonorConstellation,asthecasemaybe,ortheirauthorizedrepresentatives,mayattendthespecialmeeting.Ifyouwishtoattendyourspecialmeeting,bringyourproxyoryourvoter informationform.Youmustalsobringphotoidentification.Ifyouholdyoursharesthroughabank,broker, custodianorotherrecordholder,youmustalsobringproofofownershipsuchasthevotinginstructionform fromyourbrokerorothernominee,oranaccountstatement.Q:WhatdoesitmeanifIreceivemorethanonesetofmaterials?A:ThismeansyouownsharesofbothExelonandConstellationcommonstockoryouownsharesofExelonorConstellationcommonstockthatareregisteredunderdifferentnames.Forexample,youmayownsome sharesdirectlyasashareholderofrecordandothersharesthroughabrokeroryoumayownsharesthrough morethanonebroker.Inthesesituations,youwillreceivemultiplesetsofproxymaterials.Youmustvote, signandreturnalloftheproxycardsorfollowtheinstructionsforanyalternativevotingprocedureoneach oftheproxycardsyoureceiveinordertovoteallofthesharesyouown.Eachproxycardyoureceivewill comewithitsownpostage-paidreturnenvelope;ifyouvotebymail,makesureyoureturneachproxycard inthereturnenvelopethataccompaniedthatproxycard.Q:WhatdoIdoifIwanttochangemyvote?A:Sendalater-dated,signedproxycardsothatwereceiveitpriortoyourcompanysspecialmeetingorattendyourcompanysspecialmeetinginpersonandvote.Youmayalsorevokeyourproxycardbysendinga noticeofrevocationthatwereceivepriortoyourcompanysspecialmeetingtoyourcompanysCorporate SecretaryattheaddressundertheheadingSummaryTheCompaniesbeginningonpage9.Youmay alsochangeyourvotebytelephoneorInternet.Youmaychangeyourvotebyusinganyoneofthese methodsregardlessoftheprocedureusedtocastyourpreviousvote.WeprovideadditionalinformationonchangingyourvoteundertheheadingsTheSpecialMeetingofExelonShareholdersRevocabilityofProxiesandTheSpecialMeetingofConstellationStockholders RevocabilityofProxies,beginningonpages37and43,respectively.

6 Q:AsaparticipantintheExelon401(k)EmployeeSavingsPlan,howdoIvotesharesheldinmyplan account?A:Ifyouareaparticipantinthisplan,youhavetherighttoprovidevotingdirectionstotheplantrustee,bysubmittingyourproxycard,forthosesharesofExeloncommonstockthatareheldbytheplanandallocated toyouraccount.Planparticipantproxiesaretreatedconfidentially.Ifyouelectnottoprovidevotingdirectionstotheplantrustee,theplantrusteewillvotetheExelonsharesallocatedtoyourplanaccountinthesameproportionasthosesharesheldbytheplanforwhichtheplan trusteehasreceivedvotingdirectionsfromotherplanparticipants.Theplantrusteewillfollowparticipants votingdirectionsandtheplanprocedureforvotingintheabsenceofvotingdirections,unlessitdetermines thattodosowouldbecontrarytotheEmployeeRetirementIncomeSecurityActof1974,asamended, whichwerefertoasERISA.Becausetheplantrusteemustprocessvotinginstructionsfromparticipants beforethedateoftheExelonspecialmeeting,weurgeyoutodeliveryourinstructionsnolaterthan November16,2011.Q:AsaparticipantintheConstellationEnergyGroup,Inc.EmployeeSavingsPlan,theRepresentedEmployeeSavingsPlanforNineMilePointandtheEmployeeSavingsPlanforConstellationEnergy NuclearGroup,LLC,howdoIvotesharesheldinmyplanaccount?A:Ifyouareaparticipantinanyoftheseplans,youhavetherighttoprovidevotingdirectionstotheplantrustee,bysubmittingyourproxycard,forthosesharesofConstellationcommonstockthatareheldbythe planandallocatedtoyouraccount.Planparticipantproxiesaretreatedconfidentially.Ifyouelectnottoprovidevotingdirectionstotheplantrustee,theplantrusteewillvotetheConstellationsharesallocatedtoyourplanaccountinthesameproportionasthosesharesheldbytheplanforwhichthe plantrusteehasreceivedvotingdirectionsfromotherplanparticipants.Theplantrusteewillfollow participantsvotingdirectionsandtheplanprocedureforvotingintheabsenceofvotingdirections,unlessit determinesthattodosowouldbecontrarytoERISA.Becausetheplantrusteemustprocessvoting instructionsfromparticipantsbeforethedateoftheConstellationspecialmeeting,weurgeyoutodeliver yourinstructionsnolaterthanNovember13,2011.Q:ShouldIsendinmysharecertificatesnow?A:No.IfyouareanExelonshareholder,youwillnotsendinyourcertificatesforexchange.IfyouareaConstellationstockholder,ifwecompletethemergerwewillsendstockholdersofConstellationwritten instructionsforexchangingtheirsharecertificates.WewillissuesharesofExeloncommonstocktoholders ofConstellationsharecertificatesinuncertificatedbook-entryformunlesstheholderrequestsaphysical

certificate.Q:Whendoyouexpecttocompletethemerger?A:Thecompaniesaretargetingaclosingduringthefirstquarterof2012,althoughwecannotassurecompletionbyanyparticulardate.Completionofthemergerisconditionedupontheapprovalofthe merger-relatedmattersbytheshareholdersofExelonandthestockholdersofConstellation,aswellasother customaryclosingconditions,includingtheexpirationorterminationofanyapplicablewaitingperiodunder theHart-Scott-RodinoAntitrustImprovementsActof1976,ortheHSRAct.Othernecessaryregulatory approvalsinclude:theFederalEnergyRegulatoryCommission,theNuclearRegulatoryCommission,the MarylandPublicServiceCommission,theNewYorkStatePublicServiceCommission,thePublicUtility CommissionofTexasandtheFederalCommunicationsCommission.PleaseseeRegulatoryMatters, beginningonpage140.Q:DoIhavedissentersorappraisalrightsasaholderofConstellationcommonstock?A:No.Dissentersrights,alsoreferredtoasappraisalrights,willnotbeavailabletoholdersofConstellationcommonstockinthemergerortotheholdersofExeloncommonstockissuedintheExelonshareissuance undertheMarylandGeneralCorporationLaworthePennsylvaniaCorporationLawof1988,respectively.

7 Q:HowcanIfindmoreinformationaboutExelonandConstellation?A:FormoreinformationaboutExelonandConstellation,seethesectionofthisjointproxystatement/prospectusentitledWhereYouCanFindMoreInformation,beginningonpage197.Q:WhocanansweranyquestionsImayhaveaboutthespecialmeetingsorthemerger?A:ExelonandConstellationshareholderswhohavequestionsaboutthemergerortheothermatterstobevotedonatthespecialmeetingsordesireadditionalcopiesofthisjointproxystatement/prospectusoradditional proxycardsshouldcontact:ifyouareanExelonshareholder:ifyouareaConstellationstockholder:MacKenziePartners,Inc.105MadisonAvenueNewYork,NewYork10016Calltollfree:(800)322-2885orcallcollect:(212)929-5500Email:proxy@mackenziepartners.comInnisfreeM&AIncorporated501MadisonAvenue,20 th FloorNewYork,NewYork10022Stockholderscalltoll-free:(877)800-5182Banksandbrokerscallcollect:(212)750-5833 8

SUMMARY

Thissummaryhighlightsselectedinformationcontainedinthisjointproxystatement/prospectusanddoesnotcontainalltheinformationthatmaybeimportanttoyou.ExelonandConstellationurgeyoutoreadcarefully thisjointproxystatement/prospectusinitsentirety,aswellastheannexes.Additional,importantinformationis alsocontainedinthedocumentsincorporatedbyreferenceintothisjointproxystatement/prospectus;seethe sectionentitledWhereYouCanFindMoreInformationbeginningonpage197.TheCompanies(Seepage31)

ExelonExelonwasincorporatedinPennsylvaniainFebruary1999.Exelonsprincipalexecutiveofficesarelocatedat10South

DearbornStreet,

Chicago,Illinois60603,anditstelephonenumberis800-483-3220.Exelonisoneof thenationslargestenergycompanieswithapproximately$18billioninannualrevenues.Exelondistributes electricitytoapproximately5.4millioncustomersinnorthernIllinoisandsoutheasternPennsylvaniaandnatural gastoapproximately490,000customersinthePhiladelphiaarea.Exelonsoperationsincludeenergygeneration, powermarketingandenergydelivery.Exelonhasoneoftheindustryslargestportfoliosofelectricitygeneration capacity,withanationwidereachandstrongpositionsintheMidwestandMid-Atlantic.Exelonisaleading advocateforclean,environmentallysustainableenergysources,suchaswind,solarpowerandnuclearenergy, andoperatesthelargestnuclearfleetintheUnitedStates.ExelontradesontheNYSEunderthetickerEXC.

ConstellationConstellationwasincorporatedinMarylandinSeptember1995.Constellationsprincipalexecutiveofficesarelocatedat100ConstellationWay,Baltimore,Maryland21202,anditstelephonenumberis410-470-2800.

Constellationisaleadingcompetitivesupplierofpower,naturalgasandenergyproductsandservicesforhomes andbusinessesacrossthecontinentalUnitedStates.Constellationownsadiversifiedfleetofgeneratingunits, totalingapproximately12,000megawattsofgeneratingcapacity,andisaleadingadvocateforclean, environmentallysustainableenergysources,suchassolarpowerandnuclearenergy.IncentralMaryland,the companydeliverselectricityandnaturalgasthroughBGE,itsregulatedutility.Constellationhadrevenuesof

$14.3billionin2010.ConstellationtradesontheNYSEunderthetickerCEG.BoltAcquisitionCorporationBoltAcquisitionCorporation,whichwerefertoasMergerSub,wasincorporatedinMarylandinApril2011.MergerSubsprincipalexecutiveofficesarelocatedat10South

DearbornStreet,

Chicago,Illinois60603, anditstelephonenumberis800-483-3220.MergerSubisadirectwholly-ownedsubsidiaryofExelonthatwas formedforthesolepurposeofeffectingthemergerofMergerSubwithandintoConstellation.MergerSubhas engagedinnobusinessactivitiestodateandithasnomaterialassetsorliabilitiesofanykind,otherthanthose incidenttoitsformationandthoseincurredinconnectionwiththemerger.RiskFactorsBeforedecidingwhethertovotefortheproposalspresentedinthisjointproxystatement/prospectus,youshouldcarefullyconsideralloftheinformationcontainedinorincorporatedbyreferenceintothisjointproxy statement/prospectus,aswellasthespecificfactorsundertheheadingRiskFactorsbeginningonpage24.TheMerger(seepage47)Uponcompletionofthemerger,MergerSubwillmergewithandintoConstellation.Constellationwillbethesurvivingcorporationinthemergerandwilltherebybecomeawholly-ownedsubsidiaryofExelon.

9 Inthemerger,eachoutstandingshareofConstellationcommonstock(otherthansharesownedbyConstellation,ExelonorMergerSub,whichshareswillbecancelled)willbeconvertedintotherighttoreceive sharesofExeloncommonstock,withcashtobepaidinlieuoffractionalshares.Themergeragreementprovides foranexchangeratioof0.930sharesofExeloncommonstockforeachshareofConstellationcommonstock.

ExelonshareholderswillcontinuetoowntheirexistingsharesofExeloncommonstock.BasedonthenumberofsharesofExeloncommonstockandConstellationcommonstockoutstandingonOctober7,2011,therecorddateforthetwocompaniesspecialmeetingsofshareholders,existingExelon shareholderswouldownapproximately78%ofthecommonstockofExelonandformerConstellation stockholderswouldownapproximately22%ofthecommonstockofExelonimmediatelyuponthecompletionof themerger.Uponcompletionofthemerger,MayoA.ShattuckIIIwillbecomeexecutivechairmanofthecombinedcompany.ExelonpresidentandchiefoperatingofficerChristopherM.Cranewillbecomepresidentandchief executiveofficerofthecombinedcompany.JohnW.Rowe,thecurrentchiefexecutiveofficerofExelon,is expectedtoretireuponcompletionofthemerger.Uponcompletionofthemerger,Exelonwilladdtoitscurrent 15-memberboardofdirectorsMr.ShattuckandthreeindependentdirectorsofConstellationdesignatedbythe boardofdirectorsofConstellation.Bytheendof2012,theboardofdirectorswillconsistof16members, including12memberswhowillbedesignatedfromtheboardofdirectorsofExelonpriortothemergerandfour fromtheboardofdirectorsofConstellationwhowillbeaddedtotheboardofdirectorsofExelonattheclosing ofthemerger.Exelonsdesigneeswillconsistof11directorswhomeetthestandardsforindependencesetforth intheNYSEListingStandardsandMr.Crane,andConstellationsdesigneeswillconsistofthreedirectorswho meetthestandardsforindependencesetforthintheNYSEListingStandardsandMr.Shattuck.OneExelon directorisexpectedtoretireattheendof2011,andMr.Roweisexpectedtoretireuponcompletionofthe merger.TwoothercurrentExelondirectorsareexpectedtoretirefromtheExelonboardattheendof2012.Followingthemerger,theresultingcompanywillretaintheExelonnameandbeheadquarteredinChicago.Inadditiontothecorporateheadquarters,IllinoiswillcontinuetobehometoComEdandExelonBusiness ServicesCompany(bothinChicago),aswellastheMidwestregionalheadquartersforExelonNuclear(in Warrenville).PennsylvaniawillcontinuetobehometoheadquartersforPECO(inPhiladelphia)andExelon Power(inKennettSquare).ExelonNuclearsheadquarterswillalsobelocatedatKennettSquare.Exelonsand ConstellationscommercialretailandwholesalebusinesseswillbeconsolidatedundertheConstellationbrand andheadquarteredinBaltimore.Thecombinedcompanysrenewablesdevelopmentheadquarterswillalsobe locatedinBaltimore.BGEwillretainitsBaltimoreheadquarters.Untilthemergerhasreceivedallnecessaryapprovalsandiscompleted,ExelonandConstellationwillcontinueoperatingasseparateentities.Thecompaniesaretargetingtocompletethemergerduringthefirst quarterof2012,subjecttoreceiptofthenecessaryshareholderandregulatoryapprovals,althoughwecannot assurecompletionbyanyparticulardate.RecommendationoftheBoardofExelon(seepage63)TheExelonboardofdirectorsunanimouslyrecommendsthattheholdersofExeloncommonstockvote FORtheshareissuanceproposalandtheExelonadjournmentproposal.ForamorecompletedescriptionofExelonsreasonsforthemergerandtherecommendationoftheExelonboardofdirectors,seeTheMergerRecommendationoftheBoardofDirectorsofExelon;ExelonsReasons fortheMergerbeginningonpage63.ForadiscussionofinterestsofExelonsdirectorsandexecutiveofficers inthemergerthatmaybedifferentfrom,orinadditionto,theinterestsofExelonsshareholdersgenerally,see TheMergerAdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMerger,beginningon page127.10 RecommendationoftheBoardofConstellation(seepage102)TheConstellationboardofdirectorsunanimouslyrecommendsthattheholdersofConstellationcommonstockvoteFORthemergerproposal,thecompensationproposalandtheConstellationadjournmentproposal.ForamorecompletedescriptionofConstellationsreasonsforthemergerandtherecommendationoftheConstellationboardofdirectors,seeTheMergerRecommendationoftheBoardofDirectorsofConstellation; ConstellationsReasonsfortheMergerbeginningonpage102.ForadiscussionofinterestsofConstellations directorsandexecutiveofficersinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsof Constellationsshareholdersgenerally,seeTheMergerAdditionalInterestsofConstellationExecutive OfficersandDirectorsintheMerger,beginningonpage128.OpinionsofFinancialAdvisorsExelonFinancialAdvisors(seepage72)BarclaysCapitalInc.Inconnectionwiththemerger,ExelonengagedBarclaysCapitalInc.,orBarclaysCapital,toactasafinancialadvisortoExelon.OnApril27,2011,atameetingoftheExelonboardofdirectorsheldtoevaluatethe merger,BarclaysCapitaldelivereditsoralopinion,subsequentlyconfirmedbydeliveryofawrittenopinion,to Exelonsboardofdirectorsthat,asofsuchdateandbaseduponandsubjecttothequalifications,limitationsand assumptionsstatedinitsopinion,theexchangeratiowasfair,fromafinancialpointofview,toExelon.ThefulltextofBarclaysCapitalswrittenopinion,datedasofApril28,2011,isattachedtothisjointproxystatement/prospectusasAnnexB.BarclaysCapitalswrittenopinionsetsforth,amongotherthings, theassumptionsmade,proceduresfollowed,factorsconsideredandlimitationsuponthereview undertakenbyBarclaysCapitalinrenderingitsopinion.Youareencouragedtoreadtheopinionandthis sectioncarefullyandintheirentirety.ThefollowingisasummaryofBarclaysCapitalsopinionandthe methodologythatBarclaysCapitalusedtorenderitsopinion.ThesummaryofBarclaysCapitalswritten opinionincludedinthisjointproxystatement/prospectusisqualifiedinitsentiretybyreferencetothefull textoftheopinion.BarclaysCapitalsopinionisaddressedtotheExelonboardofdirectors(initscapacity assuch)foritsuseinconnectionwithitsevaluationoftheproposedmerger.BarclaysCapitalsopinion relatesonlytothefairness,fromafinancialpointofview,toExelonoftheexchangeratioanddoesnot constitutearecommendationtoanyshareholderofExelonorConstellationastohowsuchshareholder shouldvoteoractwithrespecttotheproposedmergeroranyothermatter.J.P.MorganSecuritiesLLCInconnectionwiththeexecutionofthemergeragreement,theExelonboardofdirectorsreceivedanopinion,datedApril27,2011,fromExelonsfinancialadvisor,J.P.MorganSecuritiesLLC,orJ.P.Morgan,asto thefairness,fromafinancialpointofviewandasofsuchdate,toExelonoftheexchangeratioprovidedforin themergeragreement.ThefulltextofthewrittenopinionofJ.P.Morgan,datedApril27,2011,whichsetsforth,amongotherthings,theassumptionsmade,proceduresfollowed,mattersconsidered,andqualificationsand limitationsontheopinionandthereviewundertakenbyJ.P.Morganinconnectionwithrenderingits opinion,isattachedtothisjointproxystatement/prospectusasAnnexCandisincorporatedbyreference hereininitsentirety.Youareencouragedtoreadtheopinionandthedescriptionincludedinthisjoint proxystatement/prospectuscarefullyintheirentirety.Thesummaryandthedescriptionoftheopinion includedinthisjointproxystatement/prospectusarequalifiedintheirentiretybyreferencetothefulltext oftheopinion.J.P.MorganprovideditswrittenopiniontotheExelonboardofdirectors(initscapacityas such)inconnectionwithandforpurposesofitsevaluationoftheexchangeratio.J.P.Morgansopinion 11 waslimitedtothefairness,fromafinancialpointofview,toExelonoftheexchangeratiointhemergeragreementandJ.P.Morganexpressednoopinionastoanyothermatter.Theopiniondoesnotconstitutea recommendationtoanyshareholderastohowanyshareholdershouldvotewithrespecttothemergeror anyothermatter.EvercoreGroupL.L.C.Inconnectionwiththemerger,EvercoreGroupL.L.C.,orEvercore,financialadvisortotheExelonboardofdirectors,rendereditsoralopinion,subsequentlyconfirmedbydeliveryofawrittenopinionthat,asofApril27, 2011andbaseduponandsubjecttothefactors,procedures,assumptions,qualificationsandlimitationssetforth initsopinion,theexchangeratiopursuanttothemergeragreementwasfair,fromafinancialpointofview,to

Exelon.ThefulltextofEvercoreswrittenopinion,datedasofApril27,2011,whichisattachedtothisjointproxystatement/prospectusasAnnexD,setsforththeassumptionsmade,proceduresfollowed,matters consideredandlimitationsonthereviewundertaken.Youareurgedtoreadthisopinioncarefullyandin itsentirety.Evercoresopinionwasaddressedto,andprovidedfortheinformationandbenefitof,the Exelonboardofdirectors(initscapacityassuch)inconnectionwithitsevaluationoftheexchangeratio fromafinancialpointofviewanddidnotaddressanyotheraspectsorimplicationsofthemerger.The opiniondoesnotconstitutearecommendationtotheExelonboardofdirectorsortoanyotherpersonsin respectofthemerger,includingastohowanyholderofsharesofExeloncommonstockshouldvoteoract inrespectoftheExelonstockissuance.Evercoresopiniondoesnotaddresstherelativemeritsofthe mergerascomparedtootherbusinessorfinancialstrategiesthatmightbeavailabletoExelon,nordoesit addresstheunderlyingbusinessdecisionofExelontoengageinthemerger.ConstellationFinancialAdvisors(seepage110)MorganStanley&Co.LLCConstellationretainedMorganStanley&Co.LLC(formerlyMorganStanley&Co.Incorporated),orMorganStanley,toprovideitwithfinancialadvisoryservicesandafinancialopinioninconnectionwiththetransaction.

ConstellationselectedMorganStanleytoactasitsfinancialadvisorbasedonMorganStanleysqualifications, expertiseandreputationanditsknowledgeofthebusinessandaffairsofConstellation.Atthemeetingofthe ConstellationboardofdirectorsonApril27,2011,MorganStanleyrendereditsoralopinion,subsequently confirmedinwriting,thatasofsuchdateandbaseduponandsubjecttothevariousassumptions,considerations, qualificationsandlimitationssetforthinitswrittenopinion,theexchangeratiopursuanttothemergeragreement wasfair,fromafinancialpointofview,totheholdersofsharesoftheConstellationcommonstock.ThefulltextofthewrittenopinionofMorganStanley,datedApril27,2011,whichdiscusses,amongotherthings,theassumptionsmade,proceduresfollowed,mattersconsidered,andqualificationsand limitationsofthereviewundertakenbyMorganStanleyinrenderingitsopinion,isattachedtothisjoint proxystatement/prospectusasAnnexE.ThesummaryoftheMorganStanleyfairnessopinionprovidedin thisjointproxystatement/prospectusisqualifiedinitsentiretybyreferencetothefulltextoftheopinion.

Constellationstockholdersareurgedtoreadtheopinioncarefullyandinitsentirety.TheMorganStanley opinionisdirectedtotheConstellationboardofdirectorsandaddressesonlythefairnesstothe stockholdersofConstellation,fromafinancialpointofview,oftheexchangeratiopursuanttothemerger agreement.TheMorganStanleyopiniondoesnotaddressanyotheraspectofthemergeranddoesnot constitutearecommendationtoanyConstellationorExelonshareholderastohowanysuchshareholder shouldvotewithrespecttotheproposedmergerorwhethertotakeanyotheractionwithrespecttothe merger.TheopinionalsodoesnotaddressthepricesatwhichsharesofConstellationcommonstockor Exeloncommonstockwilltradefollowingthecompletionofthemergeroratanyothertime.

12 Goldman,Sachs&Co.ConstellationretainedGoldman,Sachs&Co.,orGoldmanSachs,toprovideitwithfinancialadvisoryservices,including,atConstellationsrequest,toundertakeastudytoenableGoldmanSachstorenderanopinion astothefairness,fromafinancialpointofview,oftheconsiderationtobereceivedinconnectionwiththe transaction.ConstellationselectedGoldmanSachsasitsfinancialadvisorbecauseitisaninternationally recognizedinvestmentbankingfirmthathassubstantialexperienceintransactionssimilartothemerger.

GoldmanSachsdelivereditsoralopinion,subsequentlyconfirmedinwriting,that,asofApril28,2011and baseduponandsubjecttothelimitationsandassumptionssetforththerein,theexchangeratioof0.930ofashare ofExeloncommonstocktobepaidforeachshareofConstellationcommonstockpursuanttothemerger agreementwasfairfromafinancialpointofviewtotheholdersofConstellationcommonstock.ThefulltextofthewrittenopinionofGoldmanSachs,datedApril28,2011,whichsetsforththeassumptionsmade,proceduresfollowed,mattersconsidered,qualificationsandlimitationsonthereview undertakeninconnectionwiththeopinion,isattachedtothisjointproxystatement/prospectusas AnnexF.ThissummaryoftheGoldmanSachsopinionprovidedinthisjointproxystatement/prospectus isqualifiedinitsentiretybyreferencetothefulltextofthewrittenopinion.Constellationstockholdersare urgedtoreadtheopinioncarefullyandinitsentirety.GoldmanSachsadvisoryservicesanditsopinion wereprovidedfortheinformationandassistanceoftheboardofdirectorsofConstellationinconnection withitsconsiderationoftheproposedmergerandsuchopiniondoesnotconstitutearecommendationasto howanyholderofsharesofConstellationcommonstockshouldvotewithrespecttosuchproposedmerger oranyothermatter.AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMerger(seepage127)SomeofExelonsdirectorsandexecutiveofficershavefinancialinterestsinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsofExelonshareholdersgenerally.TheExelonboardofdirectors wasawareofandconsideredthesepotentialinterests,amongothermatters,inevaluatingandnegotiatingthe mergeragreementandthemerger,inapprovingthemergeragreementandinrecommendingtheapprovalofthe shareissuanceproposalandtheExelonadjournmentproposal.PleaseseeTheMergerAdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMergerbeginningonpage127foradditionalinformationabouttheseinterests.AdditionalInterestsofConstellationExecutiveOfficersandDirectorsintheMerger(seepage128)SomeofConstellationsdirectorsandexecutiveofficershavefinancialinterestsinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsofConstellationshareholdersgenerally.TheConstellationboardof directorswasawareofandconsideredthesepotentialinterests,amongothermatters,inevaluatingand negotiatingthemergeragreementandthemerger,inapprovingthemergeragreementandinrecommendingthe approvalofthemergerproposal,thecompensationproposalandtheConstellationadjournmentproposal.PleaseseeTheMergerAdditionalInterestsofConstellationExecutiveOfficersandDirectorsintheMergerbeginningonpage128foradditionalinformationabouttheseinterests.GovernanceandManagementFollowingCompletionoftheMerger(seepage133)Uponcompletionofthemerger,MayoA.ShattuckIII,Constellationscurrentchairman,presidentandchiefexecutiveofficer,willbecomeexecutivechairmanofthecombinedcompany,andExelonpresidentandchief operatingofficerChristopherM.Cranewillbecomepresidentandchiefexecutiveofficerofthecombined company.JohnW.Rowe,thecurrentchiefexecutiveofficerofExelon,willretireuponcompletionofthe merger.Uponcompletionofthemerger,Exelonwilladdtoitscurrent15-memberboardofdirectors 13 Mr.ShattuckandthreeindependentdirectorsofConstellationdesignatedbytheboardofdirectorsofConstellation.Bytheendof2012,theboardofdirectorswillconsistof16members,including12memberswho willbedesignatedfromtheboardofdirectorsofExelonpriortothemergerandfourfromtheboardofdirectors ofConstellationwhowillbeaddedtotheboardofdirectorsofExelonattheclosingofthemerger.Exelons designeeswillconsistof11directorswhomeetthestandardsforindependencesetforthintheNYSEListing StandardsandMr.Crane,andConstellationsdesigneeswillconsistofthreedirectorswhomeetthestandardsfor independencesetforthintheNYSEListingStandardsandMr.Shattuck.OneExelondirectorisexpectedto retireattheendof2011,andMr.Roweisexpectedtoretireuponcompletionofthemerger.Twoothercurrent ExelondirectorsareexpectedtoretirefromtheExelonboardattheendof2012.PleaseseeTheMergerGovernanceandManagementFollowingCompletionoftheMerger,beginningonpage133foradditionalinformationaboutgovernanceandmanagementfollowingthemerger.TheMergerAgreement(seepage146)WeincludethemergeragreementasAnnexAtothisjointproxystatement/prospectus.Weencourageyoutoreadcarefullythemergeragreementinitsentirety.Itistheprincipaldocumentgoverningthemergerandthe otherrelatedtransactions.ConditionstotheCompletionoftheMerger(seepage150)Weexpecttocompletethemergerafteralloftheconditionstothemergerinthemergeragreementaresatisfiedorwaived,includingafterExelonandConstellationreceiveshareholderapprovalsattheirrespective specialmeetingsofshareholdersandreceiveallrequiredregulatoryapprovals.TheobligationofeachofExelonandConstellationtocompletethemergerissubjecttothesatisfactionorwaiverofanumberofcustomaryconditions,includingthefollowing:*theapprovalbyConstellationstockholdersofthemergerproposal;

• theapprovalbyExelonshareholdersoftheshareissuanceproposal;

• theabsenceofgovernmentalactionpreventingthecompletionofthemerger;

• thereceiptofalloftheregulatoryapprovalsrequiredtocompletethemerger,freeofanyconditionthat,ifeffected,wouldhaveamaterialadverseeffectonExelonorConstellationandtheabsenceof anyotherregulatoryorderthatwouldhavesucheffect;*theeffectivenessoftheregistrationstatementonFormS-4ofwhichthisjointproxystatement/prospectusisapart;*theapprovalforlistingontheNYSE,subjecttoofficialnoticeofissuance,ofthesharesofExeloncommonstockthatwillbeissuedpursuanttothemergeragreement;*thetruthandaccuracyoftherepresentationsandwarrantiesoftheotherparty,exceptwherethefailuretobetrueandaccuratecouldnotreasonablybeexpectedtohaveamaterialadverseeffectonsuchother

party;*theperformanceinallmaterialrespectsoftheotherpartysobligationsunderthemergeragreement;

• thereceiptbyeachpartyofwrittenopinionsfromthepartyslegalcounsel,datedasoftheclosingdate,totheeffectthatthemergerwillqualifyasareorganizationundertheCode;and*theabsence,sinceJanuary1,2011,ofanychange,event,occurrenceordevelopmentthathashadorwouldreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialadverseeffectonthe otherparty.

14 TerminationoftheMergerAgreement(seepage151)Generally,themergeragreementmaybeterminatedatanytimepriortothecompletionofthemergerunderthefollowingcircumstances:*bymutualwrittenconsentofExelonandConstellation;

• byeitherExelonorConstellation:*ifthemergerhasnotbeencompletedbyApril28,2012,providedthatthisrighttoterminatethemergeragreementisnotavailabletoanypartywhosewillfulfailuretoperformanyofits obligationsunderthemergeragreementresultsinthefailureofthemergertobecompletedbythat date,andprovidedthateitherpartymayextendthedateonwhichthisterminationrightwould arisebyuptoanadditional90daysiftheonlyunsatisfiedconditionstocompletionofthemerger arethereceiptofrequiredregulatoryapprovals;*ifeithertheExelonshareholdersortheConstellationstockholdersdonotgivetheapprovalrequiredpursuanttothemergeragreementforcompletionofthemerger;*ifanyfinalandnonappealableorderorinjunctionbyanyfederalorstatecourtofcompetentjurisdictionpreventingcompletionofthemerger,orapplicablefederalorstatelawprohibiting completionofthemerger,isineffect,orifanygovernmentalentityenactsanylawthatcontains anyconditionthat,ifeffected,wouldhaveamaterialadverseeffectonExelonorConstellation;*iftheotherpartybreachesthemergeragreementorfailstoperformitsobligationsinanymaterialrespect,whichbreachorfailuretoperform(1)wouldgiverisetothefailureofaconditiontothe terminatingpartysobligationtocompletethemergerand(2)isincapableofbeingcuredorisnot curedbytheearlierof(A)30businessdaysfollowingreceiptofwrittennoticefromthe non-breachingpartyofthebreachorfailuretoperformor(B)thedatereferredtointhefirst sub-bulletabove;*ifsuchpartywithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesanystatementinconsistentwith,,itsapprovalor recommendationofthemergerproposal,inthecaseofConstellation,ortheshareissuance proposal,inthecaseofExelon,toacceptathird-partytakeoverproposal;or*iftheboardofdirectorsoftheotherpartywithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesanystatementinconsistentwith,,its approvalorrecommendationofthemergerproposal,inthecaseofConstellation,ortheshare issuanceproposal,inthecaseofExelon.TerminationFees(seepage152)Undercertaincircumstancesinvolvingathird-partyacquisitionproposal,achangeinaboardofdirectorsrecommendationoftheproposalscontainedinthisjointproxystatement/prospectusoraterminationofthe mergeragreementbytheotherpartyduetoabreachofthemergeragreement,ExelonorConstellationmaybe required,subjecttocertainconditions,topayaterminationfeeof$800million,inthecaseofaterminationfee payablebyExelontoConstellation,oraterminationfeeof$200million,inthecaseofaterminationfeepayable byConstellationtoExelon.NoSolicitation(seepage154)ThemergeragreementrestrictstheabilityofeitherExelonorConstellationtodirectlyorindirectly,solicit,initiate,knowinglyencourageorengageindiscussionswithathird-partyregardingathird-partytakeover proposalofExelonorConstellation,respectively.If,however,eitherparty,asapplicable,receivesanunsolicited takeoverproposalfromathird-partythat,priortoreceiptofitsrespectiveshareholderapprovalrequiredto 15 completethemerger,suchpartysboardofdirectorsdeterminesingoodfaith,afterconsultationwithsuchpartysfinancialadvisors,constitutesasuperiorproposalorisreasonablylikelytoresultinasuperiorproposal, suchpartymayfurnishinformationtothethird-partyandengageindiscussionsornegotiationsregardinga takeoverproposalwiththethird-party,subjecttospecifiedconditions.TheboardofdirectorsofeitherExelonor Constellationmayalsowithhold,withdraw,qualifyormodify,orpubliclyproposetowithhold,withdraw,qualify ormodifyitsapprovalorrecommendationoftheproposalsdescribedinthisjointproxystatement/prospectus, subjecttocertainconditions,ifsuchboardfirstdeterminesingoodfaith,afterconsultingwithoutsidecounsel, thatthefailuretotakesuchactionwouldbereasonablylikelytoresultinabreachoftheboardofdirectors fiduciarydutiesunderapplicablelaw.AccountingTreatment(seepage138)ExelonpreparesitsfinancialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.ThemergerwillbeaccountedforbyapplyingtheacquisitionmethodwithExelontreatedasthe

acquiror.MaterialUnitedStatesFederalIncomeTaxConsequencesoftheMerger(seepage134)ItisaconditiontothemergerthatbothExelonandConstellationreceiveopinionsfromtheirrespectivelegalcounseltotheeffectthat,forUnitedStatesfederalincometaxpurposes,themergerwillqualifyasa reorganizationwithinthemeaningofSection368(a)oftheCode.Providedthatthemergerqualifiesasa reorganizationwithinthemeaningofSection368(a)oftheCode,aConstellationstockholdergenerallywillnot recognizegainorlossforUnitedStatesfederalincometaxpurposesasaresultofsuchstockholders ConstellationcommonsharesbeingexchangedinthemergerforsharesofExelon,exceptwithrespecttothe receiptofcashinlieuofafractionalshareofExelon.ThediscussionofmaterialUnitedStatesfederalincometaxconsequencesofthemergercontainedinthisjointproxystatement/prospectusisintendedtoprovideonlyageneralsummaryandisnotacompleteanalysisor descriptionofallpotentialUnitedStatesfederalincometaxconsequencesofthemerger.Thediscussiondoesnot addresstaxconsequencesthatmayvarywith,orarecontingenton,individualcircumstances.Inaddition,itdoes notaddresstheeffectsofanystate,local,non-UnitedStatesornon-incometaxlaws.Constellationstockholdersarestronglyurgedtoconsultwiththeirtaxadvisorsregardingthetaxconsequencesofthemergertothem,includingtheeffectsofUnitedStatesfederal,state,localand non-UnitedStatestaxlaws.ForamorecompletedescriptionofthematerialUnitedStatesfederalincometaxconsequencesofthemerger,pleaseseeTheMergerMaterialUnitedStatesFederalIncomeTaxConsequencesoftheMerger beginningonpage134.RegulatoryMatters(seepage140)Tocompletethemerger,ExelonandConstellationmustobtainapprovalsorconsentsfrom,ormakefilingswith,anumberofUnitedStatesfederalandstatepublicutility,antitrustandotherregulatoryauthorities.The materialUnitedStatesfederalandstateapprovals,consentsandfilingsincludethefollowing:*theexpirationorearlyterminationofthewaitingperiodsundertheHSRActandtherelatedrulesandregulations,whichprovidethatcertainacquisitiontransactionsmaynotbecompleteduntilrequired informationhasbeenfurnishedtotheAntitrustDivisionoftheDepartmentofJusticeandtheFederal TradeCommission;*authorizationfromtheFederalEnergyRegulatoryCommissionundertheFederalPowerAct; 16

• approvalfromtheNuclearRegulatoryCommissionundertheAtomicEnergyActof1954;*approvalfromtheMarylandPublicServiceCommission;

• approvalfromtheNewYorkStatePublicServiceCommission;and

• approvalfromthePublicUtilityCommissionofTexas.ExelonandConstellationwillalsoprovideinformationregardingthemergertotheirotherstateregulatorsasapplicableandasrequested.Finally,thetransferofindirectcontrolovercertainFederalCommunications Commission,orFCC,licensesforprivateinternalcommunicationsheldbycertainsubsidiariesofConstellation willrequiretheapprovaloftheFCC.ExelonandConstellationhavemadeorintendtomakevariousfilingsandsubmissionsfortheabove-mentionedauthorizationsandapprovals.ExelonandConstellationwillseektocompletethemergerinthefirst quarterof2012.AlthoughExelonandConstellationbelievethattheywillreceivetherequiredconsentsand approvalsdescribedabovetocompletethemerger,wecannotgiveanyassuranceastothetimingofthese consentsandapprovalsorastoExelonsandConstellationsultimateabilitytoobtainsuchconsentsorapprovals (oranyadditionalconsentsorapprovalswhichmayotherwisebecomenecessary).Wealsocannotensurethatwe willobtainsuchconsentsorapprovalsontermsandsubjecttoconditionssatisfactorytoExelonand Constellation.PleaseseeRegulatoryMatters,beginningonpage140,foradditionalinformationaboutthese

matters.LegalProceedingsRelatedtotheMerger(seepage137)FollowingtheannouncementofthemergeronApril28,2011,twelvepurportedConstellationstockholdersbroughtputativeclassactionsrelatingtothemergerintheCircuitCourtforBaltimoreCity,Maryland,whichwe refertoasthestatecourt,andtwopurportedConstellationstockholdersbroughtseparateputativeclassactions relatingtothemergerintheUnitedStatesDistrictCourtfortheDistrictofMaryland,whichwerefertoasthe federalcourt.OnSeptember27,2011,thepartiestotheconsolidatedactioninthestatecourtandthetwoactions inthefederalcourtenteredintoamemorandumofunderstandingsettingforthanagreementinprinciple regardingasettlementoftheactions.Undertheagreement,ConstellationandExelonagreedtoincludeinthis jointproxystatement/prospectuscertaindisclosuresrelatingtothemerger.Theagreementprovidesthatthe actionswillbedismissedwithprejudiceandthatthemembersofaputativeclassofConstellationstockholders willreleasethedefendantsfromallclaimsthatwereorcouldhavebeenraisedintheactions,includingallclaims relatingtothemerger.Theagreementalsoprovidesthattheplaintiffscounselmayapplytothestatecourtforan awardofattorneysfeesandexpenses.Thesettlementissubjecttocustomaryconditions,including,amongother things,theexecutionofdefinitivesettlementpapersandapprovalofthesettlementbythestatecourt.Weprovideadditionalinformationonlegalproceedingsrelatedtothemergerbeginningonpage137.ComparisonofShareholderRights(seepage177)ConstellationisaMarylandcorporation.ExelonisaPennsylvaniacorporation.ThesharesofExeloncommonstockthatConstellationstockholderswillreceiveinthemergerwillbesharesofaPennsylvania corporation.ConstellationstockholderrightsunderMarylandlawandExelonshareholderrightsunder Pennsylvanialawaredifferent.Inaddition,ExelonsAmendedandRestatedArticlesofIncorporationandits AmendedandRestatedBylawscontainprovisionsthataredifferentfromConstellationscharterascurrentlyin effect,whichwerefertoasitsCharter,andbylaws,ascurrentlyineffect,whichwerefertoasitsBylaws.ForasummaryofcertaindifferencesbetweentherightsofExelonshareholdersandConstellationstockholders,seeComparisonofShareholderRights,beginningonpage177.

17 SELECTEDHISTORICALFINANCIALINFORMATIONThefollowingselectedhistoricalfinancialinformationisbeingprovidedtoassistyouinyouranalysisofthefinancialaspectsofthemerger.TheExelonannualhistoricalinformationisderivedfromtheauditedconsolidated financialstatementsofExelonasofandforeachoftheyearsinthefive-yearperiodendedDecember31,2010.The Constellationannualhistoricalinformationisderivedfromtheauditedconsolidatedfinancialstatementsof Constellationasofandforeachoftheyearsinthefive-yearperiodendedDecember31,2010.Thedataasofand forthesixmonthsendedJune30,2011and2010hasbeenderivedfromunauditedinterimfinancialstatementsof bothExelonandConstellationand,intheopinionofeachcompanysmanagement,includeallnormalandrecurring adjustmentsthatareconsiderednecessaryforthefairpresentationoftheresultsfortheinterimperiod.The informationisonlyasummaryandshouldbereadinconjunctionwitheachcompanyshistoricalconsolidated financialstatementsandrelatednotescontainedintheExelonandConstellationannualreportsonForm10-Kfor theyearendedDecember31,2010andquarterlyreportsonForm10-QfortheperiodendedJune30,2011,which havebeenincorporatedbyreferenceintothisjointproxystatement/prospectus,aswellasotherinformationthathas beenfiledwiththeSEC.SeeWhereYouCanFindMoreInformationbeginningonpage197ofthisjointproxy statement/prospectusforinformationonwhereyoucanobtaincopiesofthisinformation.Thehistoricalresults includedbelowandelsewhereinthisjointproxystatement/prospectusarenotnecessarilyindicativeofthefuture performanceofExelon,Constellationorthecombinedcompany.ExelonSelectedHistoricalFinancialInformation(inmillions,exceptpersharedata)AsofandfortheSixMonthsEndedJune30,YearEndedDecember31, 2011 2010 2010 2009 2008 2007 2006 (unaudited)StatementofOperationsDataOperatingrevenues$9,638$8,859$18,644$17,318$18,859$18,916$15,655 Impairmentofgoodwillandotherlong-livedassets776Operatingincome2,2362,4214,7264,7505,2994,6683,521 Incomefromcontinuingoperations1,2881,1942,5632,7062,7172,7261,590 Incomefromdiscontinuedoperations120102 Netincome1,2881,1942,5632,7072,7372,7361,592 Incomefromcontinuingoperationspershare Basic$1.94$1.81$3.88$4.10$4.13$4.06$2.37 Diluted1.941.803.874.094.104.032.35 Incomefromdiscontinuedoperationspershare Basic$$$$$0.03$0.02$

Diluted0.030.02Netincomepershare Basic$1.94$1.81$3.88$4.10$4.16$4.08$2.37 Diluted1.941.803.874.094.134.052.35 Weightedaveragesharesoutstanding Basic663661661659658670670 Diluted664662663662662676676 Dividendspercommonshare$1.05$1.05$2.10$2.10$2.03$1.76$1.60BalanceSheetDataTotalassets$51,986$49,173$52,240$49,180$47,546$45,087$43,340 Long-termdebt,includingcapitalleases12,15411,20112,00411,38512,59211,96511,911 Preferredsecuritiesofsubsidiary87878787878787 Totalshareholdersequity14,11213,18613,56012,64011,04710,13710,007 Noncontrollinginterests33 18 ConstellationSelectedHistoricalFinancialInformation(inmillions,exceptpersharedata)AsofandfortheSixMonthsEndedJune30,YearEndedDecember31, 2011 2010 2010 2009 2008 2007 2006 (unaudited)StatementofOperationsDataOperatingrevenues$6,930$6,897$14,340$15,599$19,742$21,185$19,271 Impairmentofgoodwill,equitymethodinvestmentsandotherlong-livedassets2,47712574220GainonsaleofinterestinConstellationEnergyNuclearGroup,LLC7,446Mergerterminationandstrategicalternatives costs1461,204Netgain(loss)ondivestitures5246(469)2674 Operatingincome(loss)478597(1,243)7,981(978)1,3341,334 Income(loss)fromcontinuingoperations188275(932)4,503(1,318)835762 (Loss)incomefromdiscontinuedoperations(1)188Netincome(loss)188275(932)4,503(1,318)834950 Netincome(loss)attributabletononcontrollinginterests18115160(4)1214Netincome(loss)attributabletocommonstock170264(983)4,443(1,314)822936 Income(loss)fromcontinuingoperationspershareBasic$0.85$1.32$(4.90)$22.29$(7.34)$4.56$4.17 Diluted0.841.31(4.90)22.19(7.34)4.514.12 (Loss)incomefromdiscontinuedoperationspershareBasic$$$$$$(0.01)$1.05

Diluted(0.01)1.04Netincome(loss)pershare Basic$0.85$1.32$(4.90)$22.29$(7.34)$4.55$5.22 Diluted0.841.31(4.90)22.19(7.34)4.505.16 Weightedaveragesharesoutstanding Basic200201201199179180179 Diluted201202201200179183181 Dividendspercommonshare$0.48$0.48$0.96$0.96$1.91$1.74$1.51 BalanceSheetData Totalassets$19,713$21,709$20,019$23,544$22,284$21,742$21,802 Long-termdebt,includingcapitalleases4,3184,1904,4494,8145,0994,6614,222 Preferredsecuritiesofsubsidiary190190190190190190190 Totalshareholdersequity8,0159,0217,8298,6973,1815,3404,609 Noncontrollinginterests100598975201995 19 SELECTEDUNAUDITEDPROFORMACOMBINEDCONSOLIDATEDFINANCIALINFORMATIONThemergerwillbeaccountedforundertheacquisitionmethodofaccounting,whichmeanstheassetsandliabilitiesofConstellationwillberecorded,asofcompletionofthemerger,attheirrespectivefairvaluesand addedtothoseofExelon.Foramoredetaileddescriptionoftheacquisitionmethodofaccounting,seeThe MergerAccountingTreatmentbeginningonpage138ofthisjointproxystatement/prospectus.Wehavepresentedbelowselectedunauditedproformacombinedconsolidatedfinancialinformationthatreflectstheacquisitionmethodofaccountingandgiveseffecttothemerger,inthecaseofthestatementof operationsinformation,asthoughthemergerhadoccurredasofJanuary1,2010and,inthecaseofthebalance sheetinformation,asthoughthemergerhadoccurredasofJune30,2011.Theunauditedproformacombinedconsolidatedfinancialinformationhasbeenpreparedgivingeffecttotheissuanceof0.930sharesofExeloncommonstockinexchangeforeachshareofConstellationcommonstock.TheunauditedproformacombinedconsolidatedfinancialinformationwouldhavebeendifferenthadthecompaniesactuallybeencombinedasofJanuary1,2010.Forexample,theselectedunauditedproformacombined consolidatedfinancialinformationdoesnotreflectcostsavingsthatmayresultfromthemerger.Thecombinedpro formafinancialinformationhasbeenpresentedforillustrativepurposesonlyandisnotnecessarilyindicativeof resultsofoperationsandfinancialpositionthatwouldhavebeenachievedhadtheproformaeventstakenplaceon thedatesindicated,orofthefutureconsolidatedresultsofoperationsorofthefinancialpositionofthecombined company.Thefollowingselectedunauditedproformacombinedconsolidatedfinancialinformationhasbeen derivedfrom,andshouldbereadinconjunctionwith,theUnauditedProFormaCondensedCombinedConsolidated FinancialStatementsandrelatednotesbeginningonpage163ofthisjointproxystatement/prospectus.SelectedUnauditedProFormaConsolidatedFinancialInformationSixMonthsEndedJune30,2011YearEndedDecember31,2010(inmillions,exceptpersharedata)CombinedConsolidatedStatementofOperationsInformation:Operatingrevenues$16,019$31,989 Operatingincome2,5772,337 Netincomeattributabletocommonstock1,4051,149 Earningspershare Basic$1.65$1.35 Diluted1.651.35 Weightedaveragesharesoutstanding

Basic849848 Diluted851850Dividendspercommonshare$1.05$2.10CombinedConsolidatedBalanceSheetInformation:AsofJune30, 2011Cashandcashequivalents$1,517Totalassets74,481 Long-termdebt16,818 Totalliabilities52,106 Totalpreferredsecurities280 Totalshareholdersequity21,992 Totalnoncontrollinginterest103 Totalequity22,095 Shareholdersequityperbasiccommonshare25.90 20 COMPARATIVEHISTORICALANDUNAUDITEDPROFORMACOMBINEDPERSHAREINFORMATIONThefollowingtablesetsforthselectedhistoricalpershareinformationofExelonandConstellationandunauditedproformacombinedconsolidatedpershareinformationreflectingthemergerbetweenExelonand Constellation,undertheacquisitionmethodofaccounting,andtheissuanceof0.930sharesofExeloncommon stockinexchangeforeachshareofConstellationcommonstock.Youshouldreadthisinformationinconjunction withtheselectedhistoricalfinancialinformation,includedelsewhereinthisjointproxystatement/prospectus,andthehistoricalfinancialstatementsofExelonandConstellationandrelatednotescontainedintheExelonand ConstellationannualreportsonForm10-KfortheyearendedDecember31,2010andquarterlyreportson Form10-QfortheperiodendedJune30,2011,whichhavebeenincorporatedbyreferenceintothisjointproxy statement/prospectus.TheunauditedExelonproformacombinedconsolidatedpershareinformationisderived from,andshouldbereadinconjunctionwith,theUnauditedProFormaCondensedCombinedConsolidatedFinancialStatementsandrelatednotesbeginningonpage163ofthisjointproxystatement/prospectus.ThehistoricalpershareinformationisderivedfromauditedfinancialstatementsofExelonandConstellationasofand fortheyearendedDecember31,2010andunauditedfinancialstatementsforthesixmonthsendedJune30,2011.TheunauditedproformacombinedconsolidatedpershareinformationdoesnotpurporttorepresentwhattheactualresultsofoperationsofExelonandConstellationwouldhavebeenhadthecompaniesbeencombined duringtheperiodspresentedortoprojectExelonsandConstellationsresultsofoperationsthatmaybeachieved aftercompletionofthemerger.AsofandfortheSixMonthsEndedJune30,2011YearEndedDecember31,2010UnauditedProFormaExelonCombinedIncomefromcontinuingoperationspershare:

Basic$1.65$1.35 Diluted1.651.35 Shareholdersequitypershare(a)25.90

ExelonHistorical Incomefromcontinuingoperationspershare:

Basic$1.94$3.88 Diluted1.943.87 Cashdividendsdeclaredpercommonshare1.052.10 Shareholdersequitypershare(b)21.29

ConstellationHistorical Income(loss)fromcontinuingoperationspershare:

Basic$0.85$(4.90)

Diluted0.84(4.90)

Cashdividendsdeclaredpercommonshare0.480.96 Shareholdersequitypershare(b)39.83 UnauditedProFormaConstellationEquivalentsCombined Incomefromcontinuingoperationspershare:

Basic(c)$1.53$1.26 Diluted(c)1.531.26 Shareholdersequitypershare(a)(c)24.09(a)-ProformashareholdersequitypersharerepresentsthetotalproformashareholdersequityasofJune30,2011dividedbytheproformacombinednumberofsharesofExeloncommonstockthatwouldhavebeen outstandingasofJune30,2011hadthemergerbeencompletedonthatdate.(b)-ShareholdersequitypersharerepresentsthetotalshareholdersequityasofJune30,2011dividedbythenumberofsharesofExelonorConstellationstockoutstanding.(c)-TheunauditedproformaConstellationpershareequivalentsarecalculatedbymultiplyingtheunauditedproformaExeloncombinedpershareamountsbytheexchangeratioof0.930.

21 MARKETINFORMATIONANDDIVIDENDSSharesofExeloncommonstockarelistedandtradeontheNYSEunderthesymbolEXC.SharesofConstellationcommonstockarelistedandtradeontheNYSEunderthesymbolCEG.ThefollowingtablepresentstheclosingsalespricesofsharesofExeloncommonstockandConstellationcommonstock,eachasreportedbytheNYSE,on(1)April6,2011,thelasttradingdaybeforeapublication printedanewsarticlereportingthepossibilityofatransactioninvolvingExelonandConstellation,(2)April26, 2011,thelasttradingdaybeforevariousnewsoutletsbeganreportingonapossibletransactioninvolvingExelon andConstellation,(3)April27,2011,thelasttradingdayforwhichmarketinformationisavailablepriortothe publicannouncementoftheexecutionofthemergeragreementand(4)October7,2011,thelastpracticable tradingdaypriortothedateofthisjointproxystatement/prospectus.Thetablealsopresentstheequivalent marketvaluepershareofConstellationcommonstockasofeachsuchdate,determinedbymultiplyingthe closingmarketpriceofashareofExeloncommonstockoneachofthedatesindicatedby0.930,theexchange

ratio.ExelonCommonStock ConstellationCommonStock ConstellationCommonStockEquivalentPer ShareApril6,2011

..........................................$40.94$31.66$38.07April26,2011

.........................................$41.17$32.93$38.29April27,2011

.........................................$41.49$34.30$38.59October7,2011

.......................................$41.93$37.45$38.99Weencourageyoutoobtaincurrentmarketquotationspriortomakinganydecisionwithrespecttothemerger.ThemarketpricesofExeloncommonstockandConstellationcommonstockwillfluctuatebetweenthedateofthisjointproxystatement/prospectusandthecompletionofthemerger.ExelonandConstellationcan givenoassuranceconcerningthemarketpriceofExeloncommonstockorConstellationcommonstockbeforeor aftertheeffectivetimeofthemerger.Followingtheeffectivetimeofthemerger,weexpectthesharesofExeloncommonstocktocontinuetotradeontheNYSEunderthesymbolEXC.ThemostrecentquarterlydividenddeclaredbyExelonpriortothedateofthisjointproxystatement/prospectuswas$0.525pershareofcommonstockdeclaredonJuly26,2011andpaidonSeptember9,2011.

Exelonscurrentdividendis$2.10pershareofcommonstockonanannualbasis.Themostrecentquarterly dividenddeclaredbyConstellationpriortothedateofthisjointproxystatement/prospectuswas$0.24pershare ofcommonstockdeclaredonJuly22,2011andpaidonOctober3,2011.Constellationscurrentdividendis

$0.96pershareofcommonstockonanannualbasis.Undertheprinciplesestablishedinthemergeragreement, ConstellationstockholderswillreceiveadividendattheConstellationrateuntiltheclosingofthemergerand willbegintoaccruetheregularExelondividendaftertheclosing.Dividendsaresubjecttosufficientfundsbeing legallyavailableandtodeclarationbytheapplicableboardofdirectors.

22 CAUTIONARYSTATEMENTREGARDINGFORWARD-LOOKINGSTATEMENTSExceptforthehistoricalinformationcontainedherein,certainofthemattersdiscussedinthisjointproxystatement/prospectusconstituteforward-lookingstatementswithinthemeaningoftheSecuritiesActof1933 andtheSecuritiesExchangeActof1934,bothasamendedbythePrivateSecuritiesLitigationReformActof 1995.Wordssuchasmay,will,anticipate,estimate,expect,project,intend,plan,believe, target,forecast,andwordsandtermsofsimilarsubstanceusedinconnectionwithanydiscussionoffuture plans,actions,oreventsidentifyforward-lookingstatements.Theseforward-lookingstatementsinclude,butare notlimitedto,statementsregardingbenefitsoftheproposedmergerofExelonandConstellation,integration plansandexpectedsynergies,theexpectedtimingofcompletionofthetransaction,anticipatedfuturefinancial andoperatingperformanceandresults,includingestimatesforgrowth.Thesestatementsarebasedonthecurrent expectationsofmanagementofExelonandConstellation,asapplicable.Thereareanumberofrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromtheforward-lookingstatementsincludedinthisjointproxystatement/prospectus.Theserisksanduncertainties includethosesetforthunderRiskFactorsbeginningonpage24,aswellas,amongothers,thefollowing:*thecompaniesmaybeunabletoobtainshareholderapprovalsrequiredforthemerger;

• thecompaniesmaybeunabletoobtainregulatoryapprovalsrequiredforthemerger,orrequiredregulatoryapprovalsmaydelaythemergerorresultintheimpositionofconditionsthatcouldhavea materialadverseeffectonthecombinedcompanyorcausethecompaniestoabandonthemerger;*conditionstotheclosingofthemergermaynotbesatisfied;

• anunsolicitedofferofanothercompanytoacquireassetsorcapitalstockofExelonorConstellationcouldinterferewiththemerger;*problemsmayariseinsuccessfullyintegratingthebusinessesofthecompanies,whichmayresultinthecombinedcompanynotoperatingaseffectivelyandefficientlyasexpected;*thecombinedcompanymaybeunabletoachievecost-cuttingsynergiesoritmaytakelongerthanexpectedtoachievethosesynergies;*themergermayinvolveunexpectedcosts,unexpectedliabilitiesorunexpecteddelays,ortheeffectsofpurchaseaccountingmaybedifferentfromthecompaniesexpectations;*thecreditratingsofthecombinedcompanyoritssubsidiariesmaybedifferentfromwhatthecompaniesexpect;*thebusinessesofthecompaniesmaysufferasaresultofuncertaintysurroundingthemerger;

• thecompaniesmaynotrealizethevaluesexpectedtobeobtainedforpropertiesexpectedorrequiredtobedivested;*theindustrymaybesubjecttofutureregulatoryorlegislativeactionsthatcouldadverselyaffectthecompanies;and*thecompaniesmaybeadverselyaffectedbyothereconomic,business,and/orcompetitivefactors.Otherunknownorunpredictablefactorscouldalsohavematerialadverseeffectsonfutureresults,performanceorachievementsofExelon,Constellationorthecombinedcompany.Inlightoftheforegoingrisks, uncertainties,assumptionsandfactors,theforward-lookingeventsdiscussedinthisjointproxystatement/

prospectusmaynotoccur.Readersarecautionednottoplaceunduerelianceontheseforward-looking statements,whichspeakonlyasofthedateofthisjointproxystatement/prospectus.NeitherExelonnor Constellationundertakeanyobligationtopubliclyreleaseanyrevisiontoitsforward-lookingstatementsto reflecteventsorcircumstancesafterthedateofthisjointproxystatement/prospectus.Wediscussadditionalfactors,risksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedintheforward-lookingstatementsinreportsfiledwiththeSECbyExelonandConstellation.SeeWhere YouCanFindMoreInformationbeginningonpage197foralistofthedocumentsincorporatedbyreference.

23 RISKFACTORSInadditiontotheotherinformationincludedandincorporatedbyreferenceintothisjointproxystatement/prospectus,includingthemattersaddressedinCautionaryStatementRegardingForward-LookingStatements beginningonpage23,ExelonandConstellationshareholdersshouldcarefullyconsiderthefollowingrisks beforedecidinghowtovote.Inaddition,youshouldreadandconsidertherisksassociatedwitheachofthe businessesofExelonandConstellationbecausethoseriskswillalsoaffectthecombinedcompany.Thoserisks canbefoundintheAnnualReportsonForm10-KforthefiscalyearendedDecember31,2010foreachof ExelonandConstellation,asupdatedbyanysubsequentQuarterlyReportsonForm10-QandCurrentReports onForm8-K,whichareincorporatedbyreferenceintothisjointproxystatement/prospectus.Youshouldalso readandconsidertheotherinformationinthisjointproxystatement/prospectusandtheotherdocuments incorporatedbyreferenceintothisjointproxystatement/prospectus.SeeWhereYouCanFindMore Informationbeginningonpage197.RisksRelatedtotheMergerBecausethemarketpriceofsharesofExeloncommonstockwillfluctuateandtheexchangeratiowillnotbeadjustedtoreflectsuchfluctuations,Constellationstockholderscannotbesureofthevalueofthemerger considerationtheywillreceive.Uponcompletionofthemerger,eachoutstandingshareofConstellationcommonstockwillbeconvertedintotherighttoreceive0.930ofashareofExeloncommonstock.ThenumberofsharesofExeloncommon stocktobeissuedpursuanttothemergeragreementforeachshareofConstellationcommonstockwillnot changetoreflectchangesinthemarketpriceofExelonorConstellationcommonstock.Themarketpriceof Exeloncommonstockatthetimeofcompletionofthemergermayvarysignificantlyfromthemarketpricesof Exeloncommonstockonthedatethemergeragreementwasexecuted,thedateofthisjointproxystatement/

prospectusandthedateoftherespectivespecialshareholdermeetings.Accordingly,atthetimeofthe Constellationspecialstockholdermeeting,youwillnotknoworbeabletocalculatethemarketvalueofthe mergerconsiderationyouwillreceiveuponcompletionofthemerger.Inaddition,wemightnotcompletethemergeruntilasignificantperiodoftimehaspassedaftertherespectivespecialshareholdermeetings.Becausewewillnotadjusttheexchangeratiotoreflectanychangesin themarketvalueofExeloncommonstockorConstellationcommonstock,themarketvalueoftheExelon commonstockissuedinconnectionwiththemergerandtheConstellationcommonstocksurrenderedin connectionwiththemergermaybehigherorlowerthanthevaluesofthosesharesonearlierdates.Stockprice changesmayresultfrommarketreactiontotheannouncementofthemergerandmarketassessmentofthe likelihoodthatthemergerwillbecompleted,changesinthebusiness,operationsorprospectsofExelonor Constellationpriortoorfollowingthemerger,litigationorregulatoryconsiderations,generalbusiness,market, industryoreconomicconditionsandotherfactorsbothwithinandbeyondthecontrolofExelonand Constellation.NeitherExelonnorConstellationispermittedtoterminatethemergeragreementsolelybecauseof changesinthemarketpriceofeithercompanyscommonstock.ThemergeragreementcontainsprovisionsthatlimiteachofExelonsandConstellationsabilitytopursuealternativestothemerger,whichcoulddiscourageapotentialacquirerofeitherConstellationorExelonfrom makinganalternativetransactionproposaland,incertaincircumstances,couldrequireExelonor Constellationtopaytotheotherasignificantterminationfee.Underthemergeragreement,ExelonandConstellationarerestricted,subjecttolimitedexceptions,fromenteringintoalternativetransactionsinlieuofthemerger.Ingeneral,unlessanduntilthemergeragreementis terminated,bothExelonandConstellationarerestrictedfrom,amongotherthings,soliciting,initiating, knowinglyencouragingorfacilitatingacompetingacquisitionproposalfromanyperson.EachoftheExelon boardofdirectorsandtheConstellationboardofdirectorsislimitedinitsabilitytochangeitsrecommendation 24 withrespecttothemerger-relatedproposals.ExelonorConstellationmayterminatethemergeragreementandenterintoanagreementwithrespecttoasuperiorproposalonlyifspecifiedconditionshavebeensatisfied, includingcompliancewiththenon-solicitationprovisionsofthemergeragreement.Theseprovisionscould discourageathirdpartythatmayhaveaninterestinacquiringallorasignificantpartofExelonorConstellation fromconsideringorproposingsuchanacquisition,evenifsuchthirdpartywerepreparedtopayconsideration withahigherpersharecashormarketvaluethantheconsiderationproposedtobereceivedorrealizedinthe merger,ormightresultinapotentialcompetingacquirerproposingtopayalowerpricethanitwouldotherwise haveproposedtopaybecauseoftheaddedexpenseoftheterminationfeethatmaybecomepayableincertain circumstances.Underthemergeragreement,intheeventExelonorConstellationterminatesthemerger agreementtoacceptasuperiorproposal,orundercertainothercircumstances,ExelonorConstellation,as applicable,wouldberequiredtopayaterminationfeeof$800millioninthecaseofaterminationfeepayableby ExelontoConstellationandaterminationfeeof$200millioninthecaseofaterminationfeepayableby ConstellationtoExelon.SeeTheMergerAgreementNoSolicitationbeginningonpage154.ExelonandConstellationwillbesubjecttovariousuncertaintiesandcontractualrestrictionswhilethemergerispendingthatmaycausedisruptionandcouldadverselyaffecttheirfinancialresults.Uncertaintyabouttheeffectofthemergeronemployees,suppliersandcustomersmayhaveanadverseeffectonExelonand/orConstellation.TheseuncertaintiesmayimpairExelonsand/orConstellationsabilityto attract,retainandmotivatekeypersonneluntilthemergeriscompletedandforaperiodoftimethereafter,as employeesandprospectiveemployeesmayexperienceuncertaintyabouttheirfutureroleswiththecombined company,andcouldcausecustomers,suppliersandotherswhodealwithExelonorConstellationtoseekto changeexistingbusinessrelationshipswithExelonorConstellation.Thepursuitofthemergerandthe preparationfortheintegrationmayalsoplaceaburdenonmanagementandinternalresources.Anysignificant diversionofmanagementattentionawayfromongoingbusinessconcernsandanydifficultiesencounteredinthe transitionandintegrationprocesscouldaffectExelonsand/orConstellationsfinancialresults.Inaddition,themergeragreementrestrictseachofExelonandConstellation,withouttheothersconsent,frommakingcertainacquisitionsandtakingotherspecifiedactionswhilethemergerispending.These restrictionsmaypreventExelonand/orConstellationfrompursuingotherwiseattractivebusinessopportunities andmakingotherchangestotheirrespectivebusinessespriortocompletionofthemergerorterminationofthe mergeragreement.SeeTheMergerAgreementCovenantsofExelonandConstellationbeginningonpage

159.Ifcompleted,themergermaynotachieveitsanticipatedresults,andExelonandConstellationmaybeunabletointegratetheiroperationsinthemannerexpected.ExelonandConstellationenteredintothemergeragreementwiththeexpectationthatthemergerwillresultinvariousbenefits,including,amongotherthings,costsavingsandoperatingefficiencies.Achievingthe anticipatedbenefitsofthemergerissubjecttoanumberofuncertainties,includingwhetherthebusinessesof ExelonandConstellationcanbeintegratedinanefficient,effectiveandtimelymanner.Itispossiblethattheintegrationprocesscouldtakelongerthananticipatedandcouldresultinthelossofvaluableemployees,thedisruptionofeachcompanysongoingbusinesses,processesandsystemsor inconsistenciesinstandards,controls,procedures,practices,policiesandcompensationarrangements,anyof whichcouldadverselyaffectthecombinedcompanysabilitytoachievetheanticipatedbenefitsofthemergeras andwhenexpected.Thecombinedcompanysresultsofoperationscouldalsobeadverselyaffectedbyany issuesattributabletoeithercompanysoperationsthatariseorarebasedoneventsoractionsthatoccurpriorto theclosingofthemerger.Thecompaniesmayhavedifficultyaddressingpossibledifferencesincorporate culturesandmanagementphilosophies.Failuretoachievetheseanticipatedbenefitscouldresultinincreased costsordecreasesintheamountofexpectedrevenuesandcouldadverselyaffectthecombinedcompanysfuture business,financialcondition,operatingresultsandprospects.

25 ThemergermaynotbeaccretivetoearningsandmaycausedilutiontoExelonsearningspershare,whichmaynegativelyaffectthemarketpriceofExelonscommonstock.Exeloncurrentlyanticipatesthatthemergerwillbeaccretivetoearningspersharein2013,whichisexpectedtobethefirstfullyearfollowingcompletionofthemerger.Thisexpectationisbasedonpreliminary estimatesthataresubjecttochange.Exelonalsocouldencounteradditionaltransactionandintegration-related costs,mayfailtorealizeallofthebenefitsanticipatedinthemergerorbesubjecttootherfactorsthataffect preliminaryestimates.AnyofthesefactorscouldcauseadecreaseinExelonsadjustedearningspershareor decreaseordelaytheexpectedaccretiveeffectofthemergerandcontributetoadecreaseinthepriceofExelons commonstock.Exelonwillrecordgoodwillthatcouldbecomeimpairedandadverselyaffectitsoperatingresults.AccountingstandardsintheUnitedStatesrequirethatonepartytothemergerbeidentifiedastheacquirer.Inaccordancewiththesestandards,themergerwillbeaccountedforasanacquisitionofConstellationcommon stockbyExelonandwillfollowtheacquisitionmethodofaccountingforbusinesscombinations.Theassetsand liabilitiesofConstellationwillbeconsolidatedwiththoseofExelon.Theexcessofthepurchasepriceoverthe fairvaluesofConstellationsassetsandliabilities,ifany,willberecordedasgoodwill.Theamountofgoodwill,whichcouldbematerial,willbeallocatedtotheappropriatereportingunitsofthecombinedcompany.Exelonisrequiredtoassessgoodwillforimpairmentatleastannuallybycomparingthefair valueofreportingunitstothecarryingvalueofthosereportingunits.Totheextentthecarryingvalueofanyof thosereportingunitsisgreaterthanthefairvalue,asecondstepcomparingtheimpliedfairvalueofgoodwillto thecarryingamountwouldberequiredtodetermineifthegoodwillisimpaired.Suchapotentialimpairment couldresultinamaterialchargethatwouldhaveamaterialimpactonExelonsfutureoperatingresultsand consolidatedbalancesheet.Themergerissubjecttothereceiptofconsentorapprovalfromgovernmentalentitiesthatcoulddelaythecompletionofthemergerorimposeconditionsthatcouldhaveamaterialadverseeffectonthecombined companyorthatcouldcauseabandonmentofthemerger.Completionofthemergerisconditioneduponthereceiptofconsents,orders,approvalsorclearances,totheextentrequired,fromtheFederalEnergyRegulatoryCommission,ortheFERC,theNuclearRegulatory Commission,ortheNRC,theFCC,andthepublicutilitycommissionsorsimilarentitiesincertainstatesin whichthecompaniesoperate,includingtheMarylandPublicServiceCommission.Themergerisalsosubjectto reviewbytheUnitedStatesDepartmentofJusticeAntitrustDivision,ortheDOJ,undertheHSRAct,andthe expirationorearlierterminationofthewaitingperiod(andanyextensionofthewaitingperiod)applicabletothe mergerisaconditiontoclosingthemerger.ThespecialmeetingsoftheshareholdersofExelonandConstellation atwhichtheproposalsrequiredtocompletethemergerwillbeconsideredmaytakeplacebeforeanyorallofthe requiredregulatoryapprovalshavebeenobtainedandbeforeallconditionstosuchapprovals,ifany,areknown.

Inthisevent,iftheshareholderproposalsrequiredtocompletethemergerareapproved,Exelonand Constellationmaysubsequentlyagreetoconditionswithoutseekingfurthershareholderapproval,evenifsuch conditionscouldhaveanadverseeffectonExelon,Constellationorthecombinedcompany.ExelonandConstellationcannotprovideassurancethatwewillobtainallrequiredregulatoryconsentsorapprovalsorthattheseconsentsorapprovalswillnotcontainterms,conditionsorrestrictionsthatwouldbe detrimentaltothecombinedcompanyafterthecompletionofthemerger.Themergeragreementgenerally permitseachpartytoterminatethemergeragreementifthefinaltermsofanyoftherequiredregulatoryconsents orapprovalsrequire(1)anyactionthatinvolvesdivesting,holdingseparateorotherwisetransferringcontrolover anynuclearorhydroelectricorpumped-storagegenerationassetsofthepartiesoranyoftheirrespective subsidiariesoraffiliates;or(2)anyaction(includinganyactionthatinvolvesdivesting,holdingseparateor otherwisetransferringcontroloverbase-loadcapacity),withoutincludingthoseactionsproposedbytheparties 26 mutuallyagreed-uponanalysisofmitigationtoaddresstheincreasedmarketconcentrationresultingfromthemergerandtheconcessionsannouncedbythepartiesinthepressreleaseannouncingthemergeragreement, whichwould,individuallyorintheaggregate,reasonablybeexpectedtohaveamaterialadverseeffectoneither party.Anysubstantialdelayinobtainingsatisfactoryapprovals,receiptofproceedsfromrequireddivestituresin anamountsubstantiallylowerthananticipatedortheimpositionofanytermsorconditionsinconnectionwith suchapprovalscouldcauseamaterialreductionintheexpectedbenefitsofthemerger.Ifanysuchdelaysor conditionsareseriousenough,thepartiesmaydecidetoabandonthemerger.Theproformafinancialstatementsincludedinthisjointproxystatement/prospectusarepresentedforillustrativepurposesonlyandmaynotbeanindicationofthecombinedcompanysfinancialconditionor resultsofoperationsfollowingthemerger.Theproformafinancialstatementscontainedinthisjointproxystatement/prospectusarepresentedforillustrativepurposesonly,arebasedonvariousadjustments,assumptionsandpreliminaryestimatesandmaynot beanindicationofthecombinedcompanysfinancialconditionorresultsofoperationsfollowingthemergerfor severalreasons.SeeUnauditedProFormaCondensedCombinedConsolidatedFinancialStatementsbeginning onpage163.Theactualfinancialconditionandresultsofoperationsofthecombinedcompanyfollowingthe mergermaynotbeconsistentwith,orevidentfrom,theseproformafinancialstatements.Inaddition,the assumptionsusedinpreparingtheproformafinancialinformationmaynotprovetobeaccurate,andother factorsmayaffectthecombinedcompanysfinancialconditionorresultsofoperationsfollowingthemerger.

Anypotentialdeclineinthecombinedcompanysfinancialconditionorresultsofoperationsmaycause significantvariationsinthestockpriceofthecombinedcompany.TheopinionsrenderedtotheboardsofdirectorsofExelonandConstellationbythepartiesrespectivefinancialadvisorswerebasedontherespectivefinancialanalysestheyperformed,whichconsideredfactors suchasmarketandotherconditionsthenineffect,andfinancialforecastsandotherinformationmade availabletothem,asofthedateoftheirrespectiveopinions.Asaresult,theseopinionsdonotreflectchanges ineventsorcircumstancesafterthedateoftheseopinions.TheopinionsrenderedtotheboardsofdirectorsofExelonandConstellationbythepartiesrespectivefinancialadvisorswereprovidedinconnectionwith,andatthetimeof,theboardsofdirectorsrespective evaluationofthemerger.Theopinionswerenecessarilybasedontherespectivefinancialanalysesperformed, whichconsideredmarketandotherconditionsthenineffect,andfinancialforecastsandotherinformationmade availabletothem,asofthedateoftheirrespectiveopinions,whichmayhavechangedafterthedateofthe opinions.Theopinionsdidnotspeakasofthetimethatthemergerwouldbecompletedorasofanydateother thanthedateofsuchopinions,andneithertheboardofdirectorsofExelonnortheboardofdirectorsof Constellationanticipatesaskingtheirrespectivefinancialadvisorstoupdatetheiropinions.Formore information,seeTheMergerOpinionsofFinancialAdvisorstoExelonandOpinionsofFinancial AdvisorstoConstellation,beginningonpages72and110,respectively.Exeloncannotassureyouthatitwillbeabletocontinuepayingdividendsatthecurrentrate.Asnotedelsewhereinthisjointproxystatement/prospectus,ExeloncurrentlyexpectstopaydividendsinanamountconsistentwiththedividendpolicyofExelonineffectpriortothecompletionofthemerger.However, youshouldbeawarethatExelonshareholdersmaynotreceivethesamedividendsfollowingthemergerfor reasonsthatmayincludeanyofthefollowingfactors:*ExelonmaynothaveenoughcashtopaysuchdividendsduetochangesinExelonscashrequirements,capitalspendingplans,financingagreements,cashfloworfinancialposition;*decisionsonwhether,whenandinwhichamountstomakeanyfuturedistributionswillremainatalltimesentirelyatthediscretionoftheExelonboardofdirectors,whichreservestherighttochange Exelonsdividendpracticesatanytimeandforanyreason; 27

• theamountofdividendsthatExelonmaydistributetoitsshareholdersissubjecttorestrictionsunderPennsylvanialaw;and*Exelonmaynotreceivedividendpaymentsfromitssubsidiariesinthesamelevelthatithashistorically.TheabilityofExelonssubsidiariestomakedividendpaymentstoitissubjecttofactors similartothoselistedabove.Exelonsshareholdersshouldbeawarethattheyhavenocontractualorotherlegalrighttodividendsthathavenotbeendeclared.DirectorsandexecutiveofficersofExelonandConstellationhavefinancialinterestsinthemergerthatmaybedifferentfrom,orinadditionto,thoseofotherExelonandConstellationshareholders,whichcouldhave influencedtheirdecisionstosupportorapprovethemerger.Inconsideringwhethertoapprovetheproposalsatthespecialmeetings,ExelonandConstellationshareholdersshouldrecognizethatdirectorsandexecutiveofficersofExelonandConstellationhaveinterestsin themergerthatmaydifferfrom,orthatareinadditionto,theirinterestsasshareholdersofExelonand Constellation.Theseinterestsinclude,amongothers,continuedserviceasadirectororanexecutiveofficerofthe combinedcompany,acceleratedvestingofsomeequityawards,arrangementsthatprovideforseverancebenefits ifcertainexecutiveofficersemploymentisterminatedunderspecifiedcircumstancesfollowingthecompletion ofthemergerandrightstoindemnificationanddirectorsandofficersliabilityinsurancethatwillsurvivethe completionofthemerger.TheExelonandConstellationboardsofdirectorswereawareoftheseinterestsatthe timeeachapprovedthemergeragreement.TheseinterestsmaycauseExelonsandConstellationsdirectorsand executiveofficerstoviewthemergerdifferentfromhowyoumayviewitasashareholder.SeeTheMerger AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMergerandAdditionalInterestsof ConstellationExecutiveOfficersandDirectorsintheMerger,beginningonpages127and128,respectively.Ifcompleted,themergermayadverselyaffectthecombinedcompanysabilitytoattractandretainkey employees.CurrentandprospectiveExelonandConstellationemployeesmayexperienceuncertaintyabouttheirfuturerolesatthecombinedcompanyfollowingthecompletionoftheproposedmerger.Inaddition,currentand prospectiveExelonandConstellationemployeesmaydeterminethattheydonotdesiretoworkforthecombined companyforavarietyofpossiblereasons.Thesefactorsmayadverselyaffectthecombinedcompanysabilityto attractandretainkeymanagementandotherpersonnel.FailuretocompletethemergercouldnegativelyaffectthesharepricesandthefuturebusinessesandfinancialresultsofExelonandConstellation.Completionofthemergerisnotassuredandissubjecttorisks,includingtherisksthatapprovalofthetransactionbyshareholdersofExelonandConstellationorbygovernmentalagencieswillnotbeobtainedorthat certainotherclosingconditionswillnotbesatisfied.Ifthemergerisnotcompleted,theongoingbusinessesof ExelonorConstellationmaybeadverselyaffectedandExelonandConstellationwillbesubjecttoseveralrisks, including:*havingtopaycertainsignificantcostsrelatingtothemergerwithoutreceivingthebenefitsofthemerger,including,incertaincircumstances,aterminationfeeof$800millioninthecaseofa terminationfeepayablebyExelontoConstellationandaterminationfeeof$200millioninthecaseof aterminationfeepayablebyConstellationtoExelon;*thepotentiallossofkeypersonnelduringthependencyofthemergerasemployeesmayexperienceuncertaintyabouttheirfutureroleswiththecombinedcompany; 28

• ExelonandConstellationwillhavebeensubjecttocertainrestrictionsontheconductoftheirbusinesses,whichmayhavepreventedthemfrommakingcertainacquisitionsordispositionsor pursuingcertainbusinessopportunitieswhilethemergerispending;and*thesharepriceofExelonorConstellationmaydeclinetotheextentthatthecurrentmarketpricesreflectanassumptionbythemarketthatthemergerwillbecompleted.ExelonandConstellationmayincurunexpectedtransactionfeesandmerger-relatedcostsinconnectionwiththemerger.ExelonandConstellationexpecttoincuranumberofnon-recurringexpenses,totalingapproximately$144million,associatedwithcompletingthemerger,aswellasexpensesrelatedtocombiningtheoperationsofthe twocompanies.Thecombinedcompanymayincuradditionalunanticipatedcostsintheintegrationofthe businessesofExelonandConstellation.Althoughweexpectthattheeliminationofcertainduplicativecosts,as wellastherealizationofotherefficienciesrelatedtotheintegrationofthetwobusinesses,willoffsetthe incrementaltransactionandmerger-relatedcostsovertime,thecombinedcompanymaynotachievethisnet benefitinthenearterm,oratall.CurrentExelonshareholdersandConstellationstockholderswillhaveareducedownershipandvotinginterestafterthemerger.Exelonwillissueorreserveforissuanceapproximately201.9millionsharesofExeloncommonstocktoConstellationstockholdersinthemerger(includingsharesofExeloncommonstockissuablepursuantto Constellationstockoptionsandotherequity-basedawards).Basedonthenumberofsharesofcommonstockof ExelonandConstellationoutstandingonOctober7,2011,therecorddateforthetwocompaniesspecial meetingsofshareholders,uponthecompletionofthemerger,currentExelonshareholdersandformer Constellationstockholderswouldownapproximately78%and22%oftheoutstandingsharesofExeloncommon stock,respectively,immediatelyfollowingtheconsummationofthemerger.ExelonshareholdersandConstellationstockholderscurrentlyhavetherighttovotefortheirrespectivedirectorsandonothermattersaffectingtheircompany.Whenthemergeroccurs,eachConstellationstockholder whoreceivessharesofExeloncommonstockwillbecomeashareholderofExelonwithapercentageownership ofthecombinedcompanythatwillbesmallerthantheshareholderspercentageownershipofConstellation.

Correspondingly,eachExelonshareholderwillremainashareholderofExelonwithapercentageownershipof thecombinedcompanythatwillbesmallerthantheshareholderspercentageofExelonpriortothemerger.Asa resultofthesereducedownershippercentages,Exelonshareholderswillhavelessvotingpowerinthecombined companythantheynowhavewithrespecttoExelon,andformerConstellationstockholderswillhavelessvoting powerinthecombinedcompanythantheynowhavewithrespecttoConstellation.Followingthemerger,Constellationstockholderswillownequityinterestsinacompanythatownsandoperatesarelativelyhigherproportionofnucleargeneratingfacilities,whichcanpresentuniquerisks.ExelonsownershipinterestinandoperationofarelativelyhigherproportionofnuclearfacilitiesthanConstellationsubjectsExelontoincreasedassociatedrisks,includingthepotentialharmfuleffectsonthe environmentandhumanhealthresultingfromtheoperationofnuclearfacilitiesandthestorage,handlingand disposalofradioactivematerials;limitationsontheamountsandtypesofinsurancecommerciallyavailableto coverlossesthatmightariseinconnectionwithnuclearoperations;uncertaintieswithrespecttothe technologicalandfinancialaspectsofdecommissioningnuclearplantsattheendoftheirlicensedlives;andcosts associatedwithregulatoryoversightbytheNRC,includingNRCimposedfines,lostrevenuesasaresultofany NRCorderedshutdownofExelonnuclearfacilities,orincreasedcapitalcostsasaresultofincreasedNRCsafety andsecurityregulations,includinganynewrequirementsasaresultoftheNRCsreviewoftheaccidentatthe FukushimanuclearpowerplantinJapan.AsshareholdersofExelonfollowingthemerger,Constellation stockholdersmaybeadverselyaffectedbytheseriskstoagreaterextentthantheywerepriortothemerger.

29 RisksRelatedtoExelonandConstellationExelonandConstellationare,andwillcontinuetobe,subjecttotherisksdescribedin(1)Exelons2010AnnualReportonForm10-Kin(a)ITEM1A.RiskFactors,(b)ITEM7.ManagementsDiscussionand AnalysisofFinancialConditionandResultsofOperationsand(c)ITEM8.FinancialStatementsand SupplementaryData:Note18;(2)ExelonsQuarterlyReportonForm10-Qforthequarterlyperiodended June30,2011in(a)PartII,OtherInformation,ITEM1A.RiskFactors,(b)PartI,FinancialInformation, ITEM2.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperationsand(c)PartI, FinancialInformation,ITEM1.FinancialStatements:Note13;(3)Constellations2010AnnualReportonForm 10-Kin(a)ITEM1A.RiskFactors,(b)ITEM7.ManagementsDiscussionandAnalysisofFinancialCondition andResultsofOperationsand(c)ITEM8.FinancialStatementsandSupplementaryData:Note12;and (4)ConstellationsQuarterlyReportonForm10-QforthequarterlyperiodendedJune30,2011in(a)PartII, OtherInformation,ITEM1A.RiskFactorsandITEM5.OtherInformation,(b)PartI,FinancialInformation, ITEM2.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperationsand(c)PartI, FinancialInformation,ITEM1.FinancialStatements:NotestoConsolidatedFinancialStatements, CommitmentsandContingencies,andineachcasewhichwehaveincorporatedbyreferenceinthisjointproxystatement/prospectus.SeeWhereYouCanFindMoreInformationbeginningonpage197.

30 THECOMPANIES ExelonExelonisoneofthenationslargestenergycompanieswithapproximately$18billioninannualrevenues.Exelondistributeselectricitytoapproximately5.4millioncustomersinnorthernIllinoisandsoutheastern Pennsylvaniaandnaturalgastoapproximately490,000customersinthePhiladelphiaarea.Exelonsoperations includeenergygeneration,powermarketingandenergydelivery.Exelonhasoneoftheindustryslargest portfoliosofelectricitygenerationcapacity,withanationwidereachandstrongpositionsintheMidwestand Mid-Atlantic.ExelonoperatesthelargestnuclearfleetintheUnitedStates.Exelon,autilityservicesholdingcompany,operatesthroughitsprincipalsubsidiariesExelonGenerationCompany,LLC,whichwerefertoasExelonGeneration,ComEdandPECOasdescribedbelow,eachofwhich istreatedasareportablesegmentbyExelon.ExelonwasincorporatedinPennsylvaniainFebruary1999.Shares ofExeloncommonstocktradeontheNYSEunderthetickersymbolEXC.Exelonsprincipalexecutive officesarelocatedat10South

DearbornStreet,

Chicago,Illinois60603,anditstelephonenumberis 800-483-3220.TheaddressofExelonswebsiteishttp://www.exeloncorp.com.Thiswebsiteaddressisprovided forconvenienceonlyandnoneoftheinformationonthiswebsiteisincorporatedbyreferenceintoorotherwise deemedtobeapartofthisjointproxystatement/prospectus.ExelonGeneration.ExelonGenerationsbusinessconsistsofitsownedandcontractedelectricgeneratingfacilities,itswholesaleenergymarketingoperationsanditscompetitiveretailsupplyoperations.Exelon GenerationisoneofthelargestcompetitiveelectricgenerationcompaniesintheUnitedStates,asmeasuredby ownedandcontrolledmegawatts,orMW.ExelonGenerationcombinesitslargegenerationfleetwithan experiencedwholesaleenergymarketingoperationandacompetitiveretailsupplyoperation.Exelon Generationspresenceinwell-developedwholesaleenergymarkets,integratedhedgingstrategythatmitigates theadverseimpactofshort-termmarketvolatility,andlow-costnucleargeneratingfleet,whichisoperated consistentlyathighcapacityfactors,positionitwelltosucceedincompetitiveenergymarkets.AtDecember31, 2010,ExelonGenerationownedgenerationassetswithanaggregatenetcapacityof25,619MW,including 17,047MWofnuclearcapacity.Inaddition,ExelonGenerationcontrolledanother6,139MWofcapacity throughlong-termcontracts.ExelonGenerationhasownershipinterestsinelevennucleargeneratingstationscurrentlyinservice,consistingof19unitswithanaggregateof17,047MWofcapacity.ExelonGenerationsnuclearfleetplusits ownershipinterestintwoothergeneratingunitsproduced140,010gigawatthours,orGWhs,orapproximately 82%ofExelonGenerationstotaloutputfortheyearendedDecember31,2010.In2010and2009,electric supply,inGWhs,generatedfromthenucleargeneratingfacilitieswas82%and81%,respectively,ofExelon Generationstotalelectricsupply,whichalsoincludesfossil,hydroelectricandrenewablegenerationandelectric supplypurchasedforresale.During2010and2009,thenucleargeneratingfacilitiesoperatedbyExelon Generationachievedcapacityfactorsof93.9%and93.6%,respectively.ComEd.ComEdsenergydeliverybusinessconsistsofthepurchaseandregulatedretailsaleofelectricityandtheprovisionofdistributionandtransmissionservicestoadiversebaseofresidential,commercialand industrialcustomersinnorthernIllinois.ComEdanditsnearly6,000employeesareresponsibleformaintaining ComEdselectricdistributionsystem,whichincludes35,734circuitmilesofoverheadlinesand30,118cable milesofundergroundlines.ComEdsretailserviceterritoryhasanareaofapproximately11,300squaremiles andanestimatedpopulationof9million.TheserviceterritoryincludestheCityofChicago,anareaofabout225 squaremileswithanestimatedpopulationof3million.ComEdhasapproximately3.8millioncustomers.PECO.PECOsenergydeliverybusinessconsistsofthepurchaseandregulatedretailsaleofelectricityandtheprovisionoftransmissionanddistributionservicestoretailcustomersinsoutheasternPennsylvania,including theCityofPhiladelphia,aswellasthepurchaseandregulatedretailsaleofnaturalgasandtheprovisionof distributionservicestoretailcustomersinthePennsylvaniacountiessurroundingtheCityofPhiladelphia.

31 PECOscombinedelectricandnaturalgasretailserviceterritoryhasanareaofapproximately2,100squaremilesandanestimatedpopulationof3.8million.PECOdeliverselectricitytoapproximately1.6millioncustomersand naturalgastoapproximately490,000customers.Thisjointproxystatement/prospectusincorporatesimportantbusinessandfinancialinformationaboutExelonfromotherdocumentsthatarenotincludedinordeliveredwiththisjointproxystatement/prospectus.For alistofthedocumentsthatareincorporatedbyreference,seethesectionentitledWhereYouCanFindMore Informationbeginningonpage197.

ConstellationConstellationisanenergycompanythatincludesagenerationbusiness,whichwerefertoasConstellationGeneration,acustomersupplybusiness,whichwerefertoastheNewEnergybusiness,andBGE,aregulated electricandgaspublicutilityinCentralMaryland.ConstellationwasincorporatedinMarylandin1995,andin 1999,ConstellationbecametheholdingcompanyforBGEanditssubsidiaries.BGEwasincorporatedin Marylandin1906.ConstellationislistedontheNYSEandtradesunderthesymbolCEG.Constellations principalexecutiveofficesarelocatedat100ConstellationWay,Baltimore,Maryland21202anditstelephone numberis410-470-2800.TheaddressofConstellationswebsiteishttp://www.constellation.com.Thiswebsite addressisprovidedforconvenienceonlyandnoneoftheinformationonthiswebsiteisincorporatedbyreference intoorotherwisedeemedtobeapartofthisjointproxystatement/prospectus.ConstellationGeneration.Constellationdevelops,owns,operates,andmaintainsfossilandrenewablegeneratingfacilitiesandholdsa50.01%interestinConstellationEnergyNuclearGroup,LLC,orCENG,a nuclearjointventurethatownsnucleargeneratingfacilities.Constellationalsoholdsinterestsinqualifying facilitiesandpowerprojectsintheUnitedStatesandCanadaandmanagescertainlong-datedtollingagreements.

TheseagreementsprovideConstellationwiththecontractualrightstopurchasepowerfromthirdpartygeneration plantsoveranextendedperiodoftime.TheoutputofConstellationsownedandcontractuallycontrolledplants ismanagedbyitsNewEnergybusinessandishedgedthroughacombinationofpowersalestowholesaleand retailmarketparticipants.Constellationalsoprovidesoperationandmaintenanceservices,includingtestingand start-up,toownersofelectricgeneratingfacilities.ConstellationsNewEnergybusinessmeetstheload-serving requirementsundervariouscontractsusingtheoutputfromitsgeneratingfleetandfrompurchasesinthe wholesalemarket.NewEnergy.ConstellationsNewEnergybusinessisaleadingcompetitiveproviderofenergy-relatedproductsandservicesforavarietyofcustomersandfocusesonsellingelectricity,naturalgas,andotherenergy-relatedproductstoservecustomerrequirements(load-serving),andprovidingotherenergyproductsandrisk managementservices.TomeetConstellationscustomerrequirements,itsNewEnergybusinessobtainsenergyfromvarioussources,including:*Constellationsgenerationassets;

• Constellationscontractuallycontrolledgenerationassets;

• exchange-tradedandbilateralpowerandnaturalgaspurchaseagreements;

• unitcontingentpowerpurchasesfromgenerationcompanies;

• tollingcontractswithgenerationcompanies,whichprovidetheright,butnottheobligation,topurchasepoweratapricelinkedtothevariablecostofproduction,includingfuel,withtermsthatgenerally extendfromseveralmonthsuptofiveyears;and*regionalpowerpools.

32 ConstellationsNewEnergybusinessalsomanagescertaincontractuallycontrolledphysicalassets,includinggenerationfacilities,andnaturalgasproperties,providesriskmanagementservices,andtradesenergy andenergy-relatedcommodities.Thisbusinessalsoprovidesthewholesaleriskmanagementfunctionfor Constellationsgenerationbusiness,aswellasstructuredproductsandenergyinvestmentactivities.NewEnergyalsomanagesConstellationsupstreamnaturalgasactivities,designs,constructs,andoperatesrenewableenergy,heating,cooling,andcogenerationfacilitiesandprovideshomeimprovements,salesof electricandgasappliances,andservicingofheating,airconditioning,plumbing,electricalandindoorairquality

systemsBGE.BGEisanelectrictransmissionanddistributionutilitycompanyandagasdistributionutilitycompanywithaserviceterritorythatcoverstheCityofBaltimoreandallorpartoftencountiesincentral Maryland.BGEisregulatedbytheMarylandPublicServiceCommissionandtheFERCwithrespecttoratesand otheraspectsofitsbusiness.BGEselectricserviceterritoryincludesanareaofapproximately2,300square miles.BGEsgasserviceterritoryincludesanareaofapproximately800squaremiles.BGEselectricandgas revenuescomefrommanycustomersresidential,commercial,andindustrial.Thisjointproxystatement/prospectusincorporatesimportantbusinessandfinancialinformationaboutConstellationfromotherdocumentsthatarenotincludedinordeliveredwiththisjointproxystatement/

prospectus.Foralistofthedocumentsthatareincorporatedbyreference,seethesectionentitledWhereYou CanFindMoreInformationbeginningonpage197.BoltAcquisitionCorporationBoltAcquisitionCorporation,whichwerefertoasMergerSub,isadirectwholly-ownedsubsidiaryofExelonthatwasformedforthesolepurposeofeffectingthemergerofMergerSubwithandintoConstellation.

MergerSubhasengagedinnobusinessactivitiestodateandithasnomaterialassetsorliabilitiesofanykind, otherthanthoseincidenttoitsformationandthoseincurredinconnectionwiththemerger.MergerSubwas incorporatedinMarylandinApril2011.MergerSubsprincipalexecutiveofficesarelocatedat10South

DearbornStreet,

Chicago,Illinois60603,anditstelephonenumberis800-483-3220.

33 THESPECIALMEETINGOFEXELONSHAREHOLDERS GeneralTheExelonboardofdirectorsisusingthisjointproxystatement/prospectustosolicitproxiesfromtheholdersofsharesofExeloncommonstockforuseattheExelonspecialmeeting.Exelonisfirstmailingthisjoint proxystatement/prospectusandaccompanyingproxycardtoitsshareholdersonoraboutOctober12,2011.Date,TimeandPlaceoftheExelonSpecialMeetingExelonwillholditsspecialmeetingofshareholdersonNovember17,2011,at9:00a.m.CentralTime,inChaseAuditoriumatChaseTower,10South

DearbornStreet,

Chicago,Illinois.PurposeoftheExelonSpecialMeetingAttheExelonspecialmeeting,Exelonwillaskitsshareholderstoconsiderandvoteon:

• aproposaltoapprovetheissuanceofExeloncommonstock,withoutparvalue,toConstellationstockholdersinconnectionwiththemerger,whichwerefertointhisjointproxystatement/prospectus astheshareissuanceproposal;and*aproposaltoadjournthespecialmeetingoftheshareholdersofExelon,ifnecessary,tosolicitadditionalproxiesiftherearenotsufficientvotestoapprovetheproposalabove,whichwerefertoin thisjointproxystatement/prospectusastheExelonadjournmentproposal.TheExelonboardofdirectorshasunanimouslyapprovedthemergeragreementandthemergerandunanimouslyrecommendsthatExelonshareholdersvote FOReachoftheforegoingproposals.SeeTheMergerRecommendationoftheBoardofDirectorsofExelon;ExelonsReasonsfortheMergerbeginningon page63.ForadiscussionofinterestsofExelonsdirectorsandexecutiveofficersinthemergerthatmaybe differentfrom,orinadditionto,theinterestsofExelonsshareholdersgenerally,seeTheMergerAdditional InterestsofExelonExecutiveOfficersandDirectorsintheMerger,beginningonpage127.RecordDateandSharesEntitledtoVoteTheExelonboardofdirectorshasfixedthecloseofbusinessonOctober7,2011astherecorddatefordeterminationofshareholdersentitledtonoticeof,andtovoteat,theExelonspecialmeeting.Onlyholdersof recordofsharesofExeloncommonstockatthecloseofbusinessontherecorddateareentitledtonoticeof,and tovoteat,theExelonspecialmeetingandanyadjournmentsorpostponementsoftheExelonspecialmeeting.EachshareholderisentitledtoonevoteattheExelonspecialmeetingforeachshareofExeloncommonstockheldbythatshareholderatthecloseofbusinessontherecorddate.Exelonscommonstockisitsonly votingsecurityfortheExelonspecialmeeting.AsofOctober7,2011,therecorddatefortheExelonspecialmeeting,therewereapproximately663,011,470sharesofExeloncommonstockoutstandingheldby129,619holdersofrecord.Exelonwillmake availableacompletelistofshareholdersentitledtovoteattheExelonspecialmeetingforexaminationbyany ExelonshareholderatExelonsheadquarters,10South

DearbornStreet,

Chicago,Illinois60680forpurposes pertainingtotheExelonspecialmeeting,duringnormalbusinesshoursbeginningonOctober12,2011,andat thetimeandplaceoftheExelonspecialmeeting.

QuorumInordertoconductthespecialmeeting,shareholdersentitledtocastatleastamajorityofthevotesthatallshareholdersareentitledtocastmustbepresentinpersonorrepresentedbyproxysothatthereisaquorum.Itis importantthatyouvotepromptlysothatyoursharesarecountedtowardthequorum.

34 AllsharesofExeloncommonstockrepresentedattheExelonspecialmeeting,includingabstentionsandbrokernon-votes,ifany,willbetreatedassharesthatarepresentandentitledtovoteforpurposesof determiningthepresenceofaquorum;provided,however,thatbrokernon-voteswillonlybetreatedasso presentandentitledtovoteifthesharescoveredbythebrokernon-votearevotedonamatterotherthana proceduralmotion.Abrokernon-voteoccurswhenabroker,bank,orothernomineewhoholdssharesfor anotherpersonhasnotreceivedvotinginstructionsfromtheownerofthesharesand,underNYSErules,doesnot havediscretionaryauthoritytovoteonamatter.UnderNYSErules,yourbrokerorbankdoesnothave discretionaryauthoritytovoteyoursharesofExeloncommonstockontheshareissuanceproposalortheExelon adjournmentproposal.Withoutvotinginstructionsonsuchproposals,abrokernon-votewilloccur.VoteRequiredRequiredVotetoApprovetheShareIssuanceProposalTheaffirmativevoteofatleastamajorityofthevotescast(includingabstentions)ontheshareissuanceproposalbyholdersofsharesofExeloncommonstockpresentinpersonorbyproxyandentitledtovoteonthe shareissuanceproposalisrequiredtoapprovetheproposal,solongasthetotalvotecastontheproposal representsatleastamajorityofthesharesofExeloncommonstockentitledtovoteontheproposal,assuminga quorumispresent.Ifyouabstainfromvoting,itwillhavethesameeffectasvotingagainstthisproposal.Ifyou failtovoteorabrokernon-voteoccurs,itwillhavenoeffectonthevotecountfortheproposal,butitwillmake itmoredifficulttomeettheNYSErequirementthatthetotalvotescastonsuchproposal(includingabstentions) representamajorityofthesharesofExeloncommonstockoutstandingasoftherecorddatefortheExelon specialmeeting.RequiredVotetoApprovetheExelonAdjournmentProposalTheaffirmativevoteofatleastamajorityofthevotescastontheExelonadjournmentproposalbyholdersofsharesofExeloncommonstockpresentinpersonorbyproxyandentitledtovoteontheExelonadjournment proposalisrequiredtoapprovetheproposal.Ifyouabstainfromvoting,itwillhavethesameeffectasvoting againstthisproposal.Ifyoufailtovoteorabrokernon-voteoccurs,itwillhavenoeffectonthevotecountfor thisproposal.VotingbyExelonsDirectorsandExecutiveOfficersAsoftherecorddateforthespecialmeetingofExelonshareholders,Exelonsdirectorsandexecutiveofficerscollectivelyhadtherighttovotelessthan1%oftheExeloncommonstockoutstandingandentitledto voteattheExelonspecialmeeting.ExeloncurrentlyexpectsthatExelonsdirectorsandexecutiveofficerswill votetheirsharesofExeloncommonstockinfavorofeachoftheproposalstobeconsideredattheExelonspecial meeting,althoughnoneofthemhasenteredintoanyagreementsobligatingthemtodoso.VotingofProxiesGivingaproxymeansthatanExelonshareholderauthorizesthepersonsnamedintheenclosedproxycardtovoteitssharesattheExelonspecialmeetinginthemannerthatsuchshareholderdirects.Allshares representedbyproperlyexecutedproxiesreceivedintimefortheExelonspecialmeetingwillbevotedatthe Exelonspecialmeetinginthemannerspecifiedbytheshareholdersgivingthoseproxies.Thepersonsnamedas proxieswillvoteproperlyexecutedproxiesthatdonotcontainvotinginstructions FORtheapprovaloftheshareissuanceproposalandtheExelonadjournmentproposal.OnlysharesaffirmativelyvotedfortheapprovaloftheproposalstobeconsideredattheExelonspecialmeetingorproperlyexecutedproxiesthatdonotcontainvotinginstructionswillbecountedasfavorablevotes fortheproposals.Also,underNYSErules,brokersandbankswhoholdExeloncommonstockinstreetname forcustomerswhoarethebeneficialownersofthosesharesmaynotgiveaproxytovotethoseshareswithout specificinstructionsfromthosecustomers.Accordingly:*afailuretovoteyourExelonsharesontheshareissuanceproposalwillhavenoeffectonthatproposal,butmaymakeitmoredifficulttomeettheNYSErequirementthatthetotalvotescastonsuchproposal 35 (includingabstentions)representamajorityofthesharesofExeloncommonstockoutstandingasoftheExelonrecorddate,becausetheaffirmativevoteofatleastamajorityofthevotescastontheshare issuanceproposalbyholdersofsharesofExeloncommonstockpresentinpersonorbyproxyand entitledtovoteontheshareissuanceproposalisrequiredtoapprovetheproposal,solongasthetotal votecastontheproposalrepresentsatleastamajorityofthesharesofExeloncommonstockentitledto voteontheproposal,assumingaquorumispresent;and*afailuretovoteyourExelonsharesontheExelonadjournmentproposal,whileconsideredforpurposesofestablishingquorum,willhavenoeffectonthatproposal,becausetheaffirmativevoteof atleastamajorityofthevotescastontheExelonadjournmentproposalbyholdersofsharesofExelon commonstockpresentinpersonorbyproxyandentitledtovoteontheExelonadjournmentproposalis requiredtoapprovetheproposal.HowtoVoteIfyouownsharesofExeloncommonstockinyourownname,youareanownerofrecord.Thismeansthatyoumayusetheenclosedproxycard(s)totellthepersonsnamedasproxieshowtovoteyoursharesof Exeloncommonstock.Ifyoufailtosignandreturnyourproxycard(s),theproxiescannotvoteyoursharesof ExeloncommonstockattheExelonspecialmeeting.Anownerofrecordhasfourvotingoptions:

Internet.YoucanauthorizeaproxytovoteovertheInternetbyaccessingthewebsiteshownonyourproxycardandfollowingtheinstructionsonthewebsite.Internetvotingisavailable24hoursaday.Haveyourproxy cardinhandwhenyouaccessthewebsiteandfollowtheon-screeninstructionstovote.

Telephone.Youcanauthorizeaproxytovotebytelephonebycallingthetoll-freenumbershownonyourproxycard.Telephonevotingisavailable24hoursaday.

Mail.Youcanauthorizeaproxytovotebymailbysimplycompleting,signing,datingandmailingyourproxycard(s)inthepostage-paidenvelopeincludedwiththisjointproxystatement/prospectus.InPerson.YoumayattendtheExelonspecialmeetingandcastyourvoteinperson.TheExelonboardofdirectorsrecommendsthatyouauthorizeyourproxybyInternet,telephoneormail,evenifyouplantoattendthe Exelonspecialmeeting.IfyouholdyoursharesofExeloncommonstockinstreetnamethroughabroker,bankorothernominee,youmustprovidetherecordholderofyourshareswithinstructionsonhowtovotetheshares.Pleasefollowthe votinginstructionsprovidedbythebankorbroker.Youmaynotvotesharesheldinstreetnamebyreturninga proxycarddirectlytoExelonorbyvotinginpersonattheExelonspecialmeetingunlessyouprovidealegal proxy,whichyoumustobtainfromyourbroker,bankorothernominee.Further,brokers,banksorother nomineeswhoholdsharesofExeloncommonstockonbehalfoftheircustomersmaynotgiveaproxytoExelon tovotethoseshareswithrespecttoanyoftheproposalswithoutspecificinstructionsfromtheircustomers,as underNYSErulesbrokers,banksandothernomineesdonothavediscretionaryvotingpoweronthesematters.TheInternetandtelephoneproxyproceduresaredesignedtoauthenticateashareholdersidentity,toallowshareholderstogivetheirproxyvotinginstructionsandtoconfirmthattheseinstructionshavebeenproperly recorded.DirectingthevotingofyourExelonshareswillnotaffectyourrighttovoteinpersonifyoudecideto attendtheExelonspecialmeeting.Thenamedproxieswillvoteallsharesatthespecialmeetingthathavebeenproperlyvoted(whetherbyInternet,telephoneormail)andnotrevoked.

36 ParticipantsintheExelon401(k)EmployeeSavingsPlanIfyouareaparticipantinthisplan,youhavetherighttoprovidevotingdirectionstotheplantrusteebysubmittingyourproxycard,forthosesharesofExeloncommonstockthatareheldbytheplanandallocatedto youraccount.Planparticipantproxiesaretreatedconfidentially.Ifyouelectnottoprovidevotingdirectionstotheplantrustee,theplantrusteewillvotetheExelonsharesallocatedtoyourplanaccountinthesameproportionasthosesharesheldbytheplanforwhichtheplantrustee hasreceivedvotingdirectionsfromotherplanparticipants.Theplantrusteewillfollowparticipantsvoting directionsandtheplanprocedureforvotingintheabsenceofvotingdirections,unlessitdeterminesthattodoso wouldbecontrarytoERISA.Becausetheplantrusteemustprocessvotinginstructionsfromparticipantsbefore thedateofthespecialmeetingofExelonshareholders,youareurgedtodeliveryourinstructionsnolaterthan November16,2011.RevocabilityofProxiesYoumayrevokeyourproxyatanytimeafteryougiveit,andbeforeitisvoted,inoneofthefollowing ways:*bynotifyingExelonsCorporateSecretary,at10South

DearbornStreet,

P.O.Box805398,Chicago,Illinois60680-5398,thatyouarerevokingyourproxybywrittennoticethatbearsadatelaterthanthe dateoftheproxyandthatExelonreceivespriortotheExelonspecialmeetingandstatesthatyou revokeyourproxy;*bysigninganotherExelonproxycard(s)bearingalaterdateandmailingitsothatExelonreceivesitpriortotheExelonspecialmeeting;*byvotingagainusingthetelephoneorInternetvotingprocedures;or

• byattendingtheExelonspecialmeetingandvotinginperson,althoughattendanceattheExelonspecialmeetingalonewillnot,byitself,revokeaproxy.Ifyourbroker,bankorothernomineeholdsyoursharesinstreetname,youwillneedtocontactyourbroker,bankorothernomineetorevokeyourvotinginstructions.ElectronicAccesstoProxyMaterialThisjointproxystatement/prospectusandExelonsForm10-KforthefiscalyearendedDecember31,2010areavailableontheExelonwebsite,www.exeloncorp.com.PeoplewithDisabilitiesExeloncanprovideyouwithreasonableassistancetohelpyouparticipateintheExelonspecialmeetingifyouinformExelonofyourdisability.PleasecontactExelonsofficeofShareholderServicesbytelephoneat (312)394-8811;byelectroniccorrespondencethroughshareholderservices@exeloncorp.com;orbymailtoTom Boinat10South

DearbornStreet,

P.O.Box805398,Chicago,Illinois60680-5398,atleasttwoweeksbeforethe Exelonspecialmeeting.SolicitationofProxiesExelon,onbehalfoftheExelonboardofdirectors,throughitsdirectors,officersandemployees,issolicitingproxiesfortheExelonspecialmeetingfromExelonshareholders.Exelonwillbeartheentirecostof solicitingproxiesfromExelonshareholders,exceptthatExelonandConstellationwillshareequallytheexpenses incurredinconnectionwiththefilingoftheregistrationstatementofwhichthisjointproxystatement/prospectus isapart.Inadditiontothismailing,Exelonsdirectors,officersandemployees(whowillnotreceiveany additionalcompensationfortheirservices)maysolicitproxiespersonally,electronically,bytelephoneorother

means.37 ExelonhasengagedtheservicesofMacKenziePartners,Inc.forafeenottoexceed$100,000,plusreimbursementofexpenses,toprovideadvisoryservicesandassistinthesolicitationofproxiesfortheExelon andConstellationspecialmeetings.Exelonanditsproxysolicitorswillrequestthatbanks,brokeragehousesandothercustodians,nomineesandfiduciariessendproxymaterialstothebeneficialownersofExeloncommonstockandwill,ifrequested, reimbursetherecordholdersfortheirreasonableout-of-pocketexpensesindoingso.Theextenttowhichthese proxy-solicitingeffortswillbenecessarydependsuponhowpromptlyproxiesaresubmitted.

AssistanceIfyouneedassistanceincompletingyourproxycardorhavequestionsregardingExelonsspecialmeeting,pleasecontactMacKenziePartners,Inc.toll-freeat(800)322-2885orcollectat(212)929-5500.PROPOSALSSUBMITTEDTOEXELONSSHAREHOLDERSTheShareIssuanceProposal(Item1onExelonProxyCard)Uponthecompletionofthemerger,eachshareofConstellationcommonstockoutstandingimmediatelybeforethemergerwillbeconvertedintotherighttoreceive0.930ofashareofExeloncommonstock,whichwe refertoastheexchangeratio.Theexchangeratiowillnotbeadjustedtoreflectchangesinthemarketpricesof ExeloncommonstockorConstellationcommonstockpriortoclosing.UndertheNYSEListedCompanyManual,acompanylistedontheNYSEisrequiredtoobtainshareholderapprovalpriortotheissuanceofcommonstock,orofsecuritiesconvertibleintoorexercisableforcommon stock,inanytransactionorseriesofrelatedtransactionsifthenumberofsharesofcommonstocktobeissuedis, orwillbeuponissuance,equaltoorinexcessof20%ofthenumberofsharesofcommonstockoutstanding beforetheissuanceofthecommonstockorofsecuritiesconvertibleintoorexercisableforcommonstock.Ifwe completethemerger,weestimatethatExelonwillissueorreserveforissuanceapproximately201.9million sharesofExeloncommonstockinconnectionwiththemerger,includingsharesofExeloncommonstock issuablepursuanttooutstandingConstellationstockoptionsandotherequity-basedawards.Onanas-converted basis,theaggregatenumberofsharesofExeloncommonstockthatExelonwillissueinthemergerwillexceed 20%ofthesharesofExeloncommonstockoutstandingbeforesuchissuance,andforthisreasonExelonmust obtaintheapprovalofExelonshareholdersfortheissuanceofsharesofExeloncommonstocktoholdersof Constellationcommonstockinconnectionwiththemerger.Exelonisaskingitsshareholderstoapprovetheshareissuanceproposal.TheissuanceofthesesecuritiestoConstellationstockholdersisnecessarytoeffectthemergerandtheapprovaloftheshareissuanceproposalis requiredforcompletionofthemerger.TheExelonboardofdirectorsunanimouslyrecommendsavoteFORtheshareissuanceproposal(Item1).ForadiscussionofinterestsofExelonsdirectorsandexecutiveofficersinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsofExelonsshareholdersgenerally,seeTheMergerAdditional InterestsofExelonExecutiveOfficersandDirectorsintheMerger,beginningonpage127.TheExelonAdjournmentProposal(Item2onExelonProxyCard)TheExelonspecialmeetingmaybeadjournedtoanothertimeorplace,ifnecessaryorappropriate,topermit,amongotherthings,furthersolicitationofproxiesifnecessarytoobtainadditionalvotesinfavorofthe shareissuanceproposal.

38 If,attheExelonspecialmeeting,thenumberofsharesofExeloncommonstockpresentorrepresentedandvotinginfavoroftheshareissuanceproposalisinsufficienttoapprovethecorrespondingproposal,Exelon intendstomovetoadjourntheExelonspecialmeetinginordertoenabletheExelonboardofdirectorstosolicit additionalproxiesforapprovalofsuchproposal.IntheExelonadjournmentproposal,ExelonisaskingitsshareholderstoauthorizetheholderofanyproxysolicitedbytheExelonboardofdirectorstovoteinfavorofgrantingdiscretionaryauthoritytotheproxyholders, andeachofthemindividually,toadjourntheExelonspecialmeetingtoanothertimeandplaceforthepurposeof solicitingadditionalproxies.IftheExelonshareholdersapprovetheExelonadjournmentproposal,Exeloncould adjourntheExelonspecialmeetingandanyadjournedsessionoftheExelonspecialmeetingandusethe additionaltimetosolicitadditionalproxies,includingthesolicitationofproxiesfromExelonshareholderswho havepreviouslyvoted.IftheproposaltoadjourntheExelonspecialmeetingforthepurposeofsolicitingadditionalproxiesissubmittedtotheExelonstockholdersforapproval,suchapprovalrequirestheaffirmativevoteofamajorityofall thevotescastbyholdersoftheoutstandingsharesofExeloncommonstockontheproposal.TheExelonboardofdirectorsunanimouslyrecommendsavoteFORtheExelonadjournmentproposal(Item2).ForadiscussionofinterestsofExelonsdirectorsandexecutiveofficersinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsofExelonsshareholdersgenerally,seeTheMerger AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMerger,beginningonpage127.OtherBusinessAtthistime,ExelondoesnotintendtobringanyothermattersbeforetheExelonspecialmeetingbyExelon,andExelondoesnotknowofanymatterstobebroughtbeforetheExelonspecialmeetingbyothers.If,however, anyothermattersproperlycomebeforetheExelonspecialmeeting,thepersonsnamedintheenclosedproxy,or theirdulyconstitutedsubstitutes,actingattheExelonspecialmeetingoranyadjournmentorpostponement thereofwillbedeemedauthorizedtovotethesharesrepresentedtherebyinaccordancewiththejudgmentof managementonanysuchmatter.

39 THESPECIALMEETINGOFCONSTELLATIONSTOCKHOLDERS GeneralTheConstellationboardofdirectorsisusingthisjointproxystatement/prospectustosolicitproxiesfromtheholdersofsharesofConstellationcommonstockforuseattheConstellationspecialmeeting.Constellationis firstmailingthisjointproxystatement/prospectusandaccompanyingproxycardtoitsstockholdersonorabout October12,2011.Date,TimeandPlaceoftheConstellationSpecialMeetingConstellationwillholditsspecialmeetingofstockholdersonNovember17,2011at9:00a.m.Easterntime,attheofficesofKirkland&EllisLLP,locatedat601LexingtonAvenue,50 thfloor,NewYork,NewYork.PurposeoftheConstellationSpecialMeetingAttheConstellationspecialmeeting,Constellationwillaskitsstockholderstoconsiderandvoteon:

• aproposaltoapprovethemergeronsubstantiallythetermssetforthinthemergeragreement,acopyofwhichisincludedasAnnexAtothisjointproxystatement/prospectus,whichwerefertoasthemerger

proposal;*anon-binding,advisoryproposaltoapprovethecompensationthatmaybecomepayabletoConstellationsnamedexecutiveofficersinconnectionwiththecompletionoftheproposedmerger, whichwerefertointhisjointproxystatement/prospectusasthecompensationproposal;and*aproposaltoadjournthespecialmeetingofthestockholdersofConstellation,ifnecessary,tosolicitadditionalproxiesiftherearenotsufficientvotestoapprovethemergerproposal,whichwerefertoin thisjointproxystatement/prospectusastheConstellationadjournmentproposal.TheConstellationboardofdirectorshasunanimouslydeclaredthemergeradvisable,fairtoandinthebestinterestsofConstellationanditsstockholdersanddirectedthattheproposedmergerbesubmittedto Constellationsstockholdersforconsiderationandhasunanimouslyapprovedthemergeragreementandthe merger.TheConstellationboardofdirectorsunanimouslyrecommendsthatConstellationstockholdersvote

FOReachoftheforegoingproposals.SeeTheMergerRecommendationoftheBoardofDirectorsofConstellation;ConstellationsReasonsfortheMergerbeginningonpage102.RecordDateandSharesEntitledtoVoteTheConstellationboardofdirectorshasfixedthecloseofbusinessonOctober7,2011astherecorddatefordeterminationofstockholdersentitledtonoticeof,andtovoteat,theConstellationspecialmeeting.Only holdersofrecordofsharesofConstellationcommonstockatthecloseofbusinessontherecorddateareentitled tonoticeof,andtovoteat,theConstellationspecialmeetingandanyadjournmentsorpostponementsofthe Constellationspecialmeetingthatoccurwithin120daysaftertherecorddate.EachstockholderisentitledtoonevoteattheConstellationspecialmeetingforeachshareofConstellationcommonstockheldbythatstockholderatthecloseofbusinessontherecorddate.Constellationscommonstock isitsonlyvotingsecurityfortheConstellationspecialmeeting.AsofOctober7,2011,therecorddatefortheConstellationspecialmeeting,therewereapproximately201,534,592sharesofConstellationcommonstockoutstandingandheldby30,397holdersofrecord.

ConstellationwillmakeavailableatConstellationsheadquarters,100ConstellationWay,Baltimore,MD21202, duringnormalbusinesshours,acompletelistofstockholdersentitledtovoteattheConstellationspecialmeeting forexaminationbyanyConstellationstockholderwhohasheldatleast5%oftheoutstandingConstellation commonstockforatleastsixmonths.

40 QuorumInordertoconducttheConstellationspecialmeeting,holdersoftheoutstandingsharesofcommonstockentitledtocastamajorityofallthevotesentitledtobecastmustbepresentinpersonorrepresentedbyproxyso thatthereisaquorum.Itisimportantthatyouvotepromptlysothatyoursharesarecountedtowardthequorum.AllsharesofConstellationcommonstockrepresentedattheConstellationspecialmeeting,includingabstentionsandbrokernon-votes,willbetreatedassharesthatarepresentandentitledtovoteforpurposesof determiningthepresenceofaquorum.Abrokernon-voteoccurswhenabroker,bank,orothernomineewho holdssharesforanotherpersonhasnotreceivedvotinginstructionsfromtheownerofthesharesand,under NYSErules,doesnothavediscretionaryauthoritytovoteonamatter.UnderNYSErules,yourbrokerorbank doesnothavediscretionaryauthoritytovoteyoursharesofConstellationcommonstockonthemergerproposal, theproposaltoapprovethecompensationthatmaybecomepayabletoConstellationsnamedexecutiveofficers inconnectionwiththecompletionoftheproposedmerger,ortheConstellationadjournmentproposal.Without votinginstructionsonsuchproposals,abrokernon-votewilloccur.VoteRequiredRequiredVotetoApprovetheProposedMergerTheaffirmativevoteofamajorityofallthevotesentitledtobecastbyholdersoftheoutstandingsharesofConstellationcommonstockontherecorddatefortheConstellationspecialmeetingisrequiredtoapprovethe mergerproposal.Ifyouabstainfromvoting,failtovoteorabrokernon-voteoccurs,itwillhavethesameeffect asvotingagainstthisproposal.RequiredVotetoApprovetheCompensationofConstellationsNamedExecutiveOfficersTheaffirmativevoteofamajorityofallthevotescastbyholdersoftheoutstandingsharesofConstellationcommonstockisrequiredtoapprove,byanon-binding,advisoryvote,thecompensationthatmaybecome payabletoConstellationnamedexecutiveofficersinconnectionwiththecompletionoftheproposedmerger.If youabstainfromvoting,failtovoteorabrokernon-voteoccurs,itwillhavenoeffectonthevotecountforthis

proposal.RequiredVotetoApprovetheConstellationAdjournmentProposalTheaffirmativevoteofamajorityofallthevotescastbyholdersoftheoutstandingsharesofConstellationcommonstockontheproposalisrequiredtoapprovetheConstellationadjournmentproposal.Ifyouabstain fromvoting,failtovoteorabrokernon-voteoccurs,itwillhavenoeffectonthevotecountforthisproposal.VotingbyConstellationsDirectorsandExecutiveOfficersAsoftherecorddateforthespecialmeetingofConstellationstockholders,Constellationsdirectorsandexecutiveofficerscollectivelyhadtherighttovoteapproximately2%oftheConstellationcommonstock outstandingandentitledtovoteattheConstellationspecialmeeting.Constellationcurrentlyexpectsthat ConstellationsdirectorsandexecutiveofficerswillvotetheirsharesofConstellationcommonstockinfavorof eachoftheproposalstobeconsideredattheConstellationspecialmeeting,althoughnoneofthemhasentered intoanyagreementsobligatingthemtodoso.VotingofProxiesGivingaproxymeansthataConstellationstockholderauthorizesthepersonsnamedintheenclosedproxycardtovoteitssharesattheConstellationspecialmeetinginthemannerthatsuchstockholderdirects.Allshares representedbyproperlyexecutedproxiesreceivedintimefortheConstellationspecialmeetingwillbevotedat 41 theConstellationspecialmeetinginthemannerspecifiedbythestockholdersgivingthoseproxies.Thepersonsnamedasproxieswillvoteproperlyexecutedproxiesthatdonotcontainvotinginstructions FORtheapprovalofthemergerproposal,thecompensationproposalandtheConstellationadjournmentproposal.OnlysharesaffirmativelyvotedfortheapprovaloftheproposalstobeconsideredattheConstellationspecialmeetingorproperlyexecutedproxiesthatdonotcontainvotinginstructionswillbecountedasfavorable votesfortheproposals.Also,underNYSErules,brokersandbankswhoholdConstellationcommonstockin streetnameforcustomerswhoarethebeneficialownersofthosesharesmaynotgiveaproxytovotethose shareswithoutspecificinstructionsfromthosecustomers.Accordingly:*anabstentionorafailuretovoteyourConstellationsharesonthemergerproposalwillhavethesameeffectasavoteagainstthatproposalbecausetheaffirmativevoteofatleastamajorityofallthevotes entitledtobecastbyholdersoftheoutstandingsharesofConstellationcommonstockontherecord datefortheConstellationspecialmeetingmustapprovethemergerproposal;*anabstentionorafailuretovoteyourConstellationsharesonthecompensationproposalwillhavenoeffectonthevotecountforthatproposalbecausetheaffirmativevoteofamajorityofallthevotescast byholdersoftheConstellationcommonstockpresentinpersonorbyproxyatthemeetingisrequired toapprovethecompensationproposal;and*anabstentionorafailuretovoteyourConstellationsharesontheadjournmentproposalwillhavenoeffectonthevotecountforthatproposalbecausetheaffirmativevoteofamajorityofallthevotescast byholdersoftheConstellationcommonstockpresentinpersonorbyproxyatthemeetingisrequired toapprovetheConstellationadjournmentproposal.HowtoVoteIfyouownsharesofConstellationcommonstockinyourownname,youareanownerofrecord.Thismeansthatyoumayusetheenclosedproxycard(s)totellthepersonsnamedasproxieshowtovoteyourshares ofConstellationcommonstock.Ifyoufailtosignandreturnyourproxycard(s),theproxiescannotvoteyour sharesofConstellationcommonstockattheConstellationspecialmeeting.Anownerofrecordhasfourvoting

options: Internet.YoucanauthorizeaproxyovertheInternetbyaccessingthewebsiteshownonyourproxycardandfollowingtheinstructionsonthewebsite.Internetvotingisavailable24hoursaday.Haveyourproxycard inhandwhenyouaccessthewebsiteandfollowtheon-screeninstructionstovote.

Telephone.Youcanauthorizeaproxybytelephonebycallingthetoll-freenumbershownonyourproxycard.Telephonevotingisavailable24hoursaday.

Mail.Youcanauthorizeaproxybymailbysimplycompleting,signing,datingandmailingyourproxycard(s)inthepostage-paidenvelopeincludedwiththisjointproxystatement/prospectus.InPerson.YoumayattendtheConstellationspecialmeetingandcastyourvoteinperson.TheConstellationboardofdirectorsrecommendsthatyouauthorizeyourproxybyInternet,telephoneormail,evenifyouplanto attendtheConstellationspecialmeeting.IfyouholdyoursharesofConstellationcommonstockinstreetnamethroughabroker,bankorothernominee,youmustprovidetherecordholderofyourshareswithinstructionsonhowtovotetheshares.Please followthevotinginstructionsprovidedbythebrokerorbank.Youmaynotvotesharesheldinstreetnameby returningaproxycarddirectlytoConstellationorbyvotinginpersonattheConstellationspecialmeetingunless youprovidealegalproxy,whichyoumustobtainfromyourbroker,bankorothernominee.Further,brokers, banksorothernomineeswhoholdsharesofConstellationcommonstockonbehalfoftheircustomersmaynot 42 giveaproxytoConstellationtovotethoseshareswithrespecttoanyoftheproposalswithoutspecificinstructionsfromtheircustomers,asunderNYSErulesbrokers,banksandothernomineesdonothave discretionaryvotingpoweronthesematters.TheInternetandtelephoneproxyproceduresaredesignedtoauthenticateastockholdersidentity,toallowstockholderstogivetheirproxyvotinginstructionsandtoconfirmthattheseinstructionshavebeenproperly recorded.DirectingthevotingofyourConstellationshareswillnotaffectyourrighttovoteinpersonifyou decidetoattendtheConstellationspecialmeeting.Thenamedproxieswillvoteallsharesatthespecialmeetingthathavebeenproperlyvoted(whetherbyInternet,telephoneormail)andnotrevoked.RevocabilityofProxiesYoumayrevokeyourproxyatanytimeafteryougiveit,andbeforeitisvoted,inoneofthefollowing ways:*bynotifyingConstellationscorporatesecretary,CharlesA.Berardesco,inwritingat100ConstellationWay,Suite1800P,Baltimore,MD21202,thatyouarerevokingyourproxybywrittennoticethatbears adatelaterthanthedateoftheproxyandthatConstellationreceivespriortotheConstellationspecial meetingandstatesthatyourevokeyourproxy;*bysigninganotherConstellationproxycard(s)bearingalaterdateandmailingitsothatConstellationreceivesitpriortothespecialmeeting;*byvotingagainusingthetelephoneorInternetvotingprocedures;or

• byattendingtheConstellationspecialmeetingandvotinginperson,althoughattendanceattheConstellationspecialmeetingalonewillnot,byitself,revokeaproxy.Ifyourbroker,bankorothernomineeholdsyoursharesinstreetname,youwillneedtocontactyourbroker,bankorothernomineetorevokeyourvotinginstructions.ElectronicAccesstoProxyMaterialThisjointproxystatement/prospectusandConstellationsForm10-KforthefiscalyearendedDecember31,2010areavailableontheConstellationwebsite, www.constellation.com

.PeoplewithDisabilitiesConstellationcanprovideyouwithreasonableassistancetohelpyouparticipateintheConstellationspecialmeetingifyouinformConstellationofyourdisability.PleasecontactConstellationInvestorRelationsby telephoneat(410)470-6440;byelectroniccorrespondencethroughInvestorRelations@constellation.com;orby mailat100ConstellationWay,Baltimore,MD21202,atleasttwoweeksbeforetheConstellationspecial

meeting.SolicitationofProxiesConstellation,onbehalfoftheConstellationboardofdirectors,throughitsdirectors,officersandemployees,issolicitingproxiesfortheConstellationspecialmeetingfromConstellationstockholders.

ConstellationwillbeartheentirecostofsolicitingproxiesfromConstellationstockholders,exceptthat ConstellationandExelonwillshareequallytheexpensesincurredinconnectionwiththefilingoftheregistration statementofwhichthisjointproxystatement/prospectusisapart.Inadditiontothismailing,Constellations directors,officersandemployees(whowillnotreceiveanyadditionalcompensationforsuchservices)may solicitproxiespersonally,electronically,bytelephoneorothermeans.

43 ConstellationhasalsoengagedtheservicesofInnisfreeM&AIncorporatedforafeenottoexceed$75,000,plusreimbursementofexpenses,toassistinthesolicitationofproxiesfortheConstellationspecialmeeting.Constellationanditsproxysolicitorswillalsorequestthatbanks,brokeragehousesandothercustodians,nomineesandfiduciariessendproxymaterialstothebeneficialownersofConstellationcommonstockandwill, ifrequested,reimbursetherecordholdersfortheirreasonableout-of-pocketexpensesindoingso.Theextentto whichtheseproxy-solicitingeffortswillbenecessarydependsuponhowpromptlyproxiesaresubmitted.

AssistanceIfyouneedassistanceincompletingyourproxycardorhavequestionsregardingConstellationsspecialmeeting,pleasecontactInnisfreeM&AIncorporatedtoll-freeat(877)800-5182.Brokers,banksandother nomineesmaycallcollectat(212)750-5833.PROPOSALSSUBMITTEDTOCONSTELLATIONSSTOCKHOLDERSTheMergerProposal(Item1ontheConstellationProxyCard)Forasummaryanddetailedinformationregardingthisproposal,seetheinformationaboutthemergeragreementandthemergerthroughoutthisjointproxystatement/prospectus,includingtheinformationsetforthin sectionsentitledTheMergerbeginningonpage47andTheMergerAgreementbeginningonpage146.A copyofthemergeragreementisattachedasAnnexAtothisjointproxystatement/prospectus.Underthemergeragreement,approvalofthisproposalisaconditiontothecompletionofthemerger.Iftheproposalisnotapproved,themergerwillnotbecompletedeveniftheotherproposalsrelatedtothemergerare

approved.ApprovaloftheproposalrequirestheaffirmativevoteofamajorityofallthevotesentitledtobecastbyholdersoftheoutstandingsharesofConstellationcommonstockontherecorddatefortheConstellationspecial

meeting.TheConstellationboardofdirectorshasunanimouslydeclaredthatthemergeragreementandthetransactionscontemplatedbythemergeragreement,includingthemerger,areadvisable,fairtoandinthe bestinterestsofConstellationanditsstockholdersanddirectedthattheproposedmergerbesubmittedto theConstellationstockholdersforconsideration,andhasunanimouslyapprovedthemergeragreement andthemerger.TheConstellationboardofdirectorsunanimouslyrecommendsthatConstellation stockholdersvoteFORtheproposaltoapprovethemergeronsubstantiallythetermssetforthinthe mergeragreement.TheCompensationProposal(Item2ontheConstellationProxyCard)AsrequiredbyItem402(t)ofRegulationS-KandSection14AoftheExchangeAct,Constellationisprovidingitsstockholderswiththeopportunitytocastanon-binding,advisoryvoteonthecompensationthat maybecomepayabletoitsnamedexecutiveofficersinconnectionwiththecompletionofthemerger.

44 Yourvoteisrequested.Constellationbelievesthattheinformationregardingcompensationthatmaybecomepayabletoitsnamedexecutiveofficersinconnectionwiththecompletionofthemergerisreasonable anddemonstratesthatConstellationsexecutivecompensationprogramwasdesignedappropriatelyand structuredtoensuretheretentionoftalentedexecutivesandastrongalignmentwiththelong-terminterestsof Constellationsstockholders.Thisvoteisnotintendedtoaddressanyspecificitemofcompensation,butrather theoverallcompensationthatmaybecomepayabletoConstellationsnamedexecutiveofficersinconnection withthecompletionofthemerger.Inaddition,thisvoteisseparateandindependentfromthevoteof stockholderstoapprovethecompletionofthemerger.ConstellationasksthatitsstockholdersvoteFORthe followingresolution:RESOLVED,thatthecompensationthatmaybecomepayabletoConstellationsnamedexecutiveofficersinconnectionwiththecompletionofthemergerisherebyAPPROVED.Thisvoteisadvisoryand,therefore,itwillnotbebindingonConstellation,norwillitoverruleanypriordecisionorrequireConstellationsboardofdirectors(oranycommitteethereof)totakeanyaction.However, ConstellationsboardofdirectorsvaluestheopinionsofConstellationsstockholders,andtotheextentthatthere isanysignificantvoteagainstthenamedexecutiveofficercompensationasdisclosedinthisjointproxy statement/prospectus,Constellationsboardofdirectorswillconsiderstockholdersconcernsandwillevaluate whetheranyactionsarenecessarytoaddressthoseconcerns.Constellationsboardofdirectorswillconsiderthe affirmativevoteofamajorityofthevotescastFORtheforegoingresolutionasadvisoryapprovalofthe compensationthatmaybecomepayabletoConstellationsnamedexecutiveofficersinconnectionwiththe completionofthemerger.TheConstellationboardofdirectorsunanimouslyrecommendsavoteFORtheapprovaloftheresolutionsetforthabove.MoreinformationregardingthecompensationthatmaybecomepayabletoConstellationsnamedexecutiveofficersinconnectionwiththecompletionofthemergerissetforthinthesectioncaptionedThe MergerAdditionalInterestsofConstellationExecutiveOfficersandDirectorsintheMerger,beginningon page128.TheConstellationAdjournmentProposal(Item3ontheConstellationProxyCard)TheConstellationspecialmeetingmaybeadjournedtoanothertimeorplace,ifnecessaryorappropriate,tosolicitadditionalproxiesiftherearenotsufficientvotesatthetimeoftheConstellationspecialmeetingto approvethemergerproposal.Thespecialmeetingmaybeadjournedfromtimetotimetoadatethatisnotmore than120daysaftertheoriginalrecorddatefortheConstellationspecialmeeting.If,attheConstellationspecialmeeting,thenumberofsharesofConstellationcommonstockpresentorrepresentedandvotinginfavoroftheapprovalofthemergeragreementandthemergerisnotsufficientto approvethatproposal,ConstellationintendstomovetoadjourntheConstellationspecialmeetinginorderto enabletheConstellationboardofdirectorstosolicitadditionalproxiesfortheapprovalofthemergeragreement andthemerger.Inthatevent,Constellationwillaskitsstockholderstovoteonlyupontheadjournmentproposal, andnotthemergerproposalorthecompensationproposal.Inthisproposal,ConstellationisaskingitsstockholderstoauthorizetheholderofanyproxysolicitedbytheConstellationboardofdirectorstovoteinfavorofgrantingdiscretionaryauthoritytotheproxyholders,andeach ofthemindividually,toadjourntheConstellationspecialmeetingtoanothertimeandplaceforthepurposeof solicitingadditionalproxies.IftheConstellationstockholdersapprovetheadjournmentproposal,Constellation couldadjourntheConstellationspecialmeetingandanyadjournedsessionoftheConstellationspecialmeeting andusetheadditionaltimetosolicitadditionalproxies,includingthesolicitationofproxiesfromstockholders whohavepreviouslyvoted.

45 IftheproposaltoadjourntheConstellationspecialmeetingforthepurposeofsolicitingadditionalproxiesissubmittedtotheConstellationstockholdersforapproval,suchapprovalrequirestheaffirmativevoteofa majorityofallthevotescastbyholdersoftheoutstandingsharesofConstellationcommonstockontheproposal regardlessofwhetherthereisaquorum.TheConstellationboardofdirectorsunanimouslyrecommendsthatConstellationstockholdersvoteFORtheproposaltoadjourntheConstellationspecialmeeting,ifnecessaryorappropriate,tosolicit additionalproxiesinfavorofapprovalofthemergeragreementandthemerger.

46 THEMERGERThediscussioninthisjointproxystatement/prospectusofthemergerandtheprincipaltermsofthemergeragreementissubjectto,andisqualifiedinitsentiretybyreferenceto,themergeragreement.Weurgeyouto readcarefullythemergeragreementinitsentirety,acopyofwhichisattachedasAnnexAtothisjointproxy statement/prospectusandincorporatedbyreferenceherein.GeneralDescriptionoftheMergerUponcompletionofthemerger,MergerSub,awholly-ownedsubsidiaryofExelonformedforthepurposeofeffectingthemerger,willmergewithandintoConstellation.Constellationwillbethesurvivingcorporationof themergerbetweenitandMergerSubandwilltherebybecomeawholly-ownedsubsidiaryofExelon.Inthemerger,eachoutstandingshareofConstellationcommonstock(otherthansharesownedbyConstellation,ExelonorMergerSub,whichwillbecancelled)willbeconvertedattheeffectivetimeofthe mergerintotherighttoreceivesharesofExeloncommonstock,withcashtobepaidinlieuoffractionalshares.

Themergeragreementprovidesforanexchangeratioof0.930sharesofExeloncommonstockforeachshareof Constellationcommonstock.Thisexchangeratiowillnotbeadjustedtoreflectchangesinthestockpriceof eitherExeloncommonstockorConstellationcommonstockpriortocompletionofthemerger.Exelon shareholderswillcontinuetoholdtheirexistingsharesofExeloncommonstock.Uponcompletionofthemerger,MayoA.ShattuckIIIwillbecomeexecutivechairmanofthecombinedcompany.ExelonpresidentandchiefoperatingofficerChristopherM.Cranewillbecomepresidentandchief executiveofficerofthecombinedcompany.JohnW.Rowe,thecurrentchiefexecutiveofficerofExelon,will retireuponcompletionofthemerger.BothMr.CraneandMr.Shattuckwillserveontheboardofdirectorsofthe combinedcompany,alongwiththreeindependentConstellationdirectorsnominatedbyConstellation.Following themerger,theresultingcompanywillretaintheExelonnameandbeheadquarteredinChicago.Inadditionto thecorporateheadquarters,IllinoiswillcontinuetobehometoheadquartersforCommonwealthEdison Company,whichwerefertoasComEd,andExelonBusinessServicesCompany(bothinChicago),aswellas theMidwestregionalheadquartersforExelonNuclear(inWarrenville).Pennsylvaniawillcontinuetobehome toheadquartersforPECOEnergyCompany,whichwerefertoasPECO,(inPhiladelphia)andExelonPower(in KennettSquare).ExelonNuclearsheadquarterswillalsobelocatedatKennettSquare.Exelonsand ConstellationscommercialretailandwholesalebusinesseswillbeconsolidatedundertheConstellationbrand andheadquarteredinBaltimore.Thecombinedcompanysrenewablesdevelopmentheadquarterswillalsobe locatedinBaltimore.BaltimoreGasandElectricCompany,whichwerefertoasBGE,willretainitsBaltimore

headquarters.Untilthemergerhasreceivedallnecessaryapprovalsandiscompleted,ExelonandConstellationwillcontinueoperatingasseparateentities.Thecompaniesaretargetingtocompletethemergerinthefirstquarterof 2012,subjecttoreceiptofthenecessaryshareholderandregulatoryapprovalsdiscussedinthisjointproxy statement/prospectus,althoughwecannotassurecompletionbyanyparticulardate.BackgroundoftheMergerTheseniormanagementteamsandboardsofdirectorsofeachofConstellationandExelonactivelymonitorandassessdevelopmentsintheenergyindustryandaregenerallyawareofthebusinessactivitiesofothermajor energycompanies,includingeachother.ExecutivesfromeachofConstellationandExelonperiodicallyinteract witheachotheratindustrygatheringsandaspartofvariousenergyindustryorganizations.Asaresult,theysee andspeakwitheachotherseveraltimeseachyear,eachofConstellationandExelonisgenerallyfamiliarwith theothercompanysbusinessandoperations,andonatleasttwooccasionspriortothecommencementofthe October2010discussionsthatledtotheexecutionofthemergeragreementMessrs.RoweandShattuckhad informalconversationsregardingapossibletransactionbetweenConstellationandExelon.

47 Inaddition,therespectiveboardsofdirectorsandseniormanagementofeachofConstellationandExelonregularlyconsiderandevaluateoptionsforachievingtheircompanyslong-termstrategicgoalsandenhancing shareholdervalue.Theseoptionshaveincludedperiodicassessmentsofpotentialbusinesscombinationswith otherenergycompanies.Bothcompaniesalsohavebeenpartiestosignificantproposedbusinesscombinationsin recentyears.Inthepastsixyears,Constellationhasenteredintothreemajorstrategictransactionsandhasexploredawiderangeofotherpotentialopportunities.ConstellationenteredintoanagreementtomergewithFPLGroup, Inc.(nowknownasNextEraEnergy,Inc.)inDecember2005,butthetwocompaniesultimatelyagreedto terminatethetransactioninOctober2006inthefaceofsignificantregulatorydelays.InOctober2008,in responsetoapotentialsevereliquiditycrisis,Constellationcontacted,andwascontactedby,numerouspossible businesscombinationpartners,includingExelon,andwasapproachedbyMidAmericanEnergyHoldings Company(whichwerefertoasMidAmerican)regardingabusinesscombinationtransaction.Constellation ultimatelyagreedtobeacquiredbyMidAmericanforapproximately$4.7billionincash.Afterreceivingan unsolicitedproposalforanalternativetransaction,ConstellationterminatedtheagreementwithMidAmericanin December2008sothatitcouldcompletethisalternativetransaction,whichwasasaleofa49.99%interestin ConstellationsnucleargenerationbusinesstoÉlectricitédeFrance,SA,whichwerefertoasEdF,for$4.5 billion.ThetransactionwithEdFclosedinNovember2009.Intheyearsprecedingandsubsequenttothese transactions,Constellationalsohasreceivedunsolicitedexpressionsofinterestaboutpotentialbusiness combinationsfromseveraldifferentcompanies,bothinconnectionwiththesepriordealsandindependentof them.Constellationbelievesitiswell-informedabouttheopportunitiesforstrategictransactionsandhow potentialstrategicpartnerswouldlikelyvalueConstellationsbusinessinthecontextofabusinesscombination, includingasaresultoftheseactivitiesandgeneralmarketknowledge.LikeConstellation,Exelonhasactivelyexploredpotentialstrategicopportunitiesoverthepastseveralyears.InDecember2004,ExelonenteredintoanagreementtomergewithPublicServiceEnterpriseGroup Incorporated,butthetwocompaniesagreedtoterminatethetransactioninSeptember2006inthefaceof significantregulatorydelays.Inthefallof2008,Exelonmadepublicofferstoenterintoabusinesscombination transactionwithNRGEnergy,Inc.,butsuchofferswerenotacceptedandExelonwithdrewitsofferinJuly2009.

Throughoutthisperiod,Exelonhasregularlyevaluatedavarietyofpossiblebusinesscombinationsinlightofits evolvingacquisitioncriteriaandopportunitiespresentedbyvariouspotentialtransactions,anditregularly considerssignificantacquisitionopportunities.OnOctober13,2010,Mr.ChristopherM.Crane,PresidentandChiefOperatingOfficerofExelon,contactedMr.MayoA.ShattuckIII,ChairmanoftheBoard,PresidentandChiefExecutiveOfficerof Constellation,tointroducethepossibilityofdiscussingapotentialmergerofExelonandConstellation.They discussedlikelyfinancialadvisorsthattheywoulduseforthepossibletransaction(withExelonidentifying BarclaysCapitalandJ.P.MorganandConstellationidentifyingMorganStanley,whichhasworkedregularly withConstellationonnumeroustransactionsandotherprojectsoverthepastseveralyears).Theyalsodiscussed initialpotentialbenefitsofthepossibletransactionandtheneedtoaddressanyregulatoryapprovalsthatwould berequiredinconnectionwiththepossibletransaction.Mr.CraneandMr.Shattuckstatedthattheywouldeach considerthepotentialtransactionfurther,althoughtheydidnotdeterminewhentheywouldspeaknextabouta potentialtransaction,ifatall.OnoraboutOctober25,2010,Mr.JohnW.Rowe,ChairmanandChiefExecutiveOfficerofExelon,calledMr.ShattucktofollowuponMr.CranescalltoMr.ShattuckonOctober13inquiringaboutthepossibilityof discussingapotentialmergerofExelonandConstellation.Theydiscussedthemattersthathadbeendiscussed duringtheOctober13call.Mr.RoweindicatedthatExelonbelievedanyconcentrationsofmarketpower resultingfromthepotentialtransactioncouldbeaddressed.Finally,Mr.RowerequestedthatheandMr.Shattuck meettodiscussfurtherthepossibilityofatransaction.OnOctober26,2010,theExelonboardofdirectorsheldameeting.Duringthemeeting,Messrs.RoweandCraneandMr.KyleCrowley,SeniorVicePresidentandChiefDevelopmentOfficer,providedanupdateonthe 48 statusofmergerandacquisitionactivitiesandseveralpossibleassetacquisitionsandbusinesscombinationtransactionsthathadbeenconsideredorwereunderconsiderationandotherpotentialopportunitiesthatmight develop,includingapossiblebusinesscombinationtransactionwithConstellation.Followingdiscussionatthe meeting,theExelonboardofdirectorsauthorizedExelonsmanagementtoexploreseveraltransactionsthatwere discussed,includingabusinesscombinationtransactionwithConstellation.BeginninginlateOctober2010andcontinuingintoearlyJanuary2011seniormanagementofeachofConstellationandExelonreviewedpublicinformationabouttheothercompanyandsoughttoassessthe prospectsforabusinesscombinationtransactionbetweenExelonandConstellation.Seniormanagementofeach companyalsobegantocontactoutsideprofessionaladvisorsduringthisperiodtoassistthemwiththisanalysis andtoprovideadviceonthepossibletransaction.Duringthisperiod,ConstellationcontactedMorganStanley andrequestedthatMorganStanleyactasafinancialadvisortoConstellationforthepotentialtransaction (althoughaformalengagementletterforthisworkwasnotexecuteduntilMarch8,2011).Constellationalso contactedKirkland&EllisLLP,whichwerefertoasKirkland,Constellationsprimaryoutsidelawfirm,and requestedKirklandsassistancewiththepotentialtransaction.Inaddition,duringthisperiod,Exelonengaged BarclaysCapital,J.P.Morgan,andEvercoreasfinancialadvisorstoExelonforthepotentialtransaction (althoughtheformalengagementletterswerenotexecuteduntilApril2011)andSkadden,Arps,Slate, Meagher&FlomLLP,whichwerefertoasSkadden,aslegalcounseltoExelonforthepotentialtransaction.OnOctober30,2010,Mr.CraneandarepresentativeofMorganStanleyhaddinnerwhileattendingameetingoftheEdisonElectricInstitute,whichwerefertoasEEI,anindustryorganizationofshareholder-owned utilitycompaniesofwhichbothExelonandConstellationaremembers,inPalmDesert,California.Duringthis dinner,Mr.CraneandtherepresentativeofMorganStanleydiscussedthepotentialforatransactionbetween ConstellationandExelon.Onthefollowingday,therepresentativeofMorganStanleyconveyedthematters discussedinthisconversationtoMr.Shattuck.OnNovember1,2010,whileattendingthissameEEIconference,Mr.CraneandMr.ShattuckdiscussedExelonsinterestinapossibletransactionwithConstellation.Duringthebriefinitialdiscussionandafollow-up discussionontheeveningofNovember2,2010,theyexchangedviewsaboutthepotentialbenefitsofthe combinationofthetwocompanies.Duringthesediscussions,Mr.CranestatedthatifExelonweretopursuean all-stocktransactionwithConstellation,itwouldexpecttoissuesharesofExelonstockatanexchangeratiothat wouldrepresentapremiumofapproximately15%overthethen-currenttradingpriceofConstellationscommon stock.Mr.Shattuckindicatedthathethoughtanypossibletransactionwouldneedtoresultinapremiumin excessof15%.Mr.CraneandMr.Shattuckstatedthattheywouldeachconsiderthepotentialtransactionfurther, althoughtheydidnotdeterminewhentheywouldspeaknextaboutapotentialtransaction.Inmid-November2010,Messrs.ShattuckandRowespokebytelephoneregardingthestatusoftheconsiderationofthepossibletransaction.Inparticular,theyagreedthatthepartiescoulddelaydiscussionofthe exchangeratiointhepossibletransactionuntilregulatoryassessmentshadbeenmade.Theyreviewedthe schedulesofupcomingboardmeetingsforeachofExelonandConstellationanddiscussedensuringthatthe boardswouldbekeptinformedofdiscussionsrelatingtothepotentialtransaction.Duringthiscall,Mr.Rowe indicatedthatheexpectedthatMr.CranewouldsucceedhimasChiefExecutiveOfficerofExelonfollowingthe completionofthepossibletransaction.InmidtolateNovember2010,Mr.ShattuckinformallyupdatedseveralmembersoftheConstellationboardofdirectorsabouthisconversationswithMessrs.RoweandCrane.OnNovember30,2010,theExelonboardofdirectorsheldameeting.Duringthemeeting,Messrs.Rowe,CraneandCrowleyprovidedanupdateonthestatusofvariousmergerandacquisitionactivitiesandpotential opportunitiesthathadbeendiscussedattheOctober26boardmeeting.Messrs.RoweandCraneupdatedthe ExelonboardofdirectorsabouttheirdiscussionswithMr.ShattuckfollowingtheExelonboardmeetingon 49 October26.Mr.CranegaveapresentationandprovidedbackgroundinformationaboutConstellation,includingrecentdevelopmentsinConstellationssbusinessrelationshipswithEdF,andexplainedthefinancialmeritsand strategicrationaleforthepotentialcombinationofExelonandConstellation.TheExelonboardofdirectors discussedthefinancialmeritsofatransactionwithConstellation,regulatoryapprovalsrequiredforatransaction andsocial,governanceandpoliticalconsiderationsrelevanttoatransactionandprovidedinputtoMessrs.Rowe andCraneregardingfurtherdiscussionswithMr.Shattuck.OntheeveningofNovember30,2010,Messrs.ShattuckandRowemetfordinnerinPhiladelphia,Pennsylvania.Duringthismeeting,theydiscussedMr.Rowesexpectationsformanagementrolesinthe combinedcompanyforeachofMessrs.CraneandShattuckandtheneedtoaddressanyregulatoryapprovalsthat wouldberequiredinconnectionwiththepossibletransaction,includingapprovalbytheMarylandPublic ServiceCommissionandFederalEnergyRegulatoryCommissionandtheU.S.antitrustreviewprocess.OnDecember2,2010,Messrs.ShattuckandCranespokebytelephoneregardingthestatusoftheirrespectivecompaniesconsiderationofthepossibletransaction.Inadditiontoreviewingthetopicspreviously discussedduringtheirpriormeetings(andMr.ShattucksmeetingswithMr.Rowe),theyalsodiscussedeach companysexperiencesinprioruncompletedtransactions.OnDecember17,2010,theConstellationboardofdirectorsheldameeting.Duringanexecutivesessionatthebeginningofthemeeting(withonlymembersoftheboardofdirectorspresent),Mr.Shattuckinformedthe ConstellationboardofdirectorsabouthisconversationswithMessrs.RoweandCranerelatedtothepossible transactionandabouttheworkthatConstellationsseniormanagementandoutsideadvisorshaddoneoverthe pastseveralweeks.Followingadiscussion,theConstellationboardofdirectorsexpresseditsgeneralsupportfor havingalimitedgroupoftheseniormembersofConstellationsmanagementteamobtainmoreinformation aboutpotentialopportunitiesandrisksthatatransactionwithExelonmightpresenttoConstellationandits

stockholders.OnJanuary3,2011,Messrs.CraneandShattuckmetinArizonawhilebothwereattendinganEEIconference.Duringthemeeting,theydiscussedthepotentialstrategicbenefitsofthepossibletransaction.They alsodiscussedtheregulatoryapprovalsthatwouldberequiredinconnectionwiththepossibletransactionanda strategyforevaluatingtherequiredapprovalsandexploringpotentialproposalsthatmightbemadetoregulatory authoritiesinconnectionwithseekingapprovalsbeforeaddressingothertopicsofthepossibletransaction.They agreedtoarrangeameetingwithalargergroupofparticipantsfromtheirrespectivecompaniestodiscussthe regulatoryapprovals,whichmeetingtookplaceonJanuary13,2011.Inaddition,theyagreedtohave ConstellationandExelonenterintoaconfidentialityagreementpursuanttowhichthecompaniescouldexchange non-publicinformation.OnJanuary4,2011,Mr.AndrewL.Good,SeniorVicePresident,CorporateStrategyandDevelopmentofConstellation,senttoMr.Crowleyaproposedformofmutualconfidentialityagreement,whichincluded customarystandstillprovisionsapplicabletobothcompanies.RepresentativesofExelonprovidedcommentsto representativesofConstellationshortlythereafteralongwithaproposedformofajointdefenseagreement.OnJanuary5,2011,Messrs.Rowe,CraneandShattuckmetagainwhileattendingthemeetingofEEIinArizona.Duringthemeeting,theycontinuedtodiscussthetopicsthatMr.Shattuckhaddiscussedwith Mr.CraneonJanuary3.Laterthatday,Messrs.CraneandShattuck,togetherwitharepresentativeofMorgan Stanley,mettodiscussapossibletransactionbetweenExelonandConstellation.OnJanuary7,2011,ConstellationandExelonexecutedthemutualconfidentialityagreementandonJanuary20,2011,ajointdefenseagreementtofacilitatethesharingofduediligencematerialsandthe developmentofajointapproachtoaddressingtheregulatoryrequirementsofabusinesscombination.

50 OnJanuary10,2011,Messrs.ShattuckandCranespokebytelephoneregardingthepreparationfortheplannedmeetingonregulatorymattersscheduledforJanuary13.OnJanuary13,2011,representativesofConstellation,includingMr.GoodandMr.CharlesA.Berardesco,SeniorVicePresident,GeneralCounselandCorporateSecretaryofConstellation,heldateleconferencewith representativesofExelon,includingMr.CrowleyandMr.DarrylM.Bradford,SeniorVicePresidentandGeneral CounselofExelon,todiscussinmoredetailplansfordevelopingajointstrategytopursuerequiredregulatory approvalsinconnectionwithapossibletransaction.Bothcompaniesmanagementteamshaddecidedthat completinganinformedassessmentofthelikelihoodofobtainingallrequiredregulatoryapprovalsforatransaction wouldbeacriticalthresholdissueindecidingwhetheritwouldbedesirabletopursuedetaileddiscussionsand negotiationsregardingapotentialtransaction.Duringthiscall,bothcompaniesmanagementteamsdiscussedthe needforengaginglegalcounselinMarylandtohelpthemdevelopanapproachtoaddressingtheregulatory requirementsandenvironmentinMaryland.Finally,thepartiesdiscussedplansforaninitialexchangeofdue diligencematerials,includingthelegalandcommerciallimitationsonwhatinformationcouldbesharedandhow besttoassessthepotentialopportunitiesforsynergiesthatcouldbeexpectedtoresultfromatransaction.LateronJanuary13,2011,representativesofConstellationandExelonbegantoexchangealimitedamountofnon-publicinformation.Inparticular,ConstellationprovidedExelonwithastrategicplanforConstellation andExelonprovidedConstellationwithalong-rangeplan.Overthenextseveralweeks,thepartiescontinuedto sharealimitedamountofduediligencematerials,primarilyconsistingoffinancialinformation.DuringtheweekendingJanuary15,2011,Mr.CraneprovidedMr.Shattuckasuggestedframeworkforallocationofpost-mergerresponsibilitiesofMr.Shattuck,asexecutivechairman,andMr.Crane,aschief executiveofficer.OnJanuary18,2011,representativesofConstellation,includingMessrs.GoodandBerardesco,heldateleconferencewithrepresentativesofExelon,includingMessrs.CrowleyandBradford,duringwhichthey continuedtodiscussthetopicsdiscussedduringtheirJanuary13teleconference.Onthiscall,therepresentatives ofConstellationandtherepresentativesofExelonagreedtojointlyretainSaulEwingLLP,whichwerefertoas SaulEwing,toprovideadviceandrepresentationtobothcompaniesonregulatorymattersinMaryland(although theformalengagementletterwasnotexecuteduntilMarch11,2011).OnJanuary20,2011,theConstellationboardofdirectorsattendedaplanneddinnerontheeveningbeforeaboardmeeting.MembersofConstellationseniormanagementandarepresentativeofMorganStanleywere presentatthedinner.Atthedinner,Constellationmanagementpresenteditspreliminarystrategicassessmentofa possibletransactionwithExelon,andtherepresentativeofMorganStanleypresentedpreliminaryfinancial informationrelatedtothepossibletransaction.OnJanuary21,2011,theConstellationboardofdirectorsheldameeting.Duringanexecutivesessionatthebeginningofthemeeting(withonlymembersoftheboardofdirectorspresent),theConstellationboardof directorsdiscussedthepotentialtransaction.Duringthisexecutivesession,theboardaskedasubgroupoffour Constellationdirectors(RobertJ.Lawless,AnnC.Berzin,JamesT.BradyandYvesC.deBalmann)toreviewin moredetailwithmanagementapossibletransactionwithExelon.LateronJanuary21,2011,Messrs.ShattuckandCranespokebytelephoneregardingthestatusoftheirrespectivecompaniesconsiderationofthepossibletransaction.Mr.ShattuckinformedMr.Craneofthe discussionsoftheConstellationboardofdirectorsandtheboardsrequestthatasubgroupofdirectorsreviewthe potentialtransactioningreaterdetailwithConstellationmanagement.DuringlateJanuary2011,eachofthecompaniescontinuedtoretainoutsideprofessionaladvisors,includingconsultants,accountantsandcommunicationsfirms,toassistintheduediligencereviewofthecompaniesandto provideadviceandrepresentationinconnectionwiththepossibletransaction.

51 OnJanuary24,2011,theExelonboardofdirectorsheldadinnermeetingbeforeaboardmeetingonthefollowingday.Duringthedinnermeeting,Mr.Roweledadiscussionofsomestrategicconsiderationsrelevantto thepotentialtransactionwithConstellation,andthedirectorsreachedgeneralconsensusonmattersinvolving corporategovernanceandexecutiveleadershipofExelonfollowingthetransaction.OnJanuary25,2011,theExelonboardofdirectorsheldameetingatwhichmembersofExelonmanagement,includingMessrs.CraneandCrowley,andrepresentativesfromEvercoreandSkaddenwere present.ArepresentativefromSkaddenadvisedthedirectorsregardingtheirdutiesinconnectionwith transactionssuchastheproposedcombinationwithConstellation.Thedirectorsdiscussedthestrategicfitfora transactionwithConstellationcomparedtovariousotherpotentialopportunitiestheExeloncorporate developmentteamhadevaluatedandconsideredthepotentialbenefitsofcombiningConstellationsshort generationpositioninitsretailbusinesswithExelonslonggenerationposition.Thedirectorsalsodiscusseda preliminaryanalysisofpossiblevaluecreationforExelonandpro-formaearningsandcashflowaccretionina transactionwithConstellation,givenvariousassumptions,includingassumptionsaboutenergyprices, transactionpremium,divestituresofgenerationassets,andregulatoryapprovals.ArepresentativefromEvercore discussedconsiderationsrelevanttovaluationandconsiderationtobepaidinatransactionwithConstellation.

Followingdiscussion,theExelondirectorsauthorizedmanagementtocontinuediscussionswithConstellation andperformfurtherduediligence.LateronJanuary25,2011,Messrs.ShattuckandCranespokebytelephone,andMr.CraneupdatedMr.ShattuckonthediscussionsoftheExelonboardofdirectorsregardingthepossibletransaction.OnJanuary27,2011,representativesofConstellation,includingMessrs.GoodandBerardesco,togetherwithrepresentativesofKirkland,metwithrepresentativesofExelon,includingMessrs.CrowleyandBradford, togetherwithrepresentativesofSkadden,aswellasrepresentativesofSaulEwing,atSkaddensofficesin Washington,DC.Atthemeeting,thepartiesheldpreliminarydiscussionsaboutpossiblestrategiesand approachestoseekingregulatoryapprovalsforapossibletransaction.Thediscussionincludedahigh-level, generalexplorationofpotentialregulatoryconcernsthatfederalandstateagenciesmighthaveaboutabusiness combinationbetweenthetwocompaniesandhowthecompaniesmightbeabletoaddressthoseconcerns.While mostofthediscussionsweregeneral,thepartiesspecificallydiscussedthepossibledispositionofthreeof Constellationsgenerationstations(BrandonShoresandH.A.WagnerlocatedinAnneArundelCounty, MarylandandC.P.CraneinBaltimoreCounty,Maryland)asameansbywhichconcentrationsofmarketpower resultingfromthepotentialtransactioncouldbeaddressedforanyfederalregulatoryagencies.OnJanuary28,2011andagainonJanuary31,2011,Messrs.Shattuck,RoweandCranespokebytelephoneseveraltimesinadvanceofameetingtodiscussregulatorymattersscheduledforFebruary8,2011.Onthe eveningofFebruary7,2011,Messrs.ShattuckandCranemetfordinnerinNewYorkCity.OnFebruary8,2011,representativesofConstellation,includingMessrs.Shattuck,BerardescoandGood,togetherwithrepresentativesofMorganStanley,metwithrepresentativesofExelon,includingMessrs.Crane, CrowleyandBradford,togetherwitharepresentativeofBarclaysCapital,inNewYorkCity.Duringthis meeting,thepartiesgenerallydiscussedpossibleapproachestoobtainingrequiredregulatoryapprovals, includingproposingcertaingenerationfacilitydispositionstomitigatepotentialmarketconcentrationconcerns andproposingutilityratecreditsandlocalinvestmentandemploymentinitiativestoaddressMarylandregulatory requirementsbyprovidingsignificantbenefitstoBGEcustomersandtheStateofMaryland.Thesetopicswere discussedingeneralterms,andnospecificproposalswereadvanced.OnFebruary10,2011,andagainonFebruary15,18and22,2011,Messrs.ShattuckandCranespokebytelephoneregardingthestatusoftheirrespectivecompaniesconsiderationofthepossibletransaction.OnFebruary11,2011,thesubgroupoffourConstellationdirectorsthathadbeenaskedbytheConstellationboardofdirectorstoreviewinmoredetailwithmanagementapossibletransactionwithExelonheldameeting, 52 atwhichmembersofConstellationseniormanagement,includingMessrs.Shattuck,GoodandBerardescoandMr.JonathanW.Thayer,SeniorVicePresidentandChiefFinancialOfficerofConstellation,andarepresentative ofeachofMorganStanleyandKirklandwerepresent.Duringthemeeting,membersofConstellationsenior managementdiscussedwiththedirectorstheresultsoftheiranalysesoftheopportunitiespresentedbythe possibletransactionandalsodiscussedConstellationsstand-alonebusinessplan.Basedonthepresentations made,thedirectorsconcludedthatthepossibletransactioncouldhavesignificantbenefitsforConstellationand itsstockholdersandmeritedfurtheranalysis.Thefourdirectorsalsoadvisedmanagementthattheywouldneed additionaldetailsaboutthetermsofanytransactionandthelikelihoodofcompletingthetransaction(including obtainingallrequiredregulatoryapprovals)beforetheycoulddeterminemoreconclusivelytheirviewsofthe transaction.TheyalsodiscussedwithConstellationseniormanagementtheprocessbywhichthecompanies wouldcontinuetoexchangenon-publicinformation.Theyalsoencouragedmanagementtoseektofurtherdefine thetermsofapossibletransactionandtheapproachtoseekingregulatoryapprovalofapossibletransaction.OnFebruary12,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalheldateleconferencetodiscussarangeofmattersrelatingtothepotentialtransaction,includingvaluation,transaction structureandgovernancematters.OnFebruary16,2011,Constellationsindependentdirectors(alldirectorsotherthanMr.Shattuck)heldameetingbyteleconference.Atthemeeting,theydiscussedthecurrentstatusofthediscussionsregardingthe possibletransaction,andthesubgroupoffourdirectorsthathadbeendesignatedtoreviewthepossibletransaction inmoredetailprovidedanupdatetotheotherdirectorsontheinformationtheyhadreceivedfromConstellation managementonFebruary11,theirpreliminaryviewsandthedirectiontheyhadprovidedtomanagement.OnFebruary24,2011,theConstellationboardofdirectorsattendedapre-arrangeddinnerontheeveningbeforeameetingoftheboard.MembersofConstellationmanagementandarepresentativeofeachofMorgan StanleyandKirklandwerepresentatthedinner.Atthedinnermeeting,Constellationmanagementpresentedits preliminaryassessmentofthestrategiceffectsofthepossibletransaction,aswellaspotentialrisks,andthe representativeofMorganStanleypresentedpreliminaryfinancialinformationrelatedtothepossibletransaction.

Followingdiscussionofthepossibletransaction,theConstellationboardofdirectorsauthorizedMessrs.Lawless andShattucktomeetwiththeExelonboardofdirectorstodiscussConstellationandtheirviewsonthepossible transactionandtheopportunitiesthatitpresented.OnMarch1,2011,Messrs.Rowe,CraneandShattuckmetinWashington,DCwhileattendingameetingofEEIduringwhichtimetheydiscussedthestatusoftheconsiderationofthepossibletransaction,includingthe regulatoryapprovalprocess.DuringthemeetingonMarch1andameetingthatfollowedonMarch2,itwas agreedthatitwouldbehelpfulforlegalcounseltobegintoprepareadraftmergeragreementprovidingforterms ofthepossibletransaction.Shortlythereafter,ExeloninstructedSkaddentobeginworkonadraftmerger agreementforatransactionwithConstellation.OnMarch2,2011,Messrs.CraneandShattuckmetinWashington,DC.DuringthismeetingMr.ShattuckprovidedMr.CranewithadditionalbackgroundinformationonConstellationsbusinesses.IntheeveningofMarch6,2011,Messrs.ShattuckandLawlessattendedadinnermeetinginChicago,IllinoiswithMessrs.RoweandCraneandseveralExelondirectorstodiscussthepotentialtransaction,andthe followingmorning,Messrs.ShattuckandLawlessattendedabreakfastmeetingwithMessrs.RoweandCrane andseveralotherExelondirectorstodiscussthepotentialtransaction.OnMarch7,2011,theExelonboardofdirectorsheldameeting,atwhichrepresentativesofExelonmanagement,includingMessrs.CraneandCrowley,andrepresentativesfromBarclaysCapital,J.P.Morgan, EvercoreandSkaddenattended.Messrs.ShattuckandLawlessandrepresentativesofSaulEwingwerealso presentforaportionofthemeeting.Atthismeeting,Mr.WilliamA.VonHoene,Jr.,ExecutiveVicePresident-FinanceandLegalofExelon,gaveapresentationonregulatoryapprovalsrequiredforatransactionwith 53 ConstellationandconsiderationsrelevanttoseekingregulatoryapprovalinMarylandandtheprincipalelementsofapotentialstrategyforsecuringregulatoryapprovalinMaryland.TherepresentativesofSaulEwingprovided furthercommentsonthepotentialproposalsthatwerebeingconsideredaspartofastrategyforsecuring regulatoryapprovalinMaryland.Thedirectorsalsodiscussedgovernancematters,includingthepotentialroles ofMessrs.CraneandShattuckfollowingacombinationwithConstellation,thestatusoftheduediligence investigation,thefinancialanalysisandtransactioneconomics,Constellationsupstreamgas,wholesalepower, trading,andretailenergybusinesses,andexecutivecompensationmattersrelevanttoatransaction.Thedirectors andseniormanagementalsodiscussedvariousopportunitiesforalternativestrategictransactionsbasedontheir generalknowledgeofthemarketandinformalconversationswithcertainothercompaniesandcomparedthe relativebenefitsofthosealternativestotheproposedtransactionwithConstellation.Theindependentdirectors ontheExelonboardconcludedthemeetinginexecutivesession.OnMarch8,2011,Messrs.ShattuckandCranespokebytelephoneregardingthestatusoftheirrespectivecompaniesconsiderationofthepossibletransaction.OnMarch10,2011,representativesofConstellation,includingMessrs.GoodandBerardesco,togetherwithrepresentativesofKirkland,metwithrepresentativesofExelon,includingMessrs.CrowleyandBradford, togetherwithrepresentativesofSkadden,aswellasrepresentativesofSaulEwing,atSkaddensofficesin Washington,DC.Atthemeeting,ExelonpresentedtoConstellationforitsconsiderationthespecifictermsofa packageofproposalstobemadetoregulatoryauthoritiesinconnectionwiththepossibletransaction.This proposalincludedadditionaldefinitiononthedispositionofthreegenerationstations,ratecreditsforBGE customers,continuationofConstellationsandBGEscharitablecontributions,themovementofcertain operationsofthecombinedcompanytoBaltimore,Marylandandseveralotherpotentialinvestmentinitiativesin

Maryland.OnMarch16,2011,Mr.LawlessandMr.M.WalterDAlessio,LeadDirectorofExelon,spokebytelephoneregardingthepossibletransaction.Inparticular,theydiscussedmattersregardingmanagementand governanceofacombinedcompany.OnMarch17,2011,theConstellationboardofdirectorsheldameetingbyteleconference,atwhichrepresentativesofeachofMorganStanley,KirklandandSaulEwingwerepresent.Atthemeeting,theydiscussed thecurrentstatusofthediscussionsregardingthepossibletransactionwithExelon.Atthemeeting,thedirectors discussedthepossibleimpactthattherecentFukushimanuclearpowerplantcrisisinJapancouldhaveonthe nuclearindustryintheUnitedStatesgenerallyandpotentiallyonExelon,becauseofitslargenucleargeneration fleet,whichissubstantiallylargerthanConstellations(bothintotalcapacityandasapercentageoftotalcompany generationcapacity).Inaddition,therepresentativesofSaulEwingmadeapresentationtotheConstellationboard ofdirectorsregardingtheregulatoryapprovalsinMarylandrequiredinconnectionwiththepossibletransactionand asummaryoftheproposalsbeingdiscussedbytheparties.Followingdiscussion,theConstellationboardof directorsindicatedthattheywouldbesupportiveofalargergroupofConstellationseniormanagementengagingin amoreextensiveexchangeofnonpublicinformationwithExeloninanefforttofurtherdefinethetermsofa possibletransactionandexplore,throughfurthernegotiation,whethermutuallyacceptabletermscouldbereached.AlsoonMarch17,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalspokebytelephoneanddiscussedthestatusoftheconsiderationofthepossibletransaction,governanceissuesand transactiontermsandstructures.Duringtheperiodfrommid-MarchthroughlateApril,representativesofConstellationandExelonheldseveralin-personandtelephonicconferencestodiscussduediligencematters.Inaddition,eachcompanymade availabletotheothercompanyduediligencematerialsthroughavirtualdataroom.Constellationopenedits virtualdataroomtoExelonbeginningonoraboutMarch22,2011andExelonopeneditsvirtualdataroomto ConstellationbeginningonoraboutApril6,2011.Inparticular,duringthesecondhalfofMarch,theparties arrangedseveralin-personandtelephonicmeetingsofvariousbusiness,financial,accountingandlegalteamsto 54 discussdiligencematters,includinginformationtechnology,corporatestructure,commoditycontractsandothermaterialcommercialcontracts,environmentalmattersandotherlegal,financialandbusinessduediligence matters,andthestatusfromtimetotimeofspecificoutstandingduediligencerequests.Inaddition,duringtheperiodfrommid-MarchthroughlateApril,representativesofBarclaysCapitalandMorganStanleyheldseveralin-personmeetingsandspokebytelephoneonseveraloccasionstodiscussseveral unresolveditemsrelatingtothepotentialtransactionandthestatusofthecompaniesconsiderationofthe potentialtransaction.Alsobeginninginmid-March2011andcontinuingforseveralweeks,representativesofConstellation,includingMr.Good,andrepresentativesofExelon,includingMr.Crowley,heldregularteleconferencesto discussthestatusthepartiesconsiderationofthepossibletransaction.OnMarch18,2011,Messrs.BerardescoandBradfordspokebytelephonetodiscussapossiblescheduleforthepartiestocontinueexploringthetermsofthepossibletransaction.Theyalsoreviewedthestatusofthedue diligencereviewsofthetwocompanies.Duringthefollowingseveralweeks,Messrs.BerardescoandBradford hadfrequent,briefteleconferencestodiscussthestatusofboththenegotiationofdealtermsandthedue diligenceprocess.LaterinthedayonMarch18,2011,representativesofSkaddensenttorepresentativesofKirklandaninitialdraftofamergeragreementforthepossibletransaction.DuringlateMarch2011,thepartiescontinuedtodiscussthetransactionandassesstheeffectoftheJapanesenuclearcrisisthatbeganonMarch11,2011oneachoftheirrespectivebusinessesandonthepossible

transaction.OnMarch22,2011,Messrs.ShattuckandCranemetinBaltimore,MarylandtodiscussthepossibletransactionandtravelledtogetherfromBaltimoretoattendameetinginAtlanta,GeorgiaoftheInstituteof NuclearPowerOperations,orINPO,anindustryorganizationrelatedtotheoperationofnuclearpowerplantsof whichbothExelonandConstellationaremembers.Whileenroute,theydiscussedthepackageofproposalstobe madetoregulatoryauthoritiesthatthecompanieswouldannouncepubliclyatthetimeofannouncementofthe transaction.Duringthatdiscussion,theyagreedgenerallyonthecomponentsofthepackageofproposalstobe madetoregulatoryauthoritiesinconnectionwiththemerger,includinga$100directratecreditonthe customersmonthlybillforeachBGEresidentialcustomerasofaspecifieddatefollowingtheeffectivedateof themerger(whichwouldhaveanaggregatereductioninrevenueofapproximately$112million).OnMarch24,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalspokebytelephoneanddiscussedthestatusoftheconsiderationofthepossibletransactionanddealstructureand governancematters.OnMarch28,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalspokebytelephoneanddiscussedthestatusoftheconsiderationofthepossibletransaction.Inparticular,theydiscussed thestatusofthependingduediligenceactivities,possibleestimatesofexpectedbenefitsthatcouldberealizedby thecombinedcompanyasaresultofthepossibletransaction,aspreparedbyeachofExelonandConstellation respectively,andthescheduleforfurtherconsiderationofthepossibletransaction.Therepresentativefrom MorganStanleyindicatedthatConstellationfeltitwasappropriatetoresolvealloftheothertermsofthepossible transactionbeforefurtherdefiningtheexchangeratioofsharestobepaidinthemerger.InearlyApril2011,ConstellationengagedGoldmanSachsasafinancialadvisortoConstellationforthepotentialtransaction(althoughtheformalengagementletterforthisengagementwasnotexecuteduntilApril27, 2011).Inmid-April2011,ConstellationengagedCreditSuisseSecurities(USA)LLCasafinancialadvisorto Constellationforthepotentialtransaction(althoughtheformalengagementletterforthisengagementwasnot executeduntilApril26,2011).

55 OnApril4,2011,representativesofConstellation,includingMr.Berardesco,andrepresentativesofExelon,includingMr.Bradford,togetherwithrepresentativesofSaulEwing,metatSaulEwingsofficesinWashington, DC.Atthemeeting,thepartiesdiscussedopenissuesrelatedtothestrategyforseekingregulatoryapprovalin Marylandforthepossibletransactionandthedevelopmentofacommunicationsplanrelatedtothepossible transaction.ThepartiesagreedthattheywouldseektoscheduleanappointmentwithMarylandGovernorMartin OMalleyinmidtolateApril2011todiscussthepossibletransactionbeforedeterminingwhethertofinalizea mergeragreementforthepossibletransaction.OntheeveningofApril4,2011representativesofExelon,includingMr.CraneandMr.KennethW.Cornew,SeniorVicePresidentofExelonCorporationandPresidentofExelonPowerTeam,hadadinner meetingwithrepresentativesofConstellation,includingKathleenW.Hyle,SeniorVicePresidentof ConstellationandChiefOperatingOfficerofConstellationEnergyResources,inChicago.Atthedinnermeeting, theydiscussedConstellationscompetitivesupplybusiness.OnApril5,2011,theriskoversightcommitteeoftheExelonboardofdirectorsheldameetingthatwasattendedbyseveralotherExelondirectorsandrepresentativesofExelonmanagement,includingMessrs.Crane, CrowleyandCornew,andrepresentativesofBarclaysCapital,J.P.Morgan,andSkadden.Ms.Hyleanda managerofConstellationscommoditiesgroupalsoattendedaportionofthismeeting.Atthismeeting,Ms.Hyle gaveapresentationontheorganizationandstructureofConstellationscompetitivesupplybusinessandrelated riskandtransactionapprovalpoliciesandrespondedtoquestionsfromExelondirectorsandseniormanagement.

AftertheConstellationrepresentativesleftthemeeting,Mr.Cornewdiscussedthestatusoftheduediligence investigationoftheConstellationretailenergybusinessandcomparedittoExelonscompetitiveretailand wholesalebusinessandExelonsthree-yearratablehedgingprogram.Mr.Cornewalsopresentedtherevenuenet fuelforConstellationandExelonandonacombinedbasis,andthedirectorsdiscussedriskassessmentandrisk managementconsiderationsrelevanttoacombinationwithConstellation.RepresentativesofJ.P.Morgan advisedthedirectorsregardingsimilaritiesanddifferencesinExelonandConstellationriskpolicies,risklimits andmeasuresofrisk.Duringexecutivesessionwiththedirectors,Mr.Rowecommentedfurtheronthe discussionswithConstellationandcomparedthetransactiontootherpotentialtransactionsExelonhad considered.Thedirectorsdiscussedseveralmattersrelatedtocombiningthetwoorganizationsandtheneedto managethetransactionandtheintegrationofthetwocompaniestoretainkeyemployees.OnApril6,2011,Messrs.ShattuckandCranespokebytelephoneregardingthestatusoftheirrespectivecompaniesconsiderationofthepossibletransaction.AlsoonApril6,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalspokebytelephoneanddiscussedthestatusoftheconsiderationofthepossibletransaction.Inparticular,theydiscussed thescheduleforfurtherconsiderationandpossibleannouncementofthepossibletransactionandthemethodby whichthepartieswouldseektodeterminetheexchangeratioofsharestobepaidinthemergerandthepremium forConstellationstockholdersthatwouldbeimpliedbytheexchangeratio.OnthemorningofApril7,2011,apublicationprintedanewsarticlereportingthepossibilityofatransactionbetweenExelonandConstellation.AlsoonApril7,2011,representativesofKirklandsenttorepresentativesofSkaddenareviseddraftofthemergeragreementforthepossibletransaction.Inadditiontovariousproposedchangesandcomments,the reviseddraftincludedcounter-proposalsonanumberofsignificant,unresolvedissues,including:(1)the standardthatwouldbeappliedtodeterminewhetherthepartieswouldberequiredtoacceptvariousconditions andobligationsincludedinanyrequiredregulatoryapprovalororder;(2)therightofeachpartytoterminatethe mergeragreementtoenterintoasuperiorproposal;(3)thecircumstancesunderwhichthepartieswouldbe permittedtochangetheirrecommendationstostockholdersifmaterialeventsarosebetweensigningandclosing notrelatedtoanacquisitionproposal;(4)whetherbothcompanies(orjustConstellation)wouldbesubjectto provisionsrestrictingthesolicitationofalternativeproposals;(5)theparametersoflimitationsoneachcompany 56 toengageinsignificantacquisitionsandothernon-ordinarycoursetransactionsbetweensigningandclosing;and(6)theamountandtermsofterminationfeespayablebyeachcompanyinvariouscircumstanceswherethe mergeragreementwouldbeterminatedpriortoaclosing.Inaddition,thereviseddraftidentifiedaspointsfor furtherdiscussionExelonscontractualrighttochangeitsrecommendationandhowtoaddresstheriskof materialadversedevelopmentsinthenuclearindustrybetweensigningandclosinginlightofthepending Japanesenuclearcrisis.OnApril8,2011,Messrs.CraneandShattuckmetatConstellationsheadquartersinBaltimore,Maryland.Duringthemeeting,theydiscussedvariousmethodsbywhichthepartiescouldnegotiateanexchangeratiofor themergerthatwouldimplyapremiumfortheholdersofConstellationcommonstock,includingwhetherthe useofanhistoricalaveragepriceoraspotpricewasmoreappropriateasthebasisfordeterminingthepremium tobenegotiated.OnApril11,2011,representativesofConstellation,includingMr.JamesL.Connaughton,ExecutiveVicePresident,CorporateAffairs,PublicandEnvironmentalPolicyofConstellation,andMr.Berardesco,and representativesofExelon,includingMr.Bradford,heldateleconferencetodiscussthecommunicationsplanfor thepossibletransaction.Thisgroupagreedtomeetonaweeklybasispriortotheannouncementofthepossible transactiononthecommunicationsplanandstrategy.AlsoonApril11,2011andcontinuingonApril12,2011,representativesofConstellation,includingMr.BerardescoonApril12,2011,togetherwithrepresentativesofKirkland,metwithrepresentativesofExelon, includingMr.BradfordonApril12,2011,togetherwithrepresentativesofSkadden,atKirklandsofficesin Washington,DCtodiscussthemergeragreement.Duringthecourseofthesemeetings,thepartiesdiscussedthe termsofthemergeragreement,includingtherestrictionsontheoperationofeachpartysbusinesspriortothe closingofthemerger,thetermsofthematerialadverseeffectdefinition,theextentofeachpartysrightsto changeitsrecommendationtoshareholdersandotherwiseprovideupdatestoitsshareholdersthatrelatedtothe transaction,theobligationstobeimposedonthepartiestoseekregulatoryapprovals,thestandardthatwouldbe appliedtodeterminewhetherthepartieswouldberequiredtoacceptvariousconditionsandobligationsincluded inanyrequiredregulatoryapprovalororder,thesizeofeachpartysterminationfee(andthecircumstances underwhichtheywouldbepayable)andtheallocationofriskbetweenthepartiesoftheongoingJapanese nuclearcrisis.Thepartiesandtheiradvisorsalsogenerallyreviewedtheprovisionsofthedraftmerger agreement,providedcommentsontheprovisionsanddiscussedpotentialresolutionsofdisagreements.Alsoon April12,2011,thepartiesdiscussedvariouspost-closinggovernancearrangementsinconnectionwiththe merger,ConstellationsexpectationsthatConstellationstradingpolicieswouldbemaintainedfollowingthe closingofthemerger,andhowtodetermine2011incentivecompensationarrangementsforConstellation employeesifthemergerweretoclosebeforeincentiveawardsforthe2011fiscalyearweredetermined.

Followingthemeeting,thepartiesidentifiedcertainkeyitemsrequiringfurtherdiscussionandnegotiation, including:thesizeofeachpartyspermittedacquisitionspriortotheclosingofthemerger,whetherthe agreementwouldincludeaprovisionrequiringthatapartysubmitthemergertoavoteofitsshareholdersbefore thepartycouldterminatetheagreementtoacceptasuperiorproposal,referredtoasaforcethevoteprovision, thesizeoftheterminationfeesapplicabletoeachparty(includingwhetherthefeepayablebyExelonwouldbe largerthanthefeepayablebyConstellationand,ifso,howmuchlarger,withConstellationrequestingthat Exelonberequiredtopayafeeofgreaterthan$1billionincertaincircumstances)andthemannerinwhichpost-signingmaterialandadversedevelopmentsinthenuclearindustry(ifanyweretooccur)asaresultofthe ongoingnuclearcrisisinJapancouldaffectthepartiesrightsunderthemergeragreement.DuringthenexttwoweeksandculminatingintheexecutionofthemergeragreementonApril28,2011,thepartiesexchangedseveraldraftsofthemergeragreementandrelateddefinitivedocumentationandengagedin severaltelephonicnegotiationsoftheseagreements.Inparticular,theycontinuedtonegotiatethekeyitems identifiedinthemeetingsonApril11and12,2011.

57 AlsoonApril11,2011,Messrs.CraneandMatthewHilzinger,SeniorVicePresidentandChiefFinancialOfficerofExelon,andMessrs.ShattuckandThayermetoverdinnerinNewYorkanddiscussedupcoming meetingsrelatedtothepossibletransaction.OnApril12,2011,Messrs.Rowe,Crane,Hilzinger,ShattuckandThayer,metinNewYorkwiththethreeprincipalratingagenciesandsummarizedtheproposedtransaction.OnApril12,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalheldateleconferencetodiscusstheresultsofvariousmeetingsamongthepartiesrelatingtothepotentialtransaction andplansfordiscussionofthepotentialtransactionattheExelonboardmeetingtobeheldonthefollowingday.OnApril13,2011,theExelonboardofdirectorsheldameetingatwhichrepresentativesofExelonmanagement,includingMessrs.CraneandCrowley,andrepresentativesfromBarclaysCapital,J.P.Morgan, EvercoreandSkaddenattended.Duringthemeeting,theExelonboardofdirectorsdiscussedthepotential transactionwithConstellation,includingregulatoryapprovalsandthecommunicationsandoutreachplanto supporttheefforttoobtainregulatoryapprovals,thestatusoftheduediligenceinvestigation,andanupdated evaluationoftransactioneconomics.ArepresentativefromSkaddenprovidedareportonthestatusof negotiationsoftheproposedmergeragreementandasummaryoftheprincipalissues.Thedirectorsdiscussed theproposedtransactionfurtherinexecutivesessionwithMessrs.RoweandCraneinattendanceandafurther executivesessionofindependentdirectors.OnApril14,2011,arepresentativeofBarclaysCapitalcalledarepresentativeofMorganStanley.Duringthiscall,therepresentativeofBarclaysCapitalindicatedthatExelonwaspreparedtoofferanexchangeratioof 0.909sharesofExeloncommonstockforeachshareofConstellationcommonstock.LateronApril14,2011,Mr.CranecalledMr.ShattucktoreiterateExelonsproposalofanexchangeratioof0.909sharesofExeloncommonstockforeachshareofConstellationcommonstock.OnApril15,2011,arepresentativeofMorganStanleycalledarepresentativeofBarclaysCapitaltofurtherdiscusstheexchangeratio.Duringthiscall,therepresentativeofMorganStanleyproposedanexchangeratioof 0.945sharesofExeloncommonstockforeachshareofConstellationcommonstock,subjecttotheapprovalof theConstellationboardofdirectorsandthenegotiationofadefinitiveagreement.Thisexchangeratiowasbased onpreliminaryvaluationworkthathadbeenperformedanditservedasaninitialbasisforfurthernegotiation.

TherepresentativeofMorganStanleyexplainedthatthespotpriceimpliedbytheinitialproposedexchangeratio of0.909wasbelowConstellationsexpectations.AlsoonApril15,2011,Mr.BerardescoandMr.Bradfordspokebytelephoneregardingcertainremainingopenitemsinthemergeragreement,includingthoseitemsthatwereoutstandingfollowingtheApril11and12 meetings.Inparticular,theydiscussedthemethodbywhichtheagreedboardrepresentationwouldbeachieved bytheendof2012,boardcommitteerepresentation,thelocationofboardmeetings,thesizeofeachpartys permittedacquisitionspriortotheclosingofthemerger,andthesizeoftheterminationfeesapplicabletoeach party.Mr.BradfordalsoreiteratedExelonspriorproposalmadeattheApril12meetingonhowthemerger agreementshouldaddressanyadversedevelopmentsinthenuclearindustryasaresultoftheongoingnuclear crisisinJapan.OnApril17,2011,Mr.CranecalledMr.Shattucktofurtherdiscusstheexchangeratio.Duringthiscall,Mr.Craneproposedanexchangeratioof0.927sharesofExeloncommonstockforeachshareofConstellation commonstock,subjecttotheapprovaloftheExelonboardofdirectorsandthenegotiationofadefinitive

agreement.OnApril18,2011,theConstellationboardofdirectorsheldameetingatwhichrepresentativesofMorganStanley,GoldmanSachsandKirklandwerepresent.Inaddition,Messrs.RoweandCranewerepresentfora portionofthemeeting.Atthismeeting,Messrs.RoweandCraneprovidedinformationonExelonanddiscussed 58 theirviewsonthepossibletransactionandtheopportunitiesthattheybelieveditpresented.Aftertheirpresentation,Messrs.RoweandCraneleftthemeeting.Atthemeeting,seniormanagementofConstellation providedanupdatetotheConstellationboardofdirectorsregardingthediscussionsrelatedtothepossible transactionandtheirstrategicreviewofthepossibletransaction.Thisincludedadiscussionofmaterialrisks presentedbythetransaction,includingtheriskoffailingtoreceiveallrequiredregulatoryapprovalsforthe transaction(orofsuchapprovalsbeingconditioneduponthecompaniesagreeingtoobligationsorlimitations thatwouldnotbecommerciallyacceptableorotherwisewouldsignificantlyreducethebenefitsofthebusiness combinationtothecompaniesshareholders),currentrisksinthenuclearindustryandthepotentialimpactofthe ongoingnuclearcrisisinJapanonthecompaniesandthetransaction.RepresentativesofMorganStanley presentedtheirpreliminaryfinancialanalysesofthepossibletransaction.RepresentativesofKirklandreviewed fortheConstellationboardofdirectorsthefiduciarydutiesofthedirectorsinconnectionwiththeconsideration ofthepossibletransactionandtheprimaryopenitemsbeingnegotiatedbythepartiesrelatedtothemerger agreement.Duringthecourseofthemeeting,theConstellationdirectorsdiscussedwiththeseniormanagement ofConstellationandMorganStanleythelikelihoodanddesirabilityofalternativemergerpartnersandtheactions thathadbeentakenovertherecentpasttoconsideranyotherpossiblestrategictransactions.Thesenior managementofConstellationandMorganStanleydescribedtheirunderstandingoftheopportunitiesfor alternativestrategictransactions,basedontheirgeneralmarketknowledgeandpriordiscussionsandselected informalconversationsfromtimetotimewithpotentialmergerpartnersandotherpotentiallyinterestedparties, andtherelativebenefitsofthepossibletransactionwithExelonrelativetoalternativebusinesscombination transactions.Followingthediscussion,thedirectorsconcludedthattheybelievedthatthecurrenttermsofthe proposedtransactionpresentedastrongvaluepropositiontotheConstellationstockholders.Thedirectorsalso requestedfurtherinformationontheproposedstrategyforobtainingregulatoryapprovalsforthetransaction, includingapprovalsinMaryland,andmanagementsexpectationsforthetimingandlikelihoodforobtaining thoseapprovals.Afterdiscussionofthesematters,thedirectorsaskedmanagementtoprovidethemwithareport ontheresultsoftheplannedApril21,2011meetingwithGovernorOMalleybeforetheboardwouldmakeany furtherdecisions.Thedirectorsinstructedmanagementandtheadvisors,intheinterim,tocontinuenegotiating finalagreementsandpreparingforexecutionandannouncementofatransaction.Theyagreedtomeeton April26,2011toconsiderfinalpresentationsrelatedtothepossibletransaction.AlsoonApril18,2011,arepresentativeofMorganStanleyandarepresentativeofBarclaysCapitalheldateleconferenceonwhichtherepresentativeofBarclaysCapitalproposedanexchangeratioof0.927sharesof ExeloncommonstockforeachshareofConstellationcommonstock.LateronApril18,2011,Messrs.ShattuckandCranespokebytelephoneregardingtheexchangeratio.Duringthiscall,theyagreedtoanexchangeratioof0.930sharesofExeloncommonstockforeachshareof Constellationcommonstocktobepaidintheproposedtransaction,subjecttotheapprovaloftheboardsof directorsofeachcompanyandthenegotiationofadefinitiveagreement.OnApril21,2011,representativesofConstellation,includingMr.Shattuck,andrepresentativesofExelon,includingMessrs.RoweandMr.Crane,metwithGovernorOMalleyandseveralmembersofhisstaffat GovernorOMalleysofficesinAnnapolis,Maryland.Atthemeeting,therepresentativesofConstellationand ExeloninformedGovernorOMalleyofthepossibletransactionandtheratepayercreditsandstateandlocal investmentandemploymentcommitmentsthatthepartiesexpectedtoproposeinconnectionwiththepossible transaction.Whilenotexpressingaviewaboutthemeritsofthetransactionorthelikelihoodofregulatory approvalinMaryland,GovernorOMalleyindicatedthathewascommittedtoafairandthoroughconsideration ofthemergerbythePublicServiceCommissionoftheStateofMaryland.AlsoonApril21,2011,Mr.Berardesco,togetherwithrepresentativesofKirkland,heldateleconferencewithrepresentativesofExelon,togetherwithrepresentativesofSkadden,todiscusstheopenissuesinthemerger agreement.Thepartiesreviewedamark-upofthemergeragreementthatKirklandhadsenttoSkaddenpriorto theteleconference.Duringthecall,thepartiesdiscussedproposedtimingforexecutionofthemergeragreement andtheexchangeofdisclosureschedules.TheyresolvedopenissuesrelatedtowhetherBGEcouldbringanyrate 59 casespriortocompletionofthemergerandseveralothertermsofthemergeragreement.Inaddition,thepartiesagreedthatthemergeragreementadequatelyreflectedtheextenttowhicheachpartycouldberequiredtoaccept conditionsonthereceiptoftheregulatoryapprovalsasaconditiontoconsummatingthemerger.However, followingthecall,therewasstilldisagreementaboutwhethertheagreementshouldincludeaforcethevote provisioninacasewhereapartywantstoterminatetheagreementtoacceptasuperiorproposal,thesizeofthe applicableterminationfees,certainaspectsofwhatconditionswouldbeacceptableorunacceptableaspartof anyregulatoryapprovals,andthesizeandscopeofeachpartyspermittedacquisitionsbetweensigningthe mergeragreementandtheclosingofthemerger.Laterthatday,representativesofSkaddencontactedrepresentativesofKirklandtomakeacumulativeproposalonbehalfofExelontoaddressalloftheopenitemsregardingtheprovisionsrelatedtocompeting transactions,thetermsandeffectsofchangesofrecommendationsregardingthemergerbythepartiesrespective boardsandthesizeofeachpartysterminationfee.TherepresentativesproposedthatExelonwouldwithdrawits continuingrequestsforaforcethevoteprovisionandwouldacceptmostofConstellationsotherproposals relatingtotheprovisionsrelatedtoalternativeacquisitionproposalsandchangesofrecommendationsbutin exchangewouldrequirethattheapplicableterminationfeeswouldbe$200millionpayablebyConstellationand

$400millionpayablebyExelon(asopposedtoConstellationspriorrequeststhatthefeepayablebyExelonbe substantiallyhigher).OnApril22,2011,thecompensationcommitteeoftheExelonboardofdirectorsheldameetingbyteleconference.Duringthemeeting,thecompensationcommitteereceivedapresentationfromthecommittees consultant,PayGovernance,regardingcompensationmodelsfortheenergymarketingandretailenergy businessesofConstellationandExelonandothercompaniesintheindustry.Thecommitteealsodiscussedother compensationtopicsrelatedtothepossibletransactionwithConstellation.AlsoonApril22,2011,eachofConstellationandExelonprovideddraftsoftheirrespectivedisclosureschedulestothemergeragreement.Overthecourseofthenextseveraldaysandculminatingintheexecutionof themergeragreementonApril28,2011,thepartiesexchangedseveralreviseddraftsofthedisclosureschedules anddiscussedandmodifiedthesedocuments.DuringthecourseoftheweekendofApril22through24,2011,representativesofeachofthecompaniesandtheirrespectiveadvisorsexchangedemailsabouttheopenissuesinthemergeragreement,reviewedrevised draftsofthemergeragreementandsoughttoidentifyeachpartyspositionsontheopenissues,buttherewereno schedulednegotiations.OnApril25,2011,Messrs.BerardescoandBradfordheldaseriesofteleconferencesandexchangedaseriesofemailsontheremainingsignificantopenissuesrelatedtothemergeragreementandresolvedalmostallofthe openissues.Inparticular,theyfinalizedthelanguageofthemergeragreementrelatedtotherolesand responsibilitiesofMr.CraneandMr.Shattuckfollowingtheclosingofthemerger,andtheyagreedonthe treatmentofincentivecompensationmattersforConstellationofficersandemployeesbetweenthesigningofthe mergeragreementandtheclosingofthemerger(andpotentiallyforaperiodfollowingtheclosing,depending uponthetimingoftheclosing),variousmattersrelatedtopost-closinggovernanceofthecombinedbusinesses, thattheapplicableterminationfeeswouldbe$200millionpayablebyConstellationand$800millionpayableby Exelon,thattheotherelementsofExelonsproposalfromApril22relatedtohowalternativeacquisition proposalsandchangesofboardrecommendationsregardingthemergerwouldbeacceptable,certaindetails regardingwhatregulatoryrequirementsthepartieswouldnotberequiredtoacceptinthecontextofobtainingthe requisiteregulatoryapprovals,andthatExelonwouldbepermitted(withoutConstellationspriorconsent)to makeacquisitionsforaggregateconsiderationofupto$1.6billion(butwithoutusinganyequitytodoso) betweenthesigningofthemergeragreementandcompletionofthemerger.Theyalsoresolvedanumberof othermergeragreementissues.

60 LateronApril25,2011,Messrs.ShattuckandCranespokebytelephonetoconfirmtheiragreementtothetermsthatMessrs.BerardescoandBradfordhaddiscussedearlierintheday,includingthesizeofthetermination feesandtherolesandresponsibilitieseachofMr.CraneandMr.Shattuckfollowingtheclosingofthemerger.

Duringthiscall,theyalsoagreedonaproposedscheduleforfinalconsiderationofthepossibletransactionbythe respectiveboardsofdirectorsofthetwocompaniesand(subjecttoreceiptofrequiredboardapprovals)the signingofthemergeragreementandthepublicannouncementofthetransaction.AlsoonApril25,2011,thecompensationcommitteeoftheExelonboardofdirectorsheldameetingatwhichthecompensationcommitteecontinueditsdiscussionofcompensationtopicsfromtheApril22meeting relatedtothepossibletransactionandimplicationsforcompensationfollowingacombinationofConstellation andExelon.OnApril25,2011,afterthecompensationcommitteemeeting,theExelonboardofdirectorsheldameeting,atwhichExelonseniormanagement,includingMessrs.Crane,Crowley,CornewandVonHoene,and representativesofBarclaysCapital,J.P.Morgan,EvercoreandSkaddenwerepresent.Atthemeeting,Mr.Crane summarizedthestatusofdiscussionswithConstellationandreportedthatExelonandConstellationhadreached anagreement,subjecttoboardapprovalsandthefinalizationofadefinitivemergeragreement,toproceedwitha mergerasanall-stocktransactionwithanexchangeratioof0.930sharesofExeloncommonstockforeachshare ofConstellationstock.SeniormanagementofExelonalsoprovidedanupdatetotheExelonboardregardingthe discussionsrelatedtothepossibletransactionandtheresultsoftheduediligenceinvestigation.Thedirectors discussedarangeofsubjects,includingthematerialtermsoftheproposedtransaction,theprincipalreasonsfor andrisksoftheproposedmergerandanevaluationoftheeconomicsoftheproposedtransactionandthe proposedexchangeratio,post-closinggovernancematters,andissuesrelatedtointegrationofthetwocompanies.

RepresentativesofeachofBarclaysCapital,J.P.Morgan,andEvercorepresentedfinancialanalysesofthe possibletransactionandeachindicatedthatitwouldbepreparedtoseparatelydelivertotheExelonboardof directorsitsopinionastothefairnessoftheexchangeratiotoExelonfromafinancialpointofview.See OpinionsofFinancialAdvisorstoExelonbeginningonpage72.ArepresentativeofSkaddenreviewedthe fiduciarydutiesoftheExelondirectorsinconnectionwiththeconsiderationofthepossibletransactionand presentedadetailedsummaryofthetermsandconditionsofthedraftmergeragreement,focusingonthe conditionstoclosing(includingthereceiptofstockholderapprovals,receiptofregulatoryapprovalsandthe absenceofamaterialadverseeffectoneithercompany),thecovenantprohibitingthesolicitationofalternative transactionsandrightsofeachboardofdirectorstoconsiderunsolicitedtransactionproposalsandtochangeits recommendationregardingthemerger,theterminationfeesandotherprovisionsrelatingtohowapartywouldbe requiredtoaddressanalternativetransactionproposal,ifonewerereceived,representationsandwarrantiesand covenants.Followingthesepresentations,theExelondirectorsconsideredanddiscussedthevarious presentationsmadeatthemeetingandthebenefitsandrisksoftheproposedtransaction.Attheendofthe meeting,theExelonboardofdirectorsmetinexecutivesessionwithMessrs.RoweandCranepresentand expressedsupportfortheproposedmergeronthetermsandsubjecttotheconditionsdiscussedduringthe meeting,subjecttocompletionofnegotiationsofadefinitivemergeragreementthattheboardexpectedtobe presentedatameetingoftheExelonboardofdirectorstobeheldonApril27,2011.OnApril26,2011,Mr.DAlessiohadatelephoneconferencewithMr.LawlesstodiscusstheallocationofresponsibilitiesofMr.Shattuck,asExecutiveChairmanofExelonfollowingtheproposedmerger,and Mr.Crane,asCEOofExelonfollowingtheproposedmerger.OnApril26,2011,theConstellationboardofdirectorsheldameeting,atwhichrepresentativesofMorganStanley,GoldmanSachsandKirklandwerepresent.Atthemeeting,seniormanagementofConstellation providedanupdatetotheConstellationboardofdirectorsregardingthediscussionsrelatedtothepossible transaction.Theyreviewedwiththedirectorsarangeofsubjects,includinganoverviewofthepossible transactionanditskeyterms,theprincipalreasonsforandrisksoftheproposedmergerandafinancialreviewof Constellationsbusinessesandtheproposedmerger.Inaddition,theConstellationdirectorsdiscussed Constellationsstand-alonestrategyandopportunities,alternativestrategiesandtheeffectofthetransactionon 61 communities,customersandemployeesinwhichConstellationanditssubsidiariesoperate.RepresentativesofeachofMorganStanleyandGoldmanSachspresentedtheirrespectivefinancialanalysesofthepossible transaction.SeeOpinionsofFinancialAdvisorstoConstellationbeginningonpage110.Representativesof KirklandreviewedfortheConstellationboardofdirectorsthefiduciarydutiesofthedirectorsinconnectionwith theconsiderationofthepossibletransactionandmadeapresentationofthetermsandconditionsofthedraft mergeragreement,focusingonthestructureoftheproposedtransaction,post-closinggovernanceandrelated matters,theconditionstoclosing(includingthereceiptofstockholderapproval,receiptofregulatoryapprovals andtheabsenceofamaterialadverseeffectoneithercompany),thecovenantprohibitingthesolicitationof alternativetransactionsandrightsofeachboardofdirectorstoconsiderunsolicitedtransactionproposalsandto changeitsrecommendationregardingthemerger,theterminationfeesandotherprovisionsrelatingtohowa partywouldberequiredtoaddressanalternativetransactionproposal,ifonewerereceived.Thereafter,the membersoftheConstellationboardofdirectors,withoutadvisorsormanagementpresent,consideredand discussedthevariouspresentationsmadeatthemeetingandthebenefitsandrisksoftheproposedtransaction.At theendofthemeeting,theConstellationboardofdirectorsexpresseditspreliminarysupportforthemergerand thatitexpectedtoapprovetheexecutionofthemergeragreementatthemeetingoftheConstellationboardof directorstobeheldonthefollowingdayoncethedefinitivemergeragreementwasfinalized,andsubjecttothe deliveryoftherespectivefairnessopinionsfromthefinancialadvisors.ThroughouttheeveningofApril26,2011andduringthedayofApril27,2011,representativesofConstellation,Exelon,KirklandandSkaddenfinalizedthemergeragreementandtheotherdefinitivetransaction agreements.Inparticular,thepartiesagreedonthecontentsofeachpartysdisclosureschedulesandthesizeand scopeofacquisitionsthateachpartywouldbepermittedtomakebetweensigningandclosing(withoutthe consentoftheotherparty).Itwasagreedduringthistimethattheaggregatecaponpermissibleacquisitionsby Exelonwouldbe$2.0billion,ratherthanthe$1.6billionthatMessrs.BerardescoandBradfordhaddiscussed severaldaysearlier,andthatanagreedlistofspecifiedacquisitionswouldbeexcludedfromthe$400million aggregateacquisitioncapforConstellation.IntheafternoonofApril27,2011,theExelonboardofdirectorsheldameetingbyteleconference,atwhichExelonseniormanagementandrepresentativesofBarclaysCapital,J.P.Morgan,Evercore,andSkaddenwere present.Atthemeeting,seniormanagementofExelonprovidedanupdatetotheExelonboardofdirectors regardingthefinaldiscussionsofthemergeragreementandtheresolutionofopenissues.Representativesof eachofBarclaysCapital,J.P.Morgan,andEvercorerenderedtheirrespectiveoralopinions(andsubsequently confirmedinwritingasofApril27,2011,inthecaseofJ.P.MorganandEvercore,andApril28,2011,inthe caseofBarclaysCapital)thatasofthedateoftheopinionandsubjecttoandbaseduponthefactors,procedures, assumptions,qualificationsandlimitationsdiscussedineachopinion,theexchangeratioof0.930sharesof ExeloncommonstockforeachshareofConstellationcommonstockwasfair,fromafinancialpointofview,to Exelon.SeeOpinionsofFinancialAdvisorstoExelonbeginningonpage72formoreinformationonthese opinions.ArepresentativeofSkaddendescribedcertainchangestothemergeragreementpresentedtotheExelon boardofdirectorsatthemeetingonApril25,2011.Thereafter,theExelonboardofdirectorsunanimously determinedthatthetermsofthemergerandtheothertransactionscontemplatedbythemergeragreementare advisable,fairtoandinthebestinterestsofExelon,approvedthemergeragreement,themergerandtheother transactionscontemplatedbythemergeragreement,recommendedthatExelonstockholdersvoteFORthe proposaltoapprovetheissuanceofsharesofExeloncommonstockpursuanttothemergeragreementand authorizedExelonsmanagementtoexecutethemergeragreementonthetermsdescribedtotheExelonboardof directors.SeeRecommendationoftheBoardofDirectorsofExelon;ExelonsReasonsfortheMerger beginningonpage63formoreinformationonthefactorsconsideredbytheExelonboardofdirectors.InthelateafternoonofApril27,2011,theConstellationboardofdirectorsheldameetingbyteleconference,atwhichrepresentativesofMorganStanley,GoldmanSachsandKirklandwerepresent.Atthe meeting,seniormanagementofConstellationprovidedanupdatetotheConstellationboardofdirectors regardingthefinaldiscussionsofthemergeragreementandinformedtheConstellationboardofdirectorsthatthe Exelonboardofdirectorshadmetandunanimouslyapprovedtheexecutionofthemergeragreement.

62 RepresentativesofeachofMorganStanleyandGoldmanSachsrenderedtheirrespectiveoralopinions(andsubsequentlyconfirmedinwritingasofApril27,2011,inthecaseofMorganStanley,andApril28,2011,inthe caseofGoldmanSachs)that,asofthedateoftheopinionandsubjecttoandbasedupontheassumptions, considerations,qualificationsandlimitationsdiscussedineachopinion,theexchangeratiopursuanttothe mergeragreementwasfair,fromafinancialpointofview,totheholdersofConstellationcommonstock.See OpinionsofFinancialAdvisorstoConstellationbeginningonpage110formoreinformationonthese opinions.RepresentativesofKirklandconfirmedthattherehadbeennomaterialchangestothematerialtermsto themergeragreementpresentedtotheConstellationboardofdirectorsatthelastmeeting.Thereafter,the Constellationboardofdirectorsunanimouslydeterminedthatthetermsofthemergerandtheothertransactions contemplatedbythemergeragreementareadvisable,fairtoandinthebestinterestsofConstellationand Constellationstockholders,approvedthemergeragreement,themergerandtheothertransactionscontemplated bythemergeragreement,recommendedthatConstellationstockholdersvoteFORtheproposaltoapprovethe mergerandthetransactionscontemplatedbythemergeragreementandauthorizedConstellationsmanagement toexecutethemergeragreementonthetermsdescribedtotheConstellationboardofdirectors.See RecommendationoftheBoardofDirectorsofConstellation;ConstellationsReasonsfortheMerger beginningonpage102formoreinformationonthefactorsconsideredbytheConstellationboardofdirectors.Followingtheseboardmeetings,ontheeveningofApril27,2011,representativesofConstellationandExelonbegantocontactvariousgovernmentofficials(includingtheMayoroftheCityofBaltimore,the ChairmanofthePublicServiceCommissionofMarylandandvariousmembersofthelegislativeleadershipof Maryland)toalertthemtotheupcomingannouncementofthemerger.JustaftermidnightonApril28,2011,ConstellationandExelonexecutedthemergeragreement.

EarlyinthemorningofApril28,2011,ConstellationandExelonissuedajointpressreleaseannouncingtheexecutionofthemergeragreement,whichincludeddetailsonthepackageofproposalsthecompanieswere preparedtomaketoregulatoryauthoritiesinconnectionwiththemerger,andthereafterheldaconferencecall withinvestorstodiscussthemerger.RecommendationoftheBoardofDirectorsofExelon;ExelonsReasonsfortheMergerTheExelonboardofdirectorsunanimouslydeterminedthatthetermsofthemergerandthetransactionscontemplatedbythemergeragreement,includingtheshareissuance,areadvisable,fairtoandinthebest interestsofExelonanditsshareholdersandapprovedthemerger,themergeragreementandtheshareissuance, andunanimouslyrecommendsthatExelonsshareholdersvote FORtheapprovaloftheshareissuanceproposaland FORtheapprovaloftheExelonadjournmentproposal.ForadiscussionofinterestsofExelonsdirectorsandexecutiveofficersinthemergerthatmaybedifferentfrom,orinadditionto,theinterestsof Exelonsshareholdersgenerally,seeAdditionalInterestsofExelonExecutiveOfficersandDirectorsinthe Merger,beginningonpage127.Inevaluatingthemergeragreementandthetransactionscontemplatedthereby,theExelonboardofdirectorsconsultedwithExelonsmanagementandlegalandfinancialadvisors,andconsideredavarietyoffactorswith respecttothemerger,includingthosemattersdiscussedinBackgroundoftheMerger,beginningonpage47.

Inviewofthewidevarietyoffactorsconsideredinconnectionwiththemerger,theExelonboardofdirectorsdid notconsideritpractical,nordiditattempt,toquantifyorotherwiseassignrelativeweighttodifferentfactorsit consideredinreachingitsdecision.Inaddition,individualmembersoftheExelonboardofdirectorsmayhave givendifferentweighttodifferentfactors.TheExelonboardofdirectorsconsideredthisinformationasawhole, andoverallconsideredtheinformationandthefactorstobefavorableto,andinsupportof,itsdeterminationand

recommendations.

63 StrategicConsiderationsTheExelonboardofdirectorsconsideredanumberoffactorspertainingtothestrategicrationaleforthemerger,includingthefollowing:

• ComplementaryBusinessModelsandServiceTerritories.ExelonslonggenerationpositioncomplementsConstellationsstrongretailposition.Exelonhasasignificantlonggenerationpositionin thewholesalegenerationmarketsoftheMidwestIndependentSystemOperator,theElectricReliability CouncilofTexasandPJM.Constellationhasasignificantretailpresenceineachofthesemarkets,and thereforethecombinedcompanieswillbebetterabletomatchgenerationtocustomerload.The complementarybusinessmodelsandserviceterritoriesprovidestheopportunityforefficiencies throughoutthecombinedcompanyandcreatesaplatformforfuturegrowth.

• IncreasedScaleandScope.AtthetimethemergerwasapprovedbytheExelonboard,themergerwasexpectedtocreateacombinedcompanywithapproximately34.4gigawattsofdomesticgenerating capacityfromadiversifiedmixofcoal,nuclear,naturalgas,oilandrenewableresourcesandthe largestcompetitiveenergyandserviceproductssupplierbyloadandcustomersacross38states,the DistrictofColumbiaandtheCanadianprovincesofAlbertaandOntario.Asaresultofsubsequent events,themergerwillcreateacombinedcompanywithapproximately35.7gigawattsofdomestic generatingcapacityandacompetitiveenergyandserviceproductsbusinessin44states,theDistrictof ColumbiaandtheCanadianprovincesofAlberta,BritishColumbiaandOntario.Thecombined companywillhavearegulatedcustomerbaseofapproximately6.6millionelectriccustomersinthree regulatedserviceterritories(Illinois,MarylandandPennsylvania),andapproximately$34billionin equitymarketcapitalizationonaproformabasis.Theincreasedscaleanddiversityofthecombined companysoperations,comparedtothoseofExelononastandalonebasis,areexpectedtoprovide (1)increasedfinancialstability,(2)greaterabilitytoundertakethesignificantfleetandgrid modernizationandnewgenerationconstructionprogramsrequiredtorespondtoincreasing environmentalregulation,plantretirementsanddemandgrowth,(3)greaterabilitytospreadbusiness strategyexecutionriskacrossalargerenterprise,and(4)increasedscopeandflexibilityacrossthe valuechain.

• ImprovedBusinessRiskProfile.ThecombinedcompanyisexpectedtohaveanimprovedbusinessriskprofileduetotheadditionofConstellationscompetitivesupplybusiness.Inaddition,Exelons generationportfoliowillbefurtherdiversified,movingfromapproximately67%nuclearona standalonebasistoapproximately55%nuclearatthecombinedcompany.Thecombinedcompanyis alsoexpectedtomaintainastrongregulatedearningsprofilewithlargeurbanutilities.Further, approximately46%ofthecombinedcompanysoperatingrevenuesonaproformabasisfortheyear endedDecember31,2010wouldhavebeenderivedfromitsregulatedbusinessoperations,compared toapproximately63%onastandalonebasisforExelonfortheyearendedDecember31,2010.

• ImpactonCustomers.ThemergerisexpectedtohaveafavorableimpactonExelonscustomersthroughoperatingefficienciesovertime.Thecombinedcompanyscustomersshouldalsobenefitfrom eachcompanyscommitmenttocustomerserviceandthedeliveryofclean,affordableandreliable energy.Inaddition,Exelonexpectsthatindustrialandcommercialcustomerswillbenefitfromthe mergerasaresultofthecombinedcompanysenhancedabilitytoofferlonger-termcontracts,more competitivepricesandexpandedretailofferingsasthecostefficienciesofthecombinedcompanys scalearefullyrealized.Exelonsapplicationofbestpracticesacrossthethreeutilitieswillenableeach utilitytoimproveperformance.Exelon,havinggreatercapital,willbenefitBGEthroughbetteraccess tocapitalmarkets.

• RegulatoryDiversity.ThemergerwilldiversifyExelonsoverallregulatoryriskbyaddingMaryland-regulatedBGEtoExelonsregulatedutilitiesinIllinoisandPennsylvania.

• SharedVision.ExelonandConstellationshareacommonstrategicvisionfortheelectricindustryandthefutureofthecombinedcompanyasamulti-regionalregulatedelectricandgasutilityand 64 competitiveenergybusinesswithmerchantgenerationandotherrelatednon-utilityactivitiesandanemphasisoncost-effectivewaystoreducethecarbonfootprintofthenationselectricgeneration supply.TheExelonboardofdirectorsbelievesthissharedvision,includingbothcompaniessupportof competitivepowermarkets,willenablethecombinedcompanytoeffectivelyimplementitsbusiness planfollowingcompletionofthemerger.

• CombinedExpertise.Themergerwillcombinecomplementaryareasofexpertise,particularlyamongseniormanagementofeachcompany.Thecombinedcompanywillbeabletodrawuponthe intellectualcapital,technicalexpertiseandexperienceofadeeperandmorediverseworkforce.

• AlternativestotheMerger.Asastrategicsteptocreationofshareholdervalue,themergercomparedfavorablytoalternativestothemerger,includingcontinuingtooperateasastand-aloneentity.FinancialConsiderationsTheExelonboardofdirectorsconsideredanumberoffactorspertainingtothefinancialrationaleforthemerger,includingthefollowing:

• CostSavingsandEfficiencies.Thecombinedcompanywillbeinapositiontoexpanditscompetitiveenergybusinesssupportedbyalowcostbase,operationalefficienciesandinvestmentininnovation, includingexpansionofrenewableandgreenproductandserviceofferings.Managementbelievesthere areopportunitiestooptimizethecombinedcompanysinvestmentandliquidityneedsinacapital intensiveindustry,andtorealizeoperationalefficiencieswithanaveragerun-rateofannualsynergies inoperationandmaintenanceexpenseprojectedatapproximately$260millionbeginningin2013 beforecoststoachieve.Subsequenttoannouncementofthemerger,run-ratesynergiesinoperationand maintenanceexpensewereprojectedat$310millionbeginningin2015beforecoststoachieve, althoughnoassurancecanbegiventhatanyparticularlevelofcostefficiencieswillbeachieved.

• MergerConsideration.TheExelonboardconsideredhistoricalstockpricesofExelonandConstellationandtheexchangeratioforConstellationsstockholders,whichrepresenteda16.3%

premiumovertheclosingpriceofConstellationscommonstockonApril26,2011,thelasttradingday beforethedateonwhichtheExelonboardauthorizedExelonsentryintothemergeragreement.The Exelonboardalsotookintoaccountthat,immediatelyuponcompletionofthemerger,Exelon shareholderswillownapproximately78%ofthecommonstockofExelon.

• Earnings,CashFlow,andDividendImpact.Themergerisexpectedtobeaccretivetoearningspershareinthefirstfull-yearpost-mergerandtofreecashflowinthefirstyearpost-merger,ineachcase afterfactoringinsynergies,coststoachievesynergiesandotherone-timecostsrelatedtothemerger.

Exelonsannualdividendwillbesupportedfollowingcompletionofthemergerbytheexpectationof consistentearningsasaresultofthecombinedcompanysimprovedbusinessriskprofile.

• ImpactonCreditProfileandLiquidity.ThemergerisnotexpectedtodetractfromExelonscommitmenttoitsstronginvestmentgradecreditratingsorresultinincrementaldebttothecombined company.Inaddition,themergerisexpectedtocreatevalueandenhanceassetvaluetoExelon shareholdersundervariouscommoditypricescenariosconsideredbytheExelonboard.Thecombined companysstrongbalancesheetisexpectedtosupportExelonscontinuedbroadandreliableaccessto thecapitalmarketsandothersourcesofliquidityfollowingcompletionofthemerger.OtherConsiderationsTheExelonboardofdirectorsconsideredanumberofotherfactorspertainingtotherationaleforthemerger,includingthefollowing:

• RecommendationofManagement.TherecommendationofExelonmanagementinsupportofthe merger.65

• DueDiligence.ThescopeoftheduediligenceinvestigationconductedbyExelonsmanagementandoutsideadvisorsandevaluatedtheresultsofthatinvestigation.

• OpinionsofFinancialAdvisorstoExelon.TheopinionsofeachofBarclaysCapital,J.P.MorganandEvercorePartners,datedApril27,2011andsubjecttotheassumptionsandqualificationssetforth therein,astothefairness,fromafinancialpointofview,toExelonofthe0.930exchangeratio providedforinthemergeragreement,asmorefullydescribedinthisdocumentundertheheadings OpinionsofFinancialAdvisorstoExelonOpinionofBarclaysCapital,Opinionof J.P.MorganandOpinionofEvercoreGroup,LLC,beginningonpage72,page83andpage91, respectively;thefactthatthefinancialadvisorsopinionsspeakonlyasofApril27,2011,andthe receiptofupdatedopinionsisnotaconditiontoExelonsobligationtocompletethemerger;and previousbusinessrelationshipsbetweeneachofExelonsfinancialadvisorsandExelonand Constellationandtheextenttowhichthefinancialadvisorscompensationwascontingentuponthe completionofthemerger.

• TermsoftheMergerAgreement.Thetermsofthemergeragreement,includingtherepresentations,obligationsandrightsofthepartiesunderthemergeragreement,theconditionstoeachpartys obligationtocompletethemerger,requisiteregulatoryapprovalsandpossibleconditionstosuch approvals,thecircumstancesinwhicheachpartyispermittedtoterminatethemergeragreementand therelatedterminationfeespayablebyeachpartyintheeventofterminationofthemergeragreement underspecifiedcircumstances.SeeTheMergerAgreementbeginningonpage146foradetailed discussionofthetermsandconditionsofthemergeragreement.

• GenerationDivestituresandOtherMarketPowerMitigation.TheprovisionsofthemergeragreementthatrequireExelontousereasonablebesteffortstotakepromptlyallactionsnecessarytocompletethe merger,whichareexpectedtoincludecertaingenerationdivestituresandothermarketpower mitigation.Forfurtherinformation,seeRegulatoryMattersFederalPowerAct,beginningon page140.*LikelihoodofCompletionoftheMerger.Thelikelihoodthatthemergerwillbecompletedonatimelybasis,includingthelikelihoodthatthetransactionwillreceiveapplicableapprovalsfromeach companysshareholdersandallnecessaryregulatoryapprovalswithoutunacceptableconditions.

• ImpactoftheMergeronCommunities.TheexpectedimpactofthemergeronthecommunitiesservedbyExelonandConstellation.

• CorporateGovernanceConsiderations.Uponcompletionofthemerger,ExelonwilladdtoitsboardofdirectorsMayoA.ShattuckIIIandthreeindependentdirectorsofConstellationdesignatedbythe boardofdirectorsofConstellation.Themergeragreementprovidesfora16-memberboardofdirectors bytheendof2012,twelvemembersofwhichwillbedesignatedfromtheboardofdirectorsofExelon priortothemergerandfourfromtheboardofdirectorsofConstellationwhowillbeaddedtotheboard ofdirectorsofExelonattheclosingofthemerger.Uponcompletionofthemerger,eachofthethree independentboardmembersdesignatedbyConstellationwillbenamedtooneormoreofthefollowing committeesoftheboardofdirectorsofExelon:compensationcommittee,corporategovernance committee,auditcommitteeandriskoversightcommittee.Inaddition,oneofthethreeindependent boardmembersdesignatedbyConstellationwillbenamedasthechairofoneofsuchcommittees.

Uponcompletionofthemerger,Mr.ShattuckwillserveasexecutivechairmanoftheboardofExelon andChristopherM.Crane,currentlyExelonspresidentandchiefoperatingofficer,willserveaschief executiveofficerofExelon.Theallocationofresponsibilitiesoftheexecutivechairmanandthechief executiveofficerofExelonfollowingthemergerwereoutlinedinthemergeragreement.

66 PotentialRisksoftheMergerTheExelonboardofdirectorsalsoconsideredpotentialrisksofthemerger,includingthefollowing:

• TermsoftheMergerAgreement.TheexchangeratiowillnotadjustdownwardstocompensateforanypotentialdeclinesinthepriceofConstellationcommonstockpriortothecompletionofthemerger, andthetermsofthemergeragreementdonotincludeterminationrightstriggeredexpresslybya decreaseinvalueofConstellationduetoadeclineinthemarketpriceofConstellationscommon stock.Inaddition,theexchangeratiowillnotadjustdownwardstocompensateforanypotential increasesinthepriceofExeloncommonstockpriortothecompletionofthemerger.TheExelonboard determinedthatthismethodfordeterminingthenumberofExelonsharestobeissuedwasappropriate andtherisksacceptableinviewoftherelativeintrinsicvaluesandfinancialperformanceofExelonand ConstellationandthepercentageofthecombinedcompanytobeownedbyholdersofExeloncommon stock.TheExelonboardalsonotedtheinclusioninthemergeragreementofcertainstructural protectionssuchastheabilityofExelontoterminatethemergeragreementintheeventofamaterial adversechangeinConstellationsbusiness.

• ConstellationBusinessRisks.CertainrisksareinherentinConstellationsbusinessandoperations,includingrisksrelatingtofutureratesandreturnsassociatedwithConstellationsbusinessoperations andrisksassociatedwithConstellationscontingentliabilities.Takingintoaccountinputfrom managementandoutsideadvisorsregardingtheduediligenceprocess,theExelonboardbelievedthat theserisksweremanageableaspartoftheongoingbusinessofthecombinedcompany.Formore informationaboutConstellation,seethesectionentitled,WhereYouCanFindMoreInformation, beginningonpage197.

• RegulatoryApprovals.Variousregulatoryapprovalsarerequiredtocompletethemergerwhichpresentsariskthattheapplicablegovernmentalauthoritiesandotherthirdpartiesmayseektoimpose unfavorabletermsorconditionsontherequiredapprovals.TheExelonboardalsoevaluatedthe potentiallengthoftheregulatoryapprovalprocessandtheriskofarequiredgovernmentapproval imposingaconditionthatconstitutesaburdensomeaction,whichwillalloweitherExelonor Constellationtodecidenottoclosethetransaction.Inthisregard,theExelonboardconsideredthe levelofmaterialityrequiredforaconditioninaregulatoryapprovaltoconstituteaburdensomeaction.

Seethesectionentitled,TheMergerAgreementConditionstotheCompletionoftheMerger beginningonpage150foradescriptionofthesematters.

• FailuretoClose.TherearerisksandcontingenciesrelatingtotheannouncementandpendencyofthemergerandrisksandcoststoExeloniftheclosingofthemergerisnottimely,orifthemergerdoesnot closeatall,includingthepotentialimpactonExelonsrelationshipswithemployeesandthirdparties.

• RestrictionsonInterimOperations.TheprovisionsofthemergeragreementplacecertainrestrictionsonExelonsoperationsuntilcompletionofthemerger.Forfurtherinformation,seeTheMerger AgreementCovenantsofExelonandConstellation,beginningonpage159.

• DiversionofFocus.Thereisariskthatmanagementfocus,employeeattentionandresourcesforotherstrategicopportunitiescouldbedivertedandemployeeattentiontooperationalmatterscouldbe distractedwhileworkingtocompletethemerger.

• TerminationFee.Themergeragreementincludesarequirementforpaymentofaterminationfeeof$800milliontoConstellationundercertaincircumstances.Forfurtherinformation,seeTheMerger AgreementTerminationFees,beginningonpage152.

• TransactionCosts.Substantialcostswillbeincurredinconnectionwiththemerger,includingthecostsofintegratingthebusinessesofExelonandConstellationandthetransactionexpensesarisingfromthe

merger.*Integration.TherearechallengesinherentinthecombinationoftwobusinessenterprisesofthesizeandscopeofExelonandConstellation,includingthepossibilitytheanticipatedcostsavingsand 67 synergiesandotherbenefitssoughttobeobtainedfromthemergermightnotbeachievedinthetimeframecontemplatedoratallandthepossibilitythatcostsavingsandsynergiesmaynotbeabletobe obtainedacrossthecombinednuclearbusinessgivenConstellationspartialownershipofitsnuclear

facilities.

• Personnel.Thepotentialforbusinessuncertaintypendingcompletionofthemerger,includinguncertaintyregardingthelevelandimpactofreductionsinheadcountasameanstoachieve transaction-relatedsynergies,couldhaveanadverseimpactontheabilitytoattract,retainandmotivate keypersonneluntilthemergeriscompleted.

• InterestsofDirectorsandOfficers.TheintereststhatcertainexecutiveofficersanddirectorsofExelonmayhavewithrespecttothemergerinadditiontotheirinterestsasshareholdersofExelon.See AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMergerbeginningon page127forfurtherinformation.TheExelonboardalsotookintoaccounttheintereststhatcertain executiveofficersanddirectorsofConstellationmayhavewithrespecttothemergerinadditionto theirinterestsasstockholdersofConstellation,includingacceleratedpaymentsunderConstellations equityplans.

• CorporateGovernance.TheExelonboardconsideredthecompositionoftheExelonboardandtheprescribedrolesoftheexecutivechairmanandthechiefexecutiveofficerfollowingthemergerandthe potentialfordisagreementamongdirectorsandexecutiveofficersselectedfromtwodifferent organizations.Forfurtherinformation,seeTheMergerAgreementPost-MergerGovernanceof Exelon,beginningonpage147.

• EmploymentMatters.TherearedifferencesbetweenExelonsandConstellationscompensationpracticesandphilosophies,whichcouldpresentissuesassociatedwithintegrationofConstellation compensationandbenefitplanswiththoseofExelon.TheExelonboardalsonotedtheriskoflossof keyConstellationemployeesandthestepsrequiredtoretainthosepeoplethroughthecompletionofthe mergerandthereafter.

• OtherRisksConsidered.TheExelonboardalsoconsideredthetypesandnatureoftherisksdescribedunderthesectionentitled,RiskFactorsbeginningonpage24.TheExelonboardofdirectorsunderstoodthattherecanbenoassuranceoffutureresults,includingresultsconsideredorexpectedasdescribedinthefactorslistedabove.Itshouldbenotedthatthisdiscussionofthe Exelonboardsreasoningandallotherinformationpresentedinthissectionareforward-lookinginnatureand, therefore,shouldbereadinlightofthefactorsdiscussedundertheheadingCautionaryStatementRegarding Forward-LookingStatements,beginningonpage23.UnauditedFinancialForecastsAlthoughConstellationandExelonperiodicallymayissuelimitedguidancetoinvestorsconcerningtheirrespectiveexpectedfinancialperformance,ConstellationandExelondonotasamatterofcoursepublicly disclosedetailedfinancialprojections.However,inconnectionwiththenegotiationofthemerger,Constellation andExelonprovidedtoeachotherandtheirrespectivefinancialadvisorscertainnon-publicfinancialforecasts thattherespectivemanagementsofExelonandConstellationpreparedfortheirrespectiveboardsinconnection withtheirannualstrategicplanningandbudgetingprocessandtheirconsiderationofthemerger,whichExelon andConstellationareincludinginthisjointproxystatement/prospectus.SeeTheMergerOpinionsof FinancialAdvisorstoExelonbeginningonpage72andOpinionsofFinancialAdvisorstoConstellation beginningonpage110.Thefinancialforecastswerenotpreparedwithaviewtowardpublicdisclosureor compliancewithpublishedguidelinesoftheSECortheAmericanInstituteofCertifiedPublicAccountantsfor preparationandpresentationofprospectivefinancialinformationorGAAPbut,intheviewofExelonsand Constellationsrespectivemanagements,werepreparedonareasonablebasisandreflectedthebestthen-currentlyavailableestimatesandjudgmentsofExelonsandConstellationsrespectivemanagementsrelevantto 68 strategicplanningandbudgeting.TheinclusionofthefinancialprojectionsinthisdocumentshouldnotberegardedasanindicationthatanyofExelon,Constellationoranyotherrecipientofthisinformationconsidered, ornowconsiders,thisinformationtobenecessarilypredictiveofactualfutureresults.Theinclusionofthe financialforecastsinthisjointproxystatement/prospectusdoesnotconstituteanadmissionorrepresentationby ExelonorConstellationthatsuchinformationismaterial.ThefinancialforecastsofExelonandConstellationincludedinthisdocumentwerepreparedby,andaretheresponsibilityof,ExelonmanagementandConstellationmanagement,respectively,andareunaudited.Neither ExelonsnorConstellationsindependentregisteredpublicaccountingfirm,noranyotherindependentauditor, hascompiled,examinedorperformedanyprocedureswithrespecttotheprospectivefinancialinformation containedinthefinancialforecasts,norhavetheyexpressedanyopinionorgivenanyformofassuranceonthe financialforecastsortheirachievability.Theyassumenoresponsibilityfor,anddisclaimanyassociationwith, theprospectivefinancialinformation.ThereportsofExelonsandConstellationsindependentregisteredpublic accountingfirmsincorporatedbyreferenceinthisdocumentrelatetoExelonsandConstellationshistorical financialinformation.Thereportsdonotextendtotheprospectivefinancialinformationandshouldnotberead todoso.Furthermore,thefinancialforecasts:*werebaseduponnumerousassumptions,asfurtherdescribedbelow,manyofwhicharebeyondthecontrolofExelonandConstellationandmaynotprovetobeaccurate;*wereoriginallypreparedonJanuary20,2011,inthecaseofExelon,andJanuary27,2011inthecaseofConstellation;*donotnecessarilyreflectcurrentestimatesorassumptionsmanagementofExelonorConstellationmayhaveaboutprospectsforExelonsandConstellationsbusinesses,changesingeneralbusinessor economicconditions,oranyothertransactionoreventthathasoccurredorthatmayoccurandthatwas notanticipatedatthetimetheforecastswereprepared;*arenotnecessarilyindicativeofcurrentvaluesorfutureperformance,whichmaybesignificantlymorefavorableorlessfavorablethanassetforthbelow;and*arenot,andshouldnotberegardedas,arepresentationthatthefinancialforecastswillbeachieved.ThesefinancialforecastswerepreparedbytherespectivemanagementsofExelonandConstellationbasedoninformationtheyhadatthetimeofpreparationandarenotaguaranteeoffutureperformance.Thesefinancial forecastswere,ingeneral,preparedsolelyforusebyExelonsandConstellationsrespectiveboardsand financialadvisorsandaresubjectiveinmanyrespectsandthussubjecttointerpretation.NeitherExelonnor Constellationcanassureyouthattheirrespectivefinancialforecastswillberealizedorthattheirrespectivefuture financialresultswillnotmateriallyvaryfromsuchfinancialforecasts.Thefinancialforecastscovermultiple yearsandsuchinformationbyitsnaturebecomeslesspredictivewitheachsucceedingyear.Thefinancialforecastsdonotnecessarilytakeintoaccountanycircumstancesoreventsoccurringafterthedatetheywereprepared.ExelonandConstellationdonotintendtoupdateorrevisethefinancialforecasts.The financialforecastsareforward-lookingstatements.Foradditionalinformationonfactorswhichmaycause ExelonsandConstellationsfuturefinancialresultstomateriallyvaryfromthefinancialforecasts,see CautionaryStatementRegardingForward-LookingStatementsandRiskFactors,beginningonpages23 and24,respectively.UnauditedFinancialForecastsofExelonInthecourseoftheirmutualduediligence,ExelonprovidedtoitsfinancialadvisorsandConstellationcertainnon-publicfinancialforecastsfortheyearsendedDecember31,2011,2012,2013,2014and2015,whichwerefer toastheExelonprojections.ExelonmanagementreviewedtheExelonprojectionswiththeExelonboardof directorstoassistinitsevaluationofthestrategicrationaleforthemerger.UponreceiptoftheExelonprojections 69 fromExelon,ConstellationprovideditsfinancialadvisorswiththeExelonprojectionsaswellasarevisedversionofthefinancialforecastsincludedintheExelonprojectionsreflectingadjustmentsmadebyseniormanagementof ConstellationtotheoriginalExelonprojectionsasdescribedbelow,whichwerefertoastheadjustedExelon projections.InformationregardingtheExelonprojectionsandtheadjustedExelonprojectionsisprovidedbelow.Exelonhasnotupdatedorrevised,anddoesnotintendtoupdateorotherwiserevise,theExelonprojectionstoreflectchangesincircumstancessincethepreparationoftheExelonprojections,includingchangesingeneral economicorindustryconditions,ortoreflecttheoccurrenceofunanticipatedeventsorchangesinassumptions underlyingtheExelonprojections,evenintheeventthatanyoralloftheunderlyingassumptionsareshownto beinerror.ThekeyassumptionsunderlyingtheExelonprojectionsinclude:*approximately1%averageperannumincreasesinretailloadgrowthfrom2011through2015andExelonmanagementsassessmentoftheoutcomeofratecasespendingorexpectedinthevarious regulatoryjurisdictionsinwhichitoperates;*approximately5-10%perannumgrowthinenergypricesfrom2011through2015;and

• continuedcapitalexpenditures,includingapproximately$2.8billiontowardstheongoingmodernizationoftheExelonnuclearfleetfrom2011through2015.ExelonProjectionsThefollowingtablepresentstheExelonprojections:($inmillions,exceptpersharedata)YearEndingDecember31, 2011E 2012E 2013E 2014E 2015EEBITDA(1)$5,635$5,297$5,450$6,029$6,306CapitalExpenditures(2)$4,060$4,096$3,918$4,068$4,210 OperatingEarningsperShare($/share)(3)$4.00$3.17$3.23$3.74$3.90 DividendsperShare($/share)$2.10$2.10$2.10$2.10$2.10(1)EBITDAisdefinedasearningsbeforeinterest,tax,depreciationandamortization,isanon-GAAPfinancialmeasureandshouldnotbeconsideredasanalternativetooperatingincomeornetincomeasameasureof operatingperformanceorcashflowsorasameasureofliquidity.EBITDAdoesnotincludetheimpactof anypotentialsynergiesorcostsrelatedtothemerger.EBITDAincludesnuclearfuelamortization.(2)Capitalexpendituresincludesinvestmentsinnuclearfuel.

(3)OperatingEarningsperShareisanon-GAAPfinancialmeasurethatexcludesone-time,non-operatingitems,including:mark-to-marketimpactofeconomichedgingactivities($(0.47)in2011E);andcosts associatedwithretirementoffossilgeneratingunits($(0.03)in2011Eand$(0.01)in2012E).ConstellationsAdjustmentstotheExelonProjectionsConstellationmanagementpreparedanalternativeversionoftheExelonprojections,whichwerefertoastheadjustedExelonprojections.TheadjustedExelonprojectionsreflect,amongotherthings,Constellations revisedviewoftherelevantcommoditycurvesovertheforecasthorizonandtheirrespectiveimpactonExelons projectedearnings.IncalculatingtheimpactoftherevisedcommoditycurvesonExelonsprojectedearnings, ConstellationmanagementalsotookintoaccountthevarioussensitivitiesofExelonsearningstocommodity priceassumptionsprovidedbyExelonmanagementtoConstellationduringtheduediligenceprocess.

ConstellationmanagementalsomadecertainadjustmentstoExelonsprojectedcapitalexpenditureplansbased onConstellationsownassumptions.

70 ThefollowingtablepresentstheadjustedExelonprojections:($inmillions,exceptpersharedata)YearEndingDecember31, 2011E 2012E 2013E 2014E 2015EEBITDA(1)$5,635$5,112$5,272$5,396$5,485CapitalExpenditures(1)$3,958$3,780$3,493$3,413$3,521 OperatingEarningsperShare($/share)(1)$4.00$2.99$3.07$3.14$3.13 DividendsperShare($/share)$2.10$2.10$2.10$2.10$2.10(1)FiguresbasedonprojectionsprovidedbyExelon,adjustedperdescriptionabove.UnauditedFinancialForecastsofConstellationInthecourseoftheirmutualduediligence,ConstellationprovidedtoitsfinancialadvisorsandExeloncertainnon-publicfinancialforecastsfortheyearsendedDecember31,2011,2012,2013,2014and2015,which werefertoastheConstellationprojections.ConstellationmanagementreviewedtheConstellationprojections withtheConstellationboardofdirectorstoassistinitsevaluationofthestrategicrationaleforthemerger.Upon receiptoftheConstellationprojectionsfromConstellation,Exelonprovideditsfinancialadvisorswiththe ConstellationprojectionsaswellasarevisedversionofthefinancialforecastsincludedintheConstellation projectionsreflectingadjustmentsmadebyseniormanagementofExelontotheoriginalConstellation projectionsasdescribedbelow,whichwerefertoastheadjustedConstellationprojections.Information regardingtheConstellationprojectionsandtheadjustedConstellationprojectionsisprovidedbelow.ThekeyassumptionsunderlyingtheConstellationprojectionsinclude:*earningsincreaseovertheplanhorizonduetofavorableNewEnergyinitiatives,BGEratebasegrowth,andoperatingexpensesavings;*capitalinvestmentincludedintheplanfundsBGESmartGrid,infrastructureimprovement,alongwithgrowthinvestmentsinsolarandupstreamgasbusinesses;and*dividendpaymentremainsapproximately$200millionperyear.ConstellationProjectionsThefollowingtablepresentstheConstellationprojections:($inmillions,exceptpersharedata)YearEndingDecember31, 2011E 2012E 2013E 2014E 2015EEBITDA(1)$1,757$1,784$2,088$2,263$2,439CapitalExpenditures(2)$903$923$1,108$983$948 OperatingEarningsperShare($/share)(3)$3.20$2.60$3.50$3.96$4.28 DividendsperShare($/share)$0.96$0.96$0.96$0.96$0.96(1)EBITDAisdefinedasearningsbeforeinterest,tax,depreciationandamortization,isanon-GAAPfinancialmeasureandshouldnotbeconsideredasanalternativetooperatingincomeornetincomeasameasureof operatingperformanceorcashflowsorasameasureofliquidity.EBITDAdoesnotincludetheimpactof anypotentialsynergiesorcostsrelatedtothemerger.EBITDAincludesequityincomeattributableto Constellations50.01%interestinConstellationEnergyNuclearGroup.(2)Referstoinvestmentinpropertyplantandequipment (3)OperatingEarningsperShareisanon-GAAPfinancialmeasurethatexcludesone-time,non-operatingitems.2011OperatingEarningsperShareincludes$0.60ofEarningsperSharefromthecashvalueofthe powerpurchaseagreementwithConstellationEnergyNuclearGroup.

71 ExelonsAdjustmentstotheConstellationProjectionsExelonmanagementpreparedanalternativeversionoftheConstellationprojections,whichwerefertoastheadjustedConstellationprojections.TheadjustedConstellationprojectionsreflectExelonmanagements revisedassumptionsregardingtheprojectedgrowthrateofConstellationscompetitiveretailenergybusiness, whichweregenerallyconsistentwithConstellationscompanyguidancethrough2012withapproximately0%

growthinmarginsandmodestgrowthinvolumefrom2013through2015.Exelonmanagementalsoprepareda revisedversionofConstellationsmerchantgenerationprojectionstoreflectExelonmanagementsviewon energypricesfrom2011through2015.TheadjustedConstellationprojectionsassumeBGEearnsareasonable returnonequitybasedonexistingallowedratesandreceivesareasonableoutcomeonfutureratecases.Exelon providedtheadjustedConstellationprojectionstoitsfinancialadvisors.ThefollowingtablepresentstheadjustedConstellationprojections:($inmillions,exceptpersharedata)YearEndingDecember31, 2011E 2012E 2013E 2014E 2015EEBITDA(1)$1,627$1,667$1,924$1,970$2,017CapitalExpenditures$795$866$1,026$943$914 OperatingEarningsperShare($/share)(2)$2.48$2.57$3.26$3.31$3.38 DividendsperShare($/share)$0.96$0.96$0.96$0.96$0.96(1)EBITDAisdefinedasearningsbeforeinterest,tax,depreciationandamortization,isanon-GAAPfinancialmeasureandshouldnotbeconsideredasanalternativetooperatingincomeornetincomeasameasureof operatingperformanceorcashflowsorasameasureofliquidity.EBITDAdoesnotincludetheimpactof anypotentialsynergiesorcostsrelatedtothemerger.EBITDAincludesequityincomeattributableto Constellations50.01%interestinConstellationEnergyNuclearGroup.(2)OperatingEarningsperShareisanon-GAAPfinancialmeasurethatexcludesone-time,non-operatingitems,including:CENGJVbasisdifference($(0.44)in2011E,$(0.38)in2012E,$(0.25)in2013Eand

$(0.19)in2014Eand2015E);amortizationofcreditfacilityfees($(0.03)in2011Eand2012Eand$(0.02) in2013E);andBostonGenerationtransactioncosts($(0.05)in2011E).OpinionsofFinancialAdvisorstoExelonOpinionofBarclaysCapitalInc.Inconnectionwiththemerger,ExelonengagedBarclaysCapitaltoactasafinancialadvisortoExelon.OnApril27,2011,atameetingoftheExelonboardofdirectorsheldtoevaluatethemerger,BarclaysCapitaldelivereditsoralopinion,subsequentlyconfirmedbydeliveryofawrittenopinion,toExelonsboardof directorsthat,asofsuchdateandbaseduponandsubjecttothequalifications,limitationsandassumptionsstated initsopinion,theexchangeratiowasfair,fromafinancialpointofview,toExelon.ThefulltextofBarclaysCapitalswrittenopinion,datedasofApril28,2011,isattachedasAnnexBtothisjointproxystatement/prospectus.BarclaysCapitalswrittenopinionsetsforth,amongotherthings, theassumptionsmade,proceduresfollowed,factorsconsideredandlimitationsuponthereview undertakenbyBarclaysCapitalinrenderingitsopinion.Youareencouragedtoreadtheopinionandthis sectioncarefullyandintheirentirety.ThefollowingisasummaryofBarclaysCapitalsopinionandthe methodologythatBarclaysCapitalusedtorenderitsopinion.ThissummaryofBarclaysCapitalswritten opinionisqualifiedinitsentiretybyreferencetothefulltextoftheopinion.BarclaysCapitalsopinion,theissuanceofwhichwasapprovedbyBarclaysCapitalsFairnessOpinionCommittee,isaddressedtotheboardofdirectorsofExelon,addressesonlythefairness,fromafinancialpointof view,toExelonoftheexchangeratioanddoesnotconstitutearecommendationtoanyshareholderofExelonor Constellationastohowsuchshareholdershouldvotewithrespecttothemergeroranyothermatter.Thetermsof 72 themergerweredeterminedthrougharms-lengthnegotiationsbetweenExelonandConstellationandwereunanimouslyapprovedbyExelonsboardofdirectors.BarclaysCapitalwasnotrequestedtoaddress,andits opiniondoesnotinanymanneraddress,Exelonsunderlyingbusinessdecisiontoproceedwithoreffectthe mergerorthelikelihoodofconsummationofthemerger.Inaddition,BarclaysCapitalexpressednoopinionon, anditdoesnotinanymanneraddress,thefairnessoftheamountorthenatureofanycompensationtoany officers,directorsoremployeesofanypartiestothemerger,oranyclassofsuchpersons,relativetothe considerationpaidinthemergerorotherwise.NolimitationswereimposedbyExelonsboardofdirectorsupon BarclaysCapitalwithrespecttotheinvestigationsmadeorproceduresfollowedbyitinrenderingitsopinion.Inarrivingatitsopinion,BarclaysCapital,amongotherthings,reviewedandanalyzed:*Adraftofthemergeragreement,datedasofApril27,2011,andthespecifictermsofthemerger;

• PubliclyavailableinformationconcerningExelonandConstellationthatBarclaysCapitalbelievedtoberelevanttoitsanalysis,includingeachof(1)theirrespectiveAnnualReportsonForm10-Kforthe fiscalyearendedDecember31,2010,QuarterlyReportsonForm10-Qforfiscalquartersended March31,2010,June30,2010,andSeptember30,2010,(2)theDefinitiveProxyStatementonForm 14AdatedApril15,2011forConstellation,theDefinitiveProxyStatementonForm14Adated March24,2011forExelon,andotherrelevantfilingswiththeSecuritiesandExchangeCommission, foreachofExelonandConstellation,respectively,and(3)theFERCFormNo.1datedApril18,2010 andtheFERCFormNo.2datedMay28,2010forConstellation;*Financialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofExelonfurnishedtoBarclaysCapitalbyExelon,includingfinancialprojectionsofExelonpreparedby managementofExelon,whichwerefertoastheExelonprojectionsandareprovidedinthisjointproxy statement/prospectusundertheheadingUnauditedFinancialForecastsUnauditedFinancial ForecastsofExelonbeginningonpage69;*Financialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofConstellation,furnishedtoBarclaysCapitalbyConstellationandExelon,including(1)financial projectionsofConstellationpreparedbythemanagementofConstellation,whichwerefertoasthe Constellationprojectionsandareprovidedinthisjointproxystatement/prospectusundertheheading UnauditedFinancialForecastsUnauditedFinancialForecastsofConstellationConstellation Projectionsbeginningonpage71,and(2)financialprojectionsofConstellationunderalternative businessassumptionspreparedbythemanagementofExelon,whichwerefertoastheadjusted Constellationprojectionsandareprovidedinthisjointproxystatement/prospectusundertheheading UnauditedFinancialForecastsUnauditedFinancialForecastsofConstellationExelons AdjustmentstotheConstellationProjectionsbeginningonpage72;*ThetradinghistoryofExelonscommonsharesfromApril28,2008toApril26,2011,thetradinghistoryofConstellationscommonsharesfromApril28,2008toApril26,2011andacomparisonof eachoftheirtradinghistorieswitheachotherandwiththoseofothercompaniesthatBarclaysCapital deemedrelevant;*AcomparisonofthehistoricalfinancialresultsandpresentfinancialconditionofExelonandConstellationwitheachotherandwiththoseofothercompaniesthatBarclaysCapitaldeemedrelevant;*TherelativecontributionsofExelonandConstellation,basedontheExelonprojectionsandtheadjustedConstellationprojections,tothefuturefinancialperformanceofthecombinedcompanyona proformabasis;*Theproformaimpactofthemergeronthefuturefinancialperformanceofthecombinedcompany,including(1)theexpectedcostsavings,operatingsynergiesandstrategicbenefits,netofany costs-to-achieve,expectedbythemanagementofExelontoresultfromthecombinationofthe businessesofExelonandConstellation,whichwerefertoastheexpectedsynergies,(2)certain purchaseaccountingadjustmentstothebasisofConstellationforreportingpurposesundergenerally 73 acceptedaccountingprinciplesintheUnitedStatesasestimatedbythemanagementofExelon,whichwerefertoasthepurchaseaccountingadjustments,and(3)certainmeasuresdescribedtoBarclays CapitalbythemanagementofExelonasmeasuresExelonwouldbewillingtotaketofacilitate governmentalandregulatoryapprovalofthemerger,whichwerefertoastheproposedconcessions;*OthersuchanalysesasBarclaysCapitalhasdeemedrelevant;and

• PublishedestimatesofindependentresearchanalystswithrespecttothefuturefinancialperformanceandpricetargetsofExelonandConstellation.Inaddition,BarclaysCapitalhaddiscussionswiththemanagementofExelonconcerningitsbusiness,operations,assets,liabilities,financialconditionandprospectsandhasundertakensuchotherstudies,analyses andinvestigationsasBarclaysCapitaldeemedappropriate.Inarrivingatitsopinion,BarclaysCapitalassumedandreliedupontheaccuracyandcompletenessofthefinancialandotherinformationusedbyBarclaysCapitalwithoutanyindependentverificationofsuch informationandfurtherreliedupontheassurancesofthemanagementofExelonandConstellationthattheywere notawareofanyfactsorcircumstancesthatwouldmakesuchinformationinaccurateormisleading.Withrespect totheExelonprojections,upontheadviceofExelon,BarclaysCapitalassumedthattheExelonprojectionswere reasonablypreparedonabasisreflectingthebestcurrentlyavailableestimatesandjudgmentsofthemanagement ofExelonastothefuturefinancialperformanceofExelon,andthatExelonwillperformsubstantiallyin accordancewithsuchprojections.WithrespecttotheadjustedConstellationprojections,upontheadviceof Exelon,BarclaysCapitalassumedthattheadjustedConstellationprojectionswerereasonablypreparedonabasis reflectingthebestcurrentlyavailableestimatesandjudgmentsofthemanagementofExelonastothefuture financialperformanceofConstellation,andthatConstellationwillperformsubstantiallyinaccordancewithsuch projections.BarclaysCapitaldiscussedtheseprojectionswiththemanagementofExelonandtheyhaveagreed withtheappropriatenessoftheuseofsuchprojectionsinperformingBarclaysCapitalsanalysisandBarclays Capitalrelieduponsuchprojectionsinarrivingatitsopinion.Furthermore,upontheadviceofExelon,Barclays Capitalassumedthattheamountsandtimingoftheexpectedsynergiesarereasonableandthattheexpected synergieswillberealizedinaccordancewithsuchestimates.Furthermore,upontheadviceofExelon,Barclays Capitalassumedthattheamountsandtimingofthepurchaseaccountingadjustmentsarereasonableandthatthe purchaseaccountingadjustmentswillhavetheeffectprojectedbyExelon.BarclaysCapitalassumesno responsibilityforandBarclaysCapitalexpressesnoviewastoanysuchprojectionsorestimatesorthe assumptionsonwhichtheyarebased.Inarrivingatitsopinion,BarclaysCapitaldidnotconductaphysical inspectionofthepropertiesandfacilitiesofExelonorConstellationanddidnotmakeorobtainanyevaluations orappraisalsoftheassetsorliabilitiesofExelonorConstellation.BarclaysCapitalsopinionnecessarilywas baseduponmarket,economicandotherconditionsastheyexiston,andcanbeevaluatedasof,April26,2011.

BarclaysCapitalassumesnoresponsibilityforupdatingorrevisingthisopinionbasedoneventsorcircumstances thatmayoccurafterApril26,2011.BarclaysCapitalexpressednoopinionastothepricesExeloncommon shareswouldtradefollowingtheannouncementorconsummationofthemergerorConstellationcommonshares wouldtradefollowingtheannouncementofthemerger.BarclaysCapitalassumedthattheexecutedmergeragreementwouldconforminallmaterialrespectstothelastdraftreviewedbyBarclaysCapital.Inaddition,BarclaysCapitalassumedtheaccuracyoftherepresentations andwarrantiescontainedinthemergerandallagreementsrelatedthereto.BarclaysCapitalalsoassumed,upon theadviceofExelon,thatallmaterialgovernmental,regulatoryandthirdpartyapprovals,consentsandreleases forthemergerwouldbeobtainedwithintheconstraintscontemplatedbytheproposedconcessionsandwithout anymaterialadverseeffectonConstellationorExelonoronthecontemplatedbenefitsofthemergeragreement andthatthemergerwouldbeconsummatedinaccordancewiththetermsofthemergeragreementwithout waiver,modificationoramendmentofanymaterialterm,conditionoragreementthereof.BarclaysCapitaldid notexpressanyopinionastoanytaxorotherconsequencesthatmightresultfromthemerger,nordoesBarclays Capitalsopinionaddressanylegal,tax,regulatoryoraccountingmatters,astowhichBarclaysCapital understandsthatExelonobtainedsuchadviceasitdeemednecessaryfromqualifiedprofessionals.

74 Inarrivingatitsopinion,BarclaysCapitaldidnotattributeanyparticularweighttoanysingleanalysisorfactorconsideredbyitbut,rather,madequalitativejudgmentsastothesignificanceandrelevanceofeach analysisandfactorrelativetoallotheranalysesandfactorsperformedandconsideredbyitandinthecontextof thecircumstancesofthemerger.Accordingly,BarclaysCapitalbelievesthatitsanalysesmustbeconsideredasa whole,asconsideringanyportionofsuchanalysesandfactors,withoutconsideringallanalysesandfactorsasa whole,couldcreateamisleadingorincompleteviewoftheprocessunderlyingitsopinion.ThefollowingisasummaryofthematerialfinancialanalysesusedbyBarclaysCapitalinpreparingitsopiniontoExelonsboardofdirectors.Certainfinancialanalysessummarizedbelowincludeinformation presentedintabularformat.InordertofullyunderstandthefinancialanalysesusedbyBarclaysCapital,the tablesmustbereadtogetherwiththetextofeachsummary,asthetablesalonedonotconstituteacomplete descriptionofthefinancialanalyses.Inperformingitsanalyses,BarclaysCapitalmadenumerousassumptions withrespecttoindustryperformance,generalbusinessandeconomicconditionsandothermatters,manyof whicharebeyondthecontrolofExelonoranyotherpartiestothemerger.NeitherBarclaysCapitalnorExelon norConstellationassumesresponsibilityiffutureresultsaremateriallydifferentfromthosediscussed.Any estimatescontainedintheseanalysesarenotnecessarilyindicativeofactualvaluesorpredictiveoffutureresults orvalues,whichmaybesignificantlymoreorlessfavorablethanassetforthbelow.Inaddition,analyses relatingtothevalueofthebusinessesdonotpurporttobeappraisalsorreflectthepricesatwhichthebusinesses mayactuallybesold.HistoricalTradingAnalysisBarclaysCapitalreviewed,forinformationalpurposes,thevolume-weighteddailyclosingsharepricesofConstellationcommonsharesandExeloncommonsharesfortheone-year,30trading-day,20trading-day,and 10trading-dayperiods.Thefollowingtablepresentstheimpliedexchangeratiosduringtheperiodscoveredand asofApril26,2011,ascomparedtotheexchangeratiointhemergerof0.930x:HistoricalPeriodDailyAverageTradingRatiosApril26,20110.800x10Trading-DayVWAP0.817x 20Trading-DayVWAP0.798x 30Trading-DayVWAP0.786x1-YearVWAP0.775xSelectedComparableCompanyAnalysisInordertoassesshowthepublicmarketvaluesthestockofsimilarpubliclytradedcompaniesandtoprovidearangeofrelativeimpliedequityvaluesperExeloncommonshareandConstellationcommonshareby referencetothesecompanies,whichcouldthenbeusedtocalculateimpliedexchangeratioranges,Barclays CapitalreviewedandcomparedspecificfinancialdatarelatingtoExelon,Constellation,andtheirsubsidiary businesseswiththefollowingselectedcompaniesthatBarclaysCapitaldeemedcomparabletoExelon, Constellation,andtheirsubsidiarybusinesses:IntegratedComparables*EntergyCorp.

• FirstEnergyCorp.

• NextEraEnergyCorp.

• PublicServiceEnterpriseGroupInc.

• PPLCorp.75 Transmission&DistributionComparables*ConsolidatedEdisonInc.

• NortheastUtilities

• NSTAR

• PepcoHoldingsInc.

• UILHoldingsInc.MerchantGenerationComparables*CalpineCorp.

• GenOnEnergyInc.

• NRGEnergyInc.CompetitiveRetailSupplyComparables*Publicequityresearchestimatesof4.0x-6.0xEBITDABarclaysCapitalcalculatedandcomparedvariousfinancialmultiplesandratiosofExelonandConstellationandtheselectedcomparablecompanies.Aspartofitsselectedcomparablecompanyanalysis,BarclaysCapital calculatedandanalyzedeachcompanysratioofitscurrentsharepricetoitsprojectedearningspershare,orEPS (commonlyreferredtoasapriceearningsratio,orP/E).BarclaysCapitalcalculatedandanalyzedeachcompanys totalenterprisevalue,orTEV,to,inthecaseoftheintegratedandmerchantgenerationcomparablecompanies, projectedearningsbeforeinterest,taxes,depreciation,amortizationandrent(asattributedtooperatingleases),or EBITDAR.BarclaysCapitalcalculatedandanalyzedeachcompanysenterprisevalueto,inthecaseofthe transmission&distributionandretailcomparablecompanies,projectedearningsbeforeinterest,taxes,depreciation, andamortization,orEBITDA.Theenterprisevalueofeachcompanywasobtainedbyaddingitsshortandlong-termdebt(excludingsecuritizeddebt)tothesumofthemarketvalueofitscommonequity,thevalueofany preferredstock,thebookvalueofanyminorityinterestandthepresentvalueofoperatingleasepayments,and subtractingitscashandcashequivalents.Enterprisevaluecalculationswerebasedonpubliclyavailablefinancial dataandclosingprices,asofApril26,2011,thelasttradingdatepriortothedeliveryofBarclaysCapitalsopinion.BarclaysCapitalselectedthecomparablecompanieslistedabovebecausetheirbusinessesandoperatingprofilesarereasonablysimilartothatofExelon,Constellation,andtheirsubsidiarybusinesses.However, becausenoselectedcomparablecompanyisexactlythesameasExelonorConstellation,BarclaysCapital believedthatitwasinappropriateto,andthereforedidnot,relysolelyonthequantitativeresultsoftheselected comparablecompanyanalysis.Accordingly,BarclaysCapitalalsomadequalitativejudgmentsconcerning differencesbetweenthebusiness,financialandoperatingcharacteristicsandprospectsofExelon,Constellation andtheselectedcomparablecompaniesthatcouldaffectthepublictradingvaluesofeachinordertoprovidea contextinwhichtoconsidertheresultsofthequantitativeanalysis.Thesequalitativejudgmentsrelatedprimarily tothedifferingsizes,growthprospects,profitabilitylevelsanddegreeofoperationalriskbetweenExelon, Constellationandthecompaniesincludedintheselectedcompanyanalysis.

76 ComparablesMeanMultiples 1FirmValueasaMultipleofEquityValueasMultipleof2010E2011E2012E2011E2012EEBITDA(R)EBITDA(R)EBITDA(R)NetIncomeNetIncomeConsolidated6.49x-7.49x6.94x-7.94x6.81x-7.81x10.53x-12.53x10.96x-12.96xUtilities8.58x-9.58x7.90x-8.90x7.43x-8.43x14.66x-16.66x13.60x-15.60x Generation6.70x-7.70x7.24x-8.24x7.52x-8.52x RetailBusiness4.00x-6.00x4.00x-6.00x4.00x-6.00x HoldCo&Other6.49x-7.49x6.94x-7.94x6.81x-7.81x10.53x-12.53x10.96x-12.96x

Exelon6.78x7.21x10.16x12.82x Constellation6.21x6.05x13.35x12.88xConsolidatedTradingAnalysisInarrivingatitsconsolidatedtradingvaluationforExelon,BarclaysCapitalcalculatedarangeofpershareequityvalues.BarclaysCapitalappliedthemeanTEV/EBITDARmultiplesfor2011and2012fromthe integratedcomparablestotheadjustedEBITDARfor2011and2012basedontheExelonprojections.Basedon thisimpliedenterprisevalue,BarclaysCapitalsubtractednetdebtasofDecember31,2010anddividedtheresult byfullydilutedshares.BarclaysCapitalalsoappliedthemeanP/Eratiosfor2011and2012fromtheintegrated comparablestotheadjustednetincomefor2011and2012,respectively,anddividedbyfullydilutedshares.InarrivingatitsconsolidatedtradingvaluationforConstellation,BarclaysCapitalcalculatedarangeofpershareequityvalues.BarclaysCapitalappliedthemeanTEV/EBITDARmultiplesfor2011and2012fromthe integratedcomparablestotheadjustedEBITDARfor2011and2012basedontheExelonprojections.Basedon thisimpliedenterprisevalue,BarclaysCapitalsubtractednetdebtasofDecember31,2010anddividedtheresult byfulldilutedshares.BarclaysCapitalalsoappliedthemeanP/Eratiosfor2011and2012fromtheintegrated comparablestotheadjustednetincomefor2011and2012,respectively,anddividedbyfullydilutedshares.

BarclaysCapitaladjusted2011and2012EBITDAR,basedontheadjustedConstellationprojections,toreflect lasttwelvemonthsrent,equityincomefromConstellations50.01%interestinitsnuclearjointventurewith ElectricitedeFrance,orEDF,andrevenueassociatedwithsecuritizationbonds.Thefollowingreflectstheresults ofthisanalysis,ascomparedtotheexchangeratiointhemergerof0.930x:ImpliedExchangeRatioConsolidatedTradingValuation0.741x-1.066xSum-of-the-PartsTradingAnalysisBarclaysCapitalperformedanillustrativesum-of-the-partsanalysistodeterminearangeofimpliedequityvaluesofExelon,whichwasbasedonahypotheticalseparatevaluationofExelonsutilities,ComEdandPECO, ExelonGeneration,andExelonsotherbusinesses,whichwerefertoasExelonHoldCo.BarclaysCapital utilizedthecomparablecompanymeanTEV/EBITDARandP/Eratiosfor2011and2012andrelieduponthe Exelonprojections.*Fortheutilities,BarclaysCapitalappliedthemeanTEV/EBITDAmultiplesandthemeanP/Eratiosfor2011and2012fromthetransmission&distributioncomparablestoadjusted2011and2012 EBITDAandnetincome,respectively.*Forthemerchantgenerationbusiness,BarclaysCapitalappliedthemeanTEV/EBITDARmultiplesfor2011and2012fromthemerchantgenerationcomparablestothe2011and2012adjusted EBITDAR,respectively.*ForExelonHoldCo,BarclaysCapitalappliedthemeanTEV/EBITDARmultiplesfor2011and2012fromtheintegratedcomparables,respectively.

1NoteTEV/EBITDARstatisticsforconsolidated,generation,ExelonandConstellation.UtilitiesandRetail employTEV/EBITDAmultiples.Multiplesencompass+/-1.0xforP/Eand+/-0.5xforEBITDA(R).

BarclaysCapitaldidnotincorporateP/Emultiplesforthegenerationorretailcomponents.

77 BarclaysCapitalalsoperformedanillustrativesum-of-the-partsanalysistodeterminearangeofimpliedequityvaluesofConstellation,whichwasbasedonahypotheticalseparatevaluationofBGE,Constellations merchantgenerationbusiness(whichincludedtheequityincomeassociatedwithConstellations50.01%stakein itsnuclearjointventurewithEDF),theConstellationNewEnergylineofbusiness,andConstellationsother businesses,whichwerefertoasConstellationHoldCo.BarclaysCapitalutilizedthecomparablecompanymean TEV/EBITDARandP/Eratiosfor2011and2012andreliedupontheadjustedConstellationprojections.In analyzingConstellationonasum-of-the-partsbasis,BarclaysCapitalemployedthefollowingmethodologies:*Fortheutilitybusiness,BarclaysCapitalappliedthemeanTEV/EBITDAmultiplesandthemeanP/Eratiosfor2011and2012fromthetransmission&distributioncomparablestoadjusted2011and2012 EBITDAandnetincome,respectively.InthecaseofBGE,BarclaysCapitaladjustedEBITDAandnet incometoexcluderevenueassociatedwithsecuritizationdebt.*Forthemerchantgenerationbusiness,BarclaysCapitalappliedthemeanTEV/EBITDARmultiplesfor2011and2012fromthemerchantgenerationcomparablestothe2011and2012adjusted EBITDAR,respectively.BarclaysCapitaladjustedthemerchantgenerationsubsidiaryEBITDARto reflectlasttwelvemonthsrentandequityincomefromConstellations50.01%stakeinthenuclear jointventurewithEDF.*FortheConstellationNewEnergylineofbusiness,BarclaysCapitalrelieduponthemeanTEV/EBITDAmultiplesfor2011and2012derivedfrompublicequityresearchestimates.BarclaysCapital appliedthismultiplerangetothe2011and2012retailEBITDAasprovidedbytheadjusted Constellationprojections.*ForConstellationHoldCo,BarclaysCapitalappliedthemeanTEV/EBITDARmultiplesfor2011and2012fromtheintegratedcomparables,respectively.Thefollowingreflectstheresultsofthisanalysis,ascomparedtotheexchangeratiointhemergerof0.930x:ImpliedExchangeRatioSum-of-thePartsTradingValuation0.723x-1.067xDiscountedCashFlowAnalysisConsolidatedDiscountedCashFlowAnalysis InordertoestimatethepresentvalueofsharesofExeloncommonstockandsharesofConstellationcommonstock,BarclaysCapitalperformedadiscountedcashflowanalysisofExelonandConstellation.A discountedcashflowanalysisisatraditionalvaluationmethodologyusedtoderiveavaluationofanassetby calculatingthepresentvalueofestimatedfuturecashflowsoftheasset.Presentvaluereferstothecurrent valueoffuturecashflowsoramountsandisobtainedbydiscountingthosefuturecashflowsoramountsbya discountratethattakesintoaccountmacroeconomicassumptionsandestimatesofrisk,theopportunitycostof capital,expectedreturnsandotherappropriatefactors.TocalculatetheestimatedenterprisevalueofExelonusingthediscountedcashflowmethod,BarclaysCapitaladded(1)thepresentvalueofExelonsprojectedunleveredfreecashflowsfortheperiodbetween January1,2011andDecember31,2015basedontheExelonprojectionsto(2)thepresentvalueoftheterminal valueofExelonasofDecember31,2015,whichpresentvalueswerediscountedusingarangeofselected discountrates.Theunleveredfreecashflowswerecalculatedbytakingthetax-effectedearningsbeforeinterest and,addingbacktheaggregateofdepreciationandamortization,subtractingcapitalexpenditures,adjustingfor changesinworkingcapital,deferredtaxesandotheroperatingcashflowsnotreflectedontheincomestatement.

UnleveredfreecashflowsforExelonasawholewerecalculatedasthefollowingfortheyears2011through

2015:($inmillions) 2011E 2012E 2013E 2014E 2015EUnleveredFreeCashFlow$477$1,805$929$1,592$1,869 78 TheresidualvalueofExelonattheendoftheforecastperiod,orterminalvalue,wasestimatedbyapplyingarangeofterminalvaluemultiplesbasedon2010EEBITDARmultiplesofthecompaniesintheselected comparablecompanyanalysisof6.49xto7.49xtoaterminalEBITDAR,whichconsistedof2015EExelon EBITDAR.Therangeofafter-taxdiscountratesof6.26%to7.26%wasselectedbasedonananalysisofthe weightedaveragecostofcapitalofExelonandthecomparablecompanies.BarclaysCapitalthencalculateda rangeofimpliedequityvaluesperExeloncommonsharebysubtractingnetdebtasofDecember31,2010from theestimatedenterprisevalueusingthediscountedcashflowmethodanddividingsuchamountbythefully dilutednumberofsharesofExeloncommonstock.TocalculatetheestimatedenterprisevalueofConstellationusingthediscountedcashflowmethod,BarclaysCapitaladded(1)thepresentvalueofConstellationsprojectedunleveredfreecashflowsfortheperiodbetween January1,2011andDecember31,2015basedontheadjustedConstellationprojectionsto(2)thepresentvalueof theterminalvalueofConstellationasofDecember31,2015,whichpresentvalueswerediscountedusingarangeof selecteddiscountrates.Theunleveredfreecashflowswerecalculatedbytakingthetax-effectedearningsbefore interestandtaxes(excludingtherevenuesassociatedwithservicingtheinterestrelatedtothesecuritizeddebt),

addingbacktheaggregateofdepreciationandamortization(excludingtheamortizationrelatedtothesecuritized debt),subtractingcapitalexpenditures,adjustingforchangesinworkingcapital,deferredtaxesandotheroperating cashflowsnotreflectedontheincomestatement.TheresidualvalueofConstellationattheendoftheforecast period,orterminalvalue,wasestimatedbyapplyingarangeofterminalvaluemultiplesbasedon2010EEBITDAR multiplesofthecompaniesintheselectedcomparablecompanyanalysisof6.49xto7.49xtoaterminalEBITDAR, whichconsistedof2015EConstellationEBITDARadjustedtoincludethedepreciationandamortizationassociated withConstellations50.01%stakeinitsnuclearjointventurewithEDF.Therangeofafter-taxdiscountratesof 6.41%to7.41%wasselectedbasedonananalysisoftheweightedaveragecostofcapitalofConstellationandthe comparablecompanies.BarclaysCapitalthencalculatedarangeofimpliedequityvaluesperConstellationcommon sharebysubtractingnetdebt(excludingsecuritizeddebt)asofDecember31,2010fromtheestimatedenterprise valueusingthediscountedcashflowmethodanddividingsuchamountbythefullydilutednumberofsharesof Constellationcommonstock.BasedontherangeofimpliedequityvaluespersharecalculatedintheExelonconsolidateddiscountedcashflowanalysisandConstellationconsolidateddiscountedcashflowanalysis,BarclaysCapitalcalculatedarange ofimpliedexchangeratiosforsharesofConstellationcommonstocktosharesofExeloncommonstock.The followingreflectstheresultsofthisanalysis,ascomparedtotheexchangeratiointhemergerof0.930x:ImpliedExchangeRatioConsolidatedDCF0.791x-1.293xSum-of-the-PartsDiscountedCashFlowAnalysisBarclaysCapitalapplieddiscountedcashflowanalysis,asdescribedabove,tothesubsidiarybusinessesofExelonincludingComEd,PECO,ExelonGenerationandExelonHoldCo.EBITDARmultipleswereappliedto thediscountedcashflowanalysesoftheconsolidatedandgenerationbusinesses;EBITDAmultipleswere appliedtothediscountedcashflowanalysesofthetransmission&distributionandretailbusinesses.The relevantterminalvaluemultiplesanddiscountratesaredescribedindetailbelowaswellasintheSelected ComparableCompanyAnalysissectionabove.*ForComEd,BarclaysCapitalutilizedamidpointdiscountrateof6.18%andaterminalvalueTEV/EBITDAmultipleof9.08x,basedonthemean2010TEV/EBITDAmultipleofthetransmission&

distributioncomparables.ThefinancialprojectionswerebasedontheExelonprojections.*ForPECO,BarclaysCapitalutilizedamidpointdiscountrateof6.18%andaterminalvalueTEV/EBITDAmultipleof9.08x,basedonthemean2010TEV/EBITDAmultipleofthetransmission&

distributioncomparables.ThefinancialprojectionswerebasedontheExelonprojections.*ForExelonGeneration,BarclaysCapitalappliedamidpointdiscountrateof7.35%andaterminalvalueTEV/EBITDARmultipleof7.20x,basedonthemean2010TEV/EBITDARmultipleofthe merchantgenerationcomparables.ThefinancialprojectionswerebasedontheExelonprojections.

79

• ForExelonHoldCo,BarclaysCapitalappliedthesamediscountrateandterminalvalueassumptionsasdescribedaboveintheconsolidatedDCFanalysis.BarclaysCapitalalsoemployedthismethodologytothesubsidiarybusinessesofConstellationincludingBGE,Constellationsgenerationbusiness,theConstellationNewEnergylineofbusiness,andConstellation HoldCo.EBITDARmultipleswereappliedtothediscountedcashflowanalysesoftheconsolidatedand generationbusinesses;EBITDAmultipleswereappliedtothediscountedcashflowanalysesofthe transmission&distributionandretailbusinesses.Therelevantterminalvaluemultiplesanddiscountratesare describedindetailbelowaswellasintheSelectedComparableCompanyAnalysissectionabove.*ForBGE,BarclaysCapitalutilizedamidpointdiscountrateof6.12%andaterminalvalueTEV/EBITDAmultipleof9.08x,basedonthemean2010TEV/EBITDAmultipleofthetransmission&

distributioncomparables.ThefinancialprojectionswerebasedontheadjustedConstellation

projections.*ForConstellationgeneration,BarclaysCapitalappliedamidpointdiscountrateof7.46%andaterminalvalueTEV/EBITDARmultipleof7.20x,basedonthemean2010TEV/EBITDARmultiple ofthemerchantgenerationcomparables.Thefinancialprojectionswerebasedontheadjusted Constellationprojections.*FortheConstellationNewEnergylineofbusiness,BarclaysCapitalappliedamidpointdiscountrateof10.09%andaterminalvalueTEV/EBITDARmultipleof5.00x,basedonthemean2010TEV/

EBITDARmultiplederivedfrompublicequityresearchestimates.Thefinancialprojectionswere basedontheadjustedConstellationprojections.*ForConstellationHoldCo,BarclaysCapitalappliedthesamediscountrateandterminalvalueassumptionsasdescribedaboveintheconsolidatedDCFanalysis.BasedontherangeofimpliedequityvaluespersharecalculatedintheExelonsubsidiarydiscountedcashflowanalysesandConstellationsubsidiarydiscountedcashflowanalyses,BarclaysCapitalcalculatedarangeof impliedexchangeratiosforsharesofConstellationcommonstocktosharesofExeloncommonstock.The followingreflectstheresultsofthisanalysis,ascomparedtotheexchangeratiointhemergerof0.930x:ImpliedExchangeRatioDCFSum-of-the-Parts0.704x-1.147xContributionAnalysisBarclaysCapitalreviewedtheExelonprojectionsandtheadjustedConstellationprojectionstodetermineExelonsandConstellationsrelativecontributiontothecombinedcompanyafterthemerger.BarclaysCapital analyzedExelonsandConstellationsrelativecontributiontoestimatedleverageadjustedEBITDAR(whichin thecaseofExelonandConstellationwascalculatedasExelonEBITDARandConstellationEBITDAR, respectively,andreflectsnetdebtasofDecember31,2010and,inthecaseofConstellation,includesitsprorata shareofEBITDAfromConstellations50.01%shareinthenuclearjointventurewithEDF),netincome,funds fromoperations,andfreecashflowforeachoftheyears2012through2015basedontheExelonprojectionsand theadjustedConstellationprojections.LeverageadjustedEBITDARforeachyearreviewedwascalculatedby applyingtheEBITDARcontributionpercentageofonecompanytothesumofeachcompanystotalenterprise valueandthensubtractingoutthatcompanysprojectednetdebtasofDecember31,2010(excludingsecuritized debt).Fundsfromoperationswasdefinedascashflowfromoperationslessworkingcapitalplusother adjustmentsprovidedbyExelonandConstellation.Freecashflowwasdefinedascashflowfromoperationsless changesinworkingcapital(includingchangesinnon-currentotherassetsandnon-currentotherliabilities)less capitalexpenditures(includingotherinvestingactivities)andpreferreddividends.

80 BasedontherelativecontributionsofExelonandConstellationtothecombinedcompanycalculatedinthecontributionanalysis,BarclaysCapitaldeterminedarangeofimpliedexchangeratiosforsharesofConstellation commonstocktosharesofExeloncommonstock.Thefollowingtablereflectstheresultsoftheanalysis,as comparedtotheexchangeratiointhemergerof0.930x:ImpliedExchangeRatioBasedonContributionstoCombinedCompany2012ELeverageAdjustedEBITDAR1.054x2013ELeverageAdjustedEBITDAR1.247x 2014ELeverageAdjustedEBITDAR1.126x 2015ELeverageAdjustedEBITDAR1.093x 2012ENetIncome0.806x 2013ENetIncome1.004x 2014ENetIncome0.884x 2015ENetIncome0.867x 2012EFFO0.896x 2013EFFO1.078x 2014EFFO1.057x 2015EFFO0.974x 2012EFreeCashFlow1.480x 2013EFreeCashFlow1.073x 2014EFreeCashFlow1.159x 2015EFreeCashFlow1.200xLow-HighRange0.806x-1.480xProFormaMergerAnalysisBarclaysCapitalanalyzedandconsideredtheimpactofthemergeron(1)theestimatedEPSofExelonforeachoftheyears2012through2015,usingtheExelonprojectionsandtheadjustedConstellationprojectionsand (2)theestimatedEPSofExelonfortheyears2012and2013,usingestimatedEPSforExelonandConstellation for2012and2013basedonconsensusEPSestimatesoftheInstitutionalBrokersEstimateSystem,whichwe refertoasIBES.BarclaysCapitalassumedthat,amongotherthings,(1)thetransactionwouldcloseby December31,2011,(2)thecombinedcompanywouldrealizethebenefitsandincurtheexpectedsynergies anticipatedbythemanagementsofExelonandConstellationtoberealizedinthemerger,and(3)certain purchaseaccountingadjustmentsrelatedmark-to-marketpositions,longtermdebt,regulatoryassets,and unregulatedbusinesseswouldbemade.Basedonthisanalysisandincludingtheeffectsofpurchaseaccounting,themergerisexpectedtobeearningsneutralin2012andtoresultinanincreaseinEPSwhencomparedtotheExelonprojectionsintheyears 2013through2015,andtoresultinanincreaseinEPScomparedtoExelonsIBESEPSestimatesonastand-alonebasisintheyears2012through2013.Basedonthisanalysisandexcludingtheeffectsofpurchaseaccounting,themergerisexpectedtobeslightlyearningsdilutivein2012andtoresultinanincreaseinEPSwhencomparedtotheExelonprojectionsin theyears2013through2015,andtobeslightlyearningsdilutivein2012butresultinanincreaseinEPS comparedtoExelonsIBESEPSestimatesonastand-alonebasisintheyear2013.ResearchPriceTargetsAnalysisBarclaysCapitalconsideredpubliclyavailableresearchonpersharepricetargetsforExeloncommonsharesandConstellationcommonsharesprovidedbyequityresearchfirmsandcalculatedtheimpliedexchangeratio rangebydividingthelowestpricetargetforConstellationcommonsharesbythehighestpricetargetforExelon 81 commonsharesforthelowendoftherangeanddividingthehighestpricetargetforConstellationcommonsharesbythelowestpricetargetforExeloncommonsharesforthehighendoftherange.Thepricetargets publishedbytheequityresearchfirmsdonotnecessarilyreflectcurrentmarkettradingpricesforConstellation commonsharesandExeloncommonsharesandtheseestimatesaresubjecttouncertainties,includingthefuture financialperformanceofConstellationandExelonandfuturefinancialmarketconditions.Thefollowingreflects theresultsoftheanalysis,ascomparedtotheexchangeratiointhemergerof0.930x:

Research EstimatesImpliedExchangeRatio0.554x-1.027x52WeekLow/HighAnalysisBarclaysCapitalreviewedforinformationalpurposesthe52-weeklowand52-weekhighpricesofExeloncommonsharesandConstellationcommonsharesasofApril26,2011andcalculatedtheimpliedexchangeratio rangebydividingthe52-weeklowpriceforConstellationcommonsharesbythe52-weekhighpriceforExelon commonsharesforthelowendoftherangeanddividingthe52-weekhighpriceforConstellationcommon sharesbythe52-weeklowpriceforExeloncommonsharesforthehighendoftherange.Thefollowingreflects theresultsoftheanalysis,ascomparedtotheexchangeratiointhemergerof0.930x:

Research EstimatesImpliedExchangeRatio0.625x-0.998xPotentialProFormaValueCreationBarclaysCapitalalsoconsideredthepotentialvaluecreationofthemergerforExelonbasedon(1)acomparisonoftheequityvalueimplied(bythediscountedcashflowanalysisabove)forExelononastandalone basisandthepotentialproformaequityvalue(impliedbythediscountedcashflowanalysisabove)ofthe combinedcompanyand(2)acomparisonofthemarketvalueforExelononastandalonebasisasofApril26, 2011andthepotentialproformamarketvalueofthecombinedcompany.Forillustrativepurposes,Barclays Capitalcalculated,underthefirstmethodology,astandalonevalueforExelonutilizingthemidpointoftheequity valuereferencerangeimpliedfromtheconsolidateddiscountedcashflowanalysisand,underthesecond methodology,themarketcapitalizationofExelonasofApril26,2011.BarclaysCapitalthenaddedtosuch impliedequityvalue,underthefirstmethodology,themidpointoftheequityvaluereferencerangeimpliedfrom theconsolidateddiscountedcashflowanalysisofConstellationdescribedaboveand,underthesecond methodology,themarketcapitalizationofConstellationasofApril26,2011andthemidpointofthenetpresent valueoftheexpectedsynergiesestimatedbyExelon.BarclaysCapitalthencalculatedthevalueattributableto Exelonsproportionateinterestintheresultingimpliedequityvalueoftheproformacombinedcompanybased ontheequityownershippercentageofExelonshareholdersinthecombinedcompanyimpliedbythe0.930x exchangeratioprovidedforinthemergeragreement.Thisanalysisindicatedapotentialproformavaluecreation forExelonof0.5%-2.6%,beforetakingintoaccountpotentialbenefitsofthemergerotherthanthosereferred toabove,includingpotentialbenefitsfromproformatradingmultipleexpansionandalowercostofcapital.

MiscellaneousBarclaysCapitalisaninternationallyrecognizedinvestmentbankingfirmand,aspartofitsinvestmentbankingactivities,isregularlyengagedinthevaluationofbusinessesandtheirsecuritiesinconnectionwith mergersandacquisitions,investmentsforpassiveandcontrolpurposes,negotiatedunderwritings,competitive bids,secondarydistributionsoflistedandunlistedsecurities,privateplacementsandvaluationsforestate, corporateandotherpurposes.ExelonsboardofdirectorsselectedBarclaysCapitalbecauseofitsfamiliarity withExelonanditsqualifications,reputationandexperienceinthevaluationofbusinessesandsecuritiesin connectionwithmergersandacquisitionsgenerally,aswellassubstantialexperienceintransactionscomparable tothemerger.

82 BarclaysCapitalisactingasfinancialadvisortoExeloninconnectionwiththemerger.Ascompensationforitsservicesinconnectionwiththemerger,ExelonhasagreedtopaycompensationtoBarclaysCapitaltotalling upto$23.0million,$4.0millionofwhichwaspayableatthetimethemergeragreementwasexecuted,an additional$4.0millionpayableuponobtainingExelonsshareholderapprovalfortheshareissuanceandthe remaining$15.0millionattheconsummationofthemerger.IfthemergeragreementisterminatedandExelonis paidabreak-upfeebyConstellation,thenExelonshallpayBarclaysCapitalafeeinanamountequalto5%of thebreak-upfee,lesstheopinionfeeandshareholderapprovalfee,ifpaid.Inaddition,Exelonhasagreedto reimburseBarclaysCapitalforitsreasonableandcustomaryexpenses(includinglegalandotherprofessional fees,expensesanddisbursements),andtoindemnifyBarclaysCapitalforcertainliabilitiesarisingoutofits

engagement.BarclaysCapitalhasperformedvariousinvestmentbankingandfinancialservicesforExelonandConstellationinthepast,andexpectstoperformsuchservicesinthefuture,andhasreceived,andexpectsto receive,customaryfeesforsuchservices.Specifically,inthepasttwoyears,BarclaysCapitalperformedthe followinginvestmentbankingandfinancialservicesforExelonandConstellation:(1)actedasjointleadarranger andbookrunnerontherefinancingonExelonsandtwoofitsprincipaloperatingcompanies$6.4billion revolvingcreditfacilities,eachinMarch2011,(2)actedasexclusivefinancialadvisortoExelononits$860 millionacquisitionofJohnDeereRenewablesinDecember2010,(3)actedasjointbookrunneronExelons generationsubsidiarys$900millionnotesofferinginSeptember2010,(4)actedasjointleadarrangeronthe refinancingforoneofExelonsprincipaloperatingcompanies$1billionrevolvingcreditfacilityinMarch2010, (5)actedasdealermanageronatenderofferfornotesdue2011andjointbookrunneronanofferingof$1.5 billionofnew10-and30-yearnotesforExeloninSeptember2009,(6)actedasfinancialadvisortoExelononits proposedacquisitionofNRGEnergyin2008and2009,(7)providedvariousstrategicadvisoryservicesto Exelon,(8)actedasalenderinConstellations$1billion364-dayrevolvingcreditfacilityin2009,and (9)engagedinvarioushedging,derivativeandotherriskmanagementtransactionsforExelonandConstellation.

Inaddition,BarclaysCapitaliscurrentlyactingasexclusivefinancialadvisortoExelononcertainother potentialtransactionsandwillreceivecustomaryfeesinconnectiontherewith.BarclaysCapitalInc.anditsaffiliatesengageinawiderangeofbusinessesfrominvestmentandcommercialbanking,lending,assetmanagementandotherfinancialandnon-financialservices.Intheordinary courseofitsbusiness,BarclaysCapitalanditsaffiliatesmayactivelytradeandeffecttransactionsintheequity, debtand/orothersecurities(andanyderivativesthereof)andfinancialinstruments(includingloansandother obligations)ofExelonandConstellationforBarclaysCapitalsownaccountandfortheaccountsofBarclays Capitalscustomersand,accordingly,mayatanytimeholdlongorshortpositionsandinvestmentsinsuch securitiesandfinancialinstruments.OpinionofJ.P.MorganSecuritiesLLCInconnectionwiththemerger,ExelonretainedJ.P.MorgantoactasafinancialadvisortoExelon.AtameetingoftheExelonboardofdirectorsheldonApril27,2011atwhichthemergerwasapproved,J.P.Morgan renderedtotheExelonboardofdirectorsanoralopinion,confirmedbydeliveryofawrittenopiniondated April27,2011,totheeffectthat,asofsuchdateandbaseduponandsubjecttothefactors,procedures, assumptions,qualificationsandlimitationssetforthinitsopinion,the0.930exchangeratioprovidedforinthe mergeragreementwasfair,fromafinancialpointofview,toExelon.TheissuanceofJ.P.Morgansopinionwas approvedbyafairnesscommitteeofJ.P.Morgan.ThefulltextofthewrittenopinionofJ.P.Morgan,dated April27,2011,whichsetsforththeassumptionsmade,proceduresfollowed,mattersconsidered,and qualificationsandlimitationsontheopinionandthereviewundertakenbyJ.P.Morganinconnectionwith renderingitsopinion,isattachedasAnnexCtothisjointproxystatement/prospectusandisincorporatedherein byreference.J.P.MorganswrittenopinionwasprovidedtotheExelonboardofdirectors(initscapacityassuch)inconnectionwithandforpurposesofitsevaluationofthemerger.J.P.Morgansopinionwas limitedtothefairness,fromafinancialpointofview,toExelonoftheexchangeratiointhemergerand J.P.Morganexpressednoopinionastothefairnessofthemergertotheholdersofanyclassofsecurities, 83 creditorsorotherconstituenciesofExelonorastotheunderlyingdecisionbyExelontoengageinthemerger.Theopiniondoesnotconstitutearecommendationtoanyshareholderastohowanyshareholder shouldvotewithrespecttothemergeroranyothermatter.ThesummaryoftheopinionofJ.P.Morgan setforthinthisjointproxystatement/prospectusisqualifiedinitsentiretybyreferencetothefulltextof suchopinion.Inconnectionwithpreparingitsopinion,J.P.Morgan:*reviewedadraftdatedApril27,2011ofthemergeragreement;

• reviewedcertainpubliclyavailablebusinessandfinancialinformationconcerningConstellationandExelonandtheindustriesinwhichtheyoperate;*comparedtheproposedfinancialtermsofthemergerwiththepubliclyavailablefinancialtermsofcertaintransactionsinvolvingcompaniesthatJ.P.Morgandeemedrelevantandtheconsideration receivedforsuchcompanies;*comparedthefinancialandoperatingperformanceofConstellationandExelonwithpubliclyavailableinformationconcerningcertainothercompaniesthatJ.P.Morgandeemedrelevantandreviewedthe currentandhistoricalmarketpricesofConstellationcommonstockandExeloncommonstockand certainpubliclytradedsecuritiesofsuchothercompanies;*reviewedfinancialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofExelonfurnishedtoJ.P.MorganbyExelon,includingfinancialprojectionsofExelonpreparedby managementofExelon,whichwerefertoastheExelonprojectionsandareprovidedinthisjointproxy statement/prospectusundertheheadingUnauditedFinancialForecastsUnauditedFinancial ForecastsofExelonbeginningonpage69;*reviewedfinancialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofConstellation,furnishedtoJ.P.MorganbyConstellationandExelon,including(1)financialprojections ofConstellationpreparedbythemanagementofConstellation,whichwerefertoastheConstellation projectionsandareprovidedinthisjointproxystatement/prospectusundertheheadingUnaudited FinancialForecastsUnauditedFinancialForecastsofConstellationConstellationProjections beginningonpage71,and(2)financialprojectionsofConstellationunderalternativebusiness assumptionspreparedbythemanagementofExelon,whichwerefertoastheadjustedConstellation projectionsandareprovidedinthisjointproxystatement/prospectusundertheheadingUnaudited FinancialForecastsUnauditedFinancialForecastsofConstellationExelonsAdjustmentstothe ConstellationProjectionsbeginningonpage72;*reviewedtheexpectedsynergies;

• consideredthemeasuresdescribedtoJ.P.MorganbythemanagementofExelonasmeasuresExelonwouldbewillingtotaketofacilitategovernmentalandregulatoryapprovalofthemerger,whichwe refertoastheproposedconcessions;and*performedsuchotherfinancialstudiesandanalysesandconsideredsuchotherinformationasJ.P.Morgandeemedappropriateforthepurposesofitsopinion.Inaddition,J.P.MorganhelddiscussionswithcertainmembersofthemanagementsofConstellationandExelonwithrespecttocertainaspectsofthemerger,andthepastandcurrentbusinessoperationsofConstellation andExelon,thefinancialconditionandfutureprospectsandoperationsofConstellationandExelon,theeffects ofthemergeronthefinancialconditionandfutureprospectsofExelon,andcertainothermattersthatJ.P.

Morganbelievednecessaryorappropriatetoitsinquiry.Ingivingitsopinion,J.P.MorganrelieduponandassumedtheaccuracyandcompletenessofallinformationthatwaspubliclyavailableorwasfurnishedtoordiscussedwithJ.P.MorganbyConstellationand ExelonorotherwisereviewedbyorforJ.P.Morgan,andJ.P.Morgandidnotindependentlyverify,nordidJ.P.

84 Morganassumeresponsibilityorliabilityforindependentlyverifying,anysuchinformationoritsaccuracyorcompleteness.J.P.Morgandidnotconductandwasnotprovidedwithanyvaluationorappraisalofanyassetsor liabilities,nordidJ.P.MorganevaluatethesolvencyofConstellationorExelonunderanystateorfederallaws relatingtobankruptcy,insolvencyorsimilarmatters.Inrelyingonfinancialanalysesandforecastsprovidedto J.P.Morganorderivedtherefrom,includingtheexpectedsynergies,J.P.Morganassumedthattheywere reasonablypreparedbasedonassumptionsthatreflectedthebestthen-availableestimatesandjudgmentsby managementastotheexpectedfutureresultsofoperationsandfinancialconditionofConstellationandExelonto whichsuchanalysesorforecastsrelate.J.P.Morganexpressednoviewastosuchanalysesorforecasts,including theexpectedsynergies,ortheassumptionsonwhichtheywerebased.J.P.Morganalsoassumedthatthemerger andtheothertransactionscontemplatedbythemergeragreementwouldhavethetaxconsequencesdescribedin discussionswith,andmaterialsfurnishedtoJ.P.Morganby,representativesofExelon,andwouldbe consummatedasdescribedinthemergeragreement,andthatthedefinitivemergeragreementwouldnotdifferin anymaterialrespectsfromthedraftthereoffurnishedtoJ.P.Morgan.J.P.Morganfurtherassumedthatthe representationsandwarrantiesmadebyExelonandConstellationinthemergeragreementandtherelated agreementswereandwouldbetrueandcorrectinallrespectsmaterialtoJ.P.Morgansanalysis.J.P.Morganis notalegal,regulatoryortaxexpertandreliedontheassessmentsmadebyadvisorstoExelonwithrespectto suchissues.J.P.Morganfurtherassumedthatallmaterialgovernmental,regulatoryorotherconsentsand approvalsnecessaryfortheconsummationofthemergerwouldbeobtainedwithintheconstraintscontemplated bytheproposedconcessionsandwithoutanymaterialadverseeffectonConstellationorExelonoronthe contemplatedbenefitsofthemerger.J.P.Morgansopinionwasnecessarilybasedoneconomic,marketandotherconditionsasineffecton,andtheinformationmadeavailabletoJ.P.Morganasof,thedateofitsopinion.J.P.Morgansopinionnotedthat subsequentdevelopmentsmayaffectJ.P.Morgansopinion,andJ.P.Morgandoesnothaveanyobligationto update,revise,orreaffirmitsopinion.Furthermore,J.P.Morganexpressednoopinionwithrespecttotheamount ornatureofanycompensationtoanyofficers,directors,oremployeesofanypartytothemerger,oranyclassof suchpersons,relativetotheexchangeratiointhemergerorwithrespecttothefairnessofanysuch compensation.J.P.MorganexpressednoopinionastothepriceatwhichConstellationcommonstockorExelon commonstockwouldtradeatanyfuturetime.Thetermsofthemergeragreement,includingtheconsiderationtobepaidbyExeloninthemerger,weredeterminedthroughnegotiationbetweenExelonandConstellation,andthedecisiontoenterintothemerger agreementwassolelythatoftheboardofdirectorsofExelon.J.P.Morgansopinionandfinancialanalyseswere onlyoneofthemanyfactorsconsideredbyExelonsboardinitsevaluationofthemergerandshouldnotbe viewedasdeterminativeoftheviewsofExelonsboardofdirectorsormanagementwithrespecttothemergeror theexchangeratio,thevalueofConstellationorExelonorwhethertheExelonboardofdirectorswouldhave beenwillingtoagreetodifferentorotherformsofconsideration.Inaccordancewithcustomaryinvestmentbankingpractice,J.P.Morganemployedgenerallyacceptedvaluationmethodologiesinconnectionwithitsopinion.Thefollowingisasummaryofthematerialfinancial analysesusedbyJ.P.Morganinconnectionwithprovidingitsopinionanddoesnotpurporttobeacomplete descriptionoftheanalysesordatapresentedbyJ.P.Morgan.Someofthesummariesofthefinancialanalysesincludeinformationpresentedintabularformat.Tofullyunderstandthefinancialanalyses,thetables shouldbereadtogetherwiththetextofeachsummary.Consideringthedatasetforthinthetableswithout consideringthenarrativedescriptionofthefinancialanalyses,includingthemethodologiesand assumptionsunderlyingtheanalyses,couldcreateamisleadingorincompleteviewofthefinancial

analyses.Sum-of-the-PartsDiscountedCashFlowAnalysesGiventhedifferentnatureofthebusinessesinwhichConstellationandExelonparticipate,J.P.Morgananalyzedeachcompanyasthesumofitsconstituentbusinesssegments,orasthesum-of-the-parts,and performedadiscountedcashflowanalysisoneachofitsconstituentbusinesssegments.J.P.Morganperformed 85 separatesum-of-the-partsdiscountedcashflowanalysesoneachbusinesssegmentofConstellationandExelontoestimatethepresentvalueofthetotalunleveredfreecashflowsthatConstellationandExelonwereprojected togenerateonastandalonebasisforfiscalyears2011through2015(excludingtheexpectedsynergiesandother proformaadjustments)basedontheadjustedConstellationprojectionsandtheExelonprojections.Thefreecash flowsandrangeofterminalvalueswerediscountedtopresentvaluesasofJanuary1,2011usingarangeof discountrateswhichwerechosenbyJ.P.Morganbaseduponanalysisofmarketdiscountratesapplicableto comparablecompaniesandbusinesssegments.Thesum-of-the-partsdiscountedcashflowanalysesdonotimply thevalueatwhichtheindividualConstellationorExelonbusinessescouldbesold.

Constellation.FortheConstellationvaluationanalysis,J.P.Morganperformeddiscountedcashflowanalysisonthefollowingbusinesssegmentswiththeassumptionsandconsiderationsnotedbelow:Regulated (consistingoftheoperationsofBGE);theConstellationNewEnergylineofbusiness(which,forpurposesofits sum-of-the-partsdiscountedcashflowanalysis,J.P.MorgansplitintotheRetailbusiness,theWholesale business,theTradingbusinessandtheUpstreamGasbusiness);andConstellationGeneration(which,for purposesofitssum-of-the-partsdiscountedcashflowanalysis,J.P.MorgansplitintotheNon-Nuclear GenerationbusinessandtheNuclearGenerationbusiness).*ForConstellationsRegulatedsegment,J.P.Morgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingaperpetuitygrowthratetothesegmentsprojected2015cashflows, whichwereadjustedtocapturerun-rateunleveredfreecashflows.Theperpetuitygrowthraterange usedwas1.50%to2.00%.Theunleveredfreecashflowsandrangesofterminalvalueswerethen discountedtopresentvalueusingadiscountraterangeof5.25%to5.75%.*ForConstellationsRetailbusiness,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof4.5xto5.5xtotheprojected2015 EBITDAoftheRetailbusiness.Theunleveredfreecashflowsandrangesofterminalvaluesofthe Retailbusinesswerethendiscountedtopresentvalueusingadiscountraterangeof9.50%to10.50%.*ForConstellationsWholesalebusiness,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof4.5xto5.5xtotheprojected 2015EBITDAoftheWholesalebusiness.Theunleveredfreecashflowsandrangesofterminalvalues oftheWholesalebusinesswerethendiscountedtopresentvalueusingadiscountraterangeof9.50%

to10.50%.*ForConstellationsTradingbusiness,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof0.5xto1.5xtotheprojected 2015EBITDAoftheTradingbusiness.Theunleveredfreecashflowsandrangesofterminalvaluesof theTradingbusinesswerethendiscountedtopresentvalueusingadiscountraterangeof12.50%to

13.50%.*ForConstellationsUpstreamGasbusiness,J.P.Morganappliedamultipleofthesegmentsprovenmillioncubicfeetofnaturalgasequivalentsperday,orMCFE/D,tothemedianamountpaidper MCFE/DincomparabletransactionssinceFebruary2009of$9,204,whilealsoaccountingforthe marketvalueofConstellationsapproximately26%stakeinConstellationEnergyPartners.*ForConstellationsNon-NuclearGenerationbusiness,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof7.75xto 8.25xtotheprojected2015EBITDAoftheNon-NuclearGenerationbusiness.Theunleveredfreecash flowsandrangesofterminalvaluesoftheNon-NuclearGenerationbusinesswerethendiscountedto presentvalueusingadiscountraterangeof7.00%to8.00%.*ForConstellationsNuclearGenerationbusiness,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof7.75xto8.25xtothe projected2015EBITDAoftheNuclearGenerationbusiness.Theunleveredfreecashflowsandranges ofterminalvaluesoftheNuclearGenerationbusinesswerethendiscountedtopresentvalueusinga discountraterangeof7.00%to8.00%.

86 Exelon.FortheExelonvaluationanalysis,J.P.MorganperformeddiscountedcashflowanalysisonthePECO,ComEdandExelonGenerationbusinesssegmentsaswellasExelonsotherbusinesswiththe assumptionsandconsiderationsnotedbelow:*ForExelonsPECOsegment,J.P.Morgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofperpetuitygrowthratesof1.50%to2.00%tothePECO segmentsprojected2015unleveredfreecashflows.Theunleveredfreecashflowsandrangesof terminalvaluesofthePECOsegmentwerethendiscountedtopresentvalueusingadiscountraterange of5.25%to5.75%.*ForExelonsComEdsegment,J.P.Morgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofperpetuitygrowthratesof1.50%to2.00%totheComEd segmentsprojected2015unleveredcashflows.Theunleveredfreecashflowsandrangesofterminal valuesoftheComEdsegmentwerethendiscountedtopresentvalueusingadiscountraterangeof 5.25%to5.75%.*ForExelonsGenerationsegment,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof8.25xto8.75xtotheGeneration segmentsprojected2015EBITDA.Theunleveredfreecashflowsandrangesofterminalvaluesofthe ExelonGenerationsegmentwerethendiscountedtopresentvalueusingadiscountraterangeof6.50%

to7.50%.*ForExelonsotherbusinesses,J.P.MorgancalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingarangeofEBITDAexitmultiplesof8.0xto8.5xtotheseother businessesprojected2015EBITDA.Theunleveredfreecashflowsandrangesofterminalvaluesof theseotherbusinesseswerethendiscountedtopresentvalueusingadiscountraterangeof5.84%to

6.84%.TheConstellationandExelonsum-of-the-partsdiscountedcashflowanalysesimpliedapershareequityvaluereferencerangeforConstellationofapproximately$37.54to$49.88andapershareequityvaluereference rangeforExelonofapproximately$39.88to$50.67;afteradjustmentsforexpecteddividendstobepaidtoeach companyssetofshareholdersbetweenthedateofthemergeragreementandanestimatedclosingonMarch31, 2012,theConstellationandExelonsum-of-the-partsdiscountedcashflowanalysesimpliedapershareequity valuereferencerangeforConstellationofapproximately$36.39to$48.73andapershareequityvaluereference rangeforExelonofapproximately$37.35to$48.15.Basedontheimpliedpershareequityvaluereference rangesforConstellationandExelondescribedabove(afteradjustmentsforsuchexpecteddividendstobepaid),

theseanalysesindicatedthefollowingimpliedexchangeratioreferencerange,ascomparedtothe0.930 exchangeratioprovidedforinthemergeragreement:ImpliedExchangeRatioReferenceRange MergerExchangeRatio0.7557x-1.3047x0.9300xConsolidatedTradingComparablesAnalysesJ.P.MorganperformedseparateconsolidatedtradingcomparableanalysesofConstellationandExeloninwhichJ.P.MorgancomparedthefinancialandoperatingperformanceofConstellationandExelonwitheach otherandthefollowingfourpublicly-tradedregulatedutilities,referredtoastheselectedconsolidated

companies:*EntergyCorporation

• PublicServiceEnterpriseGroupInc.

• NextEraEnergy,Inc.

• FirstEnergyCorp.

87 InevaluatingtheselectedconsolidatedcompaniesidentifiedbyJ.P.MorganasreasonablycomparabletoConstellationandExelon,J.P.Morganmadejudgmentsandassumptionswithregardtoindustryperformance, generalbusiness,economic,marketandfinancialconditionsandothermatters,manyofwhicharebeyondthe controlofConstellationorExelon.J.P.Morganreviewed,amongotherinformation,eachcompanyspershare equityvalueasamultipleofcalendaryear2012estimatedEPS.J.P.Morganalsoreviewedeachcompanysfirm valueasamultipleofcalendaryear2012estimatedEBITDA,orCY12EBITDA.Forpurposesoftheseanalyses, equityvalueswerecalculatedbasedonclosingstockpricesonApril26,2011,andfirmvalueswerecalculatedas marketvalues,basedonclosingstockpricesonApril26,2011,plustotaldebt,preferredstock,capitalleasesand minorityinterest,lesscashandcashequivalents,asofDecember31,2010.Cashandcashequivalentsfor ConstellationwereadjustedforthepurchaseoftheBostonGeneratingassetsandthesaleofQuailRun.

Constellation.WithrespecttoitsconsolidatedtradingcomparableanalysisofConstellation,J.P.Morganappliedarangeofmultiplesof6.0xto7.0xtoCY12EBITDA(excludingtheexpectedsynergies,purchase accountingandotherproformaadjustments)derivedfromtheselectedconsolidatedcompaniestocorresponding dataofConstellationbasedontheadjustedConstellationprojectionsandConstellationspublicfilings.Estimated financialdataoftheselectedconsolidatedcompanieswerebasedonpubliclyavailableWallStreetresearch analystsestimates.ThisanalysisimpliedapershareequityvaluereferencerangeforConstellationbasedon CY12EBITDAofapproximately$33.19to$41.86.

Exelon.WithrespecttoitsconsolidatedtradingcomparableanalysisofExelon,J.P.Morganappliedarangeofmultiplesof7.0xto8.0xtoCY12EBITDA(excludingtheexpectedsynergies,purchaseaccountingandother proformaadjustments)derivedfromtheselectedconsolidatedcompaniestocorrespondingdataofExelonbased ontheExelonprojectionsandExelonspublicfilings.Estimatedfinancialdatafortheselectedconsolidated companieswasbasedonpubliclyavailableWallStreetresearchanalystsestimates.Thisanalysisimpliedper shareequityvaluereferencerangesforExelonbasedonCY12EBITDAofapproximately$38.88to$46.83.BasedontheimpliedpershareequityvaluereferencerangesforConstellationandExelondescribedabove,theseanalysesindicatedthefollowingimpliedexchangeratioreferencerange,ascomparedtothe0.930 exchangeratioprovidedforinthemergeragreement:ImpliedExchangeRatioReferenceRange MergerExchangeRatio0.7087x-1.0766x0.9300xSum-of-the-PartsTradingComparableAnalysesJ.P.Morganalsoperformedseparatesum-of-the-partstradingcomparableanalysesforeachofConstellationsandExelonsconstituentbusinesssegmentsbasedontheadjustedConstellationprojectionsand theExelonprojections.J.P.Morgancomparedcertainfinancialmeasuresofselectedcomparablecompaniesto thoseoftherelevantbusinesssegmentswithinConstellationandExelon(excludingtheexpectedsynergiesand otherproformaadjustments).J.P.Morganselectedthesecomparablecompaniesbaseduponitsviewsastothe comparabilityofthefinancialandoperatingcharacteristicsofthesecompaniestotherelevantConstellationand Exelonbusinesssegments.J.P.MorgancalculatedreferencevaluerangesfortheConstellationandExelon businesssegmentsbyapplyingvariousmultiplesderivedfromthesecomparablecompaniestoselectedfinancial measuresoftherelevantConstellationandExelonbusinesssegments.Thesum-of-the-partstradingcomparable analysesdonotimplythevalueatwhichtheindividualConstellationorExelonbusinessescouldbesold.This analysisimpliedpershareequityvaluereferencerangesforConstellationofapproximately$36.05to$42.97,and forExelonofapproximately$42.94to$49.49.

88 BasedontheimpliedpershareequityvaluereferencerangesforConstellationandExelondescribedabove,theseanalysesindicatedthefollowingimpliedexchangeratioreferencerange,ascomparedtothe0.930 exchangeratioprovidedforinthemergeragreement:ImpliedExchangeRatioReferenceRange MergerExchangeRatio0.7284x-1.0007x0.9300xContributionAnalysisJ.P.MorganalsoreviewedselectedestimatedfuturefinancialinformationforConstellationandExelontodetermineConstellationsandExelonsrelativecontributiontothecombinedcompanyafterthemerger.J.P.

MorgananalyzedConstellationsandExelonsrelativecontributiontoestimatedleverage-adjustedEBITDAand netincomeforthecalendaryears2011through2015(excludingtheexpectedsynergiesandotherproforma adjustments)basedontheadjustedConstellationprojectionsandtheExelonprojections.Basedontherelative contributionsofConstellationandExelontothecombinedcompanycalculatedinthecontributionanalysis,J.P.

Morgancalculatedthefollowingimpliedexchangeratioreferencerange,ascomparedtothe0.930exchange ratioprovidedforinthemergeragreement:ImpliedExchangeRatioReferenceRange MergerExchangeRatio0.6178x-1.2640x0.9300xRelativePotentialProFormaValueCreationfromExpectedSynergiesAnalysisJ.P.MorganreviewedforinformationalpurposesthepotentialvaluecreationofthemergerforExelontakingintoaccounttheexpectedsynergies.J.P.Morgananalyzedthemarketvaluecreationattheexchangeratio bycomparingthemarketvalueforExelonasofApril26,2011withthepotentialmarketvalueoftheproforma combinedcompanydeterminedbyaddingtherespectivemarketvaluesofConstellationandExelonasof April26,2011tothemidpointofthenetpresentvaluereferencerange(asofJanuary1,2011)oftheexpected synergies,netofproformaadjustments.J.P.MorganthencalculatedthevalueattributabletoExelons proportionateinterestintheresultingimpliedmarketvalueoftheproformacombinedcompanybasedonthe equityownershippercentageofExelonshareholdersinthecombinedcompanyimpliedbythe0.930exchange ratioprovidedforinthemergeragreement.ThisanalysisindicatedpotentialproformavaluecreationforExelon ofapproximately3.2%.J.P.MorganalsoreviewedforinformationalpurposesthediscountedcashflowvaluecreationattheexchangeratiobycomparingtheequityvalueimpliedforExelononastandalonebasisandthepotentialpro formaequityvalueofthecombinedcompanytakingintoaccounttheexpectedsynergies.Forillustrative purposes,J.P.MorgancalculatedastandalonevalueforExelonutilizingthemidpointoftheequityvalue referencerangeimpliedfromthesum-of-the-partsdiscountedcashflowanalysisofExelondescribedabove.J.P.

Morganthenaddedtosuchimpliedequityvaluethemidpointoftheequityvaluereferencerangeimpliedfrom thesum-of-the-partsdiscountedcashflowanalysisofConstellationdescribedaboveandthemidpointofthenet presentvaluereferencerange(asofJanuary1,2011)oftheexpectedsynergies,netofproformaadjustments.

J.P.MorganthencalculatedthevalueattributabletoExelonsproportionateinterestintheresultingimplied equityvalueoftheproformacombinedcompanybasedontheequityownershippercentageofExelon shareholdersinthecombinedcompanyimpliedbythe0.930exchangeratioprovidedforinthemerger agreement.ThisanalysisindicatedpotentialproformavaluecreationforExelonofapproximately6.4%.AnalysisofMergerImpactonEPSandFCFJ.P.Morganreviewedforinformationalpurposesthepotentialproformafinancialeffectsofthemergeraftertakingintoaccounttheexpectedsynergiesexpectedtoresultfromthemerger,aswellaspurchase accountingandotherproformaadjustments,onExelonscalendaryears2012through2015standaloneestimated 89 EPSandfreecashflow(calculatedascashflowsfromoperationslesschangesinworkingcapital(includingchangesinnon-currentotherassetsandnon-currentotherliabilities)lesscapitalexpendituresandpreferred dividends),orFCF,relativetothecombinedcompanysestimatedEPSandFCFduringthosecalendaryears utilizingtheExelonprojectionsandtheadjustedConstellationprojections,notingthat,basedonthe0.930 exchangeratioprovidedforinthemergeragreement,themergercouldbeaccretiverelativetoExelons standaloneestimatedEPSandFCFduringallyearsinsuchperiodotherthan,inthecaseofEPS,2012whenthe mergercouldbeslightlydilutive.J.P.Morganalsoreviewedforinformationalpurposesthepotentialproformafinancialeffectsofthemergeraftertakingintoaccounttheexpectedsynergies,aswellaspurchaseaccountingandotherproformaadjustments, onExelonscalendaryears2012and2013standaloneestimatedEPSrelativetothecombinedcompanys estimatedEPSduringthosecalendaryearsutilizingpubliclyavailableWallStreetresearchanalystsestimates, notingthat,basedonthe0.930exchangeratioprovidedforinthemergeragreement,themergercouldbe accretiverelativetoExelonsstandaloneestimatedEPSduringallyearsinsuchperiodotherthan,inthecaseof EPSexcludingpurchaseaccounting,2012.Theactualresultsachievedbythecombinedcompanymayvaryfromprojectedresultsandthevariationsmaybematerial.OtherInformationJ.P.Morganalsoreviewedforinformationalpurposes,amongotherthings,thefollowing:*latest12monthsEBITDA,orLTMEBITDA,multiplespaidinselectedcompletedprecedenttransactionsinvolvinghybrid/independentpowerproducerutilitieswhich,whenapplyingaselected rangeofsuchmultiplestoConstellationsLTMEBITDA(asofDecember31,2010basedoninternal estimatesofConstellationsmanagementandConstellationspublicfilings),indicatedanimpliedper shareequityreferencerangeforConstellationofapproximately$38.43to$46.60;*historicaltradingpricesduringthe52-weekperiodendedApril26,2011ofConstellationcommonstockandExeloncommonstockof$27.68to$37.56pershareand$37.63to$44.28pershare, respectively,andimpliedexchangeratioreferencerangesderivedfromtherespectivehighvs.high closingpricesandlowvs.lowclosingpricesofConstellationcommonstockandExeloncommon stockduringsuchperiodof0.7356xto0.8482x;and*WallStreetanalystspricetargetsforConstellationcommonstockandExeloncommonstockof$31.00to$38.00pershareand$37.00to$56.00pershare,respectively.Pricetargetswerebasedon WallStreetanalystspricetargetsreleasedaftertheannouncementofExelonsandConstellationsfull year2010results.

MiscellaneousThesummaryaboveofcertainfinancialanalysesdoesnotpurporttobeacompletedescriptionoftheanalysesordatapresentedbyJ.P.Morgan.Thepreparationofafairnessopinionisacomplexprocessandisnot necessarilysusceptibletopartialanalysisorsummarydescription.J.P.Morganbelievesthattheforegoing summaryanditsanalysesmustbeconsideredasawholeandthatselectingportionsthereof,orfocusingon informationintabularformat,withoutconsideringallofitsanalysesandthenarrativedescriptionoftheanalyses, couldcreateanincompleteviewoftheprocessesunderlyingitsanalysesandopinion.Inarrivingatitsopinion, J.P.Morgandidnotattributeanyparticularweighttoanyanalysesorfactorsconsideredbyitanddidnotforman opinionastowhetheranyindividualanalysisorfactor(positiveornegative),consideredinisolation,supported orfailedtosupportitsopinion.Rather,J.P.Morganconsideredtheresultsofallofitsanalysesasawholeand madeitsdeterminationastofairnessonthebasisofitsexperienceandprofessionaljudgmentafterconsidering theresultsofallofitsanalyses.

90 Analysesbasedonforecastsoffutureresultsareinherentlyuncertain,astheyaresubjecttonumerousfactorsoreventsbeyondthecontroloftheparties.Accordingly,forecastsandanalysesusedorperformedbyJ.P.

Morganarenotnecessarilyindicativeofactualfutureresults,whichmaybesignificantlymoreorlessfavorable thansuggestedbythoseanalyses.Moreover,J.P.Morgansanalysesarenotanddonotpurporttobeappraisals orotherwisereflectiveofthepricesatwhichbusinessesactuallycouldbeacquiredorsold.Noneoftheselected companiesreviewedasdescribedintheabovesummaryisidenticaltoConstellationorExelon,andnoneofthe selectedtransactionsreviewedasdescribedintheabovesummaryisidenticaltothemerger.However,the companiesselectedwerechosenbecausetheyarepubliclytradedcompanieswithoperationsandbusinessesthat, forpurposesofJ.P.Morgansanalyses,maybeconsideredsimilartothoseofConstellationandExelon.The transactionsselectedweresimilarlychosenfortheirparticipants,sizeandotherfactorsthat,forpurposesofJ.P.

Morgansanalysis,maybeconsideredsimilartothoseofthemerger.Theanalysesnecessarilyinvolvecomplex considerationsandjudgmentsconcerningdifferencesinfinancialandoperationalcharacteristicsofthe companiesinvolvedandotherfactorsthatcouldaffectthecompaniescomparedtoConstellationandExelonand thetransactionscomparedtothemerger.Aspartofitsinvestmentbankingandfinancialadvisorybusiness,J.P.Morgananditsaffiliatesarecontinuallyengagedinthevaluationofbusinessesandtheirsecuritiesinconnectionwithmergersand acquisitions,investmentsforpassiveandcontrolpurposes,negotiatedunderwritings,competitivebiddings, secondarydistributionsoflistedandunlistedsecurities,privateplacementsandvaluationsforestate,corporate andotherpurposes.J.P.MorganwasselectedbyExelonasitsfinancialadvisorwithrespecttothemergeronthe basisofsuchexperienceanditsqualificationsandreputationinconnectionwithmergersandacquisitions.J.P.MorganhasactedasfinancialadvisortoExelonwithrespecttothemergerandwillreceiveafeefromExelonforitsservices,ofwhich$4millionwaspayableupondeliveryofitsopinion,$4millionofwhichwill becomepayableiftheExelonshareholdersapprovetheshareissuanceand$12millionofwhichwillbecome payableifthemergerisconsummated.IfthemergeragreementisterminatedandExelonispaidabreak-upfee byConstellation,thenExelonshallpayJ.P.Morganafeeinanamountequalto5%ofthebreak-upfee,lessthe opinionfeeandshareholderapprovalfee,ifpaid.ExelonhasagreedtoreimburseJ.P.Morganforitsexpenses incurredinconnectionwithitsservices,includingthefeesanddisbursementsofcounsel,andtoindemnifyJ.P.

Morgananditsaffiliatesforcertainliabilitiesarisingoutofitsengagement.Duringthetwoyearsprecedingthe dateofJ.P.Morgansopinion,J.P.Morgananditsaffiliateshavehadcommercialorinvestmentbanking relationshipswithExelon,Constellationand/ortheirrespectiveaffiliatesforwhichJ.P.Morgananditsaffiliates havereceivedcustomarycompensation.Suchservicesduringsuchperiodhaveincludedactingas(1)jointbook-runnerforofferingsofinvestmentgradedebtsecuritiesbyComEdandExelonGenerationinJanuary2011and September2009,respectively,(2)leadarrangerforcreditfacilitiesforExelonGeneration,ExelonandPECOin March2011,forComEd,ExelonGenerationandPECOinOctober2010andforComEdinMarch2010,and (3)financialadvisortoExelon,beginninginOctober2010,inconnectionwithExelonsanalysisand considerationofvariouspotentialtransactions.Inaddition,J.P.Morganscommercialbankingaffiliateisan agentbankandalenderunderoutstandingcreditfacilitiesofExelonandcertainofitsaffiliatesandalender underoutstandingcreditfacilitiesofConstellation,aswellasprovidingcertaincashmanagementandtreasury servicesforeachofExelonandConstellation,forwhichJ.P.Morganreceivescustomarycompensationorother financialbenefits.Intheordinarycourseofbusiness,J.P.Morgananditsaffiliatesmayactivelytradethedebt andequitysecuritiesofExelonorConstellationforitsownaccountorfortheaccountsofcustomersand, accordingly,J.P.Morganmayatanytimeholdlongorshortpositionsinsuchsecurities.OpinionofEvercoreGroupL.L.C.Inconnectionwiththemerger,ExelonretainedEvercoreGroupL.L.C.,orEvercore,toactasafinancialadvisortoExelonsboardofdirectors.OnApril27,2011,atameetingoftheExelonboardofdirectors,Evercore rendereditsoralopinion,subsequentlyconfirmedbydeliveryofawrittenopinionthat,asofApril27,2011and baseduponandsubjecttothefactors,procedures,assumptions,qualificationsandlimitationssetforthinits opinion,theexchangeratiopursuanttothemergeragreementwasfair,fromafinancialpointofview,toExelon.

91 ThefulltextofthewrittenopinionofEvercore,datedasofApril27,2011,whichsetsforth,amongotherthings,theproceduresfollowed,assumptionsmade,mattersconsideredandqualificationsand limitationsonthescopeofreviewundertakeninrenderingitsopinion,isattachedasAnnexDtothisjoint proxystatement/prospectusandisincorporatedbyreferenceinitsentiretyintothisjointproxystatement/

prospectus.Youareurgedtoreadthisopinioncarefullyandinitsentirety.Evercoresopinionwas addressedto,andprovidedfortheinformationandbenefitof,theExelonboardofdirectors(inits capacityassuch)inconnectionwithitsevaluationoftheexchangeratiofromafinancialpointofviewand didnotaddressanyotheraspectsorimplicationsofthemerger.Theopiniondoesnotconstitutea recommendationtotheExelonboardofdirectorsortoanyotherpersonsinrespectofthemerger, includingastohowanyholderofsharesofExeloncommonstockshouldvoteoractinrespectofthe Exelonshareissuance.Evercoresopiniondoesnotaddresstherelativemeritsofthemergerascompared tootherbusinessorfinancialstrategiesthatmightbeavailabletoExelon,nordoesitaddressthe underlyingbusinessdecisionofExelontoengageinthemerger.Inconnectionwithrenderingitsopinionandperformingitsrelatedfinancialanalysis,Evercore,amongotherthings:*reviewedcertainpubliclyavailablebusinessandfinancialinformationrelatingtoExelonandConstellationthatEvercoredeemedtoberelevant,includingpubliclyavailableresearchanalysts

estimates;*reviewedfinancialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofExelonfurnishedtoEvercorebyExelon,includingfinancialprojectionsofExelonpreparedby managementofExelon,whichwerefertoastheExelonprojectionsandareprovidedinthisjointproxy statement/prospectusundertheheadingUnauditedFinancialForecastsUnauditedFinancial ForecastsofExelonbeginningonpage69;*reviewedfinancialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofConstellation,furnishedtoEvercorebyConstellationandExelon,including(1)financialprojectionsof ConstellationpreparedbythemanagementofConstellation,whichwerefertoastheConstellation projectionsandareprovidedinthisjointproxystatement/prospectusundertheheadingUnaudited FinancialForecastsUnauditedFinancialForecastsofConstellationConstellationProjections beginningonpage71,and(2)financialprojectionsofConstellationunderalternativebusiness assumptionspreparedbythemanagementofExelon,whichwerefertoastheadjustedConstellation projectionsandareprovidedinthisjointproxystatement/prospectusundertheheadingUnaudited FinancialForecastsUnauditedFinancialForecastsofConstellationExelonsAdjustmentstothe ConstellationProjectionsbeginningonpage72;*reviewedtheexpectedsynergies;

• discussedthepastandcurrentoperations,financialprojectionsandcurrentfinancialconditionofExelonwithmanagementofExelon(includingtheirviewsontherisksanduncertaintyofachievingthe Exelonprojections);*reviewedthereportedpricesandthehistoricaltradingactivitiesforExelonandConstellationcommon stock;*comparedthefinancialperformanceofExelonandConstellationandtheirstockmarkettradingmultipleswiththoseofcertainotherpubliclytradedcompaniesthatEvercoredeemedrelevant;*reviewedtherelativefinancialcontributionsofExelonandConstellationtothefuturefinancialperformanceofthecombinedcompanyonaproformabasis;*reviewedadraftmergeragreementdatedApril26,2011,whichEvercoreassumedwasinsubstantiallyfinalformandfromwhichEvercoreassumedthefinalformwouldnotvaryinanyrespectmaterialto itsanalyses;and 92

• performedsuchotheranalysesandstudiesandconsideredsuchotherinformationandfactorsasEvercoredeemedappropriate.Forpurposesofitsanalysisandopinion,Evercoreassumedandreliedupon,withoutundertakinganyindependentverificationof,theaccuracyandcompletenessofalloftheinformationpubliclyavailable,andallof theinformationsuppliedorotherwisemadeavailableto,discussedwith,orreviewedbyEvercore,andEvercore hasnotassumedanyliabilitytherefor.Forpurposesofitsanalysis,atthedirectionofExelonmanagement, EvercoreusedtheadjustedConstellationprojectionsratherthantheConstellationprojections.Withrespecttothe projectedfinancialdatarelatingtoExelonreferredtoabove,Evercoreassumedthattheyhavebeenreasonably preparedonbasesreflectingthebestcurrentlyavailableestimatesandgoodfaithjudgmentsofExelon managementastothefuturefinancialperformanceofExelonandConstellationunderthealternativebusiness assumptionsreflectedtherein.Evercoreexpressednoviewastoanyprojectedfinancialdatarelatingto ConstellationorExelonortheassumptionsonwhichtheyarebased.Withrespecttotheexpectedsynergies anticipatedbyExelonmanagementtoresultfromthemerger,EvercoreassumedatthedirectionofExelon managementthatthetimingandamountofsuchexpectedsynergiesarereasonableandthattheywillberealized substantiallyinaccordancewithsuchestimates.AtthedirectionofExelonmanagement,Evercoreconsideredthe proposedconcessions,describedtoEvercorebythemanagementofExelonasmeasuresExelonwouldbewilling totaketofacilitategovernmentalandregulatoryapprovalofthemerger.Evercoreexpressednoviewastothe sufficiencyorimpactof,ortheassumptionsunderlyingExelonsinternalfinancialforecastsregarding,the proposedconcessions.Forpurposesofrenderingitsopinion,Evercoreassumed,inallrespectsmaterialtoitsanalysis,thattherepresentationsandwarrantiesofeachpartycontainedinthemergeragreementaretrueandcorrect,thateach partywillperformallofthecovenantsandagreementsrequiredtobeperformedbyitunderthemerger agreementandthatallconditionstotheconsummationofthemergerwillbesatisfiedwithoutmaterialwaiveror modificationthereof.Otherthanascontemplatedbytheproposedconcessions,Evercorefurtherassumedthatall governmental,regulatoryorotherconsents,approvalsorreleasesnecessaryfortheconsummationofthemerger willbeobtainedwithoutanymaterialdelay,limitation,restrictionorconditionthatwouldhaveanadverseeffect onConstellation,ExelonortheconsummationofthemergerormateriallyreducethebenefitstoExelonofthe

merger.EvercoredidnotmakenorassumeanyresponsibilityformakinganyindependentvaluationorappraisaloftheassetsorliabilitiesofConstellationorExelon,norwasEvercorefurnishedwithanysuchappraisals,nordid EvercoreevaluatethesolvencyorfairvalueofConstellationorExelonunderanystateorfederallawsrelatingto bankruptcy,insolvencyorsimilarmatters.Evercoresopinionwasnecessarilybaseduponinformationmade availabletoitasofthedateoftheopinionandfinancial,economic,marketandotherconditionsastheyexisted andascouldbeevaluatedonthedateoftheopinion.Itisunderstoodthatsubsequentdevelopmentsmayaffect EvercoresopinionandthatEvercoredoesnothaveanyobligationtoupdate,reviseorreaffirmitsopinion.Evercorewasnotaskedtopassupon,andexpressednoopinionwithrespectto,anymatterotherthanthefairnesstoExelon,fromafinancialpointofview,oftheexchangeratioasofApril27,2011.Evercoredidnot expressanyviewon,anditsopiniondidnotaddress,thefairnessoftheproposedtransactionto,orany considerationreceivedinconnectiontherewithby,theholdersofanysecurities,creditorsorotherconstituencies ofExelonorConstellation,norastothefairnessoftheamountornatureofanycompensationtobepaidor payabletoanyoftheofficers,directorsoremployeesofExelonorConstellation,oranyclassofsuchpersons, whetherrelativetotheexchangeratioorotherwise.Evercoreassumedthatanymodificationtothestructureof thetransactionwouldnotvaryinanyrespectmaterialtoitsanalysis.Evercoresopiniondidnotaddressthe relativemeritsofthemergerascomparedtootherbusinessorfinancialstrategiesthatmightbeavailableto Exelon,nordiditaddresstheunderlyingbusinessdecisionofExelontoengageinthemerger.Evercoresopinion didnotconstitutearecommendationtotheExelonboardofdirectorsortoanyotherpersonsinrespectofthe merger,includingastohowanyholderofsharesofExeloncommonstockshouldvoteoractinrespectofthe stockissuance.EvercoreexpressednoopinionastothepriceatwhichsharesofExelonorConstellationcommon 93 stockwouldtradeatanytime.Evercoreisnotalegal,regulatory,accountingortaxexpertandassumedtheaccuracyandcompletenessofassessmentsbyExelonanditsadvisorswithrespecttolegal,regulatory, accountingandtaxmatters.SetforthbelowisasummaryofthematerialfinancialanalysesreviewedbyEvercorewiththeExelonboardofdirectorsonApril27,2011inconnectionwithrenderingitsopinion.Thefollowingsummary,however,does notpurporttobeacompletedescriptionoftheanalysesperformedbyEvercore.Theorderoftheanalyses describedandtheresultsoftheseanalysesdonotrepresentrelativeimportanceorweightgiventotheseanalyses byEvercore.Exceptasotherwisenoted,thefollowingquantitativeinformation,totheextentthatitisbasedon marketdata,isbasedonmarketdatathatexistedonorbeforeApril26,2011(thelasttradingdaypriorto April27,2011,thedateonwhichtheExelonboardofdirectorsapprovedthemerger),andisnotnecessarily indicativeofcurrentmarketconditions.Thefollowingsummaryoffinancialanalysesincludesinformationpresentedintabularformat.Thesetablesmustbereadtogetherwiththetextofeachsummaryinordertounderstandfullythefinancial analyses.Thetablesalonedonotconstituteacompletedescriptionofthefinancialanalyses.Considering thetablesbelowwithoutconsideringthefullnarrativedescriptionofthefinancialanalyses,includingthe methodologiesandassumptionsunderlyingtheanalyses,couldcreateamisleadingorincompleteviewof Evercoresfinancialanalyses.SumofthePartsAnalysis:GiventhedifferentnatureoftheconstituentbusinessesownedandoperatedbyeachofConstellationandExelon,Evercoreanalyzedeachcompanyasthesumofitsconstituentbusinesses,oras thesum-of-the-parts.EvercorevaluedeachconstituentbusinessofConstellationandExelonbasedonthe segmentinformationwithintheadjustedConstellationprojectionsandtheExelonprojectionsbyeither performingadiscountedcashflowanalysisorusingpeergrouptradinganalysisbyapplyingvariousmultiplesto selectedfinancialoroperationalmeasuresofthebusinesssegment.Thediscountedcashflowanalysisorpeer grouptradinganalysismethodologiesusedwereconsistentwiththosedescribedbelow.FortheExelonsum-of-the-partsanalysis,Evercoreanalyzedthefollowingbusinessunits:*RegulatedUtility:ForComEdandPECO,Exelonsregulatedbusinesssegment,Evercoreutilized:*Peergrouptradinganalysistocalculatethesegmentsenterprisevalueusingestimatesandmultiplesforcalendaryears2012and2013ofEBITDA,andEPS,andequitybookvalueasof December31,2010basedonagroupofselectedpubliclytradedcompaniesintheutilities industrywithbothelectrictransmissionanddistributionoperationsandnaturalgasdistribution

operations.*Discountedcashflowanalysistocalculatethesegmentspresententerprisevalueusingadiscountraterangeof5.5-6.5%andaterminalvaluebasedona7.0x-8.0xEBITDAmultiple.Thediscount rateandterminalvaluemultiplerangeswerebasedonagroupofselectedpubliclytraded companiesintheutilitiesindustrywithbothelectrictransmissionanddistributionoperationsand naturalgasdistributionoperations.*ExelonGeneration:ForExelonsunregulatedbusinessunit,ExelonGeneration,Evercorecalculatedthesegmentsenterprisevalueusinggenerationcapacityandmultiples,onadollarsperkilowattbasis impliedbyassetsales,asdifferentiatedbyfuelandtechnologytype.Forassettypeswheretherehave notbeenanyrecenttransactions,researchestimatesofgenerationassetvaluesonadollarsperkilowatt basiswereusedinstead.EvercoreseparatelycalculatedthenetpresentvalueofExelonsnuclearuprate programusingadiscountedcashflowanalysiswithinputsbasedontheprogramscashflows generatedforthefiscalyearsendingDecember31,2011throughDecember31,2020,asprovidedby Exelon,usingaterminalvaluebasedona7.5xEBITDAmultipleandadiscountrateof8%.The discountrateandterminalvaluemultiplewerebasedonagroupofselectedpubliclytradedcompanies intheutilitiesindustrywithmerchantgenerationoperations.*NovaluewasattributedtoExelon,apartfromComEd,PECOandExelonGeneration.

94 EvercorethencalculatedarangeofimpliedequityvaluespershareofExeloncommonstockbysubtractingestimatedconsolidatednetdebtasofDecember31,2010fromtheconsolidatedestimatedenterprisevalue derivedusingthesum-of-the-partsmethodologydescribedaboveanddividingsuchamountbythenumberof fullydilutedExelonsharesoutstanding.FortheConstellationsum-of-the-partsanalysis,Evercoreanalyzedthefollowingbusinessunits:*RegulatedUtility:ForBGE,Constellationsregulatedbusinesssegment,Evercoreutilized:*Peergrouptradinganalysistocalculatethesegmentsenterprisevalueusingestimatesandmultiplesforcalendaryears2012and2013ofEBITDA,EPSandequitybookvalueasof December31,2010basedonagroupofselectedpubliclytradedcompaniesintheutilities industrywithbothelectrictransmissionanddistributionoperationsandnaturalgasdistribution operations.TheEBITDAwasadjustedtoexcludetherevenuesassociatedwithBGEsrate stabilizationbonds.*Discountedcashflowanalysistocalculatethesegmentspresententerprisevalueusingadiscountraterangeof5.5%-6.5%andaterminalvaluebasedona7.0x-8.0xEBITDAmultiple.The discountrateandterminalvaluemultiplerangeswerebasedonagroupofselectedpubliclytraded companiesintheutilitiesindustrywithbothelectrictransmissionanddistributionoperationsand naturalgasdistributionoperations.*Generation:ForConstellationsunregulatedgenerationassets,Evercorecalculatedthesegmentsenterprisevalueusinggenerationcapacityandmultiples,onadollarsperkilowattbasisimpliedby assetsales,asdifferentiatedbyfuelandtechnologytype.Themultipleswerebasedontransactionsfor assetswithsimilarfueltypesortechnologieswherepossible.Forassettypeswheretherehavenotbeen anyrecenttransactions,researchestimatesofgenerationassetvaluesonadollarsperkilowattbasis wereusedinstead.*Retail/Marketing:ForConstellationsretailmarketingandcommoditybusiness,ConstellationNewEnergy,Evercorecalculatedthesegmentsenterprisevalueusingmarketvaluefortheshare ownedbyConstellationandusingmultiplesderivedfrompeergrouptradinganalysisfortherestofthe upstreamandNewEnergybusinesses.*NovaluewasattributedtotheConstellationcorporatesegment.EvercorethencalculatedarangeofimpliedequityvaluespershareofConstellationcommonstockbysubtractingestimatedconsolidatednetdebtasofDecember31,2010fromtheconsolidatedestimatedenterprise valuederivedusingthesum-of-the-partsmethodologydescribedaboveanddividingsuchamountbythenumber offullydilutedConstellationsharesoutstanding.TheanalysisindicatedthefollowingpershareequityvaluereferencerangeforeachofConstellationandExelon.Basedonthesepershareequityvaluereferenceranges,Evercorecalculatedtheimpliedexchangeratio bydividingthelowestpershareequityvalueforConstellationbythehighestpershareequityvalueforExelon forthelowendoftheexchangeratiorangeanddividingthehighestpershareequityvalueforConstellationby thelowestpershareequityvalueforExelonforthehighendoftheexchangeratiorange.

Low HighExelon$43.70$54.58 Constellation$38.71$53.16 ImpliedExchangeRatio0.709x1.216xEvercorealsoperformedasum-of-the-partsanalysistakingintoaccounttheexpectedsynergiesandevaluatedtheimpliedexchangeratioresultingtherefrom.Evercorecalculatedtheestimatedpresentvalueofthe expectedsynergiesbydiscountingtheafter-taxcashflowsof10yearsofexpectedsynergiesatadiscountrateof 7.5%(whichwasselectedbyEvercorebaseduponananalysisoftheweightedaveragecostofcapitalofExelon).

95 Evercorealsocalculatedaterminalvaluebyapplyingaterminalgrowthrateof0%tothefiscalyear2020estimatedcashflow(whichwasselectedtoreflectaconservativeviewontheperpetualgrowthofthesynergies).

Evercoreusedtheresultingpershareequityvaluereferencerangestocalculatetheimpliedexchangeratioby dividingthelowestpershareequityvalueforConstellationbythehighestpershareequityvalueforExelonfor thelowendoftheexchangeratiorangeanddividingthehighestpershareequityvalueforConstellationbythe lowestpershareequityvalueforExelonforthehighendoftheexchangeratiorange.

Low HighImpliedExchangeRatio0.849x1.391xDiscountedCashFlowAnalysis:EvercoreperformedadiscountedcashflowanalysisofeachofConstellationandExelontocalculatetheestimatedpresentvalueofthestandaloneunlevered,after-taxfreecash flowsthatConstellationandExelonareexpectedtogenerateduringthefiscalyearsendingDecember31,2011 throughDecember31,2015basedontheadjustedConstellationprojectionsandtheExelonprojections.Only 50%offiscalyear2011estimatedfreecashflowswereincludedforeachofConstellationandExelon,reflecting theproportionoftheyearremaining.Evercoreusedmid-yeardiscountingconventioninconnectionwithits discountedcashflowanalysis.WithrespecttoitsdiscountedcashflowanalysisofExelon,Evercoreusedadiscountraterangeof6.5%-7.5%andterminalvaluerangebasedonapplyinga6.5x-7.5xEBITDAmultipletoExelons2015projected EBITDA.Thediscountrateandterminalvaluemultiplerangeswerebasedonanassessmentofthecostofcapital andenterprisevaluetocurrentyearEBITDAmultiplesofthegroupofselectedpubliclytradedcompaniesnoted intheselectedpeergrouptradinganalysisofExelonbelow.TheterminalyearEBITDAandintermediatecash flowswereadjustedtoexcludethecashflowsrelatedtoExelonsnuclearuprateprogramwhichwerevalued separately.EvercoreseparatelycalculatedthenetpresentvalueofExelonsnuclearuprateprogramusinga discountedcashflowanalysiswithinputsbasedontheprogramscashflowsgeneratedforthefiscalyearsending December31,2011throughDecember31,2020,asprovidedbyExelon,usingaterminalvaluebasedona7.5x EBITDAmultipleandadiscountrateof8%.Thediscountrateandterminalvaluemultiplewerebasedona groupofselectedpubliclytradedcompaniesintheutilitiesindustrywithmerchantgenerationoperations.WithrespecttoitsdiscountedcashflowanalysisofConstellation,Evercoreusedadiscountraterangeof6.5%-7.5%andterminalvaluerangebasedonapplyinga6.0x-7.0xEBITDAmultipletoConstellations2015 projectedadjustedEBITDA.Thediscountrateandterminalvaluemultiplerangeswerebasedanassessmentof thecostofcapitalandenterprisevaluetocurrentyearEBITDAmultiplesofthegroupofselectedpubliclytraded companiesnotedintheselectedpeergrouptradinganalysisofConstellationbelow.Initsdiscountedcashflow analysisofConstellation,EvercoreadjustedtheadjustedConstellationprojectionstoexcluderevenuesassociated withBGEsratestabilizationbonds.TheanalysisindicatedthefollowingpershareequityvaluereferencerangeforeachofConstellationandExelon.Basedonthesepershareequityvaluereferenceranges,Evercorecalculatedtheimpliedexchangeratio bydividingthelowestpershareequityvalueforConstellationbythehighestpershareequityvalueforExelon forthelowendoftheexchangeratiorangeanddividingthehighestpershareequityvalueforConstellationby thelowestpershareequityvalueforExelonforthehighendoftheexchangeratiorange.

Low HighExelon$37.63$46.94 Constellation$31.93$41.09 ImpliedExchangeRatio0.680x1.092xEvercorealsoperformedadiscountedcashflowanalysistakingintoaccounttheexpectedsynergiesandevaluatedtheimpliedexchangeratioresultingtherefrom.Utilizingthesamemethodologysetforthaboveinthe 96 SumofthePartsAnalysistovaluetheexpectedsynergies,Evercorecalculatedtheimpliedexchangeratiounderthediscountedcashflowanalysis,basedonExelonsprojectionsandadjustedConstellationprojections, takingintoaccountexpectedsynergiestobeasfollows:

Low HighImpliedExchangeRatio0.843x1.295xSelectedPeerGroupTradingAnalysis:EvercorereviewedandcomparedcertainfinancialandoperatinginformationrelatingtoConstellationandExelontocorrespondinginformationofagroupofselectedpublicly tradedcompaniesintheutilitiesindustry.Althoughnoneoftheselectedpubliclytradedcompaniesisdirectly comparabletoConstellationorExelon,thecompanieswerechosenbecausetheyhavecertaincharacteristicsthat aresimilartothoseofConstellationandExelon.Theselectedcompanieswereasfollows:*DominionResources,Inc.

• EntergyCorporation

• FirstEnergyCorp.

• NextEraEnergy,Inc.

• PublicServiceEnterpriseGroupIncorporated EvercorecalculatedandanalyzedvariousfinancialmultiplesandratiosofConstellation,Exelonandtheselectedcompaniesasfollows:*RatiosofTEV(whichrepresentsmarketcapitalizationplusthetotaloutstandingdebt,preferredstockandminorityinterest,lesscashandcashequivalentsbalances)toEBITDA,whichiscommonly referredtoasTEV/EBITDAmultiple,foreachofExelonsandConstellationsestimatedcalendar year2012andestimatedcalendaryear2013;and*RatiosoftheapplicableclosingpricesofExelonandConstellationcommonstock,respectively,toEPS,whichiscommonlyreferredtoaspricetoearningsmultiple,foreachofExelonsand Constellationsestimatedcalendaryear2012andestimatedcalendaryear2013.ThemultiplesforeachoftheselectedcompanieswerecalculatedusingtheclosingpricesoftheselectedcompaniescommonstockonApril26,2011andwerebasedon,andderivedfrom,publiclyavailablefilings, publiclyavailableresearchestimatespublishedbyindependentequityresearchanalystsassociatedwithvarious WallStreetfirmsandfinancialdataprovidedbyFactSetResearchSystemsInc.ThemultiplesforConstellation andExelonwerecalculatedusingtheclosingpriceoftheirrespectivecommonsharesonApril26,2011andwere basedon,andderivedfrom,publiclyavailableinformationandtheprojections.

Exelon ConstellationIntegratedPeers IBES Management IBES Management Low HighTEV/EBITDA-2012E7.4x7.3x6.4x6.2x6.4x8.8x TEV/EBITDA-2013E7.3x7.1x5.9x5.3x5.7x8.8x Price/Earnings-2012E13.9x12.9x13.4x12.8x11.6x14.6x Price/Earnings-2013E14.3x12.6x11.1x10.0x10.9x15.1xApplyingrepresentativerangesofmultiplesderivedfromthepeergrouptradinganalysis,EvercorecalculatedarangeofimpliedequityvaluespershareofConstellationcommonstockandExeloncommonstock withrespecttothefollowingmetricsbasedontheirrespectiveprojectedfinancialresults:*TEV/EBITDAmultipleforestimatedcalendaryear2012andestimatedcalendaryear2013;and

• Pricetoearningsmultipleforestimatedcalendaryear2012andestimatedcalendaryear2013.

97 EvercoreusedtheresultingpershareequityvaluereferencerangestocalculatetheimpliedexchangeratiobydividingthelowestpershareequityvalueforConstellationbythehighestpershareequityvalueforExelon forthelowendoftheexchangeratiorangeanddividingthehighestpershareequityvalueforConstellationby thelowestpershareequityvalueforExelonforthehighendoftheexchangeratiorange.

Exelon Constellation ImpliedExchangeRatio Multiples$/Share Multiples$/ShareTEV/EBITDA-2012E6.50x-7.50x$34.79-$42.876.00x-7.00x$29.87-$37.840.697x-1.087xTEV/EBITDA-2013E6.25x-7.25x$34.30-$42.625.75x-6.75x$34.34-$43.430.806x-1.266x Price/Earnings-2012E12.00x-13.50x$38.01-$42.7612.00x-13.50x$30.73-$34.570.719x-0.910x Price/Earnings-2013E11.50x-13.00x$37.20-$42.0510.00x-12.00x$32.61-$39.130.775x-1.052xEvercorealsoperformedselectedpeergrouptradinganalysistakingintoaccounttheexpectedsynergiesandevaluatedtheimpliedexchangeratioresultingtherefrom.Utilizingthesamemethodologysetforthaboveinthe SumofthePartsAnalysistovaluetheexpectedsynergies,Evercorecalculatedtheimpliedexchangeratio undertheselectedpeergrouptradinganalysistakingintoaccountexpectedsynergiestobeasfollows:ImpliedExchangeRatio Low HighTEV/EBITDA-2012E0.875x1.307x TEV/EBITDA-2013E0.985x1.489x Price/Earnings-2012E0.897x1.110x Price/Earnings-2013E0.957x1.257xNocompanyutilizedinthepeergrouptradinganalysisisidenticaltoConstellationorExelon.Accordingly,ananalysisoftheresultsoftheforegoingnecessarilyinvolvescomplexconsiderationsandjudgmentsconcerning differencesinfinancialandoperatingcharacteristicsofConstellationandExelonandotherfactorsthatcould affectthepublictradingvalueofthecompaniestowhichtheyarebeingcompared.Inevaluatingthepeergroup companies,Evercoremadejudgmentsandassumptionswithregardtoindustryperformance,generalbusiness, economic,marketandfinancialconditionsandothermatters,manyofwhicharebeyondthecontrolof ConstellationandExelon,suchastheimpactofcompetitiononConstellationorExelonandtheindustry generally,industrygrowthandtheabsenceofanyadversematerialchangeinthefinancialconditionsand prospectsofConstellation,Exelon,theindustryorthefinancialmarketsingeneral.Mathematicalanalysis,such asdeterminingthemean,medianoraverage,isnotinitselfameaningfulmethodofusingpeergrouptrading

data.98 PremiumsPaidAnalysis:Evercoreperformedananalysisofselectedtransactionstocomparepremiumspaidinsuchtransactionstothepremiumimpliedinthemerger.Whilenoneofthecompaniesthatparticipatedin theselectedtransactionsisdirectlycomparabletoExelonorConstellationandnoneofthetransactionsinthe selectedtransactionsanalysisisdirectlycomparabletothemerger,theselectedtransactionsdosharecertain characteristicsassetforthbelow.Evercoreconsideredthefollowingtwosetsofannouncedorcompleted

transactions:*UnitedStatesbusinesscombinationsannouncedsinceJanuary1,2007involving100%stock-for-stockmergerswithtransactionenterprisevaluesintherangeof$3billionto$20billionwheretheacquirers proformaownershipsplitofthecombinedentitywasgreaterthan60%.Theselectedtransactionsare setforthbelow:AnnouncementDate Acquirer Target02/28/11VentasNationwideHealthProperties 01/18/11ComericaSterlingBancshares 02/21/10SchlumbergerSmithInternational 07/27/09FirstNiagraFinancialGroupHarleysvilleNationalCorp 04/08/09PulteHomesCentexCorp 12/19/08M&TBankCorpProvidentBanksharesCorp 10/27/08CenturyTelEmbarqCorp 05/04/07WellsFargoGreaterBayBancorp 05/01/07NationalCityCorpMAFBancorp 02/05/07StateStreetCorpInvestorsFinancialServicesCorp*UtilitysectorcorporatetransactionsannouncedsinceJanuary1,2004involving100%stock-for-stockmergerswheretheacquirersproformaownershipsplitofthecombinedentitywasgreaterthan60%.

Theselectedtransactionsaresetforthbelow:AnnouncementDate Acquirer Target01/10/11DukeEnergyProgressEnergy 02/11/10FirstEnergyAlleghenyEnergy 05/09/05DukeEnergyCinergy 12/21/04ExelonPSEGForeachdataset,Evercoreanalyzedthepremiumpaidtotheunaffectedtargetstockpriceonaoneday,oneweekandonemonthpriorbasis.Basedontheanalysisoftheutility-relatedtransactions,Evercoreuseda premiumrangeof15%-20%onConstellationstradingpriceandExelonstradingpriceatcloseofmarketon April26,2011tocalculateanimpliedexchangeratiorange.

Low HighHistoricalPremia(1-DayPrior)15.0%20.0%

ImpliedAcquisitionPrice$37.87$39.52 ImpliedExchangeRatio0.920x0.960xResearchAnalystPriceTargets:EvercoreanalyzedresearchanalystestimatesofpotentialfuturevalueforConstellationandExeloncommonshares,orpricetargets,basedonpubliclyavailableequityresearchpublished withrespecttoConstellationandExelon.Basedontheresearchanalystpricetargetreferenceranges,Evercore calculatedtheimpliedexchangeratiobydividingthelowestpricetargetforConstellationcommonstockbythe highestpricetargetforExeloncommonstockforthelowendoftherangeanddividingthehighestpricetarget forConstellationcommonstockbythelowestpricetargetforExeloncommonstockforthehighendofthe

range.99 AsofApril26,2011,theobservedresearchanalystpricetargetsandresultingexchangeratiorangesforConstellationandExelonwere:

Exelon ConstellationTargetRange$37.00-$56.00$31.00-$38.00 Average$43.00$35.75 ImpliedExchangeRatioRange0.554x-1.027x52WeekHigh/LowTradingPrices:EvercorereviewedtherangeoftradingpricesofsharesofConstellationcommonstockandExeloncommonstockforthe52weeksendedonApril26,2011.Basedonsuch historicalsharepriceranges,Evercorecalculatedtheimpliedexchangeratiobydividingthelowesttradingprice forConstellationcommonstockbythehighesttradingpriceforExeloncommonstockforthelowendofthe rangeanddividingthehighesttradingpriceforConstellationcommonstockbythelowesttradingpricefor Exeloncommonstockforthehighendoftherange.AsofApril26,2011,the52weektradingpricerangesandresultingexchangeratiorangesforConstellationandExelonwere:

Exelon Constellation52WeekTradingRange$37.63-$44.28$27.68-$37.56 SpotPrice(1-DayPrior)$41.17$32.93 ImpliedExchangeRatioRange(52WeekRange)0.625x-0.998x ImpliedExchangeRatioRange(Spot)0.800xContributionAnalysis:EvercoreexaminedtheimpliedcontributionofeachofConstellationandExelontothecombinedcompanysproformafinancialandoperationalprofilebasedonthefollowingstatistics:*Regulatedcustomers

• Non-ratebasedgenerationcapacity

• Marketequityvalue

• Calendaryear2011through2014netincomebasedonadjustedConstellationprojectionsandExelon projections*Calendaryear2011through2014netincomeperIBES

• Calendaryear2011through2014cashflowfromoperationsbasedonadjustedConstellationprojectionsandExelonprojections*Calendaryear2011through2014cashflowfromoperationsperIBES

• BookequityasofDecember31,2010 100 ThisanalysisindicatedthattheimpliedcontributionofConstellationtothecombinedcompanyrangedfrom16%to37%.Theresultsofthisanalysisarepresentedbelow:

Exelon ConstellationOperationalMetricsCustomers(mm)76%24%

Non-rate-basedGenerationCapacity(NetMW)68%32%MarketMetricsEquityValue80%20%FinancialMetricsNetIncome:InternalProjections 2011E84%16%2012E80%20%2013E77%23%2014E79%21%NetIncome:IBES 2011E81%19%2012E80%20%2013E76%24%CashFlowFromOperations:InternalProjections 2011E80%20%2012E84%16%2013E78%22%2014E81%19%CashFlowFromOperations:IBES 2011E82%18%2012E81%19%2013E76%24%BookEquity(asof12/31/10)63%37%

MiscellaneousTheforegoingsummaryofcertainmaterialfinancialanalysesdoesnotpurporttobeacompletedescriptionoftheanalysesordatapresentedbyEvercore.InconnectionwiththereviewofthemergerbytheExelonboard ofdirectors,Evercoreperformedavarietyoffinancialandcomparativeanalysesforpurposesofrenderingits opinion.Thepreparationofafairnessopinionisacomplexprocessandisnotnecessarilysusceptibletopartial analysisorsummarydescription.Selectingportionsoftheanalysesorofthesummarydescribedabove,without consideringtheanalysesasawhole,couldcreateanincompleteviewoftheprocessesunderlyingEvercores opinion.Inarrivingatitsfairnessdetermination,Evercoreconsideredtheresultsofalltheanalysesanddidnot draw,inisolation,conclusionsfromorwithregardtoanyoneanalysisorfactorconsideredbyitforpurposesof itsopinion.Rather,Evercoremadeitsdeterminationastofairnessonthebasisofitsexperienceandprofessional judgmentafterconsideringtheresultsofalltheanalyses.Inaddition,Evercoremayhavegivenvariousanalyses andfactorsmoreorlessweightthanotheranalysesandfactors,andmayhavedeemedvariousassumptionsmore orlessprobablethanotherassumptions.Asaresult,therangesofvaluationsresultingfromanyparticular analysisorcombinationofanalysesdescribedaboveshouldnotbetakentobetheviewofEvercorewithrespect totheactualvalueofExeloncommonstockorConstellationcommonstock.Nocompanyusedintheabove analysesasacomparisonisdirectlycomparabletoConstellationorExelon,andnotransactionusedisdirectly comparabletothemerger.Further,Evercoresanalysesinvolvecomplexconsiderationsandjudgments concerningfinancialandoperatingcharacteristicsandotherfactorsthatcouldaffecttheacquisition,public tradingorothervaluesofthecompaniesortransactionsused,includingjudgmentsandassumptionswithregard toindustryperformance,generalbusiness,economic,marketandfinancialconditionsandothermatters,manyof whicharebeyondthecontrolofConstellation,Exelonortheirrespectiveadvisors.

101 EvercorepreparedtheseanalysesforthepurposeofprovidinganopiniontotheExelonboardofdirectorsastothefairness,fromafinancialpointofview,oftheexchangeratiotoExelon.Theseanalysesdonotpurportto beappraisalsortonecessarilyreflectthepricesatwhichthebusinessorsecuritiesactuallymaybesold.Any estimatescontainedintheseanalysesarenotnecessarilyindicativeofactualfutureresults,whichmaybe significantlymoreorlessfavorablethanthosesuggestedbysuchestimates.Accordingly,estimatesusedin,and theresultsderivedfrom,Evercoresanalysesareinherentlysubjecttosubstantialuncertainty,andEvercore assumesnoresponsibilityiffutureresultsaremateriallydifferentfromthoseforecastedinsuchestimates.TheissuanceofthefairnessopinionwasapprovedbyanopinioncommitteeofEvercore.

PursuanttothetermsofEvercoresengagementletterwithExelon,acontingentfeeof$10.0millionispayabletoEvercoreforitsservicesasfinancialadvisortotheExelonboardofdirectors.Ofthecontingentfee,

$2.0millionwaspayableupondeliveryofEvercoresfairnessopiniontotheExelonboardofdirectors,$2.0 millionwillbecomepayableifExelonshareholdersapprovetheshareissuanceinconjunctionwiththemerger, and$6.0millionwillbecomepayableifthemergeriscompleted.Ifthemergeragreementisterminatedand Exelonispaidabreak-upfeebyConstellation,thenExelonshallpayEvercoreafeeinanamountequalto2%of thebreak-upfee,lesstheopinionfeeandshareholderapprovalfee,ifpaid.Inaddition,Exelonhasagreedto reimburseEvercoreforitsreasonableandcustomaryexpenses(includinglegalandotherprofessionalfees, expensesanddisbursements),andtoindemnifyEvercoreforcertainliabilitiesarisingoutofitsengagement.Priortoitsengagement,EvercoreanditsaffiliatesprovidedfinancialadvisoryservicestoExelonandhadreceivedfeesfortherenderingoftheseservicesincludingthereimbursementofexpenses.Duringthetwoyear periodpriortothedateofitsopinion,nomaterialrelationshipexistedbetweenEvercoreanditsaffiliatesand ConstellationpursuanttowhichcompensationwasreceivedbyEvercoreoritsaffiliatesasaresultofsucha relationship.WemayprovidefinancialorotherservicestoExelonorConstellationinthefutureandin connectionwithanysuchservicesEvercoremayreceivecompensation.Intheordinarycourseofbusiness,Evercoreoritsaffiliatesmayactivelytradethesecurities,orrelatedderivativesecurities,orfinancialinstrumentsofConstellation,Exelonandtheirrespectiveaffiliates,foritsown accountandfortheaccountsofitscustomersand,accordingly,mayatanytimeholdalongorshortpositionin suchsecuritiesorinstruments.TheExelonboardofdirectorsengagedEvercoretoactasafinancialadvisorbasedonitsqualifications,experienceandreputation.Evercoreisaninternationallyrecognizedinvestmentbankingfirmandisregularly engagedinthevaluationofbusinessesinconnectionwithmergersandacquisitions,leveragedbuyouts, competitivebiddings,privateplacementsandvaluationsforcorporateandotherpurposes.RecommendationoftheBoardofDirectorsofConstellation;ConstellationsReasonsfortheMergerTheConstellationboardofdirectorsunanimouslydeterminedthatthetermsofthemergerandtheothertransactionscontemplatedbythemergeragreementareadvisable,fairtoandinthebestinterestsofConstellation andConstellationstockholders,approvedthemergeragreement,themergerandtheothertransactions contemplatedbythemergeragreementandrecommendedthatConstellationstockholdersvote FORtheproposaltoapprovethemergerandthetransactionscontemplatedbythemergeragreement.

102 Inevaluatingthemergerandthetransactionscontemplatedbythemergeragreement,theConstellationboardofdirectorsconsultedwithConstellationmanagement,aswellasMorganStanley&Co.LLCand Goldman,Sachs&Co.,eachofwhichwasoneofConstellationsfinancialadvisorsinconnectionwiththe merger,Kirkland&EllisLLP,Constellationsoutsidelegalcounsel,anditsotheroutsideprofessionaladvisors andconsideredvariousinformationandfactorsinconnectionwiththemerger,includingthosematerialfactors describedbelow.AmongtheinformationandmaterialfactorsconsideredbytheConstellationboardofdirectors werethefollowing:StrategicConsiderationsTheConstellationboardofdirectorsconsideredanumberoffactorspertainingtothestrategicrationaleforthemerger,includingthefollowing:

• ExpandingScale.Themergerwillcreateoneoftheleadingcompetitiveenergybusinessesbysize.ThemergerwillcreatethesecondlargestNorthAmericanenergycompanybyaggregatemarket capitalization(approximately$34billionasofApril27,2011)andthirdlargestNorthAmericanenergy companybyaggregateenterprisevalue(approximately$52billionasofApril27,2011).Themerger willalsocreatethenumberonecompetitiveenergyproductsandservicessupplierbyload (approximately165terawatt-hours)andcustomers(approximately35,000commercialandindustrial andmillionsofhouseholdsthroughretailandwholesalesales)across38states,theDistrictof Columbia,andtheCanadianprovincesofAlbertaandOntario,thesecondlargestelectricutility company(withapproximately6.6millioncustomers)andthelargestcompetitivepowergenerator (withmorethan34.4gigawattsofpowergenerationand226terawatt-hoursofexpectedoutput),

includingthenationslargestnuclearfleet(asofApril27,2011).Withthisincreasedscale,the combinedcompanywillhavemorerelevanceinparticipatinginfederalandstatelegislativeand regulatorydialoguerelatedtocompetitiveenergymarketsanddevelopmentthanConstellationhas aloneandisexpectedtorealizetheotherbenefitsnotedbelow.

• IncreasingtheStrengthoftheBalanceSheet.Relatedtotheexpandedscaleofthecombinedcompanynotedabove,thecombinedcompanywillhaveastrongerandlargerbalancesheetthanConstellation hasalone.Aftercompletionofthemerger,thecombinedcompanywillhaveapproximately$72billion inassetsandsubstantialcashflowfromoperations.Thestrongbalancesheetofthecombinedcompany willexpandopportunitiesforproductive,newcapitaldeployments,providegreaterandmorecost-efficientaccesstothecreditmarkets,supportthegrowthofthecompetitiveenergybusinessand provideastrongerandmorestableplatformforthebusinessduringnegativeeconomiccycles.The ConstellationboardalsoinquiredabouttheviewofConstellationsmanagementaboutthepossible effectsofthemergeronthecreditratingsofthecompanies.Inthisregard,Constellationsmanagement hadexpresseditsviewthatthecombinedcompanywouldbeexpectedtomaintainaninvestmentgrade ratingafterthemerger(andthecreditratingsofthecombinedcompanymaybebetterascomparedto Constellationscreditratings).

• IncreasingtheDiversityoftheBusiness.ThemergerwillresultinanincreaseinthediversificationofConstellationsenergydelivery,businessmixandgenerationportfolioaswellasitscustomerbase.In theenergydeliverybusiness,thecombinedcompanywillhavethreeutility-basedfranchiseswith serviceareasencompassingmorethan6.6millionpeople.Theseserviceareasalsoarelocatedinthree states,whichwilldiversifyanyregionalorlocalimpacts(includingtheimpactofchangesinstate regulatoryrequirements)ontheresultsoftheutilityoperations.Inaddition,thecombinedcompanyis expectedtohavegenerationcapacityinmultiplestates,withafuelmixconsistingofnuclear,coal,gas, oil,windandotherrenewableenergysources.Overall,theincreaseddiversityofthebusinesswill lowertheeffectsofthecombinedcompanysexposuretotheexecutionrisksspecifictoaparticular marketoraspectofthebusiness,asanyadverseeffectsoftheseriskswouldhaveasmallereffecton thefinancialperformanceofthecombinedcompany.

103

• ReductioninLoadSupplyShortPositionThroughBetterMatchofGenerationandSupply.Relatedtotheincreaseddiversityofthecombinedcompanynotedabove,aftercompletionofthemerger,thesite ofthecombinedcompanysphysicalgenerationofpowerwillbettermatchthesiteofthecombined companysloadobligationsthanConstellationsgenerationandloadobligationsitesarecurrently matched.Inparticular,combiningExelonsgenerationfacilitieswithConstellationsloadobligations wouldoffsetshortpositionsof12terawatt-hours,orTWhs,inPJMand6TWhsinMISO,respectively.

BytakingConstellationsoverallpositionfromnetshorttonetlonggeneration,thecombinedcompany willbemoreabletorealizeadditionalbenefitsfrompricemovementsresultingfromeconomic recoveryanddemandgrowth,ongoingtransmissionconstraintsinPJMandanyupwardshiftsin naturalgaspricesthanConstellationwouldbeabletorealizeasastand-alonecompanywithitscurrent positions.Inaddition,thispositionwillreducethecollateralpostingrequirementsimposedonthe business,whichinturnwillreducetheuseofborrowingcapacityandthecostofmaintainingcollateral (suchasletterofcreditfees).

• FleetOptimization.Thecombinedcompanywillhaveoneofthecleanestandlowest-costgenerationfleetsamongallotherlargeNorthAmericanenergycompanies.Inparticular,thecombinedcompany willhaveamerchantfleetwithmorethan34,000megawattsofcapacity,withapproximately55%of thecombinedcompanysoutputcomingfromnucleargenerationfacilities,andcombinedcompany outputof24%and8%comingfromnaturalgasgenerationfacilitiesandrenewable/hydrofacilities, respectively.Thecombinedcompanyalsowillhavealeadershippositionincommercialsolarenergy development,energyefficiencyanddemandresponseservices.Asaresult,theConstellationboardof directorsbelievesthatthecombinedcompanywillbewell-positionedinrelationtocurrentand reasonablyanticipatedcleanair,greenhousegasandcoalwastemanagementrequirementsand legislationandwillbeabletomaximizelow-costgenerationopportunitiesthatcleanerfleetsoffer.

• ComplementaryAssetsandAreasofExpertisewithOpportunitiesforGrowth.Themergerwillcombinecompanieswithcomplementaryassetsandareasofexpertise:Constellationsexpertisein competitiveenergysupplyand,morespecifically,intheareasofhedging,portfoliomanagementand riskmanagement,andExelonsderegulatedgenerationcapacity.Theexpandedgeographicfootprint, increasedgenerationassetsandcustomerbaseandstrongbalancesheetofthecombinedcompanywill provideConstellationwithgreatercapabilityandopportunitiestoexpanditsbusiness.Thecombined companyisexpectedtoutilizetheintellectualcapital,technicalexpertiseandexperienceofadeeper andmorediverseworkforce.

• SharedStrategicVision.ConstellationandExelonshareacommonstrategicvisionforthefutureofthecombinedcompanyasaNorthAmericanfocused,multi-regionalregulatedelectricutilitywith significantnon-utilityactivitiesthatsupplyelectricity,naturalgasandotherenergyproductsand servicestowholesaleandretailelectricandnaturalgascustomers.TheConstellationboardbelieves thatthegovernancearrangementsforthecombinedcompanyprovidedforinthemergeragreementwill increasethelikelihoodofeffectiveimplementationofthisstrategicvision.SeeGovernanceand ManagementFollowingCompletionoftheMergerbeginningonpage133forfurtherinformationon thesegovernancearrangements.

• ExpectedFurtherIndustryConsolidation.TheConstellationboardconsideredthecurrentandprospectivecompetitiveclimateintheenergyindustryandconsidereditlikelythattherewouldbe furtherconsolidation.PremiumtoCurrentSharePrices;Tax-FreeExchange.TheConstellationboardconsideredthehistoricstockpricesofConstellationandExelonandthattheexchangeratiointhemergerreflecteda12.5%premiumovertheclosingpriceofConstellationcommonstockas ofApril27,2011,thelasttradingdaypriortotheexecutionofthemergeragreement,a20.6%premiumoverthe 30-dayaverageclosingpriceofConstellationcommonstockasofApril27,2011anda24.6%premiumoverthe 30-dayaverageclosingpriceofConstellationcommonstockasofApril6,2011,thelastdatepriortothefirst 104 publicreportsofapossibletransactionbetweenConstellationandExelon.TheexchangeratioofsharesofExeloncommonstockinthemerger(0.930)reflectedapremiumascomparedtothehistoricalratiosofthe averagenumberofExelonsharesrelativetoeachshareofConstellationcommonstockatthencurrentmarket prices,inparticularanaverageof0.86sharesduringthepreviousfiveyearsasofApril21,2011,0.69shares duringthepreviousthreeyearsasofApril21,2011and0.77sharesduringthepreviousyearasofApril21, 2011.TheConstellationboardalsotookintoaccountthefactthatthemergerisintendedtobetax-freetothe holdersofConstellationcommonstock.AdditionalFinancialConsiderations.TheConstellationboardconsideredtheexpectedfinancialimpactofthemergerontheConstellationstockholders,includingthat,inadditiontothepremiumstotherecenttradingpricesofConstellationcommon stockreflectedbytheexchangeratio,themergerisexpectedtobebreak-eventostockholdersin2012andtobe accretiveby2013,excludingtransactioncostsandtheeffectsofpurchaseaccounting,andthattheaccretive natureofthetransactionwouldresultinincreasedearningspershareofthecombinedcompany.Themergerwas expectedtoresultinanincreaseddividendrateforholdersofConstellationcommonstockbasedonthecurrent levelsofthedividendpaidontheExeloncommonstock,whichisexpectedtobemaintainedfollowingthe merger.Inaddition,theConstellationstockholders,asstockholdersofthecombinedcompany,willbeableto benefitfromfuturegrowthofthecombinedcompany,includingtheimprovementstotheoperationsofthe combinedcompanymadeavailablebythemerger.TheConstellationboardalsoconsideredthehistoricfinancial condition,operatingresultsandbusinessesofConstellationandExelon,includinginformationwithrespectto theirrespectiveearningshistories.OpinionsofFinancialAdvisors.TheConstellationboardconsideredtheoralopinionsrenderedbyeachofMorganStanleyandGoldmanSachsonApril27,2011(andsubsequentlyconfirmedinwritingasofApril27,2011,inthecaseofMorgan Stanley,andApril28,2011,inthecaseofGoldmanSachs)thatasofthedateoftheopinionandsubjecttoand basedupontheassumptions,considerations,qualificationsandlimitationsdiscussedineachopinion,the exchangeratiopursuanttothemergeragreementwasfair,fromafinancialpointofview,totheholdersof Constellationcommonstock.SeeOpinionsofFinancialAdvisorstoConstellationOpinionofMorgan StanleyandOpinionofGoldmanSachs,beginningonpage110andpage118,respectively.StrategicAlternatives.TheConstellationboardconsideredthetrendsandcompetitivedevelopmentsintheindustryandtherangeofstrategicalternativesavailabletoConstellation.Thesealternativestrategiesincludedcontinuingasastand-alonecompanyand,basedonpriorperiodicdiscussionswithothercompaniesaboutpotentialbusiness combinationsandinstancesinwhichConstellationwasinvolvedinbusinesscombinationtransactions,the possibilityofbusinesscombinationtransactionswiththirdparties.BecauseConstellationhasenteredintothree majorstrategictransactionsinthepastsixyearsandthroughoutthepastsixyearshasreceivedunsolicited expressionsofinterestaboutpotentialbusinesscombinationsfromseveraldifferentcompanies,bothin connectionwiththesepriorbusinesscombinationtransactionsandindependentofthem,Constellationsboardof directorsbelieveditwaswell-informedabouttheopportunitiesforstrategictransactionsandhowpotential strategicpartnerswouldlikelyvalueConstellationsbusinessinthecontextofabusinesscombination,andtook thisknowledgeandexperienceintoaccountinconsideringstrategicalternativesavailabletoConstellation.See BackgroundoftheMergerbeginningonpage47formoreinformationonthesepriordiscussionswithother companiesandpriortransactions.Atthetimeofitsconsiderationofthemerger,Constellationwasnotinvolved indiscussionsregardinganyotherbusinesscombinationtransaction.TheConstellationboardalsoconsideredits expectationsforfurtherconsolidationintheenergyindustrynotedaboveandbelieveditwasimportantthat,if Constellationweretobeaparticipantintheindustryconsolidation,Constellationshouldbeabletoselectand enterintoamutuallyagreeabletransactionwithastrategicpartnerthatitthoughtofferedthemostsignificant 105 strategicbenefits.ItnotedthattherewasariskthatfurtherindustryconsolidationforwhichConstellationwasnotaparticipantcouldresultinfuturemarketorcompetitivepressuretoacceptastrategictransactionwithaless desirablestrategicpartneroronlessdesirableterms.TheConstellationboarddeterminedthatthemergerwas morefavorabletoConstellationanditsstockholdersthanotherpossiblestrategicalternativesknownto Constellationatthattime.RecommendationofManagement.TheConstellationboardtookintoaccountmanagementsrecommendationinfavorofthemerger.TermsoftheMergerAgreement.TheConstellationboardreviewedandconsideredthetermsofthemergeragreement,includingthefixednatureoftheexchangeratio,therestrictionsoneachpartysoperationsbetweenthesigningofthemerger agreementandtheclosingofthetransaction,therepresentationsandwarrantiesofeachparty,theconditionsto eachpartysobligationtocompletethemerger,theobligationsofbothpartiestoobtainregulatoryapprovalsto completethemerger,therightsofeachpartytoconsiderandengageinnegotiationsregardingpotentially superiorproposals,therightsofeachpartytowithhold,withdraw,qualifyormodify,publiclyproposeto withhold,withdraw,qualifyormodifyormakeanystatementinconsistentwithitsrecommendationtoits stockholdersinfavoroftheproposalsrelatedtothemergeragreementifasuperiorproposalisreceivedfroma thirdpartyorinresponsetocertainmaterialdevelopmentsorchangesincircumstances,therightsofeachparty toterminatethemergeragreementandtheobligationsofeachpartytopayaterminationfeeincertain circumstancesfollowingtheterminationofthemergeragreement(includingfollowingachangeoftheother companysboardofdirectorsrecommendationtoitsstockholders).SeeTheMergerAgreementbeginningon page146foradetaileddiscussionofthetermsandconditionsofthemergeragreement.LikelihoodofCompletionoftheMerger.TheConstellationboardconsideredthelikelihoodthatthemergerwillbecompletedonatimelybasis,includingthelikelihoodthatthemergerwillreceiveallnecessarystockholderapprovalsandregulatoryapprovals withoutunacceptableconditions.TheConstellationboardtooknoteoftheclosingconditioninthemerger agreementthatneitherConstellationnorExelonisrequiredtocompletethemergerifanygovernmentalauthority weretoimposetermsorconditionsinconnectionwiththerequiredstatutoryapprovalsthatwouldreasonablybe expectedtohaveamaterialadverseeffectoneitherparty.Inthisregard,theConstellationboardconsideredthe levelofsignificancerequiredforaconditioninaregulatoryapprovaltoconstituteaburdensomeeffectthat wouldpermiteitherpartytonotclosethemerger.SeeTheMergerAgreementConditionstotheCompletion oftheMergerbeginningonpage150foradescriptionofthesematters.Tothatend,theboardnotedthestrong commitmentbothcompanieshaveevidencedtotheregulatoryapprovalprocess,wherebytheyagreedto(and subsequentlypubliclyannounced)apackageofproposalsthatwillresultindirectinvestmentintheStateof Marylandwithavalueofmorethan$250millionifthemergeriscompletedandothermitigationmeasuresto addresspossibleconcentrationconcernsthatcouldberaisedbytheFERCorantitrustauthorities.The Constellationboardalsoconsideredtheoutcomeofitspreliminarydiscussionswithgovernmentofficialspriorto enteringintothemergeragreement,inparticularGovernorMartinOMalleysstatementthathewascommitted toafairandthoroughconsiderationofthemergerbytheMarylandPublicServiceCommission.The Constellationboardfurtherconsideredthepotentiallengthoftheregulatoryapprovalprocessandthatthemerger agreementprovidesthat,subjecttocertainexceptions,itmaynotbeterminateduntilApril28,2012,whichmay beextendedtoJuly27,2012underspecifiedcircumstances,includingtoallowforthereceiptofregulatory

approvals.Post-MergerCorporateGovernance.TheConstellationboardconsideredthecorporategovernanceprovisionsofthemergeragreement,includingthat,uponcompletionofthemerger,fourpersonswhoservedasConstellationdirectorspriortothemerger wouldbeaddedtotheExelonboardofdirectorsandthat,bytheendof2012,theExelonboardofdirectors 106 wouldbesetat16directors,comprisedoffourpersonswhoservedasConstellationdirectorspriortothemergerandtwelvepersonswhoservedasExelondirectorspriortothemerger.TheConstellationboardalsoconsidered thatMr.MayoA.ShattuckIIIwillserveasexecutivechairmanoftheboardofdirectorsofthecombined company,andMr.ChristopherM.Crane,thecurrentpresidentandchiefoperatingofficerofExelon,willserve asthechiefexecutiveofficerofthecombinedcompany.SeeTheMergerAgreementPost-MergerGovernance ofExelonbeginningonpage147forfurtherinformationonthesegovernancearrangements.

Synergies.TheConstellationboardnotedthatConstellationandExelonmanagementhadidentifiedopportunitiestooptimizethecombinedcompanysinvestmentandliquidityneedsinacapitalintensiveindustry,andtorealize operationalefficiencieswithanaveragerun-rateofannualsynergiesinoperationandmaintenanceexpense projectedatapproximately$260millionbeginningin2013beforecoststoachieve,withthesesynergies primarilycomingfromcorporateandcommercialopportunities,includingtheeliminationofoverlapsand duplicationandintegrationofthecompaniestradingandportfoliomanagementplatforms.TheConstellation boardtooknoteofthefactthatthesynergynumberswereestimates,thattheymaychangeandthatachievingthe synergiesissubjecttoanumberofuncertainties.SeeRiskFactorsRisksRelatingtotheMergerbeginningon page24.DueDiligence.TheConstellationboardconsideredthescopeoftheduediligenceinvestigationofExelonconductedbyConstellationmanagementandConstellationsoutsideadvisorsandevaluatedtheresultsthereof.EffectsoftheMergerTheConstellationboardofdirectorsalsoconsideredpotentialeffectsofthemergeronpartiesotherthanthestockholders,includingthefollowing:

• ImpactoftheMergeronCustomers,EmployeesandSuppliers.TheConstellationboardevaluatedtheexpectedimpactofthemergeronConstellationscustomers,employeesandsuppliersandthebenefits thatwouldbederivedfromthemergerbyenhancingoperationsandstrengtheningreliability.For example,inconnectionwiththeannouncementofthemerger,eachofConstellationandExelon announcedthatBGEcustomerswillreceivethefollowingdirectbenefits:a$100directratecrediton thecustomersmonthlybillwillbegiventoeachBGEresidentialcustomerasofaspecifieddate followingtheeffectivedateofthemergerwithin90daysaftertheclosingofthemerger,fundingtobe providedbyExelonfortheStateofMarylandsElectricUniversalServiceProgram,BGEselectricand gasoperationswillcontinuetobemanagedfromtheBGEheadquartersinBaltimore,Marylandand BGEjobswillnotbeaffectedbythemergerforatleasttwoyearsafterthetransactioncloses.(Other operationsofthecombinedcompanywillbeheadquarteredinMaryland,asnotedbelow.)Themerger willalsoallowthecombinedcompanytoimproveandstrengthentheregulatedbusinessesofboth companies.Theseimprovementswillresultfromthestrongbalancesheetofthecombinedcompany andmodestpotentialcostsavingsthroughleveragingutilityexpertiseacrossabroaderplatform.BGE customerswillbenefitfromthesharingofbestpracticeswithExelonsutilitiesPECOandComEdin theareasofsafety,reliability,efficiencyandcustomerservice.

• ImpactoftheMergeronCommunities.TheConstellationboardevaluatedtheexpectedimpactofthemergeronthecommunitiesservedbyConstellationandthebenefitsthatwouldlikelyresulttothese communitiesfromthegreaterstrengthofthemergedcompanyascomparedtoConstellationona stand-alonebasis.TheConstellationboardalsoconsideredthatthemergedcompanywouldcontinueto havesubstantialoperationsintheStateofMaryland,asExelonspowermarketingbusiness,orPower Team,andConstellationsretailandwholesalebusinesswillbeconsolidatedundertheConstellation brandandbeheadquarteredinBaltimore,Maryland,thecombinedcompanysrenewablesdevelopment businesswillalsobeheadquarteredinBaltimore,Maryland,BGEwillcontinuetobeheadquarteredin Baltimore,Marylandandthecombinedcompanywillbecommittedforatleast10yearstocontinueto 107 beasignificantbenefactorofcharitiesinthegreaterBaltimoreandMarylandregion.Thecombinedcompanywillbuildorsubstantiallyrenovateastate-of-the-artLeadershipinEnergyandEnvironmental Design,orLEED,certifiedofficecenterinBaltimore,Marylandtohousetheexpandedcommercial andrenewableenergyheadquarters.Inaddition,inconnectionwiththeannouncementofthemerger, eachofConstellationandExelonannouncedthat$4millionwillbeprovidedtosupporttheobjectives oftheEmPowerMarylandEnergyEfficiencyAct,$10millionwillbeprovidedtohelpspur developmentofelectricvehicleinfrastructureintheStateofMarylandandatleast$45millionwillbe investedtodevelop25megawattsofrenewableenergyintheStateofMaryland,eachinconnection withthemerger.PotentialRisksoftheMergerTheConstellationboardofdirectorsalsoconsideredpotentialrisksassociatedwiththemerger,includingthefollowing:

• ExelonBusinessRisks.TheConstellationboardconsideredcertainrisksassociatedwithExelonsbusinessandoperations,includingpossiblelegislativeorregulatoryactionsintheUnitedStatesinlight ofthedamageto,andanyreleaseofradioactivematerialsat,theFukushimanuclearpowerplantin JapanfollowinganearthquakeandtsunamionMarch11,2011.TheConstellationboardnotedthat, whilealloperatorsofnuclearreactorsmayincuradditionalcostsasaresultoflegislativeorregulatory responsestotheseevents,Exelonmaybemoresignificantlyaffectedbythesereactionsorburdens giventhatitoperatesoneofthelargestnuclearreactorfleetsinthecountry.

• TerminationFee;AlternativeProposals.TheConstellationboardconsideredtheriskthat,althoughConstellationhastherightundercertainlimitedcircumstancestoconsiderandparticipatein negotiationswithrespecttoproposalsforalternativetransactionsortomakeachangeofthe recommendationoftheConstellationboard,theprovisionsofthemergeragreementmayhavethe effectofdiscouragingsuchproposalsandmakingitlesslikelythatthetransactionsrelatedtosuch proposalswouldbenegotiatedorpursued,evenifpotentiallymorefavorabletothestockholdersof Constellationthanthemerger.Inparticular,theConstellationboardconsideredthecustomary restrictionsinthemergeragreementontheabilityofConstellationtosolicitoffersforalternative proposals,engageindiscussionsregardingsuchproposalsoracceptoffersforalternativeproposals,in eachcasesubjecttoexceptions.InadditiontheConstellationboardconsideredtheprovisionsofthe mergeragreementthat,underspecifiedcircumstancesrelatedtothepresenceofanalternativeproposal oractionsthatmayconstituteachangeoftherecommendationoftheConstellationboard,would requireConstellationtopayExelonafeeof$200million.(TheConstellationboardnotedthatsimilar provisionswereapplicabletoExelon,butthatthefeepayablebyExelonwouldbe$800million.)See TheMergerAgreementTerminationoftheMergerAgreementbeginningonpage151forfurther informationregardingtheseprovisionsofthemergeragreementandterminationfees.

• RegulatoryApprovals.TheConstellationboardconsideredtheregulatoryapprovalsrequiredtocompletethemergerandtheriskthattheapplicablegovernmentalauthoritiesandotherthirdparties mayseektoimposeunfavorabletermsorconditionsontherequiredapprovalsormaychallengeor decidenottoapprovethemerger.TheConstellationboardalsoconsideredthepotentiallengthofthe regulatoryapprovalprocessandtheriskofarequiredgovernmentapprovalimposingaconditionthat constitutesaburdensomeeffect,whichwouldalloweitherExelonorConstellationtodecidenotto closethetransaction.SeeTheMergerAgreementConditionstotheCompletionoftheMerger beginningonpage150foradescriptionofthesematters.TheConstellationboardconsideredthatthe processofseekingtoobtaintheregulatoryapprovalscouldresultinadditionalobligationsoradverse effectstoConstellationsrelationshipswithregulatoryauthoritiesorlocalcommunitiesthatcould continueaftertheapprovalprocesshadconcluded,regardlessofwhetherornotthemergeris

completed.

108

• FailuretoClose.TheConstellationboardconsideredtherisksandcontingenciesrelatingtotheannouncementandpendencyofthemergerandtherisksandcoststoConstellationiftheclosingofthe mergerisnottimely,orifthemergerdoesnotcloseatall,includingtheimpactonConstellations relationshipswithemployees,governmentalentitiesandthirdparties.TheConstellationboardalso consideredtheadverseeffectsthatthefailuretoclose,ortheseimpactsonConstellations relationships,couldhaveonthemarketpriceforsharesofConstellationcommonstock,eitherdirectly orasaresultofadverseimpactstoConstellationbusiness.TheConstellationboardwasmindfulofits priorexperiences,andtheeffectsof,priorannouncedtransactionsthatdidnotclose,particularlyits proposedmergerwithFPLGroup,Inc.announcedin2005andterminatedbymutualagreementin

2006.*FixedExchangeRatio.TheConstellationboardconsideredthattheexchangeratioofthesharesofExeloncommonstockthatConstellationstockholderswillreceivepursuanttothemergerwillnot adjusttocompensatefordeclinesinthepriceofExeloncommonstockpriortotheclosingofthe mergerorincreasesinthepriceofConstellationcommonstockpriortotheclosingofthemerger,and thetermsofthemergeragreementdonotincludeterminationrightstriggeredexpresslybyadecrease invalueoftheconsiderationtobereceivedinthemergerduetoadeclineinthemarketpriceofshares ofExeloncommonstock.Asaresult,thevalueofthemergerconsiderationtobereceivedbyholders ofConstellationcommonstockrepresentingthevalueofConstellationmaydeclinewithoutanydecline inthevalueofConstellationcommonstockpriortotheclosingofthemerger.TheConstellationboard determinedthatthisstructurewasappropriateandtheriskacceptableinviewoftheConstellation boardfocusontherelativeintrinsicvaluesandfinancialperformanceofExelonandConstellationas ofthetimethemergeragreementwasexecutedandthestrategicbenefitsthatholdersofConstellation commonstockwillcontinuetoshareinfollowingtheclosingofthemerger,andtheinclusioninthe mergeragreementofotherstructuralprotectionssuchastheabilityofConstellationtoterminatethe mergeragreementintheeventofamaterialadversechangeinExelonsbusiness.

• EmployeeMatters.TheConstellationboardconsideredtheimpactthatbusinessuncertaintypendingcompletionofthemergercouldhaveontheabilitytoattract,retainandmotivatekeypersonnel.

• InterestsofExecutiveOfficersandDirectors.TheConstellationboardconsideredthatcertainexecutiveofficersanddirectorsofConstellationmayhaveinterestswithrespecttothemergerinadditiontotheir interestsasstockholdersofConstellation.SeeAdditionalInterestsofConstellationExecutive OfficersandDirectorsintheMergerbeginningonpage128forfurtherinformationontheseinterests.

• RestrictionsonInterimOperations.TheConstellationboardconsideredtheprovisionsofthemergeragreementplacingrestrictionsonConstellationsoperationsduringtheperiodbetweenthesigningof themergeragreementandthecompletionofthemerger.

• DiversionofManagement.TheConstellationboardconsideredthepossiblediversionofmanagementstimeandattentionfromConstellationsongoingbusinessduetothesubstantialtimeandeffort necessarytocompletethemergerandplanforandimplementtheintegrationoftheoperationsof ConstellationandExelon.

• OtherRisksConsidered.TheConstellationboardconsideredthetypesandnatureoftherisksdescribedunderthesectionentitled,RiskFactorsbeginningonpage24.TheConstellationboardofdirectorsbelievedthat,overall,thepotentialbenefitsofthemergertoConstellationandtheConstellationstockholdersoutweighedtherisks.TheprecedingdiscussionoftheinformationandfactorsconsideredbytheConstellationboardisnotintendedtobeexhaustivebutincludesthematerialfactorsconsideredbytheConstellationboard.Inviewofthe widevarietyoffactorsconsideredbytheConstellationboardinconnectionwithitsevaluationofthemerger,the Constellationboarddidnotconsideritpracticalto,nordiditattemptto,quantify,rankorotherwiseassign 109 relativeweightstothedifferentfactorsthatitconsideredinreachingitsdecision.Inaddition,inconsideringthefactorsdescribedabove,individualmembersoftheConstellationboardmayhavegivendifferentweightto differentfactors.TheConstellationboardconsideredthisinformationasawholeandoverallconsideredthe informationandfactorstobefavorableto,andinsupportof,itsdeterminationsandrecommendation.TheConstellationboardrealizedthattherecanbenoassuranceaboutfutureresults,includingresultsconsideredorexpectedasdescribedinthefactorslistedabove,suchasassumptionsregardingpotential synergies.ThisexplanationoftheConstellationboardsreasoningandallotherinformationpresentedinthis sectionareforward-lookinginnatureand,therefore,shouldbereadinlightofthefactorsdiscussedunderthe headingCautionaryStatementRegardingForward-LookingStatementsbeginningonpage23.OpinionsofFinancialAdvisorstoConstellationOpinionofMorganStanley&Co.LLCConstellationretainedMorganStanleytoprovideitwithfinancialadvisoryservicesandafinancialopinioninconnectionwiththetransaction.ConstellationselectedMorganStanleytoactasitsfinancialadvisorbasedon MorganStanleysqualifications,expertiseandreputationanditsknowledgeofthebusinessandaffairsof Constellation.AtthemeetingoftheConstellationboardofdirectorsonApril27,2011,MorganStanleyrendered itsoralopinion,subsequentlyconfirmedinwriting,thatasofsuchdateandbaseduponandsubjecttothevarious assumptions,considerations,qualificationsandlimitationssetforthinitswrittenopinion,theexchangeratio pursuanttothemergeragreementwasfair,fromafinancialpointofview,totheholdersofsharesofthe Constellationcommonstock.ThefulltextofthewrittenopinionofMorganStanley,datedApril27,2011,whichdiscusses,amongotherthings,theassumptionsmade,proceduresfollowed,mattersconsidered,andqualificationsand limitationsofthereviewundertakenbyMorganStanleyinrenderingitsopinion,isattachedasAnnexE andincorporatedbyreferenceintothissectionofthejointproxystatement/prospectus.Thesummaryof theMorganStanleyfairnessopinionprovidedinthisjointproxystatement/prospectusisqualifiedinits entiretybyreferencetothefulltextoftheopinion.Constellationstockholdersareurgedtoreadthe opinioncarefullyandinitsentirety.TheMorganStanleyopinionisdirectedtotheConstellationboardof directorsandaddressesonlythefairness,fromafinancialpointofview,oftheexchangeratiopursuantto themergeragreement.TheMorganStanleyopiniondoesnotaddressanyotheraspectofthemergerand doesnotconstitutearecommendationtoanyConstellationorExelonshareholderastohowanysuch shareholdershouldvotewithrespecttotheproposedmergerorwhethertotakeanyotheractionwith respecttothemerger.TheopinionalsodoesnotaddressthepricesatwhichsharesofConstellation commonstockorExeloncommonstockwilltradefollowingthecompletionofthemergeroratanyother

time.Forthepurposesofitsopinion,MorganStanley,amongotherthings:*reviewedcertainpubliclyavailablefinancialstatementsandotherbusinessandfinancialinformationofConstellationandExelon,respectively;*reviewedcertaininternalfinancialstatementsandotherfinancialandoperatingdataconcerningConstellationandExelon,respectively;*reviewedfinancialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofConstellationfurnishedtoMorganStanleybyConstellation,includingfinancialprojectionsof ConstellationpreparedbymanagementofConstellation,whichwerefertoastheConstellation projectionsandareprovidedinthisjointproxystatement/prospectusundertheheadingUnaudited FinancialForecastsUnauditedFinancialForecastsofConstellationbeginningonpage71; 110

• reviewedfinancialandoperatinginformationwithrespecttothebusiness,operationsandprospectsofExelon,furnishedtoMorganStanleybyExelonandConstellation,including(1)financialprojections ofExelonpreparedbythemanagementofExelon,whichwerefertoastheExelonprojectionsandare providedinthisjointproxystatement/prospectusundertheheadingUnauditedFinancial ForecastsUnauditedFinancialForecastsofExelonExelonProjectionsbeginningonpage70,and (2)financialprojectionsofExelonunderalternativebusinessassumptionspreparedbythemanagement ofConstellation,whichwerefertoastheadjustedExelonprojectionsandareprovidedinthisjoint proxystatement/prospectusundertheheadingUnauditedFinancialForecastsUnauditedFinancial ForecastsofExelonConstellationsAdjustmentstotheExelonProjectionsbeginningonpage70;*discussedthepastandcurrentoperationsandfinancialconditionandtheprospectsofConstellation,includinginformationrelatingtocertainstrategic,financialandoperationalbenefitsanticipatedfrom themerger,withseniorexecutivesofConstellation;*discussedthepastandcurrentoperationsandfinancialconditionandtheprospectsofExelon,includinginformationrelatingtocertainstrategic,financialandoperationalbenefitsanticipatedfromthemerger, withseniorexecutivesofExelon;*reviewedtheproformaimpactofthemergeronExelonsearningspershare,cashflow,consolidatedcapitalizationandfinancialratios;*reviewedthereportedpricesandtradingactivityforConstellationcommonstockandExeloncommon stock;*comparedthefinancialperformanceofConstellationandExelonandthepricesandtradingactivityofConstellationcommonstockandExeloncommonstockwiththatofcertainotherpublicly-traded companiescomparablewithConstellationandExelon,respectively,andtheirsecurities;*reviewedthefinancialterms,totheextentpubliclyavailable,ofcertaincomparableacquisition transactions;*participatedindiscussionsandnegotiationsamongrepresentativesofConstellationandExelonandtheirfinancialandlegaladvisors;*reviewedthemergeragreementandcertainrelateddocuments;and

• performedsuchotheranalysesandconsideredsuchotherfactorsasitdeemedappropriate.Inarrivingatitsopinion,MorganStanleyassumedandreliedupon,withoutindependentverification,theaccuracyandcompletenessoftheinformationthatwaspubliclyavailableorsuppliedorotherwisemade availabletoitbyConstellationandExelon,andformedasubstantialbasisfortheopinion.Withrespecttothe financialprojections,includinginformationrelatingtocertainstrategic,financialandoperationalbenefits anticipatedfromthemerger,MorganStanleyassumedthattheywerereasonablypreparedonbasesreflectingthe bestcurrentlyavailableestimatesandjudgmentsoftherespectivemanagementsofConstellationandExelonof thefuturefinancialperformanceofConstellationandExelon.Inaddition,MorganStanleyassumedthatthe mergerwillbeconsummatedinaccordancewiththetermssetforthinthemergeragreementwithoutanywaiver, amendmentordelayofanytermsorconditions,including,amongotherthings,thatthemergerwillbetreatedas atax-freereorganization,pursuanttotheInternalRevenueCodeof1986,asamended,whichwerefertoasthe Code.MorganStanleyassumedthatinconnectionwiththereceiptofallthenecessarygovernmental,regulatory orotherapprovalsandconsentsrequiredforthemerger,nodelays,limitations,conditionsorrestrictionswillbe imposedthatwouldhaveamaterialadverseeffectonthecontemplatedbenefitsexpectedtobederivedinthe

merger.MorganStanleyisnotalegal,taxorregulatoryadvisor.MorganStanleyisafinancialadvisoronlyandreliedupon,withoutindependentverification,theassessmentofExelonandConstellationandtheirlegal,taxor regulatoryadvisorswithrespecttolegal,taxorregulatorymatters.MorganStanleyexpressednoopinionwith 111 respecttothefairnessoftheamountornatureofthecompensationtoanyofConstellationsofficers,directorsoremployees,oranyclassofsuchpersons,relativetotheconsiderationtobereceivedbytheholdersofsharesof Constellationcommonstockinthetransaction.MorganStanleydidnotmakeanyindependentvaluationor appraisaloftheassetsorliabilitiesofConstellationorExelon,norwasitfurnishedwithanysuchvaluationsor appraisals.MorganStanleysopinionwasnecessarilybasedonfinancial,economic,marketandotherconditions asineffecton,andtheinformationmadeavailabletoitasof,April27,2011.EventsoccurringafterApril27, 2011mayaffecttheopinionandtheassumptionsusedinpreparingit,andMorganStanleydidnotassumeany obligationtoupdate,reviseorreaffirmitsopinion.Inarrivingatitsopinion,MorganStanleywasnotauthorizedtosolicit,anddidnotsolicit,interestfromanypartywithrespecttotheacquisition,businesscombinationorotherextraordinarytransaction,involving Constellation,nordidMorganStanleynegotiatewithanyoftheparties,otherthanExelon,whichexpressed interesttoMorganStanleyinthepossibleacquisitionofConstellationorcertainofitsconstituentbusinesses.ThefollowingisasummaryofthematerialfinancialanalysesperformedbyMorganStanleyinconnectionwithitsoralopinionandthepreparationofitswrittenopinion,datedasofApril27,2011.Althougheachanalysis wasprovidedtotheConstellationboardofdirectors,inconnectionwitharrivingatitsopinion,MorganStanley consideredallofitsanalysisasawholeanddidnotattributeanyparticularweighttoanyanalysisdescribed below.Someofthesesummariesincludeinformationintabularformat.Inordertounderstandfullythefinancial analysesusedbyMorganStanley,thetablesmustbereadtogetherwiththetextofeachsummary.Thetables alonedonotconstituteacompletedescriptionoftheanalyses.HistoricalTradingandExchangeRatioAnalysisMorganStanleyreviewedtherangesofclosingpricesofConstellationcommonstockandExeloncommonstockforvariousperiodsendingonApril21,2011.MorganStanleynotedthatforthe52-weekperiodending April21,2011therangesofclosingpricespershareforConstellationcommonstockandExeloncommonstock were$27.64to$37.79and$34.43to$44.49,respectively.MorganStanleyalsocalculatedtheaveragetrading ratioofthepriceofConstellationcommonstocktothepriceofExeloncommonstockoverthefollowing

periods:PeriodEndingApril21,2011AverageHistoricalTradingRatioApril21,20110.814x6MonthsPrior0.747x 1YearPrior0.774x 2YearsPrior0.716x 3YearsPrior0.697xMorganStanleyalsocalculatedthehighandlowtradingratiostobe1.068xand0.347x,respectively,overthethreeyearsendingApril21,2011.MorganStanleynotedthatthemergerexchangeratioof0.930xresultedin animpliedconsiderationof$37.80pershareofConstellationcommonstock,basedontheclosingpriceof Exeloncommonstockof$40.65asofApril21,2011.EquityResearchAnalystsPriceTargetsMorganStanleyreviewedthemostrecentequityresearchanalystsper-sharetargetpricesforConstellationcommonstockandExeloncommonstock,respectively.Thesetargetsreflecteachanalystsestimateofthefuture publicmarkettradingpriceforConstellationcommonstockandExeloncommonstock.Targetpricesfor Constellationcommonstockrangedfrom$31.00to$39.00,comparedwiththeimpliedoffervaluepershareof

$37.80asofApril21,2011.TargetpricesforExeloncommonstockrangedfrom$37.00to$56.00,compared withtheclosingpriceofExeloncommonstockof$40.65asofApril21,2011.

112 ThepublicmarkettradingpricetargetspublishedbyequityresearchanalystsdonotnecessarilyreflectcurrentmarkettradingpricesforConstellationcommonstockorExeloncommonstockandtheseestimatesare subjecttouncertainties,includingthefuturefinancialperformanceofConstellationandExelonandfuture financialmarketconditions.ComparablePublicCompaniesAnalysisMorganStanleyreviewedandcomparedcertainpubliclyavailableandinternalfinancialinformation,ratiosandpubliclyavailablemarketmultiplesrelatingtoConstellationandExelon,respectively,tocorresponding financialdataforpublicly-tradedutilitycompaniesthatsharedcharacteristicswithConstellationandExelonto deriveanimpliedvaluationrangeforeachcompany.Thecompaniesincludedinthecomparablecompaniesanalysiswere:*NextEraEnergyIncorporated;

• EntergyCorporation;

• DominionResourcesIncorporated;

• PublicServiceEnterpriseGroupIncorporated;

• PPLCorporation;and

• EdisonInternational.MorganStanleythenreviewedbothpubliclyavailableandinternalfinancialinformationforeachofConstellationandExelontocomparefinancialinformationandmultiplesofmarketvalueofthecompanies includedinthecomparablecompaniesanalysistothefollowingmetricsforConstellationandExelon:*stockpriceto2012estimatedEPS;and

• stockpriceto2013estimatedEPS.ThefollowingtablereflectsthemultipleofpricetoestimatedEPSfor2012and2013forthecompaniesincludedinthecomparablecompaniesanalysisbasedonacompilationofearningsestimatesbyselectedequity researchanalysts:PricetoEPS2012E2013ENextEraEnergyIncorporated11.8x11.1x EntergyCorporation11.1x11.8x DominionResourcesIncorporated13.7x13.0x PublicServiceEnterpriseGroupIncorporated12.1x10.8x PPLCorporation11.3x11.4x EdisonInternational14.7x14.4xThefollowingtablereflectstheresultsofthisanalysis,aswellasthemultiplesforConstellationandExelonbasedonthemedianstatisticsofearningsforthesecompaniesbasedonacompilationoftheearningsestimates forecastbythoseequityresearchanalyststhatcoverConstellationandExelon,whichisreferredtoastheWall Streetconsensus:PricetoEPS2012E2013ERepresentativerangederivedforConstellationfromcomparables11.5x-13.5x11.0x-13.0x Constellationmultiples(WallStreetconsensus)13.3x11.0x RepresentativerangederivedforExelonfromcomparables12.0x-14.0x11.5x-13.5x Exelonmultiples(WallStreetconsensus)13.7x13.8x 113 ApplyingrepresentativerangesofmultiplesthatwerederivedfromthecomparablepubliccompaniesanalysisandbasedonMorganStanleysjudgment,MorganStanleycalculatedarangeofimpliedequityvalues pershareofConstellationcommonstockandExeloncommonstockwithrespecttothefollowingmetrics:*stockpriceto2012estimatedEPS;and

• stockpriceto2013estimatedEPS.TherangesofimpliedpershareequityvalueswerebasedonWallStreetconsensusestimatesandtheConstellationprojectionsandtheadjustedExelonprojections.Basedonthisanalysis,MorganStanleyderivedarangeofimpliedequityvaluepershareofConstellationcommonstockof$28.41to$45.50andarangeofimpliedequityvaluepershareofExeloncommonstockof

$33.93to$44.34.MorganStanleynotedthatbasedonaclosingpriceofExeloncommonstockof$40.65asof April21,2011,theexchangeratioof0.930resultedinanimpliedconsiderationof$37.80pershareof Constellationcommonstock.NocompanyutilizedinthecomparablepubliccompaniesanalysisisidenticaltoConstellationorExelon.Accordingly,ananalysisoftheresultsoftheforegoingnecessarilyinvolvescomplexconsiderationsand judgmentsconcerningdifferencesinfinancialandoperatingcharacteristicsofConstellationandExelonandother factorsthatcouldaffectthepublictradingvalueofthecompaniestowhichtheyarebeingcompared.In evaluatingthecomparablecompanies,MorganStanleymadejudgmentsandassumptionswithregardtoindustry performance,generalbusiness,economic,marketandfinancialconditionsandothermatters,manyofwhichare beyondthecontrolofConstellationandExelon,suchastheimpactofcompetitiononthebusinessesof ConstellationorExelonandtheindustrygenerally,industrygrowthandtheabsenceofanyadversematerial changeinthefinancialconditionsandprospectsofConstellationorExelonortheindustryorinthefinancial marketsingeneral.Mathematicalanalysis,suchasdeterminingthemean,medianoraverage,isnotinitselfa meaningfulmethodofusingcomparablecompanydata.Sum-of-the-PartsDiscountedCashFlowAnalysesGiventhedifferentnatureofthebusinessesinwhichConstellationandExelonparticipate,MorganStanleyalsoanalyzedeachcompanyasthesumofitsconstituentbusinesses,orasthesumoftheparts,andperformed adiscountedcashflowanalysisoneachofitsconstituentbusinesses.Adiscountedcashflowanalysisisdesigned toprovideinsightintothevalueofacompanyasafunctionofitsfuturecashflowsandterminalvalue.Morgan Stanleysdiscountedcashflowanalysiswasbasedon:*theConstellationprojections;and

• theExelonprojections,aswellastheadjustedExelonprojections.Unleveredfreecashflowswerecalculatedbytax-effectingearningsbeforeinterestandtaxesandaddingbacktheaggregateofdepreciationandamortization,deferredtaxes,andothernoncashexpensesprovidedby managementlessthesumofcapitalexpendituresandinvestmentinnoncashworkingcapital.Unleveredfreecash flowsforConstellationasawholewerecalculated,basedondiscussionswiththemanagementofConstellation, asthefollowingfortheyears2011through2015:($inmillions) 2011E 2012E 2013E 2014E 2015EUnleveredFreeCashFlow$437$(44)$74$498$658ThefreecashflowsandrangeofterminalvalueswerethendiscountedtopresentvaluesusingarangeofdiscountrateswhichwerechosenbyMorganStanleybaseduponananalysisofmarketdiscountratesapplicableto comparablecompaniesintheelectricutilitysector.

114 Constellation.MorganStanleyperformedadiscountedcashflowanalysisonthefollowingbusinessunitsofConstellationwiththenotedassumptionsandconsiderations.

• RegulatedUtility:ForConstellationsregulatedutilitysubsidiary,BGE,atransmissionanddistributionbusiness,MorganStanleycalculatedarangeofterminalvaluesattheendoftheprojectionperiodfor thesubsidiarybyapplyingamultipletothesubsidiarysprojected2015earningsandthenaddingback theprojectednetdebt(definedastotaldebtandpreferredstocklesssecuritizeddebtandcash)in2015.

Thepricetoearningsmultiplerangeusedwas12.0xto14.0xandtheweightedaveragecostofcapital was5.0%to6.0%.

• Generation:ForConstellationsunregulatedgenerationsegment,MorganStanleycalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingamultipleofaggregatevalue(defined asequityvalueplusestimatednon-convertibledebt,minorityinterest,capitalleaseobligationsand preferredstocklesscashandcashequivalents)toEBITDAtotheprojected2015EBITDAforthe generationsegment.TheaggregatevaluetoEBITDAmultiplerangeusedwas7.0xto8.0xandthe weightedaveragecostofcapitalrangewas8.0%to9.0%.

• NewEnergy:ForConstellationsNewEnergylineofbusiness,MorganStanleycalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingamultipleofaggregatevaluetoEBITDA totheprojected2015EBITDAfortheNewEnergylineofbusiness.TheaggregatevaluetoEBITDA multiplerangeusedwas4.0xto5.0xandtheweightedaveragecostofcapitalrangewas11.0%to13.0%.

• Corporate:Forunallocatedcorporate-levelexpensesandotheritems,MorganStanleydiscountedthecashflowsusingaweightedaveragecostofcapitalof6.0%.Fromthisanalysis,MorganStanleycalculatedarangeofequityvaluespershareofConstellationcommonstockof$31.27to$43.86.MorganStanleynotedthatbasedonaclosingpriceofExeloncommonstockof

$40.65asofApril21,2011,theexchangeratioof0.930xresultedinanimpliedconsiderationof$37.80pershare ofConstellationcommonstock.

Exelon.MorganStanleyperformedadiscountedcashflowanalysisonthefollowingbusinessunitsofExelonwiththenotedassumptionsandconsiderations.

• RegulatedUtilities:ForeachofExelonsregulatedutilitysubsidiaries,ComEdandPECO,eachofwhichisatransmissionanddistributionbusiness,MorganStanleycalculatedarangeofterminalvalues attheendoftheprojectionperiodforeachsubsidiarybyapplyingamultipletotheprojected2015 earningsforeachsubsidiaryandthenaddingbacktheprojectednetdebtin2015.Thepricetoearnings multiplerangeusedwas12.0xto14.0xandtheweightedaveragecostofcapitalwas5.0%to6.0%.

• ExelonGenerationCompany,LLC:ForExelonsunregulatedgenerationsubsidiary,ExelonGeneration,MorganStanleycalculatedarangeofterminalvaluesattheendoftheprojectionperiodbyapplyingan aggregatevaluetoEBITDAmultipletoExelonsprojected2015EBITDA.TheaggregatevaluetoEBITDA multiplerangeusedwas7.0xto8.0xandtheweightedaveragecostofcapitalrangewas8.0%to9.0%.Fromthisanalysis,MorganStanleycalculatedarangeofequityvaluespershareofExeloncommonstockof$35.54to$44.01onthebasisofcommoditycurvesasofDecember15,2010.ApplyingExelonsforecastof relevantcommoditycurvestoExelonsprojectionsyieldedarangeofequityvaluespershareofExeloncommon stockof$43.46to$53.11.MorganStanleynotedthattheclosingpriceofExeloncommonstockonApril21, 2011was$40.65.Thesum-of-the-partsdiscountedcashflowanalysesdonotimplythevalueatwhichtheindividualConstellationorExelonbusinessescouldbesold.

115 AnalysisofSelectedPrecedentTransactionsMorganStanleyalsoperformedananalysisofselectedprecedenttransactions,whichattemptedtoprovideanimpliedvalueforConstellationbycomparingittoothercompaniesinvolvedinbusinesscombinations.Usingpublicly availableinformation,MorganStanleyconsideredthefollowingsetofannouncedorcompletedtransactions:*UtilitysectorcorporateacquisitiontransactionssinceDecember2004,referredtointhisjointproxystatement/prospectusasutilityacquisitions.MorganStanleycomparedcertainfinancialandmarketstatisticsoftheselectedprecedenttransactions.Basedonanassessmentoftheutilityacquisitions,MorganStanleyappliedapremiumtotheunaffectedmarket price(consideredtobeApril6,2011)andtothesharepriceof$40.65asofApril21,2011rangingfrom10%to 20%,aswellasamultipletoConstellationsestimatefor2011earningsrangingfrom12.0x-15.0x.Basedon theanalysisofutilityacquisitions,MorganStanleycalculatedaper-sharepriceforConstellationcommonstock rangingfrom$31.20to$39.72.MorganStanleynotedthatbasedonaclosingpriceofExeloncommonstockof

$40.65asofApril21,2011,theexchangeratioof0.930resultedinanimpliedconsiderationof$37.80pershare ofConstellationcommonstock.NocompanyortransactionutilizedasacomparisonintheanalysisofselectedprecedenttransactionsisidenticaltoConstellationorthemergerinbusinessmix,timingandsize.Accordingly,ananalysisoftheresultsof theforegoingnecessarilyinvolvescomplexconsiderationsandjudgmentsconcerningdifferencesinfinancialand operatingcharacteristicsofConstellationandotherfactorsthatwouldaffectthevalueofthecompaniestowhichit isbeingcompared.Inevaluatingtheprecedenttransactions,MorganStanleymadejudgmentsandassumptionswith regardtoindustryperformance,globalbusiness,economic,marketandfinancialconditionsandothermatters,many ofwhicharebeyondthecontrolofConstellation,suchastheimpactofcompetitiononConstellationandthe industrygenerally,industrygrowthandtheabsenceofanyadversematerialchangeinthefinancialconditionsand prospectsofConstellationortheindustryorthefinancialmarketsingeneral.Mathematicalanalysis(suchas determiningthemeanormedian)isnot,initself,ameaningfulmethodofusingprecedenttransactionsdata.ProFormaTransactionAnalysisUsingtheConstellationprojectionsandtheadjustedExelonprojections,MorganStanleyreviewedtheproformaimpactofthemergeronExelonsandConstellationsEPSprojectionsfortheyears2012through2014.

Forpurposesofthisanalysis,thetransactionwasviewedasproformafor2012withrespecttofull-year consolidatedfinancialstatements.UsingtheConstellationprojectionsandtheExelonprojectionsasthebasisofcomparison,theproformaimpactonearningspershare,takingintoaccountallprojectedrelevantmerger-relatedadjustments,including estimatesofexpectedsynergies,thefinancingcostsofproposeddivestitures,andthefinancingcostsofthe proposedbenefitpackagethemanagementofExelonindicatedthatitwouldbewillingtomaketofacilitate governmentalandregulatoryapprovalofthemergerasreviewedandapprovedforMorganStanleysuseby Constellation,whichwerefertoastheproposedbenefitpackagefinancingcosts,wasfoundtobeaccretiveto earningsfrom2012through2014toExelon.Theproformaimpactwasfoundtobeaccretivetoearningsfor 2012anddilutivetoearningsfrom2013through2014toConstellation.ProFormaTradingAnalysisMorganStanleyperformedanillustrativeanalysisofproformastockholdervalueaccretion,whichcompared(1)ConstellationspotentialfuturestockpricebasedonConstellationsstandaloneEPSandcertain sensitivitiesprovidedbyConstellationmanagementtoMorganStanleyforeachoftheyears2012,2013and2014 (usinganillustrativeprice-to-earningsmultiplerangederivedfromhistoricaltradinganalysesandbasedon MorganStanleysjudgment)to(2)ConstellationspersharevaluebasedonestimatedproformaEPSforeachof theyears2012,2013,and2014(derivedfromtheConstellationprojectionsandadjustedExelonprojections,and takingintoaccountallprojectedrelevantmerger-relatedadjustments,includingestimatesofexpectedsynergies, 116 thefinancingcostsofproposeddivestituresandtheproposedbenefitpackagefinancingcosts,andreflectinganillustrativeprice-to-earningsmultiplerangederivedfromhistoricaltradinganalysesandbasedonMorgan Stanleysjudgment,adjustedtoreflectthemergerexchangeratioof0.930),todeterminetheimpliedstockholder valueaccretionresultingfromthemergerrelativetotheestimatedfuturestockpricein2012,2013and2014for Constellationonastandalonebasis.BasedonMorganStanleysjudgmentoftheexpectedprice-to-earnings tradingmultiplesforConstellationandExelon,thisanalysisindicatedthatthevalueaccruedbyConstellation stockholdersasaresultofthemergerisexpectedtobeaccretiverelativetothevalueaccruedbysuch stockholdersbasedonthestandaloneConstellationprojectionsprovidedtoMorganStanleybyConstellation.InconnectionwiththereviewofthetransactionbyConstellationsboardofdirectors,MorganStanleyperformedavarietyoffinancialandcomparativeanalysesforpurposesofrenderingitsopinion.Thepreparation ofafairnessopinionisacomplexprocessandisnotsusceptibletopartialanalysisorsummarydescription.In arrivingatitsopinion,MorganStanleyconsideredtheresultsofallofitsanalysesasawholeanddidnot attributeanyparticularweighttoanyanalysisorfactorconsidered.Furthermore,MorganStanleybelievesthat thesummaryprovidedandtheanalysesdescribedabovemustbeconsideredasawholeandthatselectingany portionoftheanalyses,withoutconsideringallofthem,wouldcreateanincompleteviewoftheprocess underlyingMorganStanleysanalysesandopinion.Inaddition,MorganStanleymayhavegivenvarious analysesandfactorsmoreorlessweightthanotheranalysesandfactors,andmayhavedeemedvarious assumptionsmoreorlessprobablethanotherassumptions.Asaresult,therangesofvaluationsresultingfrom anyparticularanalysisorcombinationofanalysesdescribedaboveshouldnotbetakentobetheviewofMorgan StanleywithrespecttotheactualvalueofExeloncommonstockorConstellationcommonstock.Inperformingitsanalyses,MorganStanleymadenumerousassumptionswithrespecttoindustryperformance,generalbusinessandeconomicconditionsandothermatters,manyofwhicharebeyondthecontrol ofExelonorConstellation.AnyestimatescontainedinMorganStanleysanalysesarenotnecessarilyindicative offutureresultsoractualvalues,whichmaybesignificantlymoreorlessfavorablethanthosesuggestedbythe estimates.TheanalyseswereperformedsolelyaspartofMorganStanleysanalysisofthefairnessfroma financialpointofviewoftheexchangeratiopursuanttothemergeragreementtotheholdersofsharesof ConstellationcommonstockandwereconductedinconnectionwiththedeliveryofMorganStanleysopinion datedApril27,2011totheConstellationboardofdirectors.Theanalysesdonotpurporttobeappraisalsorto reflectthepricesatwhichExeloncommonstockorConstellationcommonstockmightactuallytrade.The exchangeratiounderthemergeragreementandothertermsofthemergeragreementweredeterminedthrough armslengthnegotiationsbetweenExelonandConstellationandapprovedbytheConstellationboardof directors.MorganStanleyprovidedadvicetoConstellationduringthesenegotiations,butdidnot,however, recommendanyspecificexchangeratioormergerconsiderationtoConstellation,orthatanyspecificexchange ratioormergerconsiderationconstitutedtheonlyappropriateexchangeratioormergerconsiderationforthe transaction.TheopinionofMorganStanleywasoneofanumberoffactorstakenintoconsiderationby Constellationsboardofdirectorsinmakingitsdecisiontoapprovethemergeragreementandthetransactions contemplatedbythemergeragreement.Consequently,MorganStanleysanalysesdescribedaboveshouldnotbe viewedasdeterminativeoftheopinionofConstellationsboardofdirectorswithrespecttothevalueofExelon orConstellation,ortheexchangeratio,orofwhethertheConstellationboardofdirectorswouldhavebeen willingtoagreetoadifferentexchangeratioormergerconsideration.Seethesectionentitled RecommendationoftheBoardofDirectorsofConstellation;ConstellationsReasonsfortheMerger beginningonpage102.MorganStanleysopinionwasapprovedbyacommitteeofMorganStanleyinvestment bankingandotherprofessionalsinaccordancewithitscustomarypractice.MorganStanley,aspartofitsinvestmentbankingbusinesses,iscontinuallyengagedinthevaluationofbusinessesandtheirsecuritiesinconnectionwithmergersandacquisitions,negotiatedunderwritings,competitive biddings,secondarydistributionsoflistedandunlistedsecurities,privateplacementsandvaluationsforestate, corporateandotherpurposes.ConstellationselectedMorganStanleyasitsfinancialadvisorbaseduponthefirms qualifications,experienceandexpertiseandbecauseitisaninternationallyrecognizedinvestmentbankingfirm withsubstantialexperienceintransactionssimilartothemerger.Intheordinarycourseofitstradingandbrokerage 117 activities,MorganStanleyanditsaffiliatesmayatanytimeholdlongorshortpositions,tradeorotherwiseeffecttransactions,fortheirownaccountsorfortheaccountsofcustomers,intheequityordebtsecuritiesorseniorloans ofExelonorConstellationoranycurrencyorcommodityrelatedtoExelonorConstellation.Pursuanttothetermsofitsengagement,ConstellationhasagreedtopayMorganStanleyafeeof$11,000,000,whichbecamepayableuponannouncementoftheexecutionofthemergeragreement,an additionalfeeof$11,000,000thatispayableuponshareholderapproval,andanadditionalfeeof$11,000,000 thatispayableuponconsummationoftheproposedmerger.Constellationhasalsoagreedtoreimburse MorganStanleyforitsfeesandexpensesincurredinperformingitsservices.Inaddition,Constellationhas agreedtoindemnifyMorganStanleyanditsaffiliates,theirrespectivedirectors,officers,agentsand employeesandeachperson,ifany,controllingMorganStanleyoranyofitsaffiliatesagainstcertainliabilities andexpenses,includingcertainliabilitiesunderthefederalsecuritieslaws,relatedtoorarisingoutofMorgan Stanleysengagementandanyrelatedtransactions.MorganStanleyhasperformedvariousinvestmentbankingandfinancialservicesforExelonandConstellationinthepasttwoyears,andexpectstoperformsuchservicesinthefuture,andhasreceived,andexpectstoreceive, feesforsuchservices.Suchservicesduringsuchtwoyearperiodhaveincludedactingasleadadvisorto ConstellationintherestructuringofitsstrategicpartnershipwithEdFannouncedinOctober2010;soleadvisorto Constellationinitsring-fencingofBaltimoreGasandElectricinFebruary2010;leadadvisortoConstellationin thesaleofa49.99%interestinConstellationEnergyNuclearGrouptoEdF;dealer-managerinatenderofferfor Constellationnotesdue2012inFebruary2010;jointbookrunnerforofferingsofinvestmentgradesecuritiesby ComEd,ExelonGeneration,andPECOinJanuary2011,September2009,andMarch2009,respectively;and dealer-managerinatenderofferforExelonCorporationandExelonGenerationnotesdue2011inSeptember2009.

AffiliatesofMorganStanleyhaveactedaslendersinconnectionwithcreditfacilitiesforConstellationinOctober 2010;ExelonGeneration,Exelon,andPECOinMarch2011;andComEdinMarch2010.OpinionofGoldman,Sachs&Co.GoldmanSachsdelivereditsoralopinion,subsequentlyconfirmedinwriting,that,asofApril28,2011andbaseduponandsubjecttothelimitationsandassumptionssetforththerein,theexchangeratioof0.930ofashare ofExeloncommonstocktobepaidforeachshareofConstellationcommonstockpursuanttothemerger agreementwasfairfromafinancialpointofviewtotheholdersofConstellationcommonstock.ThefulltextofthewrittenopinionofGoldmanSachs,datedApril28,2011,whichsetsforththeassumptionsmade,proceduresfollowed,mattersconsidered,qualificationsandlimitationsonthereview undertakeninconnectionwiththeopinion,isattachedasAnnexFandincorporatedbyreferenceintothisjointproxystatement/prospectus.GoldmanSachsadvisoryservicesanditsopinionwereprovidedforthe informationandassistanceoftheboardofdirectorsofConstellationinconnectionwithitsconsiderationof theproposedmergerandsuchopiniondoesnotconstitutearecommendationastohowanyholderofshares ofConstellationcommonstockshouldvotewithrespecttosuchproposedmergeroranyothermatter.Inconnectionwithrenderingtheopiniondescribedaboveandperformingitsrelatedfinancialanalyses,GoldmanSachsreviewed,amongotherthings:*themergeragreement;

• annualreportstostockholdersandAnnualReportsonForm10-KofConstellationandExelonforthefiveyearsendedDecember31,2010;*certaininterimreportstostockholdersandQuarterlyReportsonForm10-QofConstellationandExelon;

• certainothercommunicationsfromConstellationandExelontotheirrespectivestockholders;

• certainpubliclyavailableresearchanalystreportsforConstellationandExelon; 118

• certaininternalfinancialanalysesandforecastsforConstellationpreparedbyConstellationsmanagementandapprovedforGoldmanSachsusebyConstellation,includingtheConstellation projectionsprovidedinthisjointproxystatement/prospectusundertheheadingUnauditedFinancial ForecastsUnauditedFinancialForecastsofConstellationbeginningonpage71;*certainfinancialanalysesandforecastsforExelonpreparedbythemanagementsofExelonandConstellation,including(1)theExelonprojectionspreparedbythemanagementofExelonandprovidedinthisjointproxystatement/prospectusundertheheadingUnauditedFinancialForecastsUnauditedFinancialForecastsofExelonExelonProjectionsbeginningonpage70,and(2)theadjustedExelon projectionspreparedbythemanagementofConstellationandapprovedforGoldmanSachsuseby Constellationandprovidedinthisjointproxystatement/prospectusundertheheadingUnaudited FinancialForecastsUnauditedFinancialForecastsofExelonConstellationsAdjustmentstothe ExelonProjectionsbeginningonpage70;and*certaincostsavingsandoperatingsynergiesprojectedbyExelontoresultfromthemerger,asreviewedandapprovedforGoldmanSachsusebyConstellation,referredtoastheexpectedsynergies.GoldmanSachsalsohelddiscussionswithmembersoftheseniormanagementofConstellationregardingtheirassessmentofthepastandcurrentbusinessoperations,financialconditionandfutureprospectsofConstellationand Exelon,andthestrategicrationalefor,andthepotentialbenefitsof,theproposedmerger.Inaddition,Goldman SachsreviewedthereportedpriceandtradingactivityforsharesofConstellationcommonstockandsharesof Exeloncommonstock;comparedcertainfinancialandstockmarketinformationforConstellationandExelonwith similarinformationforcertainothercompaniesthesecuritiesofwhicharepubliclytraded;reviewedthefinancial termsofcertainrecentbusinesscombinationsinthepowerandutilityindustry;andperformedsuchotherstudies andanalyses,andconsideredsuchotherfactors,asitdeemedappropriate.Forpurposesofrenderingitsopinion,GoldmanSachsrelieduponandassumed,withoutassuminganyresponsibilityforindependentverification,theaccuracyandcompletenessofallofthefinancial,legal, regulatory,tax,accountingandotherinformationprovidedto,discussedwithorreviewedbyit,andGoldman Sachsdoesnotassumeanyresponsibilityforanysuchinformation.GoldmanSachsassumed,with Constellationsconsent,thattheConstellationprojections,theadjustedExelonprojectionsandtheexpected synergieshadbeenreasonablypreparedonabasisreflectingthebestcurrentlyavailableestimatesandjudgments ofthemanagementofConstellation.GoldmanSachsdidnotmakeanindependentevaluationorappraisalofthe assetsandliabilities(includinganycontingent,derivativeorotheroff-balance-sheetassetsandliabilities)of ConstellationorExelonoranyoftheirrespectivesubsidiariesanditwasnotfurnishedwithanysuchevaluation orappraisal.GoldmanSachsassumedthatallgovernmental,regulatoryorotherconsentsandapprovals necessaryfortheconsummationoftheproposedmergerwillbeobtainedwithoutanyadverseeffecton ConstellationorExelonorontheexpectedbenefitsoftheproposedmergerinanywaymeaningfultoitsanalysis.

GoldmanSachsalsoassumedthattheproposedmergerwillbeconsummatedonthetermssetforthinthemerger agreement,withoutthewaiverormodificationofanytermorconditiontheeffectofwhichwouldbeinanyway meaningfultoitsanalysis.GoldmanSachsopiniondoesnotaddresstheunderlyingbusinessdecisionof Constellationtoengageintheproposedmerger,ortherelativemeritsoftheproposedmergerascomparedtoany strategicalternativesthatmaybeavailabletoConstellation,nordoesitaddressanylegal,regulatory,taxor accountingmatters.GoldmanSachswasnotauthorizedto,anddidnot,solicitanyexpressionsofinterestfrom anyotherpartieswithrespecttoanacquisitionof,orotherbusinesscombinationwith,Constellationoranyother alternativetransaction.GoldmanSachsopinionaddressesonlythefairnessfromafinancialpointofviewtothe holdersofsharesofConstellationcommonstock,asofthedateoftheopinion,oftheexchangeratiopursuantto themergeragreement.GoldmanSachsopiniondoesnotexpressanyviewon,anddoesnotaddress,anyother termoraspectofthemergeragreementorproposedmergeroranytermoraspectofanyotheragreementor instrumentcontemplatedbythemergeragreementorenteredintooramendedinconnectionwiththeproposed merger,including,withoutlimitation,thefairnessoftheproposedmergerto,oranyconsiderationreceivedin connectiontherewithby,theholdersofanyotherclassofsecurities,creditorsorotherconstituenciesof Constellation,norastothefairnessoftheamountornatureofanycompensationtobepaidorpayabletoanyof 119 theofficers,directorsoremployeesofConstellation,orclassofsuchpersons,inconnectionwiththeproposedmerger,whetherrelativetotheexchangeratiopursuanttothemergeragreementorotherwise.GoldmanSachs hasnotexpressedanyopinionastothepricesatwhichsharesofExeloncommonstockwilltradeatanytimeor astotheimpactoftheproposedmergeronthesolvencyorviabilityofConstellationorExelonortheabilityof ConstellationorExelontopaytheirrespectiveobligationswhentheycomedue.GoldmanSachsopinionwas necessarilybasedoneconomic,monetary,marketandotherconditionsasineffecton,andtheinformationmade availabletoitasof,thedateoftheopinion,andGoldmanSachsassumesnoresponsibilityforupdating,revising orreaffirmingitsopinionbasedoncircumstances,developmentsoreventsoccurringafterthedateoftheopinion.

GoldmanSachsopinionwasapprovedbyafairnesscommitteeofGoldmanSachs.ThefollowingisasummaryofthematerialfinancialanalysesdeliveredbyGoldmanSachstotheboardofdirectorsofConstellationinconnectionwithrenderingtheopiniondescribedabove.Thefollowingsummary doesnotpurporttobeacompletedescriptionofthefinancialanalysesperformedbyGoldmanSachs,nordoes theorderofanalysesdescribedrepresenttherelativeimportanceorweightgiventothoseanalysesbyGoldman Sachs.Someofthesummariesofthefinancialanalysesincludeinformationpresentedintabularformat.The tablesmustbereadtogetherwiththefulltextofeachsummaryand,alone,arenotacompletedescriptionof GoldmanSachsfinancialanalyses.Exceptasotherwisenoted,thefollowingquantitativeinformation,tothe extentthatitisbasedonmarketdata,isbasedonmarketdataasitexistedonorbeforeApril26,2011andisnot necessarilyindicativeofcurrentmarketconditions.Forpurposesofperformingcertainofitsfinancialanalyses,GoldmanSachsnotedthattheexchangeratioof0.930ofashareofExeloncommonstocktobepaidforeachshareofConstellationcommonstockpursuantto themergeragreementimpliedapricepershareforConstellationcommonstockof$38.29basedontheclosing priceofExelononApril26,2011,whichisreferredtobelowastheimpliedofferpriceorIOP.HistoricalTradingAnalysisGoldmanSachscalculatedthepremiumimpliedbytheexchangeratiobasedontheimpliedofferpriceand(1)theclosingpricepershareofConstellationcommonstockonApril26,2011andonApril6,2011,thelast tradingdaypriortorumorssurfacingoftheproposedmerger;(2)thevolume-weightedaverageprice,orVWAP, pershareofConstellationcommonstockduringthe30,60and90tradingdayperiodsendedonApril26,2011; and(3)thehighclosingpricepershareofConstellationcommonstockforthe52-weekperiodendedon April26,2011.Thisanalysisshowedthefollowingimpliedpremiums:DateorPeriod PriceImpliedPremiumApril26,2011

.......................................$32.9316.3%April6,2011

........................................$31.6620.9%30tradingdayVWAP

.................................$31.8720.1%60tradingdayVWAP

.................................$31.7020.8%90tradingdayVWAP

.................................$31.5221.5%52-WeekHigh

.......................................$37.561.9%SelectedCompaniesAnalysisGoldmanSachsreviewedandcomparedcertainfinancialinformation,ratiosandpublicmarketmultiplesforConstellationandExelontocorrespondingfinancialinformation,ratiosandpublicmarketmultiplesforthe followingpubliclytradedcompaniesinthepowerandutilityindustry:*EntergyCorporation;

• FirstEnergyCorp.;

• NextEraEnergyResources;

• PPLCorporation;and

• PublicServiceEnterpriseGroupIncorporated.

120 AlthoughnoneoftheselectedcompaniesisdirectlycomparabletoConstellationorExelon,thecompaniesincludedwerechosenbecausetheyarepubliclytradedcompanieswithoperationsthat,forpurposesofanalysis, maybeconsideredsimilartocertainoperationsofConstellationandExelon.WithrespecttoConstellation,Exelonandtheselectedcompanies,GoldmanSachscalculated:*Theenterprisevalue,orEV,whichisdefinedasthemarketvalueofcommonequityplusthebookvalueofdebt,pluspreferredstock,plusminorityinterest,lesscash,asamultipleofestimatedearnings beforeinterest,taxes,depreciationandamortization,orEBITDA,forcalendaryear2012,whichis referredtobelowas2012EEV/EBITDA;*TheEVasamultipleofestimatedEBITDAforcalendaryear2013,whichisreferredtobelowas2013EEV/EBITDA;*Thepricepershareasamultipleofestimatedearningspershare,referredtoasEPS,forcalendaryear2012,whichisreferredtobelowas2012EP/E;and*ThepricepershareasamultipleofestimatedEPSforcalendaryear2013,whichisreferredtobelowas2013EP/E.ThemultiplesandratiosforConstellationwerecalculatedusingtheclosingpriceofConstellationscommonstockonApril26,2011andtheimpliedofferprice,andwerebasedonthemostrecentpublicly availableinformation,InstitutionalBrokersEstimateSystem,orIBES,estimatesforcalendaryears2012and 2013andtheConstellationprojections.ThemultiplesandratiosforExelonwerecalculatedusingtheclosing priceofExelonscommonstockonApril26,2011,andwerebasedonthemostrecentpubliclyavailable information,IBESestimatesforcalendaryears2012and2013andtheadjustedExelonprojections.Themultiples andratiosforeachoftheselectedcompanieswerecalculatedusingtheclosingpriceofeachcompanyscommon stockonApril26,2011,andwerebasedonthemostrecentpubliclyavailableinformationandIBESestimates forcalendaryears2012and2013.Theresultsofthisanalysisaresetforthbelow:

2012E EV/EBITDA 2013E EV/EBITDA2012EP/E2013EP/EConstellation(4/26/11-Constellation projections)

...........................6.1x5.2x12.7x9.4xConstellation(4/26/11-IBES)

..............6.4x6.6x13.1x11.0xConstellation(IOP-Constellation projections)

...........................6.8x5.7x14.7x10.9xExelon(adjustedExelonprojections)

.........7.7x7.5x13.8x13.4xExelon(IBES)

...........................7.6x7.5x13.9x14.4xSelectedCompaniesRange

.................6.6x8.2x5.9x8.1x11.2x13.0x10.9x14.4xSelectedCompanies:EntergyCorporation

..................7.0x6.9x11.2x12.0xFirstEnergyCorp

.....................7.9x8.0x13.0x14.4xNextEraEnergyResources

.............8.2x7.2x11.9x11.2xPPLCorporation

.....................7.9x8.1x11.4x11.5xPSEGCorporation

....................6.6x5.9x12.2x10.9xIllustrativeDiscountedCashFlowSum-of-the-PartsAnalysisofConstellationGoldmanSachsperformedanillustrativediscountedcashflow,orDCF,sum-of-the-partsanalysis,basedonhypotheticalseparatevaluationsofConstellation(excludingtheNewEnergylineofbusiness)andtheNewEnergyline ofbusinesstodeterminearangeofimpliedpershareequityvaluesforConstellation.GoldmanSachsconductedaDCF analysisbasedonprojectedunleveredfreecashflowsforConstellation(excludingtheNewEnergylineofbusiness)for theyearsendingonDecember31,2011throughDecember31,2015usingtheConstellationprojections(excludingthe NewEnergylineofbusiness)andexcludingtherevenuesassociatedwithservicinginterestandamortizationrelatedto theRSBBondCoLLCratestabilizationbonds.Thecashflowswerediscountedtopresentvalueusingdiscountrates 121 rangingfrom7.0%to9.0%,reflectingestimatesoftheweightedaveragecostofcapital,orWACC,ofConstellation(excludingtheNewEnergylineofbusiness).GoldmanSachsthencalculatedConstellations(excludingthe NewEnergylineofbusinesss)terminalEVonDecember31,2015byapplyingterminalmultiplesrangingfrom6.5x to8.5xtoConstellations(excludingtheNewEnergylineofbusinesss)estimated2015EBITDAanddiscountedthis terminalEVtopresentvalueusingdiscountratesrangingfrom7.0%to9.0%.GoldmanSachsthencalculatedthe rangeofimpliedvaluesofConstellation(excludingtheNewEnergylineofbusiness)byaddingthepresentvalueofthe fiveyearsofprojectedunleveredfreecashflowsendingonDecember31,2015tothepresentvalueofConstellations (excludingtheNewEnergylineofbusiness)terminalEV,andsubtractingfromthesumConstellationsnetdebtasof December31,2010,asadjustedforcertainacquisitionsfollowingDecember31,2010andexcludingtheRSBBondCo LLCratestabilizationbonds.WithrespecttotheNewEnergylineofbusiness,GoldmanSachsperformedasimilar DCFanalysisusingtheprojectedunleveredfreecashflowsfortheNewEnergylineofbusinessfortheyearsendingon December31,2011throughDecember31,2015usingtheConstellationprojectionsfortheNewEnergylineof business,adiscountrateof13.0%(representingthemidpointoftheestimated11.0%to15.0%WACCofthe NewEnergylineofbusiness)andaterminalmultipleofestimated2015EBITDAof4.0x(representingthemidpointof theterminalvaluemultipleestimatedrangeof3.0xto5.0x).GoldmanSachsthencalculatedtheimpliedpershare equityvalueofConstellationcommonstockbyaddingthepresentvalueofConstellation(excludingtheNewEnergy lineofbusiness)andthepresentvalueofConstellationattributabletotheNewEnergylineofbusiness,andthen dividingthesumbythefullydilutednumberofsharesofConstellationcommonstock.Thisanalysisresultedina rangeofillustrativeimpliedpershareequityvaluesforConstellationof$29.42to$42.55.IllustrativeSum-of-the-PartsAnalysisofConstellationGoldmanSachsperformedanillustrativesum-of-the-partsanalysistodeterminearangeofimpliedequityvaluespershareofcommonstockofConstellation,whichwasbasedonhypotheticalseparatevaluationsof Constellation(excludingtheNewEnergylineofbusiness)andtheNewEnergylineofbusiness.Todetermine indicativerangesofimpliedequityvaluesofConstellationattributabletotheNewEnergylineofbusiness, GoldmanSachsperformedthesameDCFanalysisdescribedaboveunderIllustrativeDiscountedCashFlow Sum-of-the-PartsAnalysisofConstellationfortheNewEnergylineofbusiness.Todetermineindicativeranges ofimpliedequityvaluesofConstellation(excludingtheNewEnergylineofbusiness),GoldmanSachsapplied theselectedcompanyrangeslistedaboveinSelectedCompaniesAnalysistotheConstellationprojections (excludingtheNewEnergylineofbusiness)and,withrespecttotheEV/EBITDAmultiplesonly,subtractedfrom thisamountConstellationsnetdebtasofDecember31,2010,asadjustedforcertainacquisitionsfollowing December31,2010.GoldmanSachsthencalculatedtheimpliedpershareequityvalueofConstellationcommon stockbyaddingtheimpliedequityvalueofConstellation(excludingtheNewEnergylineofbusiness)andthe impliedequityvalueofConstellationattributabletotheNewEnergylineofbusiness,andthendividingthesum bythefullydilutednumberofsharesofConstellationcommonstock.Thesum-of-the-partsanalysisindicatedthe followingrangesofindicativeimpliedequityvaluespershareofConstellationcommonstock:MultipleRange(SelectedCompanies)ImpliedEquityValuesofConstellationCommonStock*2012EEV/EBITDA

...........6.6x8.2x$28.97$43.552013EEV/EBITDA

...........5.9x8.1x$27.58$46.832012EP/E...................11.2x13.0x$22.99$30.092013EP/E...................10.9x14.4x$25.89$36.07*Includesarangeof$9.54$14.47relatedtotheNewEnergylineofbusiness.IllustrativePresentValueofFutureSharePriceAnalysisofConstellationGoldmanSachsperformedanillustrativeanalysisofthepresentvalueofthehypotheticalfuturepricespershareofConstellationcommonstock.ToarriveatthehypotheticalfuturepricepershareonDecember31,2013 andDecember31,2014,respectively,GoldmanSachsfirstcalculatedthefuturehypotheticalEVof Constellation,basedonmultiplesofprojectedEBITDAforConstellation(excludingtheNewEnergylineof 122 business)for2013and2014,respectively,rangingfrom6.5xto8.5xandamultipleofprojectedEBITDAfortheNewEnergylineofbusinessfor2013and2014,respectively,of4.0x,ineachcase,usingtheConstellation projections.GoldmanSachsthencalculatedthepresentvalueofthehypotheticalfuturevaluespershareof ConstellationcommonstockbysubtractingConstellationsnetdebt,asofyear-end2013and2014,respectively, fromitsfuturehypotheticalEV,dividingthisamountbythefullydilutednumberofsharesofConstellation commonstockoutstandingattheendof2013and2014,respectively,andgivingeffecttotheinterimdividends receivedtodeterminethehypotheticalfuturepricespershare,andthendiscountingthehypotheticalfutureprices persharetoJanuary1,2011usinganillustrativediscountraterangingfrom9.5%to11.5%,reflectingan estimateofConstellationscostofequity.Theanalysisresultedinrangesofillustrativeimpliedpresentvalues pershareofConstellationof$26.73to$37.28for2013and$27.72to$38.51for2014.IllustrativeDiscountedCashFlowAnalysisofExelonGoldmanSachsperformedanillustrativeDCFanalysistodeterminearangeofimpliedpershareequityvaluesforExelonbasedonprojectedunleveredfreecashflowsforExelonfortheyearsendingonDecember31, 2011throughDecember31,2015usingtheadjustedExelonprojections.GoldmanSachscalculatedthepresent valueoftheprojectedunleveredfreecashflowsforExelonfortheyearsendingonDecember31,2011through December31,2015usingarangeofdiscountratesfrom6.5%to8.5%,reflectingestimatesoftheWACCof Exelon.GoldmanSachsthencalculatedExelonsterminalEVonDecember31,2015byapplyingterminal multiplesrangingfrom6.75xto8.75xtoExelonsestimated2015EBITDA.TheresultsoftheterminalEV calculationwerethendiscountedtopresentvalueusingtheforegoingdiscountrates.GoldmanSachsthen calculatedtherangeofimpliedvaluesofExelonbyaddingthepresentvalueofthefiveyearsofprojected unleveredfreecashflowsendingonDecember31,2015tothepresentvalueofExelonsterminalEV,and subtractingfromthesumExelonsnetdebtasofDecember31,2010,asadjustedforcertaindebtissuances followingDecember31,2010.TodeterminetheimpliedpershareequityvalueofExeloncommonstock, GoldmanSachsdividedtheresultingamountbythefullydilutednumberofsharesofExeloncommonstock.

ThisanalysisresultedinarangeofillustrativeimpliedpershareequityvaluesforExeloncommonstockof approximately$27.41to$43.21.PublicTradingMultipleAnalysisofExelonTodetermineindicativerangesofimpliedequityvaluesofExelon,GoldmanSachsappliedtheselectedcompanyrangeslistedaboveinSelectedCompaniesAnalysistotheadjustedExelonprojectionsand subtractedfromthisamountExelonsnetdebtasofDecember31,2010,asadjustedforcertaindebtissuances followingDecember31,2010.GoldmanSachsthencalculatedtheimpliedpershareequityvalueofExelon commonstockbydividingtheimpliedequityvalueofExelonbythefullydilutednumberofsharesofExelon commonstock.ThisanalysisindicatedthefollowingindicativerangesofimpliedequityvaluesofExelon commonstock:MultipleRange(PeerCompanies)ImpliedEquityValuesofExelonCommonStock2012EEV/EBITDA

...............6.6x8.2x$32.84$45.142013EEV/EBITDA

...............5.9x8.1x$28.88$46.322012EP/E......................11.2x13.0x$33.44$38.822013EP/E......................10.9x14.4x$33.64$44.45IllustrativePresentValueofFutureSharePriceAnalysisofExelonGoldmanSachsalsoperformedanillustrativeanalysisofthepresentvalueofthehypotheticalfuturepricespershareofcommonstockofExelonusingthesamemethodologydescribedaboveunderIllustrativePresent ValueofFutureSharePriceAnalysisofConstellation.Forthisanalysis,GoldmanSachsusedmultiplesof projectedEBITDAforExelonfor2013and2014,respectively,rangingfrom6.75xto8.75xusingtheadjusted 123 Exelonprojectionsandanillustrativediscountraterangingfrom8.5%to10.5%,reflectinganestimateofExelonscostofequity.Theanalysisresultedinrangesofillustrativeimpliedpresentvaluespershareof commonstockofExelonof$30.26to$44.11for2013and$30.20to$43.78for2014.ContributionAnalysisGoldmanSachsexaminedtheimpliedcontributionofeachofConstellationandExelontothecombinedcompanysprojectedproformaEBITDAandnetincomefortheyears2011through2013usingtheadjusted ExelonprojectionsandtheConstellationprojections.Thisanalysisindicatedthattheimpliedcontributionof Constellationtothecombinedcompanyrangedfromapproximately16%toapproximately28%.Aspartofthis analysis,GoldmanSachsalsoderivedanimpliedrangeofexchangeratiosfromapproximately0.644to approximately1.358.IllustrativeProFormaDiscountedCashFlowAnalysisGoldmanSachsperformedanillustrativediscountedcashflowanalysisoftheproformacombinedcompany,givingeffecttotheexpectedsynergiesandtheproposedbenefitspackagethemanagementofExelon indicateditwouldbewillingtomaketofacilitategovernmentalandregulatoryapprovalofthemergerwithout includingtheeffectofproposeddivestitures,asreviewedandapprovedforGoldmanSachsusebyConstellation, whichwerefertoastheproposedbenefitspackage.Inperformingthisanalysis,GoldmanSachsusedthe adjustedExelonprojections,theConstellationprojections,theexpectedsynergiesandtheproposedbenefits package.Forpurposesofthisanalysis,GoldmanSachsdiscountedtopresentvalue(1)estimatesofunlevered freecashflowsfortheyearsendingonDecember31,2011throughDecember31,2015fortheproforma combinedcompanyand(2)theterminalEVoftheproformacombinedcompanyasofDecember31,2015 derivedbymultiplyingtheproformacombinedcompanysestimated2015EBITDAbymultiplesrangingfrom 6.75xto8.75x.TheestimatedunleveredfreecashflowsandterminalEVwerediscountedtopresentvalueusing discountratesrangingfrom6.5%to8.5%,reflectinganestimateoftheWACCoftheproformacombined company.GoldmanSachsthencalculatedtherangeofimpliedvaluesoftheproformacombinedcompanyby addingthepresentvalueofthefiveyearsofprojectedunleveredfreecashflowsendingonDecember31,2015to thepresentvalueoftheproformacombinedcompanysterminalEV,andsubtractingfromtheresultingsumthe proformacombinedcompanysnetdebtasofDecember31,2010,asadjustedforcertainacquisitionsanddebt issuancesfollowingDecember31,2010andexcludingtheRSBBondCoLLCratestabilizationbonds.To determinetheimpliedpershareequityvalueoftheproformacombinedcompanyscommonstock,Goldman Sachsdividedtheresultingamountbythefullydilutednumberofsharesofcommonstockoftheproforma combinedcompany.Theanalysisresultedin(1)arangeofimpliedvaluespershareofthecombinedcompanyof

$29.96to$46.33and(2)arangeofimpliedvaluespershareofcommonstockofConstellationof$27.86to

$43.08basedontheexchangeratio.IllustrativeProFormaPresentValueofFutureValueAnalysisGoldmanSachsperformedanillustrativeanalysisofthepresentvalueofthehypotheticalfuturepricesofsharesofcommonstockoftheproformacombinedcompany,includingexpectedsynergies,theproposed benefitspackageanddividends.Inperformingthisanalysis,GoldmanSachsusedtheadjustedExelon projections,theConstellationprojections,theexpectedsynergiesandtheproposedbenefitspackage.Toarriveat thefuturepricepershareonDecember31,2013andDecember31,2014,respectively,GoldmanSachsfirst calculatedthefuturehypotheticalEVoftheproformacombinedcompanybasedonmultiplesofprojected EBITDAfortheproformacombinedcompanyfor2013and2014,respectively,of6.75xto8.75xforthe combinedcompany(excludingtheNewEnergylineofbusiness)and4.0xfortheNewEnergylineofbusiness.

GoldmanSachsthencalculatedthepresentvalueofthehypotheticalfuturevaluespershareofcommonstockof theproformacombinedcompanybysubtractingtheproformacombinedcompanysnetdebt,asofyear-end 2013and2014,respectively,fromitsfuturehypotheticalEV,dividingtheresultingamountbythefullydiluted numberofsharesofcommonstockoftheproformacombinedcompanyoutstandingattheendof2013and 2014,respectively,andgivingeffecttointerimdividendsreceivedassumingtheproformacombinedcompany 124 paysadividendpershareequaltotheforecasteddividendspersharefromthestandaloneadjustedExelonprojections,todeterminethehypotheticalfuturepricespershare,andthendiscountingthehypotheticalfuture pricespersharetoJanuary1,2011usingdiscountratesrangingfrom8.5%to10.5%,reflectinganestimateofthe proformacombinedcompanyscostofequity.Theanalysisresultedinanillustrativerangepershareofcommon stockoftheproformacombinedcompanyfrom$31.22to$44.92in2013and$31.75to$45.41in2014and, basedontheexchangeratio,acorrespondingrangepershareofcommonstockofConstellationfrom$29.04to

$41.77for2013and$29.53to$42.24for2014.IllustrativeProFormaValueUpliftAnalysisGoldmanSachscalculatedtheillustrativeupliftinthevaluepershareofConstellationcommonstockresultingfromtheproformacombinedcompanybyapplyingeachofthefollowingillustrativeproforma2013P/

Emultiplesfortheproformacombinedcompanytotheprojected2013EPSofthecombinedcompanyusingthe adjustedExelonprojections,theConstellationprojectionsandtheexpectedsynergies:*13.4x,reflectingExelonsclosingsharepriceonApril26,2011asamultipleofExelonsprojectedEPSfor2013usingtheadjustedExelonprojections;*14.4x,reflectingExelonsclosingsharepriceonApril26,2011asamultipleofExelonsprojectedEPSfor2013usingIBESestimates;and*13.8x,reflectingtheblendedmultiple(basedonthemarketcapitalizationsofConstellationandExelonasofApril26,2011)ofExelonsclosingsharepriceonApril26,2011asamultipleofExelons projectedEPSfor2013usingIBESestimatesandConstellationsclosingsharepriceonApril26,2011 asamultipleofConstellationsprojectedEPSfor2013usingIBESestimates.Thefollowingtablesetsforththeresultsofthisanalysis:Illustrative2013EP/EMultipleIllustrativeValueUpliftPerShareofConstellationCommonStock 13.4x..........................

34.0%14.4x..........................

44.3%13.8x..........................

37.5%TheillustrativevalueupliftpershareofConstellationcommonstockshownaboveisrelativetoConstellationsclosingsharepriceof$31.66asofApril6,2011,thelasttradingdaypriortorumorssurfacingof theproposedmerger.

GeneralThepreparationofafairnessopinionisacomplexprocessandisnotnecessarilysusceptibletopartialanalysisorsummarydescription.Selectingportionsoftheanalysesorofthesummarysetforthabove,without consideringtheanalysesasawhole,couldcreateanincompleteviewoftheprocessesunderlyingGoldman Sachsopinion.Inarrivingatitsfairnessdetermination,GoldmanSachsconsideredtheresultsofallofits analysesanddidnotattributeanyparticularweighttoanyfactororanalysisconsideredbyit.Rather,Goldman Sachsmadeitsdeterminationastofairnessonthebasisofitsexperienceandprofessionaljudgmentafter consideringtheresultsofallofitsanalyses.Nocompanyortransactionusedintheaboveanalysesasa comparisonisdirectlycomparabletoConstellationorExelonorthecontemplatedmerger.GoldmanSachspreparedtheseanalysesforpurposesofprovidingitsopiniontotheboardofdirectorsofConstellationastothefairnessfromafinancialpointofviewtotheholdersofConstellationcommonstockof theexchangeratiopursuanttothemergeragreement.Theseanalysesdonotpurporttobeappraisalsnordothey necessarilyreflectthepricesatwhichbusinessesorsecuritiesactuallymaybesold.Analysesbasedupon forecastsoffutureresultsarenotnecessarilyindicativeofactualfutureresults,whichmaybesignificantlymore 125 orlessfavorablethansuggestedbytheseanalyses.Becausetheseanalysesareinherentlysubjecttouncertainty,beingbaseduponnumerousfactorsoreventsbeyondthecontrolofthepartiesortheirrespectiveadvisors,none ofConstellation,Exelon,GoldmanSachsoranyotherpersonassumesresponsibilityiffutureresultsare materiallydifferentfromthoseforecast.Theexchangeratiowasdeterminedthrougharms-lengthnegotiationsbetweenConstellationandExelonandwasapprovedbytheboardofdirectorsofConstellation.GoldmanSachsprovidedadvicetoConstellation duringthesenegotiations.GoldmanSachsdidnot,however,recommendanyspecificexchangeratioto Constellationoritsboardofdirectorsorindicatethatanyspecificexchangeratioconstitutedtheonlyappropriate exchangeratioforthemerger.Asdescribedabove,GoldmanSachsopiniontotheboardofdirectorsofConstellationwasoneofmanyfactorstakenintoconsiderationbytheboardofdirectorsofConstellationinmakingitsdeterminationtoengage inthemergerandapprovethemergeragreement.Theforegoingsummarydoesnotpurporttobeacomplete descriptionoftheanalysesperformedbyGoldmanSachsinconnectionwiththefairnessopinionandisqualified initsentiretybyreferencetothewrittenopinionofGoldmanSachsattachedasAnnexFandincorporatedby referencetothissectionofthejointproxystatement/prospectus.GoldmanSachsanditsaffiliatesareengagedininvestmentbankingandfinancialadvisoryservices,commercialbanking,securitiestrading,investmentmanagement,principalinvestment,financialplanning, benefitscounseling,riskmanagement,hedging,financing,brokerageactivitiesandotherfinancialand non-financialactivitiesandservicesforvariouspersonsandentities.Intheordinarycourseoftheseactivitiesand services,GoldmanSachsanditsaffiliatesmayatanytimemakeorholdlongorshortpositionsandinvestments, aswellasactivelytradeoreffecttransactions,intheequity,debtandothersecurities(orrelatedderivative securities)andfinancialinstruments(includingbankloansandotherobligations)ofConstellation,Exelonand anyoftheirrespectiveaffiliatesandthirdpartiesoranycurrencyorcommoditythatmaybeinvolvedinthe transactioncontemplatedbythemergeragreementfortheirownaccountandfortheaccountsoftheircustomers.

GoldmanSachshasactedasfinancialadvisortoConstellationinconnectionwith,andhasparticipatedincertain ofthenegotiationsleadingto,theproposedmerger.GoldmanSachshasprovidedcertaininvestmentbanking servicestoConstellationanditsaffiliatesfromtimetotime.GoldmanSachsalsohasprovidedcertaininvestment bankingservicestoExelonanditsaffiliatesfromtimetotimeforwhichGoldmanSachsInvestmentBanking Divisionhasreceived,andmayreceive,compensation,includinghavingactedasjointbook-runningmanager withrespecttoapublicofferingofExelonGenerations6.25%SeniorNotesdue2039($900millionaggregate principalamount)inSeptember2009;asco-managerwithrespecttoapublicofferingofExelonGenerations 5.20%SeniorNotesdue2019($600millionaggregateprincipalamount)inSeptember2009;andasjointbook-runningmanagerwithrespecttoapublicofferingofExelonGenerations4.00%SeniorNotesdue2020($550 millionaggregateprincipalamount)and5.75%SeniorNotesdue2041($350millionaggregateprincipal amount)inSeptember2010.GoldmanSachsmayalsointhefutureprovideinvestmentbankingservicesto Constellation,ExelonandtheirrespectiveaffiliatesforwhichitsInvestmentBankingDivisionmayreceive

compensation.TheboardofConstellationselectedGoldmanSachsasitsfinancialadvisorbecauseitisaninternationallyrecognizedinvestmentbankingfirmthathassubstantialexperienceintransactionssimilartotheproposed merger.PursuanttoaletteragreementdatedApril27,2011,ConstellationengagedGoldmanSachstoactasits financialadvisorinconnectionwiththecontemplatedmerger.Pursuanttothetermsofthatengagementletter, ConstellationhasagreedtopayGoldmanSachsafeeof$3,333,333,whichbecamepayableattransaction announcement,anadditionalfeeof$3,333,333whichispayableuponshareholderapproval,andanadditional feeof$3,333,333whichispayableuponconsummationoftheproposedmerger,andConstellationhasagreedto reimburseGoldmanSachsexpensesarising,andtoindemnifyGoldmanSachsagainstcertainliabilitiesthatmay arise,outofitsengagement.

126 AdditionalInterestsofExelonExecutiveOfficersandDirectorsintheMergerInconsideringtherecommendationoftheExelonboardofdirectorsthatExelonshareholdersvotetoapprovetheshareissuanceproposalandtheExelonadjournmentproposal,youshouldbeawarethatsomeof Exelonsdirectorsandexecutiveofficershavefinancialinterestsinthemergerthatmaybedifferentfrom,orin additionto,thoseofExelonshareholdersgenerally.TheboardofdirectorsofExelonwasawareofand consideredthesepotentialinterests,amongothermatters,inevaluatingandnegotiatingthemergeragreementand themerger,inapprovingthemergeragreement,andinrecommendingtheapprovaloftheshareissuance proposalandtheExelonadjournmentproposal.Immediatelyfollowingcompletionofthemerger,13membersofthecurrentExelonboardofdirectorsareexpectedtocontinuetobedirectorsofExelon,allowingfortheretirementofoneExelondirectorattheendof 2011andtheretirementofMr.Roweuponcompletionofthemerger.TwoothercurrentExelondirectorsare expectedtoretirefromtheExelonboardattheendof2012.Themergeragreementprovidesfora16-member boardofdirectorsbytheendof2012,12membersofwhichwillbedesignatedfromExelonsboardofdirectors.

ItisalsoexpectedthatcertainmembersofExelonsmanagementwillcontinuetobeexecutiveofficersofExelon followingcompletionofthemerger.WhileExelonsdirectorsandexecutiveofficerswillnotreceiveanyspecialcompensationinconnectionwiththemerger,themergeragreementdoesprovidethatfollowingcompletionofthemerger,ChristopherM.

Crane,thecurrentpresidentandchiefoperatingofficerofExelon,willserveasamemberoftheExelonboard andwillserveasthepresidentandchiefexecutiveofficerofExelon.However,Mr.Cranehasnotenteredintoan employmentcontractwithrespecttohispotentialserviceaspresidentandchiefexecutiveofficer.The arrangementsforMr.CranesemploymentandanychangestoMr.Cranescurrentcompensationandbenefit arrangementsinconnectionwithsuchservicewillbeestablishedbytheExelonboardofdirectorsatornearthe effectivetimeofthemergerandareexpectedtobeconsistentwithExelonsrecentpracticesand pay-for-performancephilosophiesregardingexecutivecompensation.Inaddition,onSeptember9,2011,ExelonannouncedthatcertainotherexecutiveofficersofExelonwillserveasexecutiveofficersofthecombinedcompanyfollowingcompletionofthemerger:DenisP.OBrien,the currentexecutivevicepresidentofExelonandpresidentandchiefexecutiveofficerofPECO,willbecomesenior executivevicepresidentofExelonandchiefexecutiveofficerofExelonUtilities;WilliamA.VonHoene,Jr.,the currentexecutivevicepresident,Finance&Legal,ofExelon,willbecomeseniorexecutivevicepresidentand chiefstrategyofficerforthecombinedcompany;RuthAnnM.Gilliswillremainexecutivevicepresidentof Exelon,presidentoftheExelonBusinessServicesCompanyandwillserveaschiefadministrativeanddiversity officerforthecombinedcompany;MatthewF.Hilzinger,thecurrentseniorvicepresidentandchieffinancial officerofExelon,willbecomeexecutivevicepresidentandchiefintegrationofficerforthecombinedcompany; KennethW.Cornew,thecurrentseniorvicepresidentofExelonandpresidentofExelonPowerTeam,will becomeexecutivevicepresidentandchiefcommercialofficerofExelonandpresidentandchiefexecutive officerofthecompetitiveretailandcommoditiesbusinessesandCharlesR.ChipPardee,thecurrentchief operatingofficerofExelonGeneration,willretainthattitle.Noneoftheaforementionedexecutiveofficershave enteredintoanemploymentcontractwithrespecttohisorherservicefollowingcompletionofthemerger.The arrangementsforsuchexecutivesemploymentandanychangestosuchexecutivescurrentcompensationand benefitarrangementsinconnectionwithsuchservicewillbeestablishedatorneartheeffectivetimeofthe mergerandareexpectedtobeconsistentwithExelonsrecentpracticesandpay-for-performancephilosophies regardingexecutivecompensation.ExelonsexecutivecompensationprogramsaredesignedtomotivateandrewardseniormanagementtoachieveExelonsvisionofbeingthebestgroupofelectricgenerationandelectricandgasdeliverycompaniesin theUnitedStates,providingsuperiorvalueforExelonscustomers,employees,investorsandthecommunities Exelonserves.Exelonscompensationprogramsaredesignedtorewardsuperiorperformancethatmeetsor exceedsfinancialandoperationalgoalssetbythecompensationcommitteeoftheExelonboardofdirectors.

Whenexcellentperformanceisachieved,paywillincrease.Failuretoachievethetargetgoalsestablishedbythe compensationcommitteewillresultinlowerpay.Exelonsexecutivecompensationprogramsaredescribedin 127 furtherdetailinitsProxyStatementonSchedule14A,filedwiththeSEConMarch24,2011,andincorporatedhereinbyreference.WeincludeadditionalinformationwithrespecttotheboardofdirectorsandthemanagementofExelonfollowingthecompletionofthemergerunderTheMergerAgreementPost-MergerGovernanceofExelon, beginningonpage147.AdditionalInterestsofConstellationExecutiveOfficersandDirectorsintheMergerInconsideringtherecommendationsoftheConstellationboardofdirectorswithrespecttothemerger,Constellationsstockholdersshouldbeawareofthebenefitsavailabletotheexecutiveofficersanddirectorsof Constellationinconnectionwiththemerger.Theseindividualshavecertaininterestsinthemergerthatmaybe differentfrom,orinadditionto,theinterestsofConstellationsstockholdersgenerally.TheConstellationboard ofdirectorswasawareoftheseinterestsandconsideredthem,amongothermatters,inmakingits

recommendations.TreatmentofConstellationLong-TermIncentivePlanAwardsStockOptions,RestrictedStockAwardsandRestrictedStockUnitAwards.UnderthevariousConstellationequitycompensationplans,Constellationhasmadeperiodicgrantsofstockoptions,restrictedstockawardsand restrictedstockunitawardstoitsexecutiveofficersandnon-employeedirectors.Noneoftheexecutiveofficers ofConstellationholdsoutstandingrestrictedsharesofConstellationcommonstock,andnoneoftheexecutive officersofConstellationholdsoutstandingConstellationrestrictedstockunitawardsthatwillbesubjectto acceleratedvestingorenhancedbenefitsuponcompletionofthemerger(assumingcompletionofthemergeron April28,2012,whichistheinitialterminationdatecontemplatedbythemergeragreementifcompletionofthe mergerdoesnotoccurpriortosuchdate).Noneofthenon-employeedirectorsofConstellationholdsoutstanding optionstopurchasesharesofConstellationcommonstockoroutstandingConstellationrestrictedstockunit awards,andnoneofthenon-employeedirectorsofConstellationholdsoutstandingrestrictedsharesof Constellationcommonstockthatwillbesubjecttoacceleratedvestingorenhancedbenefitsuponcompletionof themerger(assumingcompletionofthemergeronApril28,2012).Pursuanttothetermsofthemergeragreement,eachstockoptiontopurchasesharesofConstellationcommonstockwillbecomefullyvesteduponthecompletionofthemergerandwillbeconvertedintoan equivalentrighttopurchasesharesofExeloncommonstock.ThenumberofsharesofExeloncommonstock subjecttosuchconvertedoptionwillequalthenumberofsharesofConstellationcommonstocksubjecttothe stockoptionimmediatelypriortothecompletionofthemergermultipliedbytheexchangeratio(roundeddown tothenearestwholeshare).TheexercisepricepershareforeachconvertedExelonstockoptionwillequalthe exercisepricepershareofthestockoptionimmediatelypriortothecompletionofthemergerdividedbythe exchangeratio(roundeduptothenearestwholecent).Thetermsandconditionsofanyconvertedequityaward willbethesameasthetermsandconditionsoftheoriginalaward,includingwithrespecttodurationandthe effectofterminationofservice.Forafurtherdiscussionofthetermsofthemergeragreementwithrespecttothe treatmentofoutstandingConstellationequityawardsinconnectionwiththecompletionofthemerger,pleasesee thesectioncaptionedTheMergerAgreementStockOptionsandOtherEquityRightsbeginningonpage149 ofthisjointproxystatement/prospectus.Thein-the-moneyvalueofunvestedoptionsheldbyeachof Constellationsexecutiveofficersthatwillbecomefullyvestedandexercisableuponcompletionofthemerger (assumingcompletionofthemergeronApril28,2012)isincludedinthetablesetforthbelowunderthe subsectioncaptionedSummaryofPotentialPaymentstoConstellationsExecutiveOfficersbeginningon page130ofthisjointproxystatement/prospectus.PerformanceUnits.Constellationhasperiodicallyissuedcash-basedperformanceunitstoitsexecutiveofficersthatentitleeachexecutivetoupto$2.00perunitifspecifiedperformancetargetsareachieved.Noneof thenon-employeedirectorsofConstellationholdsoutstandingcash-basedperformanceunits.Pursuanttothe termsofthemergeragreement,eachoutstandingcash-basedperformanceunitwillbecomevestedonaprorata 128 basisuponcompletionofthemerger(determinedbasedonthenumberofmonthsfromthestartoftheapplicableperformanceperiodtothecompletionofthemerger).Totheextentthatsuchcash-basedperformanceunits becomesovested,theexecutivewillbeentitledtoacashpaymentwithin30daysfollowingthecompletionof themergerinanamountequalto$2.00multipliedbythetotalnumberofperformanceunitsthathavebecome vestedasofthecompletionofthemerger.Eachoutstandingcash-basedperformanceunitthatdoesnotbecome sovesteduponcompletionofthemergerwillremainoutstandinginaccordancewiththetermsandconditionsof theapplicableawarddocuments.AssumingcompletionofthemergeronApril28,2012,theperformanceperiods forunitsawardedin2010and2011willnothavebeencompleted,andaportionofsuchawardswillbesubjectto theacceleratedvestingandpaymentdescribedabove.Thevalueofunvestedcash-basedperformanceunitsheld byeachofConstellationsexecutiveofficersthatwillbecomevestedonanacceleratedbasisasdescribedabove uponcompletionofthemerger(assumingcompletionofthemergeronApril28,2012)isincludedinthetableset forthbelowunderthesubsectioncaptionedSummaryofPotentialPaymentstoConstellationsExecutive Officersbeginningonpage130ofthisjointproxystatement/prospectus.AsofSeptember30,2011,themost recentpracticabledatepriortothemailingofthisjointproxystatement/prospectus,theunitsawardedin2010 and2011wereprojectedtoearn,withoutregardtothemerger,approximately$0.81perunitand$2.00perunit, respectively,basedonthethencurrentperformanceofConstellationinrelationtotheapplicableperformance goalsforeachaward(althoughsuchcurrentperformanceisnoguaranteeoftheactualperformancelevelthatwill beachievedforthefullperformanceperiod).TreatmentofAnnualIncentiveAwardinYearofEmploymentTerminationPursuanttotheConstellationExecutiveAnnualIncentivePlan,Constellationsexecutiveofficersareeligibleforannualincentiveawardsbasedontheachievementofspecifiedperformancegoals.Theplanprovides thatifanexecutiveofficersserviceisterminatedincontemplationoforwithintwoyearsfollowingachangein control(asdefinedintheplan),theexecutivewillbeentitledtoreceiveanawardfortheperformanceyear duringwhichtheseparationfromserviceoccurs,calculatedassumingthattheexecutivehasachievedthe maximumperformancepossible.Theawardwillbepro-ratedfortheportionoftheyearworked.Paymentofthe awardwillbemadeinalumpsumincashwithin60daysaftertheexecutivesseparationfromservice.The completionofthemergerwillconstituteachangeincontrolundertheExecutiveAnnualIncentivePlan.The valueoftheprorataamountsthatwouldbecomepayabletoeachofConstellationsexecutiveofficersunderthe ExecutiveAnnualIncentivePlan,assumingbasesalariesandincentivetargetsremainunchangedfromtheir currentlevels,completionofthemergeronApril28,2012,andacontemporaneousqualifyingterminationof employmentoftheexecutiveofficers,isincludedinthetablesetforthbelowunderthesubsectioncaptioned SummaryofPotentialPaymentstoConstellationsExecutiveOfficersbeginningonpage130ofthisjoint proxystatement/prospectus.SeverancePlanUnderthetermsoftheConstellationSeverancePlan,executiveofficerswhoseservicewithConstellationisterminatedduetojobelimination,whetherornotinconnectionwithachangeincontroltransaction,willbe eligibletoreceivecertainseverancepaymentsandbenefits.Undertheplan,anexecutiveofficerwillalsobe eligibletoreceiveseverancebenefitsiftheexecutivesemploymentisterminatedduetobeingrequiredtomove morethan50milesfromsuchexecutivescurrentofficelocation.Theplangenerallyprovidesforacash severancebenefitequaltotwoweeksofeligiblepayperyearofservicewithaminimumof26weeksanda maximumof52weeks.Eligiblepayincludestheexecutiveofficersthencurrentweeklybasesalaryplusthe executiveofficersaverageshort-termincentiveawardbonus(calculatedastheaverageoftheexecutivestwo mostrecentshort-termincentiveawardamountspaid),expressedasaweeklyamount.Thecashseverancebenefit ispayableinbiweeklyinstallmentsovertheperiodequaltothenumberofweeksofpaytobeprovidedunderthe plantotheexecutive.Theplanalsoprovidesforcontinuationofmedicalanddentalbenefitsduringtheseverance periodatactiveemployeeratesaswellasoutplacementandeducationalassistance.Therighttoreceivethe severancebenefitsundertheplanisconditionedontheexecutivesexecutionofareleaseofclaimsinfavorof Constellation.Thevalueofthecashseveranceandotherbenefitsthatmaybecomepayableunderthe ConstellationSeverancePlantoeachoftheexecutiveofficersofConstellationuponcompletionofthemerger, 129 assumingbasesalariesandshort-termincentiveawardsremainunchangedfromtheircurrentlevels,completionofthemergeronApril28,2012,andacontemporaneousqualifyingterminationofemploymentoftheexecutive officers,isincludedinthetablesetforthbelowunderthesubsectioncaptionedSummaryofPotentialPayments toConstellationsExecutiveOfficers.SummaryofPotentialPaymentstoConstellationsExecutiveOfficersThefollowingtableindicatestheestimateddollaramountspayabletoConstellationsexecutiveofficersundertheforegoingseveranceplanandtheothercompensationarrangementsdescribedaboveuponthe completionofthemerger,assumingcompletionofthemergeronApril28,2012,andacontemporaneous qualifyingterminationofemploymentoftheexecutiveofficers.Certainoftheamountspayablemayvary dependingontheactualdateofthemergerandanyqualifyingterminationofemployment.

NameCash($)(1)Equity($)(2)

Pension/NQDC($)(3)

Perquisites/Benefits($)(4)

Tax Reimbursements

($)Total($)MayoA.ShattuckIII$3,125,000$9,302,188$0$22,547$0$12,449,735Chairman,PresidentandChief ExecutiveOfficer,Constellation

EnergyJonathanW.Thayer$1,191,250$2,047,453$56,266$22,547$0$3,317,516SeniorVicePresidentandChief FinancialOfficer,Constellation

EnergyHenryB.Barron$1,315,000$2,108,334$84,375$20,780$0$3,528,489ExecutiveVicePresident, ConstellationEnergy,and PresidentandChiefExecutive Officer,Constellation EnergyNuclearGroupKathleenW.Hyle$1,281,250$1,842,422$87,286$22,547$0$3,233,505SeniorVicePresident, ConstellationEnergy,andChief OperatingOfficer,Constellation EnergyResourcesMichaelJ.Wallace(5)$0$1,385,795$0$0$0$1,385,795ViceChairman,ExecutiveVice PresidentandChiefOperating Officer,ConstellationEnergyAllotherexecutiveofficersasagroup(7individuals)(6)$6,050,625$5,698,252$327,002$156,717$0$12,232,596(1)Theseamountsrepresentdoubletriggerbenefits,andincludetheestimatedvalueofcashseverancepaymentsundertheSeverancePlan,payableovertheapplicableseveranceperiodfollowingaqualifying terminationofemploymentatanytimefollowingcompletionofthemerger,aswellastheestimatedpro rata,lumpsumannualincentivepaymentundertheExecutiveAnnualIncentivePlan,payableupona qualifyingterminationofemploymentwithintwoyearsfollowingcompletionofthemerger,ineachcase, assumingbasesalaries,incentivetargetsandshort-termincentiveawardsremainunchangedfromtheir currentlevels.Theestimatedamountofeachbenefitforeachnamedexecutiveofficerandtheother executiveofficersasagroupisasfollows:

• Mr.Shattuck:(a)$1,825,000fortheestimatedcashseverancepayableundertheSeverancePlan;and(b)$1,300,000fortheestimatedprorataannualincentivepaymentundertheExecutiveAnnual IncentivePlan.

130

• Mr.Thayer:(a)$741,250fortheestimatedcashseverancepayableundertheSeverancePlan;and(b)$450,000fortheestimatedprorataannualincentivepaymentundertheExecutiveAnnualIncentive

Plan.*Mr.Barron:(a)$740,000fortheestimatedcashseverancepayableundertheSeverancePlan;and(b)$575,000fortheestimatedprorataannualincentivepaymentundertheExecutiveAnnualIncentive

Plan.*Ms.Hyle:(a)$831,250fortheestimatedcashseverancepayableundertheSeverancePlan;and(b)$450,000fortheestimatedprorataannualincentivepaymentundertheExecutiveAnnualIncentive

Plan.*Mr.Wallace:Mr.WallaceretiredfromConstellationeffectiveApril1,2011,andwillnotbeentitledtoreceiveanycashseverancebenefitsoranyprorataannualincentivepaymentinconnectionwiththe completionofthemerger.

• AllOtherExecutiveOfficersasaGroup(7individuals):(a)$3,665,625fortheestimatedcashseverancepayableundertheSeverancePlan;and(b)$2,385,000fortheestimatedprorataannual incentivepaymentundertheExecutiveAnnualIncentivePlan.(2)Representsthevalueoftheacceleratedvestingofstockoptionsandcash-basedperformanceunitsas follows:*Mr.Shattuck:(a)$2,168,855forthefullacceleratedvestingofunvested,in-the-moneystockoptions;and(b)$7,133,333fortheproratavestingandlumpsumpaymentofunvestedcash-basedperformance

units.*Mr.Thayer:(a)$569,675forthefullacceleratedvestingofunvested,in-the-moneystockoptions;and(b)$1,477,778fortheproratavestingandlumpsumpaymentofunvestedcash-basedperformance

units.*Mr.Barron:$2,108,334fortheproratavestingandlumpsumpaymentofunvestedcash-basedperformanceunits.

• Ms.Hyle:(a)$509,088forthefullacceleratedvestingofunvested,in-the-moneystockoptions;and(b)$1,333,334fortheproratavestingandlumpsumpaymentofunvestedcash-basedperformance

units.*Mr.Wallace:(a)$719,129forthefullacceleratedvestingofunvested,in-the-moneystockoptions;and(b)$666,666fortheproratavestingandlumpsumpaymentofunvestedcash-basedperformance

units.*AllOtherExecutiveOfficersasaGroup(7individuals):(a)$1,572,696forthefullacceleratedvestingofunvested,in-the-moneystockoptions;and(b)$4,125,556fortheproratavestingandlumpsum paymentofunvestedcash-basedperformanceunits.Asdescribedinthenarrativesprecedingthetable,suchacceleratedvestingisasingletriggerbenefitandwilloccursolelyasaresultofthecompletionofthemerger,withoutregardtowhetherthereisa correspondingterminationofemployment.ConsistentwiththerequirementsofInstruction1toItem 402(t)(2)ofRegulationS-K,theaggregatevaluesoftheacceleratedstockoptionsarebasedona Constellationcommonstockpriceof$36.21pershare,whichwastheaverageclosingmarketpriceof ConstellationscommonstockontheNewYorkStockExchangeoverthefirstfivebusinessdaysfollowing thefirstpublicannouncementofthemerger(whichoccurredonApril28,2011).(3)RepresentstheincreasedvalueofthenonqualifiedpensionbenefitforadditionalageandservicecreditduringtheseveranceperiodunderConstellationsBenefitsRestorationPlanforallexecutiveofficers, exceptMessrs.ShattuckandWallace.Suchservicecreditisadoubletriggerbenefitandwillbeprovided iftheexecutiveofficerexperiencesaqualifyingterminationofemploymentundertheSeverancePlanatany timefollowingcompletionofthemerger.UndertheSeniorExecutiveSupplementalPlan,inwhich 131 Mr.Shattuckparticipates,thevalueofthebenefituponretirementisgreaterthanthevalueofthebenefitoncompletionofthemerger,andtherefore,thereisnoenhancednonqualifiedbenefitforMr.Shattuck.

Mr.WallaceterminatedemploymentonApril1,2011andisnoteligibleforanypensionbenefitsasaresult ofthecompletionofthemerger.(4)Theseamountsincludethevalueofthein-kindbenefitsprovidedundertheSeverancePlanovertheapplicableseveranceperiod,includingcontinuedmedicalanddentalbenefits,andoutplacementand educationassistance,allofwhicharedoubletriggerbenefitsandwouldbeprovideduponaqualifying terminationofemploymentatanytimefollowingcompletionofthemerger.(5)Mr.WallaceretiredfromConstellationeffectiveApril1,2011,butisincludedinthetableconsistentwiththerequirementsofInstruction1toItem402(t)(2)ofRegulationS-K.(6)Notsubjecttonon-binding,advisoryvoteonnamedexecutiveofficercompensation.Pre-ClosingActionsConstellationhastherighttotaketheactionsdescribedbelowpriortocompletionofthemerger.NoneofthefollowingactionshasbeentakenasofOctober7,2011,themostrecentpracticabledatepriortothemailing ofthisjointproxystatement/prospectus,thatwouldimpacttheaccuracyorcompletenessoftheinformation describedinthetablesetforthabove.However,certainactionsdescribedbelowmaybetakenpriortothe completionofthemergerthatcouldimpactexecutiveofficersanddirectorsofConstellation.*Constellationgenerallymayissuesharesofcommonstockorstockunitsconsistentwithpastpractice(1)tothemembersofConstellationsboardofdirectorsinaccordancewithitsannualdirector compensationprogram,and(2)inlieuofshort-termcashincentivepayments.*ConstellationmaygrantcashretentionawardstoemployeesofConstellationfromanunfundedemployeeretentionpoolauthorizedunderthemergeragreement.Anysuchretentionawardswillbe allocatedbymanagementofConstellation,butmanagementisrequiredtoconsultwithExelonpriorto providinganyretentionawardtoanyexecutiveofficer.Anyretentionawardswillpayoutnomorethan 25%oftheawarduponthecompletionofthemerger,andtheremainderwillpayoutoneyear thereafter(orwithin30daysafteraninvoluntarytermination,ifearlier).*Constellationmayawardlong-termincentivecompensationforperformanceyearsafter2011havingavalueconsistentwithpriorawardsonanaggregatebasis.Thetypeofsuchawardswillbedetermined byConstellationandsuchawardswillbesubjecttosuchtermsasdeterminedbyConstellation,which mayincludeprovisionsfordoubletriggeracceleratedvestingortargetpayoutsuponcertain qualifyingterminationsofemployment.Long-termincentiveawardsforperformanceyearsafter2011 willonlybegrantedifthecompletionofthemergeroccursfollowingConstellationsnormalannual compensationadministrationprocessin2012(which,basedonpastpractice,normallyoccursinthe firstquarterofthecalendaryear).*Nomorethananaggregateof5,000,000sharesofcommonstockofConstellationmaybeissuedinconnectionwithcompensation-relatedplansorarrangementspriortothecompletionofthemergeras describedabove,andnoawardsgrantedinaccordancewiththeforegoingmaybesubjecttosingle triggeracceleratedpayoutorvestingsolelybaseduponthecompletionofthemerger.ContinuingPost-ClosingServiceofCertainConstellationDirectorsandExecutiveOfficersThemergeragreementprovidesthat,followingcompletionofthemerger,thecombinedentitysboardofdirectorswillincludefourdirectorsdesignatedbyConstellation,includingMayoA.Shattuck,III,thecurrent chairman,presidentandchiefexecutiveofficerofConstellation.TheConstellationboardofdirectorshasnotyet designatedtheotherthreedirectorstoserveonthecombinedentitysboardofdirectors.Mr.Shattuckwillserve astheexecutivechairmanofthecombinedentitysboardofdirectorsuponthecompletionofthemerger,subject tohisabilityandwillingnesstoserve.Mr.Shattuckscompensationforsuchservicewillbeestablishedbythe Exelonboardof 132 directorsatornearthecompletionofthemergerandisexpectedtobeconsistentwithExelonsrecentpracticesandpay-for-performancephilosophiesregardingexecutivecompensation.Inaddition,onSeptember9,2011, ExelonannouncedthatJonathanW.JackThayer,thecurrentchieffinancialofficerforConstellation,will becomeexecutivevicepresidentandchieffinancialofficerofthecombinedcompany.Thearrangementsfor Mr.Thayersemploymentandanychangestohiscurrentcompensationandbenefitarrangementswillbe establishedatorneartheeffectivetimeofthemergerandareexpectedtobeconsistentwithExelonsrecent practicesandpay-for-performancephilosophiesregardingexecutivecompensation.Forafurtherdiscussionof therolesofcertainofConstellationsdirectorsandexecutiveofficersfollowingcompletionofthemerger,please seethesectionbelowcaptionedTheMergerGovernanceandManagementFollowingCompletionofthe Merger.GovernanceandManagementFollowingCompletionoftheMergerUponcompletionofthemerger,Exelonwilladdtoitscurrent15-memberboardofdirectorsMr.ShattuckandthreeindependentdirectorsofConstellationdesignatedbytheboardofdirectorsofConstellation.Bytheend of2012,theboardofdirectorswillconsistof16members,including12membersdesignatedfromtheboardof directorsofExelonpriortothemergerandfourfromtheConstellationboardofdirectorsaddedtotheboardof directorsofExelonattheclosingofthemerger.Exelonsdesigneeswillconsistof11directorswhomeetthe standardsforindependencesetforthintheNYSEListingStandardsandMr.Crane,andConstellations designeeswillconsistofthreedirectorswhomeetthestandardsforindependencesetforthintheNYSEListing StandardsandMr.Shattuck.OneExelondirectorisexpectedtoretireattheendof2011,andMr.Roweis expectedtoretireuponcompletionofthemerger.TwoothercurrentExelondirectorsareexpectedtoretirefrom theExelonboardattheendof2012.EachofthethreeindependentboardmembersdesignatedbyConstellation willbenamedtooneormoreofthefollowingcommitteesoftheboardofdirectorsofExelon:compensation committee,corporategovernancecommittee,auditcommitteeandriskoversightcommittee.Inaddition,oneof thethreeindependentboardmembersdesignatedbyConstellationwillbenamedasthechairofoneofsuch

committees.Followingcompletionofthemerger,Mr.CranewillserveasthepresidentandchiefexecutiveofficerofExelonandMr.ShattuckwillserveastheexecutivechairmanoftheboardofdirectorsofExelon.Mr.Rowe,the currentchiefexecutiveofficerofExelon,willretireuponcompletionofthemerger.NeitherofMessrs.Cranenor Shattuckhaveenteredintoanemploymentcontractwithrespecttotheirrespectiveexpectedserviceaspresident andchiefexecutiveofficerofExelon,inthecaseofMr.Crane,andexecutivechairmanoftheboardofdirectors ofExelon,inthecaseofMr.Shattuck.Forafurtherdescriptionoftherolesandresponsibilitiesofthechief executiveofficerandtheexecutivechairman,pleaseseeTheMergerAgreementPost-MergerGovernanceof Exelon,beginningonpage147.OnSeptember9,2011,ExelonannouncedthatthefollowingseniorexecutiveswillbereportingdirectlytoMr.Cranefollowingcompletionofthemerger:*DenisP.OBrien,thecurrentexecutivevicepresidentofExelonandpresidentandchiefexecutiveofficerofPECO,willbecomeseniorexecutivevicepresidentofExelonandchiefexecutiveofficerof ExelonUtilities,withresponsibilityforsharingbestpracticesandprovidingoversighttothecombined companysutilitybusinesses.ReportingtoMr.OBrienwillbethethreeutilityseniorexecutives:

CraigAdams,thecurrentseniorvicepresidentandchiefoperatingofficerofPECO,whowillbecome chiefexecutiveofficerofthatbusiness;KenDeFontes,chiefexecutiveofficerofBGE;andAnne Pramaggiore,thecurrentpresidentandchiefoperatingofficerofComEd,whowillbecomechief executiveofficerofthatbusiness.*WilliamA.VonHoene,Jr.,thecurrentexecutivevicepresident,Finance&Legal,ofExelonwillbecomeseniorexecutivevicepresidentandchiefstrategyofficerforthecombinedcompany,with responsibilityforcorporatedevelopment,corporatestrategy,legal,regulatory,governmentaffairs, investmentsandcommunications.

133

• RuthAnnM.GilliswillremainexecutivevicepresidentofExelon,presidentoftheExelonBusinessServicesCompanyandchiefadministrativeanddiversityofficerforthecombinedcompany.Ms.Gillis willcontinuetoleadthecombinedcompanyscommercialoperations,humanresources,information technologyandsupplypracticeareas.*MatthewF.Hilzinger,thecurrentseniorvicepresidentandchieffinancialofficerofExelon,willbecomeexecutivevicepresidentandchiefintegrationofficerforthecombinedcompany.Mr.Hilzinger willbetheleadexecutiveforallintegrationactivitiesfollowingtheclosingofthemerger.*JonathanW.JackThayer,thecurrentchieffinancialofficerforConstellation,willbecomeexecutivevicepresidentandchieffinancialofficerofthecombinedcompany,withresponsibilityforExelons accounting,risk,financialplanning&analysis,tax,treasury,investorrelationsandauditfunctions.*KennethW.Cornew,thecurrentseniorvicepresidentofExelonandpresidentofExelonPowerTeam,willbecomeexecutivevicepresidentandchiefcommercialofficerofExelonandpresidentandchief executiveofficerofthecompetitiveretailandcommoditiesbusinesses.*CharlesR.ChipPardee,thecurrentchiefoperatingofficerofExelonGeneration,willretainthattitle,leadingtheoperationsoftheExelonNuclearandExelonPowerbusinessunits.IndemnificationandInsuranceThemergeragreementprovidesthat,followingcompletionofthemerger,Exelonshallcausethesurvivingcorporationtohonorallrightstoexculpation,indemnificationandadvancementofexpensesexistingatthe signingofthemergeragreementforallpresentandformerofficers,directorsandemployeesofConstellationas providedinConstellationsorganizationaldocumentsorcontractswithrespecttoactsoromissionsoccurring priortothecompletionofthemerger.Themergeragreementalsoprovidesthat,followingthecompletionofthe merger,Exelonwillmaintainthedirectorsandofficersliabilityinsuranceandfiduciaryliabilityinsurance policiesmaintainedbyConstellationasofthetimeofthemergeragreementforsixyearsfollowingthe completionofthemerger,subjecttocertainlimitationsontheamountofpremiumspayableundersuchpolicies.

Inlieuofsuchinsurance,Constellationmaypurchasetailinsurancecoveragethatprovidescoveragenot materiallylessfavorablethanthatmaintainedbyConstellationasofthetimeofthemergeragreement,subjectto certainlimitationsonthecostofsuchtailpolicy.StockExchangeListingExelonagreedinthemergeragreementtouseitsreasonableeffortstocausethesharesofExeloncommonstockissuabletoholdersofConstellationcommonstockinthemergertobeapprovedforlistingontheNYSE, subjecttoofficialnoticeofissuance,priortothecompletionofthemerger.MaterialUnitedStatesFederalIncomeTaxConsequencesoftheMergerThefollowingisadiscussionofthematerialUnitedStatesfederalincometaxconsequencesofthemergertoConstellationstockholderswhoexchangetheirConstellationcommonsharesforExeloncommonshares pursuanttothemergerandareforUnitedStatesfederalincometaxpurposes:*acitizenorindividualresidentoftheUnitedStates;

• acorporationorotherentitytaxableasacorporationforUnitedStatesfederalincometaxpurposescreatedinororganizedunderthelawsoftheUnitedStatesoranypoliticalsubdivisionthereof;*anestatetheincomeofwhichissubjecttoUnitedStatesfederalincometaxwithoutregardtoitssource;or*atrustifacourtwithintheUnitedStatesisabletoexerciseprimarysupervisionoveritsadministrationandoneormoreUnitedStatespersonshavetheauthoritytocontrolallofthesubstantialdecisionsof suchtrust.

134 ThediscussionwhichfollowsisbasedontheCode,TreasuryregulationsissuedundertheCode,administrativeinterpretationsandcourtdecisions,eachasineffectasofthedateofthisjointproxystatement/

prospectusandallofwhicharesubjecttochangeatanytime,possiblywithretroactiveeffect.Thediscussion appliesonlytoshareholderswhoholdConstellationcommonsharesascapitalassetswithinthemeaningof Section1221oftheCode.ThisdiscussionisnotbindingontheInternalRevenueService,referredtoastheIRS, andtherecanbenoassurancethattheIRSoracourtwillagreewiththeconclusionsstatedherein.Inaddition, thisdiscussiondoesnotaddressanystate,local,non-UnitedStatesornon-incometaxconsequencesofthe

merger.Thediscussionassumesthatthemergerwillbecompletedinaccordancewiththemergeragreementandasfurtherdescribedinthisjointproxystatement/prospectus.Thisdiscussionisnotacompletedescriptionofallof thefederalincometaxconsequencesofthemerger,and,inparticular,maynotaddressUnitedStatesfederal incometaxconsiderationsapplicabletoConstellationstockholderssubjecttospecialtreatmentunderUnited Statesfederalincometaxlaw,including,withoutlimitation:*financialinstitutionsorinsurancecompanies;

• mutualfunds;

• tax-exemptorganizations;

• pass-throughentities,suchaspartnerships,orinvestorsinsuchentities;

• dealersorbrokersinsecuritiesorforeigncurrencies;

• stockholderswhoholdindividualretirementorothertax-deferredaccounts;

• tradersinsecuritieswhoelecttoapplyamark-to-marketmethodofaccounting;

• U.S.expatriates;

• stockholderswhoaresubjecttoalternativeminimumtax;

• stockholderswhoarenotcitizensorresidentsoftheUnitedStates;

• stockholderswhoactuallyorconstructivelyown5%ormoreoftheoutstandingsharesof Constellation;*stockholderswhoholdConstellationcommonsharesaspartofahedge,appreciatedfinancialposition,straddle,constructivesaleorconversiontransaction;or*stockholderswhoacquiredtheirsharesofConstellationpursuanttotheexerciseofemployeeoptionsorotherwiseascompensation.Ifapartnership,orotherentityorarrangementtreatedasapartnershipforUnitedStatesfederalincometaxpurposes,isaConstellationstockholder,thetaxtreatmentofapartnerinthepartnershipwilldependuponthe statusofthatpartnerandtheactivitiesofthepartnership.ApartnerinapartnershipthatisaConstellation stockholderisstronglyurgedtoconsultwithitsowntaxadvisorregardingthetaxconsequencesofthemergerto

it.Inaddition,taxconsequencesarisingunderstate,localandnon-UnitedStateslaws,orunderUnitedStatesfederallawsotherthanUnitedStatesfederalincometaxlaws,arenotaddressedinthisjointproxystatement/

prospectus.Constellationstockholdersarestronglyurgedtoconsultwiththeirowntaxadvisorsregardingthetaxconsequencesofthemergertothem,includingtheeffectsofUnitedStatesfederal,state,localandnon-United Statestaxlaws.ItisaconditiontotheobligationofConstellationtocompletethemergerthatConstellationreceiveawrittenopinionfromKirkland&EllisLLP,counseltoConstellation,totheeffectthatthemergerwillqualifyasa reorganizationwithinthemeaningofSection368(a)oftheCode.ItisaconditiontotheobligationofExelonto 135 completethemergerthatExelonreceiveawrittenopinionfromSkadden,Arps,Slate,Meagher&FlomLLP,counseltoExelon,totheeffectthatthemergerwillqualifyasareorganizationwithinthemeaningof Section368(a)oftheCode.NeitherExelonnorConstellationcurrentlyintendstowaivetheopinionconditionto itsobligationtocompletethemerger.Theopinionsdescribedabovewillrelyoncertainassumptions,aswellas representationsandcovenantsmadebyExelon,MergerSubandConstellation.Thesemayincludeassumptions regardingtheabsenceofchangesinexistingfactsandlaw,thecompletionofthemergerinthemanner contemplatedbythemergeragreement,andtheaccuracyandcompletenessofrepresentationscontainedin representationlettersofofficersofExelon,MergerSubandConstellation.Ifanyofthoseassumptions, representationsorcovenantsisinaccurate,counselmaybeunabletorendertherequiredopinionandthemerger maynotbecompletedorthetaxconsequencesofthemergercoulddifferfromthosediscussedbelow.An opinionofcounselrepresentscounselsbestlegaljudgmentandisnotbindingontheIRSoranycourt,nordoes itprecludetheIRSfromadoptingacontraryposition.NorulinghasbeenorwillbesoughtfromtheIRS regardinganyUnitedStatesfederalincometaxconsequencesofthemerger.AsaresultofthemergerqualifyingasareorganizationwithinthemeaningofSection368(a)oftheCode,forUnitedStatesfederalincometaxpurposes,ingeneral:*aConstellationstockholderwillnotrecognizegainorlossasaresultofsuchstockholdersConstellationcommonsharesbeingexchangedinthemergerforsharesofExeloncommonstock, exceptasdescribedbelowwithrespecttothereceiptofcashinlieuofafractionalshareofExelon commonstock;*aConstellationstockholdersaggregatetaxbasisinsharesofExeloncommonstockreceivedinthemerger,includinganyfractionalsharedeemedreceivedandexchangedasdescribedbelow,willequal theaggregatetaxbasisoftheshareholdersConstellationcommonsharessurrenderedinthemerger;*aConstellationstockholdersholdingperiodforsharesofExeloncommonstockreceivedinthemergerwillincludetheshareholdersholdingperiodforthesharesofConstellationsurrenderedinthemerger;*aConstellationstockholderwhoreceivescashinlieuofafractionalshareofExeloncommonstockinthemergerwillbetreatedashavingreceivedafractionalshareinthemergerandthenashavingsold suchfractionalshareforcash.Asaresult,suchaConstellationstockholdergenerallywillrecognize capitalgainorlossequaltothedifferencebetweentheamountofthecashreceivedinlieuofthe fractionalshareandthestockholderstaxbasisallocabletosuchfractionalshare.Anysuchcapitalgain orlosswillbelong-termcapitalgainorlossiftheholdingperiodoftheConstellationcommonshares exchangedforthefractionalshareofExeloncommonstockismorethanoneyearatthetimeofthe merger;and*neitherConstellationnorExelonwillrecognizegainorlossasaresultofthemerger.ConstellationstockholderswhoholdtheirConstellationcommonshareswithdifferingbasesorholdingperiodsshouldconsulttheirtaxadvisorswithregardtoidentifyingthebasesorholdingperiodsoftheparticular sharesofExeloncommonstockreceivedinthemerger.InformationReportingandBackupWithholdingConstellationstockholdersmaybesubjecttoinformationreportingandbackupwithholdingonanycashpaymentstheyreceiveinthemerger.Constellationstockholdersgenerallywillnotbesubjecttobackup withholding,however,ifthey:*timelyfurnishacorrecttaxpayeridentificationnumber,certifythattheyarenotsubjecttobackupwithholdingonanIRSFormW-9orotherformdescribedintheelectionform/letteroftransmittalthat theywillreceiveandotherwisecomplywithalltheapplicablerequirementsofthebackupwithholding rules;or*provideproofthattheyareotherwiseexemptfrombackupwithholding.

136 AnyamountswithheldunderthebackupwithholdingrulesarenotadditionaltaxesandwillgenerallybeallowedasarefundorcreditagainstaConstellationstockholdersUnitedStatesfederalincometaxliability, providedsuchshareholdertimelyfurnishescertainrequiredinformationtotheIRS.ThediscussionofmaterialUnitedStatesfederalincometaxconsequencessetforthaboveisnotintendedtobeacompleteanalysisordescriptionofallpotentialUnitedStatesfederalincometax consequencesofthemerger.Moreover,thediscussionsetforthabovedoesnotaddresstaxconsequences thatmayvarywith,orarecontingentupon,individualcircumstances.Inaddition,thediscussionsetforth abovedoesnotaddressanynon-incometaxoranystate,localornon-UnitedStatestaxconsequencesofthe mergeranddoesnotaddressthetaxconsequencesofanytransactionotherthanthemerger.LegalProceedingsIntheweeksfollowingtheannouncementofthemergeronApril28,2011,twelvepurportedConstellationstockholdersbroughtputativeclassactionsrelatingtothemergerintheCircuitCourtforBaltimoreCity, Maryland,whichwerefertoasthestatecourt.Thecaptionsfortheactionswereasfollows:

• Engelv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003015

• Heinmullerv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003016

• EstateofLovemanv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003058

• Smithv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003106

• Tolchinv.Shattuck,CaseNo.24-C-11-003108

• Montiniv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003109

• Pillv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003156

• Argentinov.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003211

• Gordonv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003212

• Bushanskyv.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003235

• Basilev.ConstellationEnergyGroup,Inc.,CaseNo.24-C-11-003431

• LouisianaMunicipalPoliceEmployeesRetirementSystemv.ConstellationEnergyGroup,Inc., CaseNo.24-C-11-003491OnMay18,2011,thestatecourtenteredanorderconsolidatingtheactionsunderthecaptionInreConstellationEnergyGroup,Inc.ShareholderLitigation,CaseNo.24-C-11-003015.OnMay23,2011,oneoftheplaintiffs,DeborahTolchin,voluntarilydismissedhercomplaintwithoutprejudice.OnJune1,2011,thestate courtenteredanorderappointingco-leadinterimcounselandliasoncounselfortheplaintiffs.Theplaintiffsintheconsolidatedactionfiledasupersedingconsolidatedshareholderclassactionandderivativecomplaint,whichwerefertoastheconsolidatedcomplaint,onJuly14,2011.Intheconsolidated complaint,theplaintiffsassertthatConstellationsdirectorsbreachedtheirfiduciarydutiestoConstellations stockholdersinconnectionwiththemerger,andthatConstellationandExelonaidedandabettedthealleged breaches.TheplaintiffsalsoassertonbehalfofConstellationaderivativeclaimthatConstellationsdirectors breachedtheirfiduciarydutiestoConstellationinconnectionwiththemerger.Theplaintiffsseekvariousforms ofrelief,including,amongotherthings,aninjunctionprohibitingthemerger,damages,fees,expensesandother

costs.137 OnAugust4,2011,anotherpurportedConstellationstockholder,RonaldWalker,filedacomplaintinaseparateputativeclassactionintheUnitedStatesDistrictCourtfortheDistrictofMaryland,whichwerefertoas thefederalcourt.ThecaptionoftheactionisWalkerv.ConstellationEnergyGroup,Inc.,CaseNo.1:11-cv-02165-WDQ.Mr.WalkerassertsclaimsonbehalfofaputativeclassthatConstellationsdirectors breachedtheirfiduciarydutiestoConstellationsstockholdersinconnectionwiththemergerandthat Constellationsdirectors,Constellation,ExelonandMergerSubaidedandabettedtheallegedbreaches.In addition,Mr.WalkerassertsanindividualclaimagainstConstellationsdirectorsallegingaviolationofSection 14(a)oftheSecuritiesExchangeActof1934basedonallegedmaterialmisrepresentationsandomissionsinthe preliminaryjointproxystatement/prospectusfiledonJune27,2011.Mr.Walkerseeksvariousformsofrelief, including,amongotherthings,adeclaratoryjudgment,aninjunctionprohibitingthemerger,damages,fees, expensesandothercosts.OnAugust30,2011,purportedConstellationstockholderW.C.Smithfiledacomplaintinaseparateputativeclassactioninthefederalcourt.ThecaptionoftheactionisSmithv.ConstellationEnergyGroup,Inc.

,CaseNo.1:11-cv-02437-WDQ.Mr.SmithassertsthatConstellationsdirectors,Constellation,Exelonand MergerSubviolatedSection14(a)oftheSecuritiesExchangeActof1934basedonallegedmaterial misrepresentationsandomissionsinthepreliminaryjointproxystatement/prospectusfiledonJune27,2011and thatConstellationsdirectorsareliableforConstellationsallegedviolationsascontrolpersonsunder Section20(a)oftheSecuritiesExchangeActof1934.Mr.SmithalsoassertsthatConstellationsdirectors breachedtheirfiduciarydutiestoConstellationstockholdersinconnectionwiththemergerandthatConstellation andExelonaidedandabettedtheallegedbreaches.Mr.Smithseeksvariousformsofrelief,including,among otherthings,adeclaratoryjudgment,aninjunctionprohibitingthemerger,fees,expensesandothercosts.OnSeptember27,2011,thepartiestotheconsolidatedactioninthestatecourtandMr.WalkersandMr.Smithsactionsinthefederalcourtenteredintoamemorandumofunderstandingsettingforthanagreement inprincipleregardingasettlementoftheactions.Undertheagreement,ConstellationandExelonagreedto includeinthisjointproxystatement/prospectuscertaindisclosuresrelatingtothemerger.Theagreement providesthattheactionswillbedismissedwithprejudiceandthatthemembersofaputativeclassof Constellationstockholderswillreleasethedefendantsfromallclaimsthatwereorcouldhavebeenraisedinthe actions,includingallclaimsrelatingtothemerger.Theagreementalsoprovidesthattheplaintiffscounselmay applytothestatecourtforanawardofattorneysfeesandexpenses.Thesettlementissubjecttocustomary conditions,including,amongotherthings,theexecutionofdefinitivesettlementpapersandapprovalofthe settlementbythestatecourt.Constellation,Constellationsdirectors,ExelonandMergerSubbelievethattheactionsarewithoutmeritandthattheyhavevaliddefensestoallclaimsassertedtherein.Theyenteredintothememorandumof understandingsolelytoeliminatetheburden,expenseanduncertaintiesinherentinfurtherlitigation.Ifthestate courtdoesnotapprovethesettlementoranyoftheotherconditionstoconsummationofthesettlementarenot satisfied,Constellation,Constellationsdirectors,ExelonandMergerSubwillcontinuetodefendtheirpositions inthesemattersvigorously.AccountingTreatmentExelonpreparesitsfinancialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.Themergerwillbeaccountedforbyapplyingtheacquisitionmethod,whichrequiresthe determinationoftheacquirer,theacquisitiondate,thefairvalueofassetsandliabilitiesoftheacquireeandthe measurementofgoodwill,ifany.Theaccountingguidanceforbusinesscombinations,referredtoasASC805, providesthatinidentifyingtheacquiringentityinacombinationeffectedthroughanexchangeofequity interests,allpertinentfactsandcircumstancesmustbeconsidered,including:therelativevotingrightsofthe shareholdersoftheconstituentcompaniesinthecombinedentity,thecompositionoftheboardofdirectorsand seniormanagementofthecombinedcompany,therelativesizeofeachcompanyandthetermsoftheexchange ofequitysecuritiesinthebusinesscombination,includingpaymentofanypremium.

138 BasedoncurrentExelonboardmembersrepresentingamajorityoftheboardofdirectorsofthecombinedcompany,aswellasthetermsofthemerger,withConstellationstockholdersreceivingapremium(asofthedate precedingthemergerannouncement)overthefairmarketvalueoftheirsharesonsuchdate,Exelonisconsidered tobetheacquirerofConstellationforaccountingpurposes.ThismeansthatExelonwillallocatethepurchase pricetothefairvalueofConstellationsassetsandliabilitiesattheacquisitiondate,withanyexcesspurchase pricebeingrecordedasgoodwill.AppraisalRightsUndertheMarylandGeneralCorporationLaw,holdersofConstellationcommonstockwillnothaveanyappraisalordissentersrightsasaresultofthemerger.PrincipalCorporateOfficesExelonwillmaintainitscurrentheadquartersinChicago,Illinoisfollowingthecompletionofthemerger.Inadditiontothecorporateheadquarters,IllinoiswillcontinuetobehometoComEdandExelonBusinessServicesCompany(bothinChicago),aswellastheMidwestregionalheadquartersforExelonNuclear(in Warrenville).PennsylvaniawillcontinuetobehometoheadquartersforPECO(inPhiladelphia)andExelon Power(inKennettSquare).ExelonNuclearsheadquarterswillalsobelocatedatKennettSquare.Exelonsand ConstellationscommercialretailandwholesalebusinesseswillbeconsolidatedundertheConstellationbrand andheadquarteredinBaltimore.Thecombinedcompanysrenewablesdevelopmentheadquarterswillalsobe locatedinBaltimore.BGEwillretainitsBaltimoreheadquarters.EffectonAwardsOutstandingUnderConstellationStockPlansWeprovideadditionalinformationontheeffectofthemergeronawardsoutstandingundertheConstellationstockplansundertheheadingTheMergerAgreementStockOptionsandOtherEquityRights beginningonpage149.ResaleofExelonCommonStockSharesofExeloncommonstockreceivedinthemergerbyanyConstellationstockholderwhobecomesanaffiliateofExelonuponoraftercompletionofthemerger(suchasConstellationdirectorsorexecutiveofficers whobecomedirectorsorexecutiveofficersofExelonafterthemerger)maybesubjecttorestrictionsontransfer arisingundertheSecuritiesActfollowingcompletionofthemerger.Thisjointproxystatement/prospectusdoes notcoverresalesofsharesofExeloncommonstockreceivedbyanypersonuponcompletionofthemerger,and nopersonisauthorizedtomakeanyuseofthisjointproxystatement/prospectusinconnectionwithanyresale.

139 REGULATORYMATTERSTocompletethemerger,ExelonandConstellationmustobtainapprovalsorconsentsfrom,ormakefilingswith,anumberofUnitedStatesfederalandstatepublicutility,antitrustandotherregulatoryauthorities.We describethematerialUnitedStatesfederalandstateapprovals,consentsandfilingsbelow.Exelonand Constellationarenotcurrentlyawareofanyothermaterialgovernmentalconsents,approvalsorfilingsthatare requiredpriortothepartiescompletionofthemergerotherthanthosewedescribebelow.Ifadditional approvals,consentsandfilingsarerequiredtocompletethemerger,ExelonandConstellationintendtoseeksuch consentsandapprovalsandmakesuchfilings.ExelonandConstellationwillseektocompletethemergerinthefirstquarterof2012.AlthoughExelonandConstellationbelievethattheywillreceivetherequiredconsentsandapprovalsdescribedbelowtocompletethe merger,wecannotgiveanyassuranceastothetimingoftheseconsentsandapprovalsorastoExelonsand Constellationsultimateabilitytoobtainsuchconsentsorapprovals(oranyadditionalconsentsorapprovals whichmayotherwisebecomenecessary)orthatwewillobtainsuchconsentsorapprovalsontermsandsubject toconditionssatisfactorytoExelonandConstellation.Hart-Scott-RodinoAntitrustImprovementsActThemergerissubjecttotherequirementsoftheHart-Scott-RodinoAntitrustImprovementsAct,whichwerefertoastheHSRAct,andtherelatedrulesandregulations,whichprovidethatcertainacquisitiontransactions maynotbecompleteduntilrequiredinformationhasbeenfurnishedtotheAntitrustDivisionoftheDepartment ofJustice,whichwerefertoastheAntitrustDivision,andtheFederalTradeCommission,whichwerefertoas theFTC,anduntilcertainwaitingperiodshavebeenterminatedorhaveexpired.PursuanttoHSRAct requirements,ExelonandConstellationmadetheirrequiredinitialfilingstotheAntitrustDivisionandFTCon May31,2011.ExelonandConstellationeachreceivedfromtheAntitrustDivisionaRequestforAdditional InformationandDocumentaryMaterial,whichwerefertoastheSecondRequest,onJune30,2011,andeach companycertifiedsubstantialcompliancewiththeirrespectiveSecondRequestsonSeptember15,2011.Exelon andConstellationcontinuetocooperatewiththeAntitrustDivisioninitsongoingreviewofthemerger.Neither ExelonnorConstellationbelievesthatthemergerwillviolatefederalantitrustlaws,andneitherexpectsthe AntitrustDivisionreviewofthetransactiontomateriallydelaytheexpectedconsummationofthemerger.

However,wecannotguaranteethattheAntitrustDivisionwillnottakeadifferentposition.FederalPowerActExelonandConstellationeachhavepublicutilitysubsidiariessubjecttothejurisdictionoftheFederalEnergyRegulatoryCommission,whichwerefertoastheFERC,undertheFederalPowerAct,whichwereferto astheFPA.Section203oftheFPAprovidesthatnoholdingcompanyinaholdingcompanysystemthatincludes atransmittingutilityoranelectricutilityshallpurchase,acquire,mergeorconsolidatewithatransmittingutility, anelectricutilitycompanyoraholdingcompanyinaholdingcompanysystemthatincludesatransmittingutility orelectricutilitycompanywithoutpriorFERCauthorization.Further,Section203requirespriorauthorization fromtheFERCforcertaintransactionsresultinginthedirectorindirectchangeofcontroloveraFERC jurisdictionalpublicutility.Consequently,theFERCsapprovalofthemergerunderSection203oftheFPAis

required.140 TheFERCmustauthorizethemergerifitfindsthatthemergerisconsistentwiththepublicinterest.TheFERChasstatedthat,inanalyzingamergerortransactionunderSection203oftheFPA,itwillevaluatethe impactofthemergeron:*competitioninelectricpowermarkets;

• theapplicantswholesalerates;and

• stateandfederalregulationoftheapplicants.Inaddition,inaccordancewithSection203oftheFPA,theFERCalsomustfindthatthemergerwillnotresultinthecross-subsidizationbyutilitiesoftheirnon-utilityaffiliatesortheimproperencumbranceorpledge ofutilityassets.Ifsuchcross-subsidizationorencumbrancesweretooccurasaresultofthemerger,theFERC thenmustfindthatsuchcross-subsidizationorencumbrancesareconsistentwiththepublicinterest.TheFERCwillreviewthesefactorstodeterminewhetherthemergerisconsistentwiththepublicinterest.IftheFERCfindsthatthemergerwouldadverselyaffectcompetitioninwholesaleelectricpowermarkets,ratesfor transmissionorthewholesalesaleofelectricenergy,orregulation,orthatthemergerwouldresultincross-subsidiesorimproperencumbrancesthatarenotconsistentwiththepublicinterest,itmay,pursuanttotheFPA, imposeupontheproposedmergerremedialconditionsintendedtomitigatesucheffectsoritmaydeclineto authorizethemerger.TheFERCisrequiredtoruleonacompletedmergerapplicationnotlaterthan180days fromthedateonwhichthecompletedapplicationisfiled.TheFERCmay,however,forgoodcause,issuean orderextendingthetimeforconsiderationofthemergerapplicationbyanadditional180days.IftheFERCdoes notissueanorderwithinthestatutorydeadline,thenthetransactionisdeemedtobeapproved.Weexpectthat theFERCwillapprovethemergerwithintheinitial180-dayreviewperiod.However,thereisnoguaranteethat theFERCwillnotextendthetimeperiodforitsreviewornotimposeconditionsonitsapprovalthatare unacceptabletoExelonorConstellation.Exelon,ConstellationandtheirrespectivepublicutilitysubsidiariesfiledtheirapplicationunderSection203onMay20,2011.Inthatapplication,ExelonandConstellationproposedcertaingenerationdivestituresandother marketpowermitigationinordertoaddressthepotentialcompetitiveeffectsofthemerger.Inparticular,Exelon andConstellationproposedtodivestthreegenerationstationsownedbyConstellationthatarelocatedinPJM, whichistheonlymarketwherethereisamaterialoverlapofgenerationownedbyExelonandConstellation.

Thesestationsincludebaseloadcoal-firedgenerationunitsplusassociatedgas/oilunitslocatedatthesamesites, whichtotal2,648MWofgenerationcapacity.Inaddition,ExelonandConstellationproposedtoenterinto contractstosell500MWoffirmbaseloadenergywithtermsofoneyearorlongerthroughtheendof2014,at whichtimeConstellationscontractualshareoftheoutputofunitsownedbyConstellationEnergyNuclear GroupLLCdropsfrom85%to50.01%.ExelonandConstellationalsoproposedtooffergenerationassetsunder pricecapsintheEMAACcapacitysubmarkettoaddressatemporarymarketpowerissueinthatsubmarket.Intheirapplication,ExelonandConstellationsubmittedadetailedcompetitionanalysisdemonstratingthatthismitigationleavesthemergerwellwithinFERCsanalyticscreensusedforevaluatingmerger-relatedmarket power,bothforthePJMmarketasawholeandforanyrelevantsubmarketswithinPJM.Theiranalysisalso showedthatthemergerdidnotraiseanycompetitiveconcernsinanyotherrelevantmarket.OnoraboutJuly19,2011,certainpartiesfiledcommentstoandprotestsofExelonsandConstellationsapplicationatFERC,requestingthatahearingbeconductedandassertingthatadditionaldivestitureberequired.

OnAugust3,2011,ExelonandConstellationfiledanansweratFERCrespondingtothecommentsandprotests.

OnJuly22,2011,MonitoringAnalytics,LLC,whichwerefertoasthePJMMarketMonitor,submittedareport toFERCanalyzingthepotentialcompetitiveeffectsofthemergerinthePJMenergymarkets.OnSeptember16, 2011,thePJMMarketMonitorfiledarevisedreportthatmadechangestotheanalysisincludedinitsJuly22 report.IntheviewofExelonandConstellation,noneofthefilingsmadeatFERCshouldresultinFERCsruling onthemergerapplicationbeingdelayedpasttheinitial 141 180-dayreviewperiodorinanyconditionsbeingimposedthatareunacceptabletoExelonorConstellation.However,thereisnoguaranteethatFERCwillnotextendthetimeforitsrevieworimposeconditionsthatare unacceptabletoExelonorConstellation.AtomicEnergyActUndertheAtomicEnergyActof1954,asamended,andtheregulationsoftheNuclearRegulatoryCommission,ortheNRC,anNRCpowerplantlicenseemustseekandobtainpriorNRCconsentfortheindirect transferofitsNRClicensesresultingfromthetransferofcontroloverthelicenseeinamerger.Subsidiariesof ConstellationEnergyNuclearGroup,LLC,orCENG,ajointventurebetweenConstellationandEDFInc.(an indirectwhollyownedsubsidiaryofEDFGroupofFrance)thatis50.01%ownedbyConstellation,holdlicenses issuedbytheNRCwithrespecttotheownershipandoperationalinterestsintheCalvertCliffsNuclearPower Plant,Units1and2,theCalvertCliffsIndependentSpentFuelStorageInstallation,theNineMilePointNuclear Station,Units1and2,theR.E.GinnaNuclearPowerPlantandtheGinnaIndependentSpentFuelStorage Installation.Asaresultofthemerger,Constellationwillbecomeawholly-ownedsubsidiaryofExelon.The resultingindirecttransferofcontrolofthelicensestoExelonrequirespriorNRCapproval.Anapplicationto obtainsuchapprovalwasfiledwiththeNRConMay12,2011.TheNRCpublishednoticesofthelicense transferapplicationintheFederalRegisteronJuly7andJuly8,2011.Norequestsforhearing,petitionsto intervene,orwrittencommentsweresubmittedbythedeadlinespecifiedintheNRCsnotice.Byletterdated July14,2011,theNRCissuedarequestforadditionalinformationonthelicensetransferapplication.Exelon GenerationandCENGsubmittedresponsestotheNRCsrequestonAugust3,2011andAugust12,2011, respectively.OnSeptember26,2011,CENGandExelonmetwiththeNRCstafftodiscusstheresponsestothe NRCsrequestforadditionalinformation.Basedonthatdiscussion,itappearsthattheNRCstaffmayhave additionalquestions,butthestaffindicatedthatitshouldbeabletocompleteitsreviewofthelicensetransfer applicationintimetosupportissuanceofanNRCdecisionontheapplicationbyearlyJanuary2012.Inreviewingalicensetransferapplication,theNRCassesses,amongotherthings,thetransfereestechnicalandfinancialqualificationstoownandoperatethenuclearfacilities,whetherthereisassurancethatadequate decommissioningfundswillbeavailabletosafelydecommissionthefacilitiesattheendoftheirusefullivesand whetherthetransferisotherwiseconsistentwiththeapplicableprovisionsoflaws,regulationsandordersofthe NRC.IntheNRClicensetransferapplication,thepartiesnoted,amongotherthings,thatthemergerwillnot affectthequalificationsoftheCENGsubsidiariestoownandoperatetheirNRC-licensednuclearpowerplantsin accordancewiththeirexistinglicenses.Thepartiesalsonotedthatthemergerwillnotresultinanychangeinthe roleoftheCENGlicenseesastheoperatorsofthenuclearpowerplantsandwillnotresultinanyadverse changestotheirfinancialqualifications,decommissioningfundingassurance,ortechnicalqualifications.The mergershouldnotcauseanymaterialchangeswithrespecttonuclearmanagementandtheoperationofthe facilitiesinquestion,ortotheexistingfinancialarrangementsforensuringthatadequatedecommissioningfunds willbeavailableattheendoftheusefullivesofExelonsandCENGsnuclearfacilities.Typically,NRCapprovalsoflicensetransferstakeapproximatelysixtoninemonthstocomplete.ThetimingofNRCapprovalmaybeextendedintheeventintervenorsraiseissuesaspartofthelicensetransfer proceeding.Giventhelackofinterventions,commentsorrequestsforhearingandthatweexpectnomaterial changeswithrespecttonuclearmanagementandoperationorthefundingforthefacilitiesortheir decommissioning,ConstellationandExelonhavenoreasontobelievethattheNRCwillnotapprovethelicense transfers.However,wecannotassurethattheNRCwillapprovelicensetransfersorthatitwillactwithinasix-tonine-monthtimeframe.ExelonGenerationalsosubmittedathresholddeterminationrequesttotheNRConMay18,2011,requestingthattheNRCmakeadeterminationthatthemergerdoesnotinvolveanydirectorindirecttransferof controloftheNRClicensesheldbyExelonGenerationthatwouldrequireapprovalundertheNRCregulations.

ExelonrespondedtoaNRCrequestforadditionalinformationregardingtheproposedthresholddeterminationon June24,2011.BecausetheexistingchainofownershipforExelonGenerationscurrentlicensedfacilitiesis unaffectedbythemerger,ExelonhasnoreasontobelievethattheNRCwilldeterminethatthemergerinvolvesa transferofthelicensesheldbyExelonGeneration.However,ExeloncannotassurethattheNRCwilldetermine thatnolicensetransferswouldoccurwithrespecttotheExelonGenerationplants,inwhichcaseExelon 142 Generationwillneedtosubmitalicensetransferapplicationfortheaffectedlicenses.Likewise,whilealsounlikely,ExeloncannotassurethatifExelonGenerationisrequiredtoanddoessubmitalicensetransfer applicationfortheExelonGenerationlicenses,theNRCwillapprovethelicensetransfersorthatitwillact withintheestimatedsix-tonine-monthtimeframe.IftheNRCdeterminesthatnolicensetransfersoccurforthe ExelonGenerationlicenses,thenExelonwouldexpectthattheNRCwouldmakethatdeterminationbefore,orby thetimeof,theNRCsactiononthepartieslicensetransferapplication.FederalCommunicationsCommissionUnderFederalCommunicationsCommission,referredtoastheFCC,regulationsimplementingprovisionsoftheCommunicationsActof1934,asamended,anentityholdingprivateradiolicensesforinternal communicationspurposesgenerallymustobtaintheapprovaloftheFCCbeforethedirectorindirecttransferof controlorassignmentofthoselicenses.CertainsubsidiariesofConstellationholdcertainFCClicensesfor privateinternalcommunicationsand,thus,mustobtainpriorFCCapprovaltoassignortransferindirectcontrol ofthoselicenses.OncetheFCChasconsentedtothetransferofcontrol,thepartieshave180daystocomplete themerger.Ifthemergerdoesnotclosewithin180daysafterreceivingFCCconsent,thepartiescanrequestan extensionoftimetoconsummatethetransaction.TheFCCcustomarilygrantsextensionrequestsofthisnature.StateRegulatoryApprovalsStateutilitycommissionapprovalofthemergerisrequiredbytheMarylandPublicServiceCommission,theNewYorkPublicServiceCommissionandthePublicUtilityCommissionofTexas.Thefollowing subheadingscontainadescriptionoftherequiredstateregulatorycommissionapprovalsforthecompletionof themerger.MarylandPublicServiceCommissionOnMay25,2011,ExelonandConstellationfiledanapplicationwiththeMarylandPublicServiceCommission,whichisreferredtoastheMarylandCommission,forapprovalofthemerger.UnderMarylandlaw, theMarylandCommissionwillhavejurisdictiontoreviewthemerger.MarylandlawrequirestheMaryland Commissiontoapproveatransactionifitfindsthatthetransactionisconsistentwiththepublicinterest, convenienceandnecessity,includingbenefitsandnoharmtoconsumers.Inmakingthisdetermination,the MarylandCommissionisrequiredtoconsiderthefollowing12criteria:(1)thepotentialimpactoftheacquisition onratesandchargespaidbycustomersandontheservicesandconditionsofoperationofthepublicservice company;(2)thepotentialimpactoftheacquisitiononcontinuinginvestmentneedsforthemaintenanceof utilityservices,plantandrelatedinfrastructure;(3)theproposedcapitalstructurethatwillresultfromthe acquisition,includingallocationofearningsfromthepublicservicecompany;(4)thepotentialeffectson employmentbythepublicservicecompany;(5)theprojectedallocationbetweenshareholdersandratepayersof anysavingsthatareexpected;(6)issuesofreliability,qualityofserviceandqualityofcustomerservice;(7)the potentialimpactoftheacquisitiononcommunityinvestment;(8)affiliateandcross-subsidizationissues;(9)the useorpledgeofutilityassetsforthebenefitofanaffiliate;(10)jurisdictionalandchoice-of-lawissues; (11)whetheritisnecessarytorevisetheMarylandCommissionsringfencingandcodeofconductregulationsin lightoftheacquisition;and(12)anyotherissuestheMarylandCommissionconsidersrelevanttotheassessment oftheacquisition.AspartoftheapplicationforapprovalofthemergerbytheMarylandCommission,ExelonandConstellationhaveproposedthefollowingpackageofbenefitstoBGEcustomers,theCityofBaltimoreandthe StateofMaryland:*Uponcompletionofthemerger,ExelonwillestablishinBaltimoretheheadquartersforthecombinedcompanyscompetitiveenergybusinesses,aswellasthecombinedcompanysrenewables developmentheadquarters.ExelonwillconstructorrenovatetoLeadershipinEnergyand EnvironmentalDesign-certifiedstandardsabuildingtohousetheseoperationsandwillbeginthis projectwithin12monthsaftercompletionofthemerger,subjecttosatisfactionofapplicable governmentalrequirements.

143

• Within90daysaftercompletionofthemerger,a$100directratecredittothecustomersmonthlybillwillbegiventoeachBGEresidentialcustomerasofaspecifieddatefollowingtheeffectivedateofthe merger,whichareestimatedtototalapproximately$112million.*Within12monthsaftercompletionofthemerger,Exelonwillcontribute$5milliontotheElectricUniversalServiceProgram,whichwillnotberecoverableinratesandwillbeusedtoretireelectric arrearagesofqualifiedBGEresidentialcustomers.BGEwillseektoimplementthisthroughafiling withtheMarylandCommissionwithin90daysaftercompletionofthemerger.Withinthissametime frame,Exelonwillalsofund$4milliontooffsetcostsalreadyincurredbyBGEforitsEmPower Marylandprograms,whichwillnotberecoverableinrates.BGEwillmaintainitscommitmentsto supportingandimplementingenergyefficiencyprograms,includingEmPowerMaryland.*Exelon,directlyorthroughasubsidiaryotherthanBGE,willdeveloporassistinthedevelopmentofrenewableenergyproject(s)ofatleastanoutputof25MWintheStateofMaryland.AtExelons discretion,suchassistancemaytaketheformofownership,development,orfinancialsupportor enteringintolong-termagreementsforthepurchaseofrenewableenergyfromproject(s)thatare developed,owned,orfinancedbyothers.TheprojectsassistedbyExelonaretobeoperationalin Marylandnotlaterthan45monthsaftercompletionofthemerger.*Within12monthsaftercompletionofthemerger,Exelonwillfund$10millionforelectricvehiclesandchargingstationsfortheStateofMarylandandforcountyandlocalgovernmentswithinBGEs serviceterritory.*For10yearsaftercompletionofthemerger,Exelonwillprovideanannualaverageof$7millionincharitablecontributionsandtraditionallocalcommunitysupportwithinMaryland.*BGEwillmaintainitsheadquartersinBaltimore,remainlocallymanaged,andcontinuetoserveitscustomersunderitsownname.*Exelon,RFHoldCoLLCandBGEshallensurecompliancewiththeongoingring-fencingrequirementsapplicabletothem.Inaddition,foratleastthefirsttwoyearsfollowingcompletionofthe merger,Exelon(1)willnotpermitanetreduction,duetoinvoluntaryattritionasaresultofthemerger integrationprocess,inemploymentlevelsatBGEand(2)willprovidecurrentandformerBGE employeescompensationandbenefitsthatareatleastasfavorableintheaggregateasthe compensationandbenefitsprovidedtothoseemployeesimmediatelybeforethemerger.*ExelonwillfullysupportthegoalsoftheMemorandumofUnderstanding,orMOU,signedbyBGEonFebruary6,2009regardingsupplierdiversity,includingallofthetermsandconditionsthereof,and willuseitsbesteffortstoassistBGEwiththeimplementationoftheMOU.*Inthefirstquarterafterthefirstfullcalendaryearfollowingcompletionofthemerger,BGEwillprepareandfilewiththeMarylandCommissionaside-by-sidecomparisonofthecorporatecomponent ofExelonsservicecompanychargestoBGEforthatfullcalendaryearwiththecorporatecomponent ofConstellations2011chargestoBGE.BGEalsowilltrackmergersavingsandaccountforsuch savingsinitsnextelectricrateproceedingandgasrateproceeding.*BGEwillnottoseekrecoveryinratesof:(1)anyacquisitionpremiumorgoodwillassociatedwiththemerger;or(2)transactioncostsincurredinconnectionwiththemerger,whichinclude:(A)consultant, investmentbanker,andlegalfees;(B)changeincontrolorretentionpayments;and(C)costsassociated withtheshareholdermeetingsandanyproxystatement/jointprospectusrelatedtothemerger.*ExelonandBGEwillensurethatmergeraccountingisrate-neutralforBGEscustomers.

• ExelonsboardofdirectorswilladdBaltimoretoitsregularrotationofthelocationofExelonsboardandshareholdermeetings.ThisproposedpackageofbenefitswouldmeanadirectinvestmentinthestateofMarylandofmorethan$250million.Inaddition,accordingtoeconomicmodeling,thebenefitsincludethecreationofnearly900new jobsdirectlyrelatedtoprojectsassociatedwiththemergerandanother1,500indirectjobsinindustrieslike 144 engineering,architecture,insuranceandfoodservice.ThisproposedpackageissubjecttothereviewandapprovaloftheMarylandCommissionandthecompletionofthemerger.OnJune28,2011,theMarylandCommissionissuedaproceduralschedulethatcallsforfurthertestimonysubmissionsinSeptemberandOctober,hearingsOctober31toNovember10,briefinginDecemberandafinal CommissiondecisionbyJanuary5,2012.WeexpecttoreceivethenecessaryapprovalsfromtheMaryland CommissioninJanuary2012.However,wecannotassurethattheMarylandCommissionwillnotrejectthe proposedapplicationorimposeunacceptabletermsasaconditiontoitsapproval.NewYorkPublicServiceCommissionOnMay17,2011,ExelonandConstellationfiledanapplicationwiththeNewYorkPublicServiceCommission,whichisreferredtoastheNewYorkCommission.NewYorkCommissionapprovalisgenerally requiredbeforeanelectriccorporationmaytransferownershipinterestsinanelectricplantand/orforcertain stockacquisitionsofanelectriccorporation.AlthoughitappearsthatConstellationsfacilitiesinNewYorkare subjecttoreducedscrutinyandarelightlyregulated,approvalsforsuchtransfersnonethelessmaybesubject toamoredetailedpublicintereststandardwhichissetforthintheNewYorkPublicServiceLaw.In conductingapublicinterestreview,theNewYorkCommissionmayexamine,amongotherthings,any affiliationswithelectricmarketparticipantsthatmightaffordopportunitiesfortheexerciseofmarketpower,and consideranyotherpotentialdetrimentstocaptiveratepayerinterests.Inaddition,theNewYorkCommission mayassesstheenvironmentalimpactofthetransferbaseduponinformationprovidedinarequired environmentalassessmentform.WeexpecttoreceivethenecessaryapprovalsfromtheNewYorkCommissionduringthefourthquarterof2011.However,wehavenoguaranteethattheNewYorkCommissionwillactbythattimeorthattheNewYork Commissionwillnotrejecttheproposedapplicationorimposeunacceptabletermsasaconditiontoitsapproval.PublicUtilityCommissionofTexasOnMay17,2011ExelonandConstellationfiledwiththePublicUtilityCommissionofTexas,whichisreferredtoastheTexasCommission,anapplicationinvolvingareviewofthebusinesscombinationbetween ExelonandConstellation.TheTexasCommissionapprovedthetransactiononAugust3,2011.PennsylvaniaPublicUtilityCommissionOnJune16,2011,theOfficeofSmallBusinessAdvocateoftheCommonwealthofPennsylvania,orOSBA,filedbeforethePennsylvaniaPublicUtilityCommission,orPaPUC,aPetitionSeekingIntervention,Complaint SeekingInvestigation,andPetitionforDeclaratoryOrder,whichwerefertoastheOSBAComplaint.OSBA requestsPaPUCto:(1)interveneintheFERCproceedinginvolvingreviewoftheproposedmerger;(2)initiate aninvestigationintotheproposedmergertodetermineanypotentialimpactonPennsylvaniascompetitiveretail electricityandnaturalgasmarkets,andifnecessary,referthePaPUCfindingstotheappropriateregulatory bodies;(3)confirmthatExelonisrequiredtoobtainPaPUCapprovalpriortotransferringtoConstellationits electricitygenerationsupplierlicenseandnaturalgasgenerationsupplierlicense(orenteradeclaratoryorderthat thePaPUCmustapproveanyassignmentofExelonsretailcustomercontractstoConstellation);and(4)direct Constellationtofileamendedlicenseapplicationswithrespecttoitselectricitygenerationsupplierlicenseand naturalgasgenerationsupplierlicenseduetoitsproposedmergerwithExelon.OnJuly6,Exelonand ConstellationfiledandAnswertotheOSBAsComplaint.Thepartiessubsequentlyfiledadditionalpleadings.

OnJuly6,thePennsylvaniaOfficeofConsumerAdvocateandthePhiladelphiaAreaIndustrialEnergyUsers GroupeachfiledaninterventioninsupportoftheOSBAsComplaint.ExelonandConstellationacknowledge that,giventheupstreamchangeofcontroloverConstellationsNewEnergylineofbusinessanddependingon whetherandhowtheycombinetheretailmarketingbusinessesofthecompanies,certainnoticefilingswillneed tobemadewiththePaPUC.However,thecompaniesdonotbelievethatthePaPUCneedstoissueadeclaratory orderaffirmingPennsylvaniastatutorylaworPaPUCsregulationsgoverningretailsupplierlicenses.The companiesalsobelievethattheOSBAsrequestthat,duetothemerger,thePaPUCinitiateaninvestigationof Pennsylvaniaretailgasandelectricmarketsisnotwarranted.

145 THEMERGERAGREEMENTThefollowingisasummaryofthematerialtermsandprovisionsofthemergeragreement.Thissummarydoesnotpurporttodescribeallthetermsandprovisionsofthemergeragreementandisqualifiedinitsentirety byreferencetothecompletetextofthemergeragreement,whichwehaveincludedasAnnexAtothisjointproxy statement/prospectusandwhichweincorporatebyreferenceherein.WeurgeallshareholdersofExelonand Constellationtoreadthemergeragreementcarefullyandinitsentirety,aswellasthisjointproxystatement/

prospectus,beforemakinganydecisionsregardingthemerger,asthemergeragreementisthelegaldocument governingthistransactionanditsexpresstermsandconditionsgoverntherightsandobligationsoftheparties.Inreviewingthemergeragreement,pleaserememberthatitisincludedtoprovideyouwithinformationregardingitstermsandconditions.Themergeragreementcontainsrepresentationsandwarrantiesbyeachofthe partiestothemergeragreement,madeasofspecificdates.Theserepresentationsandwarrantiesweremade solelyforthebenefitoftheotherpartiestothemergeragreementand:*werenotintendedtobetreatedasstatementsoffact,butratherasawayofallocatingrisktooneofthepartiesifthosestatementsprovetobeinaccurate;*havebeenqualifiedinthemergeragreementbyreferencetocertaindisclosurescontainedinseparatedisclosurelettersdeliveredbythepartiestoeachotherandincertainSECfilingsmadebytheparties;

and*appliedstandardsofmaterialityinwaysthataredifferentfromwhatmaybeviewedasmaterialbyyouorotherinvestors.Accordingly,therepresentationsandwarrantiesandotherprovisionsofthemergeragreementshouldnotbereadaloneascharacterizationsoftheactualstateoffactsaboutExelonorConstellation,butinsteadshouldbe readtogetherwiththeinformationprovidedelsewhereinthisjointproxystatement/prospectusandintheother documentsincorporatedbyreferencehereinforinformationregardingExelonandConstellationandtheir respectivebusinesses.SeeWhereYouCanFindMoreInformationonpage197.Nevertheless,Exelonand Constellationacknowledgethatweareresponsibleforconsideringwhetheradditionalspecificdisclosuresof materialinformationregardingmaterialcontractualprovisionsarerequiredtomakethestatementsinthisjoint proxystatement/prospectusnotmisleading.TheMergerThemergeragreementprovidesthat,uponthetermsandsubjecttotheconditionsofthemergeragreement,inaccordancewiththeMarylandGeneralCorporationLaw,ortheMGCL,attheeffectivetimeofthemerger, MergerSubwillmergewithandintoConstellation.Constellationwillbethesurvivingcorporationinthemerger andwillbecomeawholly-ownedsubsidiaryofExelon.EachshareofConstellationcommonstockissuedand outstandingimmediatelypriortothecompletionofthemerger,exceptforanysharesofConstellationcommon stockownedbyConstellation,MergerSuborExelonimmediatelypriortotheeffectivetime,willbeconverted intotherighttoreceive0.930sharesofExeloncommonstock,whichwerefertoastheexchangeratio.ExelonwillnotissueanyfractionalsharesofExeloncommonstockinthemerger.Instead,beneficialholdersofConstellationcommonstockwhootherwisewouldhavereceivedafractionofashareofExelon commonstockwillreceiveanamountincashequaltosuchfractionalamountmultipliedbytheaveragesale priceofExeloncommonstockontheNewYorkStockExchange,referredtoastheNYSE,foreachofthe10 consecutivedaysendingwiththesecondcompletetradingdaypriortothemerger.EffectiveTimeandCompletionoftheMergerTheclosingofthemergerwilltakeplaceonadatetobespecifiedbytheparties,whichwillbenolaterthanthethirdbusinessdayaftersatisfactionorwaiveroftheconditionstoclosingsetforthinthemergeragreement (otherthanthoseconditionsthatbytheirtermsaretobesatisfiedattheclosing,butsubjecttothesatisfactionor 146 waiver(totheextentpermittedbyapplicablelaw)ofsuchconditionsatthetimeofclosing),unlessanotherdateisagreedtobytheparties.Themergerwillbeeffectiveatthetimethearticlesofmergeraredulyacceptedfor recordbytheStateDepartmentofAssessmentsandTaxationoftheStateofMaryland(oratsuchlatertime,not toexceed30daysaftersuchacceptance,asisspecifiedinthearticlesofmerger).Post-MergerGovernanceofExelonThemergeragreementprovidesthattheboardofdirectorsofExelonshallcauseMayoA.ShattuckIIItobeappointedastheexecutivechairmanoftheboardofdirectorsofExeloneffectiveuponcompletionofthemerger.

Themergeragreementprovidesthat,uponcompletionofthemerger,theexecutivechairmanofExelonshall serveasthechairmanoftheboardofdirectors,approvetheagendaandconductmeetingsoftheboardof directors,supporttheboardofdirectorsselectionprocess,approvethevisionandmissionofExelonwiththe boardofdirectors,provideguidanceonandapprovethepublicpolicypositionsofExelon,actastheExelon spokesmanonpublicpolicyinitiatives,provideinputontheselectionoftheexecutivemanagementteam followingintegration,representtheboardofdirectorstothepublic,assistinrepresentingExelontothepublic andinvestors,advisetheExelonchiefexecutiveofficerinthegrowthanddevelopmentofthecompetitive businesses,representExeloninadvancingthecustomersandotherexternalconstituencies,advisethechief executiveofficeronstrategyanddevelopmentandtransactionalactivities.Itisexpectedthatuponcompletionofthemerger,JohnW.Rowe,thecurrentchiefexecutiveofficerofExelon,willretireandChristopherM.Crane,thecurrentpresidentandchiefoperatingofficerofExelon,will becomethechiefexecutiveofficerofExelon.Themergeragreementprovidesthat,uponcompletionofthe merger,thechiefexecutiveofficerofExelonshallserveasamemberoftheboardofdirectors,assistinthe developmentoftheagendaoftheboardofdirectors,developthestrategicplanofExelon,recommendthevision andmissionofExelontotheexecutivechairmanandtheboardofdirectors,developpublicpolicypositionsof Exelon,selecttheexecutivemanagementteamofExelonfollowingintegrationwiththeinputoftheexecutive chairman,actastheExelonspokesmanonpublicpolicyinitiatives,developanannualbudgetforapprovalbythe boardofdirectors,drivestrategicfinancialandoperationalresults,leadtheExelonorganizationandrepresent Exelontothepublicandinvestors.ThemergeragreementprovidesthattheinitialmanagementteamofExelonfollowingcompletionofthemergerwillbeasagreeduponbyMr.Rowe,Mr.CraneandMr.Shattuck.Themergeragreementprovidesthat,uponcompletionofthemerger,Exelonwilladdtoitscurrent15-memberboardofdirectorsMr.ShattuckandthreeindependentdirectorsofConstellationdesignatedbythe boardofdirectorsofConstellation.Themergeragreementfurtherprovidesthatbytheendof2012,thenumber ofdirectorsconstitutingtheboardofdirectorsofExelonshallbe16,comprisedof(1)Mr.Crane,(2)eleven independentdirectorsofExelondesignatedbytheboardofdirectorsofExelon,(3)Mr.Shattuck,and(4)the threeindependentdirectorsofConstellationdesignatedbytheboardofdirectorsofConstellation.OneExelon directorisexpectedtoretireattheendof2011,andMr.Roweisexpectedtoretireuponcompletionofthe merger.TwoothercurrentExelondirectorsareexpectedtoretirefromtheExelonboardattheendof2012.Themergeragreementalsoprovidesthat,uponcompletionofthemerger,eachofthethreeindependentdirectorsofConstellationdesignatedbytheboardofdirectorsofConstellationwillbenamedtooneormoreof thecompensationcommittee,corporategovernancecommittee,auditcommitteeandriskoversightcommitteeof theboardofdirectorsofExelon.Inaddition,oneofthethreeindependentdirectorsofConstellationdesignated bytheboardofdirectorsofConstellationwillbenamedasthechairofoneofsuchcommittees.WeincludeadditionalinformationwithrespecttotheboardofdirectorsandthemanagementofExelonfollowingthecompletionofthemergerunderTheMergerGovernanceandManagementFollowing CompletionoftheMerger,beginningonpage133.Followingcompletionofthemerger,theannualshareholdermeetingsofExelonwillbeheldonarotatingbasisbetweenChicago,PhiladelphiaandBaltimore.

147 ConsiderationtobeReceivedintheMergerCancellationofCertainConstellationCommonStockintheMergerAttheeffectivetimeofthemerger,eachshareofConstellationcommonstockthatisownedbyConstellation,ExelonorMergerSubwillautomaticallybecanceledandretiredandnoconsiderationwillbe deliveredinexchangeforanysuchConstellationshares.ConversionofConstellationCommonStockintheMergerAttheeffectivetimeofthemerger,eachissuedandoutstandingshareofConstellationcommonstock(otherthanthosesharestobecanceledasdescribedabove)willbeconvertedintotherighttoreceive0.930sharesof Exeloncommonstock.BasedonthenumberofsharesofcommonstockofExelonandConstellationoutstanding onOctober7,2011,therecorddateforthetwocompaniesspecialmeetings,existingExelonshareholderswould ownapproximately78%ofthecommonstockofExelonandformerConstellationstockholderswouldown approximately22%ofthecommonstockofExelonimmediatelyuponthecompletionofthemerger.ConversionofMergerSubCommonStockintheMergerAttheeffectivetimeofthemerger,eachshareofcommonstock,parvalue$0.01pershare,ofMergerSubissuedandoutstandingimmediatelypriortotheeffectivetimeofthemergerwillbeconvertedintooneshareof commonstockofConstellation,asthesurvivingcorporationinthemerger.ExchangeProceduresandRelatedMattersExchangeProceduresExelonshallappointanexchangeagentmutuallyacceptabletoExelonandConstellation.Assoonasreasonablypracticablefollowing(notlaterthan10businessdays)thecompletionofthemerger,theexchange agentwillmailtoeachholderofsharesofConstellationcommonstockwhoseshareswereconvertedaspartof themergerintotherighttoreceivesharesofExeloncommonstock:(1)aletteroftransmittal,and(2)instructions foruseinsurrenderingsharesofConstellationcommonstockforcertificatesrepresentingwholesharesofExelon commonstock(whichshallbeinuncertificatedbookentryformunlessaphysicalcertificateisrequested),cash inlieuofanyfractionalshares(asdescribedintheparagraphbelowcaptionedNoFractionalShares)andany dividendsorotherdistributionspayable(asdescribedintheparagraphbelowcaptionedDividendsand

Distributions).UponsurrenderofsharesformerlyrepresentingashareofConstellationcommonstocktotheexchangeagentforcancellation,togetherwiththeletteroftransmittal,dulycompletedandvalidlyexecuted,andanyother documentsasmayreasonablyberequiredbytheexchangeagent,theholderwillbeentitledtoreceivein exchangeforeachshareofConstellationcommonstock0.930ofashareofExeloncommonstocktogetherwith cashinlieuofanyfractionalsharesandotherdividendsordistributions,ifany,asdescribedintheparagraph belowcaptionedDividendsandDistributions.Untilproperlysurrenderedtotheexchangeagent,eachshareof Constellationcommonstockpriortothecompletionofthemergerwill,followingthecompletionofthemerger, bedeemedtorepresentonlytherighttoreceivethemergerconsideration.Nointerestwillbepaidorwillaccrue onanyconsiderationoranycashpayabletoholdersofsharesofConstellationcommonstock.DividendsandDistributionsNodividendsorotherdistributionswithrespecttoExeloncommonstockwitharecorddateafterthecompletionofthemergerwillbepaidtoanyholderofanunsurrenderedshareofConstellationcommonstock priortothemerger.Uponsurrenderofsuchshare,theformerConstellationstockholderwillreceive,inaddition tosharesofExeloncommonstockandanycashinlieuofafractionalsharetowhichitisentitled:(1)theamount 148 ofanydividendsorotherdistributionwitharecorddateafterthecompletionofthemergerthathavealreadybeenpaidand(2)attheappropriatepaymentdate,theamountofanydividendsorotherdistributionswitha recorddateafterthecompletionofthemergerbutbeforethedatethecertificatewassurrenderedandwitha paymentdateafterthecertificatewassurrendered.NoFractionalSharesExelonwillnotissueanyfractionalsharesofitscommonstockuponthesurrenderofanysharesofConstellationcommonstock.HoldersofConstellationcommonstockwillotherwisereceivecashinlieuofany fractionalshares.Followingthecompletionofthemerger,Exelonshallmakeavailabletotheexchangeagent, fromtimetotimeasneeded,cashsufficienttopaycashinlieuoffractionalsharesofExeloncommonstock.StockOptionsandOtherEquityRightsUponcompletionofthemerger,Constellationstockoptionsandotherequityrightswillbesubjecttothefollowingtreatment.*EachoptiontopurchasesharesofConstellationcommonstockgrantedunderConstellationstockplanswillbecomefullyvesteduponthecompletionofthemergerandwillbeassumedandautomatically convertedintoanequivalentExelonoptiononthesametermsandconditionsaswereapplicableunder suchstockoptionimmediatelypriortothecompletionofthemerger.ThenumberofsharesofExelon commonstocksubjecttosuchconvertedoptionwillequalthenumberofsharesofConstellation commonstocksubjecttothestockoptionimmediatelypriortothecompletionofthemergermultiplied bytheexchangeratio(roundeddowntothenearestwholeshare).Theexercisepricepershareforeach convertedExelonstockoptionwillequaltheexercisepricepershareforthestockoptionimmediately priortothecompletionofthemergerdividedbytheexchangeratio(roundeduptothenearestwhole

cent).*EachawardofrestrictedcommonstockofConstellationgrantedunderaConstellationstockplanthatisoutstandingimmediatelypriortothecompletionofthemergerwillbecomevestedonaproratabasis (determinedbasedonthenumberofmonthsfromthestartoftheapplicablerestrictionperiodtothe completionofthemerger)inaccordancewiththeapplicableConstellationstockplanandaward agreementpursuanttowhichsuchawardwasgranted.Anysuchrestrictedcommonstockof Constellationthatbecomesvestedasdescribedabovewillreceivethesamepersharemerger considerationasallotherConstellationstockholdersgenerally.Anysuchrestrictedcommonstockof Constellationthatremainsunvesteduponthecompletionofthemergerwillbeassumedand automaticallyconvertedintoanequivalentawardofrestrictedcommonstockofExelon(andcashin lieuoffractionalshares).ThenumberofsharesofrestrictedcommonstockofExelonsubjecttosuch convertedawardwillequalthenumberofsharesofrestrictedcommonstockofConstellationsubjectto suchawardimmediatelypriortothecompletionofthemergermultipliedbytheexchangeratio.*EachawardofrestrictedshareunitswithrespecttosharesofConstellationcommonstockunderaConstellationstockplanthatisoutstandingimmediatelypriortothecompletionofthemergerwill,as ofthecompletionofthemerger,becomevestedonaproratabasis(determinedbasedonthenumberof monthsfromthestartoftheapplicablerestrictionperiodtothecompletionofthemerger)in accordancewiththeapplicableConstellationstockplanandawardagreementpursuanttowhichsuch awardwasgranted.Suchrestrictedshareunitawardswillbeassumedandautomaticallyconvertedinto equivalentrestrictedstockunitawardsofExeloncommonstock(andcashinlieuoffractionalshares) atthecompletionofthemerger.ThenumberofsharesofExeloncommonstocksubjecttosuch convertedrestrictedstockunitawardswillequalthenumberofsharesofConstellationcommonstock subjecttosuchrestrictedstockunitawardsimmediatelypriortothecompletionofthemerger multipliedbytheexchangeratio.*EachoutstandingConstellationperformanceunitgrantedundertheConstellationAmendedandRestated2007Long-TermIncentivePlanthatbecomesvestedatthecompletionofthemergerpursuant 149 tothetermsoftheapplicableawarddocumentswillbecomevestedonaproratabasisuponcompletionofthemerger(determinedbasedonthenumberofmonthsfromthestartoftheapplicableperformance periodtothecompletionofthemerger).Totheextentthatsuchperformanceunitsbecomesovested, theholderwillbeentitledtoacashpaymentwithinthirtydaysfollowingthecompletionofthemerger inanamountequalto$2.00multipliedbythetotalnumberofperformanceunitsthathavebecome vestedasofthecompletionofthemerger.Eachoutstandingperformanceunitthatdoesnotbecomeso vesteduponcompletionofthemergerwillremainoutstandinginaccordancewiththetermsand conditionsoftheapplicableawarddocuments.ConditionstotheCompletionoftheMergerTheobligationofeachofExelonandConstellationtocompletethemergerissubjecttothesatisfactionorwaiverofthefollowingconditions:*thereceiptofrequiredshareholderapprovals,namely:*themergerisapprovedbytheaffirmativevoteofamajorityofallthevotesentitledtobecastbytheholdersofthesharesofConstellationcommonstockoutstandingontherecorddateofthe specialmeeting;and*theissuanceofsharesofExeloncommonstockinthemergerisapprovedbyamajorityofthesharesofExeloncommonstockvotingonthatproposal,providedthatthetotalvotescastonthat proposal(includingabstentions)representamajorityofthesharesofExeloncommonstock outstandingontherecorddateofthespecialmeeting;*theabsenceofany(1)orderorinjunctionbyafederalorstatecourtofcompetentjurisdictionpreventingcompletionofthemergeror(2)applicablefederalorstatelawprohibitingcompletionofthe

merger;*thereceiptoftherequisiteregulatoryapprovals(asdescribedbelowunderthecaptionRequisiteRegulatoryApprovals),whichapprovalsshallhavebecomefinalorders,andneithersuchfinalorders oranyotherorder,actionorconditionofaregulatorybodyinconnectionwithanyrequisiteregulatory approvalshallimposetermsorconditionsthatrequireseitherpartyto:*takeanyactionthatinvolvesdivesting,holdingseparateorotherwisetransferringcontroloveranynuclearorhydroelectricorpumped-storagegenerationassetsunlessotherwiseagreedbythechief executiveofficersofeachofExelonandConstellation;or*takeanyaction,withoutincludingthoseactionsthatareproposedbythepartiesmutuallyagreed-uponanalysisofthemitigationsufficienttoaddresstheincreasedmarketconcentrationresulting fromthemergersetforthintheAppendixAanalysisfiledbythepartiesaspartoftheir applicationunderSection203oftheFPA,withtheFERC,andtheconcessionsannouncedby ConstellationandExeloninthepressreleaseannouncingtheexecutionofthemergeragreement, thatwould,individuallyorintheaggregate,reasonablybeexpectedtohaveamaterialadverse effectonExelonorConstellation(werefertotheactionsinthisandtheimmediatelypreceding sub-bulletasaburdensomeaction);*theeffectivenessoftheregistrationstatementonFormS-4ofwhichthisjointproxystatement/prospectusisapart,andtheabsenceofanystoporderorproceedingsseekingastoporderorinitiation orovertthreatofsuchproceedingsbytheSEC;*theapprovalforlistingontheNYSE,subjecttoofficialnoticeofissuance,ofthesharesofExeloncommonstockthatwillbeissuedpursuanttothemergeragreement;*thetruthandaccuracyoftherepresentationsandwarrantiesoftheotherpartywhenmadeandasofthecompletionofthemerger(excepttotheextentexpresslymadeasofanearlierdate,inwhichcaseasof suchdate),exceptwherethefailuretobetrueandaccurate(withoutgivingeffecttoanylimitationasto 150 materialityormaterialadverseeffectsetforththerein)doesnothave,andcouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialadverseeffectonsuchotherparty;*theperformanceinallmaterialrespectsbytheotherpartyofitsobligationsunderthemerger agreement;*thereceiptbyeachpartyofwrittenopinionsfromsuchpartyslegalcounsel,datedasoftheclosingdate,totheeffectthatthemergerwillqualifyasareorganizationunderSection368(a)oftheCode;

and*theabsence,sinceJanuary1,2011,ofanychange,event,occurrenceordevelopmentthathashadorwouldreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialadverseeffectonthe otherparty.RequisiteRegulatoryApprovalsAsusedinthissummaryofthemergeragreement,requisiteregulatoryapprovalsmeans:

• compliancewithandfilingsundertheHSRAct,

• noticeto,andtheconsentandapprovalof,theFERCunderSection203oftheFPA,oranorderfromtheFERCdisclaimingjurisdictionoverthemergerandthetransactionscontemplatedthereby,*thefilingofanapplicationto,andconsentandapprovalof,andissuanceofanyrequiredlicensesandlicenseamendmentsby,theNRC,undertheAtomicEnergyActof1954,asamended,*noticetoandtheapprovalof:*theMarylandPublicServiceCommission,

• theNewYorkStatePublicServiceCommission,and

• thePublicUtilityCommissionofTexas.TerminationoftheMergerAgreementThemergeragreementmaybeterminatedatanytimepriortothecompletionofthemergerunderthefollowingcircumstances:*bymutualwrittenconsentofExelonandConstellation;

• byeitherExelonorConstellation:*ifthemergerhasnotbeencompletedbyApril28,2012,whichwerefertoastheinitialterminationdate,providedthattherighttoterminatethemergeragreementonthisbasiswillnot beavailabletoanypartywhosewillfulfailuretoperformanyofitsobligationsunderthemerger agreementresultedinthefailureofthemergertobecompletedbytheinitialterminationdate.If, ontheinitialterminationdate,theonlyoutstandingrequirementsforcompletionofthemergerare therequiredregulatoryapprovalsdescribedaboveortheabsenceofanyinjunctionpreventingthe transactionorlawprohibitingthetransaction,theneitherpartymayextendtheinitialtermination dateuptoJuly27,2012;*ifeithertheExelonshareholdersortheConstellationstockholdersdonotgivetheapprovalrequiredbythemergeragreementforcompletionofthemergeratameetingofsuchshareholders dulyconvenedtoobtainsuchapproval;or*ifanyfinalandnonappealableorderorinjunctionbyanyfederalorstatecourtofcompetentjurisdictionpreventingcompletionofthemerger,orapplicablefederalorstatelawprohibiting completionofthemerger,isineffect,orifanygovernmentalentityenactsanylawthatrequires eitherpartytotakeaburdensomeactionwhichshallhavebecomefinalandnonappealable; 151

• byExelon:*ifConstellationbreachesthemergeragreementorfailstoperformitsobligationsinanymaterialrespect,whichbreachorfailuretoperform(1)wouldgiverisetothefailureofaconditionto Exelonsobligationtocompletethemergerand(2)isincapableofbeingcuredorisnotcuredby theearlierof(A)30businessdaysfollowingreceiptofwrittennoticefromExelonofthebreachor failuretoperformor(B)theinitialterminationdate,asmaybeextended;*iftheboardofdirectorsofConstellationwithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesanystatementinconsistentwith,its approvalorrecommendationofthemergerproposal;or*iftheboardofdirectorsofExelonwithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesanystatementinconsistentwith,,itsapproval orrecommendationoftheshareissuanceproposaltoacceptathird-partytakeoverproposal, providedthattherighttoterminatethemergeragreementpursuanttothissub-bulletshallnotbe availabletoExelonifExelonhasnotpaidtheapplicableterminationfeedescribedbelowunder theheadingTerminationFees;*byConstellation:*ifExelonbreachesthemergeragreementorfailstoperformitsobligationsinanymaterialrespect,whichbreachorfailuretoperform(1)wouldgiverisetothefailureofaconditionto Constellationsobligationtocompletethemergerand(2)isincapableofbeingcuredorisnot curedbytheearlierof(A)30businessdaysfollowingreceiptofwrittennoticefromConstellation ofthebreachorfailuretoperformor(B)theinitialterminationdate,asmaybeextended;*iftheboardofdirectorsofExelonwithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesanystatementinconsistentwith,,itsapproval orrecommendationoftheshareissuanceproposal;or*iftheboardofdirectorsofConstellationwithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesanystatementinconsistentwith,,its approvalorrecommendationofthemergerproposaltoacceptathird-partytakeoverproposal, providedthattherighttoterminatethemergeragreementpursuanttothissub-bulletshallnotbe availabletoConstellationifConstellationhasnotpaidtheapplicableterminationfeedescribed belowundertheheadingTerminationFees.TerminationFeesUnderthecircumstancesdescribedbelow,ExelonorConstellation,asapplicable,wouldberequiredtopayaterminationfeeof$800millioninthecaseofaterminationfeepayablebyExelontoConstellationanda terminationfeeof$200millioninthecaseofaterminationfeepayablebyConstellationtoExelon.The$200millionterminationfeeispayablebyConstellationtoExelonif:*ExelonterminatesthemergeragreementafterConstellationsboardofdirectorswithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesany statementinconsistentwith,,itsapprovalorrecommendationofthemergeragreement;*eitherpartyterminatesthemergeragreementbecausetheConstellationstockholderapprovalshallnothavebeenobtainedattheConstellationstockholdermeetingatatimewhenExeloncouldhave terminatedthemergeragreementunderthecircumstancessetforthintheimmediatelypreceding bullet-pointunlessatthetimeofsuchterminationExelonshallhavebeeninwillfulbreachofthe mergeragreement; 152

• ConstellationterminatesthemergeragreementaftertheboardofdirectorsofConstellationwithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakes anystatementinconsistentwith,itsapprovalorrecommendationofthemergerproposaltoaccepta third-partytakeoverproposal,or*(1)themergeragreementisterminated(A)byExelonasaresultofthewillfulbreachofthemergeragreementbyConstellationandabonafidethird-partytakeoverproposalforConstellationispublicly announcedafterthedateofthemergeragreementandpriortodateofthebreachgivingrisetosuch termination,(B)byeitherConstellationorExelonbecausetheConstellationstockholderapprovalshall nothavebeenobtainedattheConstellationstockholdermeetingandabonafidethird-partytakeover proposalforConstellationispubliclyannouncedafterthedateofthemergeragreementandpriortothe takingofthevoteoftheshareholdersofConstellationattheConstellationstockholdermeetingor (C)byeitherConstellationorExelonbecausethemergershallnothavebeenconsummatedbythe initialterminationdate,asmaybeextended,andabonafidethird-partytakeoverproposalfor Constellationispubliclyannouncedatanytimeafterthedateofthemergeragreement,and(2)within 12monthsafterthedateofanysuchtermination,Constellationentersintoadefinitiveagreementto consummateathird-partytakeoverproposal.The$800millionterminationfeeispayablebyExelontoConstellationif:*ConstellationterminatesthemergeragreementafterExelonsboardofdirectorswithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesany statementinconsistentwith,itsapprovalorrecommendationofthemergeragreement;*eitherpartyterminatesthemergeragreementbecausetheExelonshareholderapprovalshallnothavebeenobtainedattheExelonshareholdermeetingatatimewhenConstellationcouldhaveterminated themergeragreementunderthecircumstancessetforthintheimmediatelyprecedingbullet-point unlessatthetimeofsuchterminationConstellationshallhavebeeninwillfulbreachofthemerger

agreement;*ExelonterminatesthemergeragreementaftertheboardofdirectorsofExelonwithholds,withdraws,qualifiesormodifies,publiclyproposestowithhold,withdraw,qualifyormodifyormakesany statementinconsistentwith,itsapprovalorrecommendationofthemergerproposaltoacceptathird-partytakeoverproposal,or*(1)themergeragreementisterminated(A)byConstellationasaresultofthewillfulbreachofthemergeragreementbyConstellationandabonafidethird-partytakeoverproposalforExelonispublicly announcedafterthedateofthemergeragreementandpriortodateofthebreachgivingrisetosuch termination,(B)byeitherConstellationorExelonbecausetheExelonshareholderapprovalshallnot havebeenobtainedattheExelonshareholdermeetingandabonafidethird-partytakeoverproposalfor Exelonispubliclyannouncedafterthedateofthemergeragreementandpriortothetakingofthevote oftheshareholdersofExelonattheExelonshareholdermeetingor(C)byeitherConstellationor Exelonbecausethemergershallnothavebeenconsummatedbytheinitialterminationdate,asmaybe extended,andabonafidethird-partytakeoverproposalforExelonispubliclyannouncedatanytime afterthedateofthemergeragreement,and(2)within12monthsafterthedateofanysuchtermination, Exelonentersintoadefinitiveagreementtoconsummateathird-partytakeoverproposal.

153 NoSolicitationEachpartyagreedinthemergeragreementthatitwillnot,andwillnotpermitanyofitssubsidiaries,directors,officersoremployeesto,andwilluseitsreasonablebesteffortstocauseanyinvestmentbanker, financialadvisor,attorney,accountantorotherrepresentativeretainedbyitnotto,directlyorindirectly,solicit, initiateorknowinglyencourage,ortakeanyotheractiondesignedtofacilitate,anyinquiriesorthemakingof anythird-partytakeoverproposalorparticipateinanynegotiationsorsubstantivediscussionsregardingany third-partytakeoverproposal,provided,that:*iftheboardofdirectorsofapartydeterminesingoodfaith,afterconsultationwithitsfinancialadvisors,thatathird-partytakeoverproposalthatdidnotresultfromamaterialbreachofits non-solicitationobligationsunderthemergeragreementconstitutesorcouldreasonablybeexpectedto resultinasuperiorproposal,andsubjecttoprovidingwrittennoticeofitsdecisiontotakesuchaction totheotherpartyandhavingcompliedwithitsothernoticeobligationstotheotherparty,thatparty

may:*furnishnonpublicinformationregardingsuchpartypursuanttoaconfidentialityagreementcontainingcustomarytermsandconditionssubstantiallysimilartothosecontainedinthe confidentialityagreementbetweenExelonandConstellation,datedJanuary7,2011,and*participateindiscussionsornegotiationsregardingsuchproposal.Eachofthepartiesagreedinthemergeragreementthattheyshall,shallcausetheirrespectivesubsidiaries,officers,directorsandemployees,andshallusereasonablebesteffortstocauseitsrespectiverepresentativesto, immediatelyceaseandterminateanyexistingactivities,discussionsornegotiationsbetweensuchpartyandany personthatrelatetoanythird-partytakeoverproposal.Inaddition,neitherpartynoranyofitssubsidiariesshall terminate,amend,modifyorwaiveanyprovisionofanyconfidentialityagreementtowhichitisapartyrelating toaproposedbusinesscombinationinvolvingsuchpartyoranystandstillagreementtowhichitisapartyunless theboardofdirectorsofsuchpartydeterminesingoodfaith,afterconsultationwithoutsidelegalcounsel,that failuretotakesuchactionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunderapplicable

laws.ChangesinBoardRecommendationExelonandConstellationhaveagreedthatneithertheboardofdirectorsofExelonorConstellationnoranycommitteeofeithersuchboardmay:*withhold,withdraw,qualifyormodify,publiclyproposetowithhold,withdraw,qualifyormodifyormakeanystatementinconsistentwith,therecommendationthatsuchpartysshareholdersapprovethe mergeragreement,inthecaseofConstellation,ortheshareissuance,inthecaseofExeloninamanner adversetotheotherparty;or*enterintoawrittendefinitiveagreementtoconsummateathird-partytakeoverproposal.Notwithstandingtheseprohibitions,inresponsetoathird-partytakeoverproposalatanytimepriortoreceiptofapartysshareholderapproval,theboardofdirectorsofthatpartymaywithdrawormodify,propose publiclytowithdrawormodifyormakestatementsinconsistentwith,theapprovalorrecommendationbythe boardofdirectorsoranycommitteethereofofthemergeragreement,inthecaseofConstellation,ortheshare issuance,inthecaseofExelon,andterminatethemergeragreementinordertoenterintoawrittendefinitive agreementprovidingfortheconsummationofathird-partytakeoverproposal,if:*athird-partytakeoverproposalismadetosuchpartybyathirdpartyandsuchofferisnotwithdrawn;

• suchpartysboardofdirectorsdeterminesingoodfaithafterconsultationwithitsfinancialadvisorsthatsuchofferconstitutesasuperiorproposal; 154

• followingconsultationwithoutsidelegalcounsel,suchpartysboardofdirectorsdeterminesthatthefailuretotakesuchactionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunder applicablelaws;*suchpartyprovidestheotherwithfivebusinessdayspriorwrittennoticeofitsintentiontotakesuchaction;and*attheendofthefivebusinessdayperioddescribedintheimmediatelyprecedingbullet-point,theboardofdirectorsofsuchpartyagainmakesthedeterminationingoodfaithafterconsultationwithits outsidelegalandfinancialadvisors,afternegotiatingingoodfaithwiththeotherpartyandits representatives,ifrequestedbytheotherparty,thatthethird-partytakeoverproposalcontinuestobea superiorproposalandthatthefailuretotakesuchactionwouldbereasonablylikelytoresultina breachofitsfiduciarydutiesunderapplicablelaws.Incircumstancesotherthaninconnectionwithathird-partytakeoverproposal,atanytimepriortoreceiptofapartysshareholderapproval,theboardofdirectorsofeachofExelonandConstellationmaywithdrawor modify,proposepubliclytowithdrawormodifyormakestatementsinconsistentwith,theapprovalor recommendationbytheboardofdirectorsoranycommitteethereofofthemergeragreement,inthecaseof Constellation,ortheshareissuance,inthecaseofExelon,inresponsetoanevent,change,effect,development, conditionoroccurrencethataffectsorwouldreasonablybelikelytoaffect(1)thebusiness,financialconditionor continuingresultsofoperationsofsuchpartyanditssubsidiaries,takenasawhole,or(2)theshareholdersof suchparty,includingthebenefitsofthemergertosuchpartyortheshareholdersofsuchparty,inthecaseof (1)or(2)abovethatis(A)material,individuallyorintheaggregatewithanyothersuchevents,changes,effects, developments,conditionsoroccurrences,(B)doesnotinvolveorrelatetoathird-partytakeoverproposaland (C)isnotknownasofthedateofthemergeragreement,if:*followingconsultationwithoutsidelegalcounsel,suchpartysboardofdirectorsdeterminesthatthefailuretotakesuchactionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunder applicablelaws;*suchpartyprovidestheotherpartyfivebusinessdayspriorwrittennoticeofitsintentiontotakesuchaction,whichnoticeshallincludetheinformationwithrespecttoanysuchevents,changes,effects, developments,conditionsoroccurrences;and*attheendofthefivebusinessdayperiodreferredtointheimmediatelyprecedingbullet-point,theboardofdirectorsofsuchpartyagainmakesthedeterminationingoodfaithafterconsultationwithits outsidelegalcounselandfinancialadvisors,afternegotiatingingoodfaithwiththeotherpartyandits representatives,ifrequestedbytheotherparty,duringsuchfivebusinessdayperiodregardingany adjustmentsormodificationstothetermsofthemergeragreementproposedbytheotherpartyand takingintoaccountanysuchadjustmentsormodifications,thatthefailuretotakesuchactionwouldbe reasonablylikelytoresultinabreachofitsfiduciarydutiesunderapplicablelaws.Notwithstandingtheforegoing,intheeventapartywithdrawsormodifies,proposespubliclytowithdrawormodifyormakesstatementsinconsistentwith,theapprovalorrecommendationbytheboardofdirectorsorany committeethereofofthemergeragreement,inthecaseofConstellation,ortheshareissuance,inthecaseof Exelon,otherthaninconnectionwithathird-partytakeoverproposal,suchpartyshallneverthelesssubmitthe mergeragreement,inthecaseofConstellation,ortheshareissuance,inthecaseofExelon,toitsshareholders forthepurposeofobtainingitsshareholdersapproval.Inadditiontotheforegoingobligations,ExelonandConstellationhaveeachagreedtopromptlyadvisetheotherparty,orallyandinwriting,ofanythird-partytakeoverproposalorofanyrequestfornonpublic informationrelatingtosuchpartyinconnectionwithanythird-partytakeoverproposal(andinanycasewithin 24hoursaftersuchrequestorthereceiptofsuchthird-partytakeoverproposal),and,ifitisinwriting,acopyof suchthird-partytakeoverproposalandanyrelateddraftagreementsor,ifitisoral,areasonablydetailed 155 summarythereofthatismadeorsubmittedbyanypersonduringtheperiodbetweenthedateofthemergeragreementandthecompletionofthemerger.Eachpartyshallalsokeeptheotherinformedonapromptbasis withrespecttoanychangetothematerialtermsofanysuchthird-partytakeoverproposal.Athird-partytakeoverproposalmeansanoffer,proposalorindicationofinterestsreceivedfromathird-partyprovidingfor:(1)anymerger,consolidation,shareexchange,recapitalization,businesscombinationorsimilartransactioninvolvingthesubjectcompany;(2)anydirectorindirectacquisitionofsecurities,tenderoffer,exchangeofferorothersimilartransactioninwhichapersonorgroup(asdefinedintheSecuritiesExchangeActof1934,orExchangeAct)of personsdirectlyorindirectlyacquiresbeneficialorrecordownershipofsecuritiesrepresentingtwenty percent(20%)ormoreoftheoutstandingcommonstockofthesubjectcompany;(3)anydirectorindirectacquisitionofanybusinessorbusinessesorofassetsthatconstituteoraccountfortwentypercent(20%)ormoreoftheconsolidatednetrevenues,netincomeorassetsofthesubject companyanditssubsidiaries,takenasawhole;or(4)anyliquidationordissolutionofthesubjectcompanyoranyofitsmaterialsubsidiaries.Asuperiorproposalmeansabonafidewrittenthird-partytakeoverproposalontermsthatthesubjectcompanysboardofdirectorsdetermines,ingoodfaith,afterconsultationwithitsoutsidelegalcounselandits financialadvisor,wouldbe,ifconsummated,morefavorabletothesubjectcompanysshareholdersthanthe mergerandthetransactionscontemplatedbythemergeragreement,includinganyproposalbytheotherpartyto amendthetermsofthemergeragreement,fromafinancialpointofview,aftertakingintoaccount,totheextent applicable,alllegal,financial,regulatoryandotheraspectsofthethird-partytakeoverproposalthattheboardof directorsofthesubjectcompanyconsidersrelevant,includingtheidentityofthepersonmakingthethird-party takeoverproposalandthelikelihoodandtimingofconsummation,exceptthatthereferenceto20%in(2)and (3)ofthedefinitionofthird-partytakeoverproposalsetforthaboveiseachreplacedby50%.CoordinationofDividendsThepartiesagreedinthemergeragreementthatuntilthecompletionofthemerger,ExelonandConstellationshallcoordinatewitheachotherregardingthedeclarationandpaymentofdividendsinrespectof thesharesofcommonstockofExelonandsharesofcommonstockofConstellationandtherecorddatesand paymentdatesrelatingthereto.ThepurposeofthiscoordinationistoassurethatnoholderofExeloncommon stockorConstellationcommonstockwillreceivetwodividends,orfailtoreceiveonedividend,foranysingle calendarquarter.CharitableContributionsThepartieshaveagreedthatduringtheten-yearperiodimmediatelyfollowingcompletionofthemerger,thesurvivingcorporationshallprovide,directlyorindirectly,charitablecontributionsandtraditionallocal communitysupportwithintheserviceareasofConstellationandeachofitssubsidiariesatlevelssubstantially comparabletothelevelsofcharitablecontributionsandcommunitysupportprovidedbyConstellationandits subsidiarieswithintheirserviceareaswithinthetwo-yearperiodimmediatelypriortothecompletionofthe merger.IntheapplicationtotheMarylandPublicServiceCommission,Exelonhascommittedtomaintain aggregatecharitablecontributionsandcommunitysupportinMarylandfromConstellationandBGEatalevelof

$70millionoveraperiodoftenyearsfollowingthemerger.Amendment;ExtensionandWaiverAtanytimepriortothecompletionofthemerger,anyprovisionofthemergeragreementmaybeamendedorwaivedif,andonlyif,suchamendmentorwaiverisinwritingandsigned,inthecaseofanyamendmentby Exelon,ConstellationandMergerSubor,inthecaseofawaiver,bythepartyagainstwhomthewaiveristobe 156 effective.However,afterreceiptofshareholderapprovalfromeitheroftheparties,ifanysuchamendmentorwaivershallbyapplicablelaworinaccordancewiththerulesandregulationsoftheNYSErequirefurther approvaloftheshareholdersofeitherparty,theeffectivenessofsuchamendmentorwaivershallbesubjectto theapprovaloftheshareholdersofExelonorConstellation,asapplicable.EmployeeBenefitMattersThemergeragreementprovidesthatforaperiodofnotlessthanoneyearfollowingthecompletionofthemerger,thesurvivingcorporationshallcauseeachindividualwhoisemployedbyConstellationoranyofits subsidiariesimmediatelybeforecompletionofthemergerwhosetermsandconditionsofemploymentarenot governedbyacollectivebargainingagreement,whowerefertoascontinuingemployees,andwhoisbelowthe executiveofficerlevelasofthecompletionofthemergertobeprovidedwithbasesalaryandwagesthatareno lessfavorabletothoseprovidedtosuchcontinuingemployeesimmediatelypriortothecompletionofthemerger, a2012targetannualincentivelevelthatisnotlessthansuchemployeestargetannualincentivelevelasineffect for2011,andemployeebenefits(otherthanequity-basedbenefitsandotherthanindividualemployment agreements)thataresubstantiallycomparableintheaggregatetothoseprovidedtosuchpersonsimmediately priortothecompletionofthemerger.Thesurvivingcorporationshallrecognizetheserviceofeachcontinuing employeepriortothecompletionofthemergerasifsuchservicehadbeenperformedwithExelonorits

affiliates:*forallpurposesundertheConstellationbenefitplansmaintainedbythesurvivingcorporationoritsaffiliatesafterthecompletionofthemerger;*forpurposesofeligibilityandvestingunderanyemployeebenefitplansandprogramsofthesurvivingcorporationorcertainaffiliatesotherthantheConstellationbenefitplans,whichwerefertoasthe survivingcorporationplans,inwhichthecontinuingemployeeparticipatesafterthecompletionofthe merger;and*forbenefitaccrualpurposesunderanysurvivingcorporationplanthatisavacationorseveranceplaninwhichthecontinuingemployeeparticipatesafterthecompletionofthemerger.Withrespecttoeachemployeebenefitplanmaintainedbythesurvivingcorporationoritsaffiliatesinwhichcontinuingemployeesareeligibletoparticipateafterthecompletionofthemerger,thesurvivingcorporationand itsaffiliatesshall(1)waivealllimitationsastopre-existingconditionsandexclusionswithrespectto participationandcoveragerequirementsapplicabletosuchemployeestotheextentsuchconditionsand exclusionsweresatisfiedordidnotapplytosuchemployeesunderthewelfareplansmaintainedbyConstellation oritsaffiliatespriortothecompletionofthemergerand(2)provideeachcontinuingemployeewithcreditfor anyco-paymentsanddeductiblespaidpriortothecompletionofthemergerinsatisfyinganyanalogous deductibleorout-of-pocketrequirementstotheextentrequiredunderanysuchplan.Exelonshall,orshallcauseitsaffiliatesto,continuetohonorallobligationsunderanycontracts,agreements,plansandcommitmentsofConstellationanditssubsidiariesthatexistonthedateofthemerger agreementthatapplytoanycurrentorformeremployee,orcurrentorformerdirectors,ofConstellationoranyof itssubsidiaries.RepresentationsandWarrantiesThemergeragreementcontainssubstantiallyreciprocalrepresentationsandwarrantiesmadebyExelonandConstellationtoeachother,includingwithrespectto:*corporateorganization,qualificationandsubsidiaries;

• capitalstructure; 157

• corporateauthoritytoenterintothemergeragreement,performitsobligationsandconsummatethetransactionscontemplatedthereby;*absenceofanybreachoforganizationaldocuments,lawormaterialagreementsasaresultofthetransactionscontemplatedbythemergeragreement;*governmentandregulatoryapprovalsrequiredinconnectionwiththetransactionscontemplatedbythemergeragreement;*SECfilings,financialstatementsandcompliancewiththeSarbanes-OxleyActof2002;

• absenceofundisclosedliabilities;

• possessionofrequisitepermitsandcompliancewithlawsandorders;

• environmentalmatters;

• certainemployeebenefitsmattersandcompliancewithERISA;

• absenceofcertainchanges,eventsordevelopmentsthat,individuallyorintheaggregate,havehadorcouldreasonablybeexpectedtohaveamaterialadverseeffectonsuchcompany;*absenceofcertainlitigationandinvestigations;

• materialtruthandaccuracyofcertaininformationsuppliedinconnectionwiththepreparationofthisjointproxystatement/prospectusandtheregistrationstatementonFormS-4ofwhichthisjointproxy statement/prospectusisapart;*regulatorymatters;

• properfilingoftaxreturnsandcertainothertaxmatters;

• certainlaborandemployeerelationsmatters;

• intellectualpropertymatters;

• realpropertymatters;

• shareholdervoterequiredtoapprovethemergeragreementandthetransactionscontemplatedthereby;

• inapplicabilityofstateanti-takeoverstatutes;

• ownershipandoperationofthenucleargenerationstationsowned,inwholeorinpart,bysuchcompanyanditssubsidiaries;*theexistenceofmaterialcontractsandtheabsenceofbreachofordefaultunderthetermsofmaterial contracts;*opinionsofthefinancialadvisorstosuchcompany;

• maintenanceofadequateinsurance;

• establishmentof,andcompliancewith,policieswithrespecttoenergytrading;

• theregulationofsuchcompanysapplicablesubsidiariesasutilities;

• suchcompanysanditssubsidiarysnucleardecommissioningtrusts;

• theabsenceofanyactionorfactthatwouldpreventorimpedethemergerfromqualifyingasareorganization;and*theabsenceofregulatoryproceedings.ThemergeragreementalsocontainscertainrepresentationsandwarrantiesofExelonwithrespecttoMergerSub,itswholly-ownedsubsidiary,including,amongothers,corporateorganizationandcorporateauthorityto enterintothemergeragreementandthetransactionscontemplatedthereby.

158 TherepresentationsandwarrantiesnotedabovearesubjecttoqualificationsandlimitationsagreedtobyExelonandConstellationinconnectionwithnegotiatingthetermsofthemergeragreement.Someofthese representationsandwarrantiesarequalifiedbymaterialadverseeffect,andarepresentationsoqualifiedwillbe deemeduntrue,inaccurateorincorrectasaconsequenceofanychange,effect,event,occurrenceorstateoffacts onlyifthatchange,effect,event,occurrenceorstateoffacts(1)wouldhave,orwouldreasonablybeexpectedto have,aneffectthatismateriallyadversetothebusiness,financialconditionorcontinuingresultsofoperationsof thepartymakingtherepresentationanditssubsidiaries,takenasawhole,or(2)preventsormateriallydelaysthe partymakingtherepresentationfromperformingitsobligationsunderthemergeragreementorthecompletionof themergerortheothertransactionscontemplatedinthemergeragreement.Indeterminingwhetheramaterial adverseeffectexistsunderclause(1)oftheimmediatelyprecedingsentence,themergeragreementprovidesthat theparties(subjecttocertainexceptions)willdisregardanyeffectsresultingfrom(A)changesinorgenerally affectingtheeconomyorthefinancial,commoditiesorsecuritiesmarketsintheUnitedStatesorelsewhereinthe worldorintheindustryorindustriesinwhichsuchpartyoperates(ineachcase,totheextentnot disproportionatelyaffectingthepartymakingtherepresentationanditssubsidiaries,takenasawhole,as comparedtosimilarlysituatedentities),(B)anychangesordevelopmentsinnationalorregionalwholesaleor retailmarketsforelectricpower,capacityorfuelorrelatedproducts(ineachcase,totheextentnot disproportionatelyaffectingthepartymakingtherepresentationanditssubsidiaries,takenasawhole,as comparedtosimilarlysituatedentities),(C)changesordevelopmentsinnationalorregionalelectrictransmission ordistributionsystems(ineachcase,totheextentnotdisproportionatelyaffectingthepartymakingthe representationanditssubsidiaries,takenasawhole,ascomparedtosimilarlysituatedentities),(D)thependency orannouncementoforcompliancewiththemergeragreementorthetransactionscontemplatedthereby,(E)any departureorterminationofanyofficers,directors,employeesorindependentcontractorsofsuchparty,anyofits subsidiariesoritsjointventures,(F)anychangesinaccountingprinciplesgenerallyacceptedintheUnitedStates oraccountingstandardsorinterpretationsthereof(ineachcase,totheextentnotdisproportionatelyaffectingthe partymakingtherepresentationanditssubsidiaries,takenasawhole,ascomparedtosimilarlysituatedentities),

(G)anyweather-relatedorotherforcemajeureeventoroutbreakorescalationofhostilitiesoractsofwaror terrorism(ineachcase,totheextentnotdisproportionatelyaffectingthepartymakingtherepresentationandits subsidiaries,takenasawhole,ascomparedtosimilarlysituatedentities)or(H)thefailureofsuchpartytomeet anyinternalorpublishedprojections,forecastsorrevenueorearningspredictions.CovenantsofExelonandConstellationEachofExelonandConstellationhasagreedtocustomarycovenantsinthemergeragreementrestrictingtheconductofitsbusinessbetweenthedateofthemergeragreementandthecompletionofthemerger.Ingeneral, eachofExelonandConstellationhasagreedto(1)conductitsanditssubsidiariesbusinessintheordinary courseand(2)usecommerciallyreasonableeffortstopreserveintactitsanditssubsidiariespresentlinesof business,maintainitsanditssubsidiariesrightsandfranchisesandpreservesatisfactoryrelationshipswith governmentalentities,employees,customersandsuppliers.Inaddition,betweenthedateofthemergeragreementandthecompletionofthemerger:*Constellationagreed,withrespecttoitself,itssubsidiariesanditsjointventures(totheextentpermittedbycontract),notto,amongotherthings,undertakeanyofthefollowing,subjecttocertain

exceptions:*declare,setasideorpayanydividendsonormakeotherdistributionsinrespectofanyofitscapitalstock,otherthanregularquarterlycashdividendsbyConstellationandBGE;*adoptaplanofcompleteorpartialliquidation,dissolution,merger,consolidation,restructuring,recapitalizationorotherreorganization;*prepay,redeem,repurchase,defease,cancelorotherwiseacquireanyindebtednessorguarantees thereof;159

• makeanyacquisitionofanyotherpersonorbusinessormakeanyloan,advanceorcapitalcontributionto,investmentin,orleasefromanyotherpersonotherthanintheordinarycourseof business,consistentwithConstellationsbudgetandcapitalexpenditureplanoracquisitions withinConstellationsNewEnergylineofbusinesswithavalueoflessthan$250million, individually,or$400million,intheaggregate;*makeanycapitalexpendituresinexcessof$100millionintheaggregateotherthanexpenditurescontemplatedbyConstellationsbudgetandcapitalexpenditureplan,expendituresrequiredby existingcontractsormadeasprudentinresponsetoanyrequirementoflaworemergency;*split,combine,reclassify,repurchaseortakesimilaractionwithrespecttoanyofitscapitalstockorsharecapital;*(1)increasethecompensationorotherbenefitspayableorprovidedtoConstellationsoranyofitssubsidiariesdirectors,officersoremployees,exceptintheordinarycourseofbusinessorwhich donotmateriallyincreaseaggregatecompensationexpenseinanysalarygradeforemployees, (2)enterintoanyemployment,changeofcontrol,severanceorretentionagreementwithany director,officeroremployeeofConstellationoranyofitssubsidiariesexceptforseverance agreementsenteredintowithemployeeswhoarenotexecutiveofficersofConstellationin connectionwithterminationsofemploymentintheordinarycourseofbusiness,(3)establish, adopt,enterinto,accelerateanyrightsorbenefitsunderoramendanyplan,policy,programor arrangementforthebenefitofanycurrentorformerdirectors,officersoremployeesoranyof theirbeneficiaries,(4)enterinto,terminate,accelerateanyrightsorbenefitsunder,amendor renewanycollectivebargainingagreementor(5)hireorpromoteanyemployeetoanexecutive officerpositionofConstellationorBGEorConstellationsNewEnergylineofbusinesswithout consultingExelon;*materiallychangeitsaccountingpoliciesorproceduresoranyofitsmethodsofreportingincome,deductionsorothermaterialitemsforfinancialaccountingpurposes;*amendtheorganizationaldocumentsofConstellation,BGEorConstellationEnergyNuclearGroupLLC,oramendinanymaterialrespecttheorganizationaldocumentsofanyother subsidiaryofConstellation;*issue,sell,pledge,disposeorencumberanysharesofitscapitalstockoranysecuritiesconvertibleintoorexchangeableforanysuchsharesorownershipinterests,oranyrights,warrantsoroptions toacquireanysuchsharesofcapitalstock,otherthaninconnectionwithcertainequity-based benefitplansundercertaincircumstances;*incuranyindebtednessforborrowedmoneyorguaranteeanysuchindebtednessofanotherpersonorissueorsellanydebtsecuritiesorwarrantsorotherrightstoacquireanydebtsecurities, guaranteeanydebtsecuritiesofanotherpersonorenterintoanykeepwellorotheragreementto maintainanyfinancialconditionofanotherperson;*sell,lease,license,transfer,exchangeorswap,mortgageorotherwisedisposeofanymaterialportionofitsmaterialpropertiesorassets;*enterinto,modifyoramendspecifiedtypesofmaterialcontracts;

• enterintoanyoutsourcingcontracts;

• amendorterminatetheConstellationriskmanagementtradingpoliciesortakeanyactionthatmateriallyviolatestheConstellationriskmanagementtradingpoliciesorthatcausesthenetrisk positionofConstellationtobemateriallyoutsidetheriskparameterssetforthintheConstellation riskmanagementtradingpolicies;*make,changeorrevokeanymaterialtaxelection,fileanymaterialamendedtaxreturn,settleorcompromiseanymaterialtaxliabilityorrefund,forgoanymaterialtaxrefund,enterintoany 160 closingagreementorprivateletterrulingorsettleanymaterialclaimorassessmentrelatingtotaxesorconsenttoanymaterialclaimorassessmentrelatingtotaxesoranywaiverofthestatute oflimitationsforanysuchclaimorassessment;*waive,release,assign,settleorcompromiseanyclaim,actionorproceedingotherthanwaivers,releases,assignments,settlementsorcompromisesthat(1)involvethepaymentofmonetary damagesequaltoorlessthantheamountsspecificallyreservedwithrespecttheretoonthebalance sheetasofDecember31,2010includingConstellationsSECfilingsorthatdonotexceed$100 millionindividuallyorintheaggregateinany12-monthperiodand(2)ifinvolvingany non-monetaryoutcome,willnothaveamaterialeffectonthecontinuingoperationsof

Constellation;*permitBGEtopropose,makeorimplementanynew,oranychangestoanyofitsexisting,ratesorcharges,ratestructure,standardsofserviceorregulatoryaccountingorexecuteanyagreement withrespectthereto;*retire,committoretireorotherwiseindicateanintentiontoretireanygenerationfacility;

• agreeorconsenttoanymaterialagreementsormaterialmodificationsofexistingagreementswithanygovernmentalentityinrespectofoperationsofConstellationanditssubsidiaries;and*knowinglyorintentionallytakeanyactionthatwouldreasonablybeexpectedtopreventormateriallydelaytheconsummationofthetransactionscontemplatedbythemergeragreement.*Exelonagreed,withrespecttoitselfanditssubsidiaries,notto,amongotherthings,undertakeanyofthefollowing,subjecttocertainexceptions:*declare,setasideorpayanydividendsonormakeotherdistributionsinrespectofanyofitscapitalstock,otherthanregularquarterlycashdividendsbyExelonanditssubsidiaries;*adoptaplanofcompleteorpartialliquidation,dissolution,merger,consolidation,restructuring,recapitalizationorotherreorganization;*makeanyacquisitionofanyotherpersonorbusinessormakeanyloan,advanceorcapitalcontributionto,investmentin,orleasefromanyotherpersonotherthanintheordinarycourseof business,consistentwithExelonsbudgetandcapitalexpenditureplan,loansoradvancestoor leasesfromanyotherpersonswithavalueoflessthan$400millionintheaggregate,acquisitions ofotherpersonsorbusinessesorinvestmentsorcapitalcontributionsinotherpersonswithavalue oflessthan$2billionintheaggregatethatdonotrequiretheapprovaloftheshareholdersof

Exelon;*split,combine,reclassify,repurchaseortakesimilaractionwithrespecttoanyofitscapitalstockorsharecapital;*materiallyincreasethecompensationexpensesofExelon,exceptasrequiredbyexistingwrittenagreementsorExelonbenefitplansormeritandcostoflivingincreasesconsistentwithpast

practice;*materiallychangeitsaccountingpoliciesorproceduresoranyofitsmethodsofreportingincome,deductionsorothermaterialitemsforfinancialaccountingpurposes;*issue,sell,pledge,disposeorencumberanysharesofitscapitalstockoranysecuritiesconvertibleintoorexchangeableforanysuchsharesorownershipinterests,oranyrights,warrantsoroptions toacquireanysuchsharesofcapitalstock,otherthaninconnectionwithspecifiedequity-based benefitplansundercertaincircumstances;*amendorterminatetheExelonriskmanagementtradingpoliciesortakeanyactionthatmateriallyviolatestheExelonriskmanagementtradingpoliciesorthatcausesthenetriskpositionofExelon tobemateriallyoutsidetheriskparameterssetforthintheExelonriskmanagementtrading

policies;161

• make,changeorrevokeanymaterialtaxelection,fileanymaterialamendedtaxreturn,settleorcompromiseanymaterialtaxliabilityorrefund,forgoanymaterialtaxrefund,enterintoany closingagreementorprivateletterrulingorsettleanymaterialclaimorassessmentrelatingto taxesorconsenttoanymaterialclaimorassessmentrelatingtotaxesoranywaiverofthestatute oflimitationsforanysuchclaimorassessment;*retire,committoretireorotherwiseindicateanintentiontoretireanynucleargenerationfacility; and*knowinglyorintentionallytakeanyactionthatwouldreasonablybeexpectedtopreventormateriallydelaytheconsummationofthetransactionscontemplatedbythemergeragreement.Eachpartywilluseitsreasonablebestefforts(subjectto,andinaccordancewith,applicablelaw)totake,orcausetobetaken,promptlyallactions,andtodo,orcausetobedone,promptlyandtoassistandcooperatewith theotherpartiesindoing,allthingsnecessary,properoradvisabletocompleteandmakeeffectivethemerger andtheothertransactionscontemplatedbythemergeragreement.Forpurposesofthemergeragreement, reasonablebesteffortsdoesnotincludeandwillnotrequireanypartytotakeanyactionthatwouldhavea burdensomeeffect,asweexplainthattermaboveundertheheadingConditionstoCompletionofthe

Merger.Exelonhasagreedthatfollowingcompletionofthemerger,Exelonswholesalemarketingunitheadquartersshallbein,and,aspromptlyaspracticable,itsbusinessshallbemovedto,Baltimore,Maryland.Additionally, followingcompletionofthemerger,theheadquartersofBGE,thecombinedcompetitiveenergybusinessesand therenewablesdevelopmentheadquartersofthecombinedcompanywillbelocatedinBaltimore,Maryland.Inaddition,Exelonhasagreedthatfollowingcompletionofthemerger,theConstellationriskmanagementtradingpolicieswillcontinuetoremainineffectforConstellationsNewEnergylineofbusinessuntilsuch policiesareamendedbytheriskoversightcommitteeoftheExelonboardofdirectorsortheExelonboardof directors,asappropriate.

162 UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDFINANCIALSTATEMENTSTheUnauditedProFormaCondensedCombinedConsolidatedFinancialStatements(whichwerefertoastheproformafinancialstatements)combinethehistoricalconsolidatedfinancialstatementsofExelonand Constellationtoillustratetheeffectofthemerger.Theproformafinancialstatementswerebasedonandshould bereadinconjunctionwiththe:*accompanyingnotestotheUnauditedProFormaCondensedCombinedConsolidatedFinancial Statements;*consolidatedfinancialstatementsofExelonfortheyearendedDecember31,2010andforthesixmonthsendedJune30,2011andthenotesrelatingthereto,incorporatedhereinbyreference;and*consolidatedfinancialstatementsofConstellationfortheyearendedDecember31,2010andforthesixmonthsendedJune30,2011andthenotesrelatingthereto,incorporatedhereinbyreference.Thehistoricalconsolidatedfinancialstatementshavebeenadjustedintheproformafinancialstatementstogiveeffecttoproformaeventsthatare(1)directlyattributabletothemerger,(2)factuallysupportableand (3)withrespecttotheproformastatementofoperations,expectedtohaveacontinuingimpactonthecombined results.TheUnauditedProFormaCondensedCombinedConsolidatedStatementsofOperations(whichwerefer toastheproformastatementofoperations)fortheyearendedDecember31,2010andforthesixmonthsended June30,2011,giveeffecttothemergerasifitoccurredonJanuary1,2010.TheUnauditedProForma CondensedCombinedConsolidatedBalanceSheet(whichwerefertoastheproformabalancesheet)asof June30,2011,giveseffecttothemergerasifitoccurredonJune30,2011.Asdescribedintheaccompanyingnotes,theproformafinancialstatementshavebeenpreparedusingtheacquisitionmethodofaccountingunderexistingUnitedStatesgenerallyacceptedaccountingprinciples,or GAAP,andtheregulationsoftheSEC.Exelonhasbeentreatedastheacquirerinthemergerforaccounting purposes.Becauseacquisitionaccountingisdependentuponcertainvaluationsandotherstudiesthatmustbe completedasofthemergerdate,andthereisnotcurrentlysufficientinformationforadefinitivemeasurement.

Accordingly,theproformafinancialstatementsarepreliminaryandhavebeenmadesolelyforthepurposeof providingunauditedproformacombinedfinancialinformation.Differencesbetweenthesepreliminaryestimates andthefinalacquisitionaccountingwilloccurandthesedifferencescouldhaveamaterialimpactonthe accompanyingproformafinancialstatementsandthecombinedcompanysfutureresultsofoperationsand financialposition.Theproformafinancialstatementshavebeenpresentedforinformationalpurposesonlyandarenotnecessarilyindicativeofwhatthecombinedcompanysresultsofoperationsandfinancialpositionwouldhave beenhadthemergerbeencompletedonthedatesindicated.Inaddition,theproformafinancialstatementsdonot purporttoprojectthefutureresultsofoperationsorfinancialpositionofthecombinedcompany.

163 EXELONCORPORATIONANDCONSTELLATIONENERGYGROUP,INC.UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDSTATEMENTOFOPERATIONSFortheSixMonthsEndedJune30,2011(inmillions,exceptpersharedata)

Exelon Historical (unaudited)

Constellation Historical(unaudited)(a)ProForma AdjustmentsProForma CombinedOperatingrevenues$9,638$6,930$(295)b$16,019(254)dOperatingexpensesPurchasedpower2,8914,523(294)b7,106(14)dFuel1,012531(1)b1,542 Operatingandmaintenance2,449938(56)m3,331 Depreciation,amortization,depletionandaccretion656306(72)c91526j(1)lTaxesotherthanincome394154548Totaloperatingexpenses7,4026,452(412)13,442Operatingincome2,236478(137)2,577OtherincomeanddeductionsInterestexpense(350)(142)8k(484)

Interestexpensetoaffiliates,net(13)(13)

Lossinequitymethodinvestments(35)33e(7)(5)fOther,net194113k208Totalotherincomeanddeductions(169)(176)49(296)Incomebeforeincometaxes2,067302(88)2,281Incometaxes779114(35)o858Netincome1,288188(53)1,423Netincomeattributabletononcontrollinginterestandpreferredsecuritydividends1818Netincomeattributabletocommonstock1,288170(53)1,405Averagesharesofcommonstockoutstanding:Basic663200(14)r849r Diluted664201(14)r851rEarningsperaveragecommonshare:Basic$1.94$0.85$1.65 Diluted$1.94$0.84$1.65SeeaccompanyingNotestotheUnauditedProFormaCondensedCombinedConsolidatedFinancialStatements,whichareanintegralpartofthesestatements.

164 EXELONCORPORATIONANDCONSTELLATIONENERGYGROUP,INC.UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDSTATEMENTOFOPERATIONSFortheYearEndedDecember31,2010(inmillions,exceptpersharedata)

Exelon Historical ConstellationHistorical(a)ProForma AdjustmentsProForma CombinedOperatingrevenues$18,644$14,445$(165)b$31,989(935)dOperatingexpensesPurchasedpower4,42510,216(165)b14,464(12)dFuel2,0107912,801 Operatingandmaintenance4,6001,6936,293 Depreciation,amortization,depletionandaccretion2,075518(99)c2,54552j(1)lImpairmentlossesandothercosts2,4772,477 Taxesotherthanincome8082641,072Totaloperatingexpenses13,91815,959(225)29,652Operatingincome4,726(1,514)(875)2,337OtherincomeanddeductionsInterestexpense(792)(267)17k(1,042)

Interestexpensetoaffiliates,net(25)(25)

Gain(loss)inequitymethodinvestments25118e134(9)fNetgainondivestiture246246 Other,net312(77)30k265Totalotherincomeanddeductions(505)(73)156(422)Income(loss)beforeincometaxes4,221(1,587)(719)1,915Incometaxesexpense(benefit)1,658(655)(288)o715Netincome(loss)2,563(932)(431)1,200Netincomeattributabletononcontrollinginterestandpreferredsecuritydividends5151Netincome(loss)attributabletocommonstock2,563(983)(431)1,149Averagesharesofcommonstockoutstanding:Basic661201(14)r848r Diluted663201(14)r850rEarningsperaveragecommonshare:Basic$3.88$(4.90)$1.35 Diluted$3.87$(4.90)$1.35SeeaccompanyingNotestotheUnauditedProFormaCondensedCombinedConsolidatedFinancialStatements,whichareanintegralpartofthesestatements.

165 EXELONCORPORATIONANDCONSTELLATIONENERGYGROUP,INC.UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDBALANCESHEETAsofJune30,2011(inmillions)

ExelonConstellation(a)ProForma AdjustmentsProForma Combined ASSETSCurrentassetsCashandcashequivalents$562$955$$1,517 Restrictedcashandinvestments35237 Restrictedcash-variableinterestentities4646 Accountsreceivable,netCustomer1,7661,795(40)b3,521 Other69790787Accountsreceivable-variableinterestentities261261 Mark-to-marketderivativeassets438486(26)b898 Inventories,netFossilfuel161394555 Materialsandsupplies625136761Deferredincometaxes6969 Regulatoryassets125109234 Unamortizedenergycontractassets3352,087d2,422 Other509156665Totalcurrentassets4,9874,7652,02111,773Property,plantandequipment,net30,85610,619(1,239)c40,236DeferreddebitsandotherassetsRegulatoryassets4,1895673g4,939189k(9)lNucleardecommissioningtrustfunds6,6996,699 Investments736198339f1,273 Investmentsinaffiliates152,975(275)e2,715 Goodwill2,625181(181)p2,625 Mark-to-marketderivativeassets324258(6)b576 PledgedassetsforZionStationdecommissioning804804 Unamortizedenergycontractassets681,355d1,423 Other7513012i1,418464j(100)kTotaldeferreddebitsandotherassets16,1434,5481,78122,472Totalassets$51,986$19,932$2,563$74,481SeeaccompanyingNotestotheUnauditedProFormaCondensedCombinedConsolidatedFinancialStatements,whichareanintegralpartofthesestatements.

166 EXELONCORPORATIONANDCONSTELLATIONENERGYGROUP,INC.UNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDBALANCESHEETAsofJune30,2011(inmillions)

ExelonConstellation(a)ProForma AdjustmentsProForma CombinedLIABILITIESANDSHAREHOLDERSEQUITYCurrentliabilitiesShort-termborrowings$140$21$$161 Short-termnotespayable-accountsreceivableagreement225225 Long-termdebtduewithinoneyear1,0481321,180 Long-termdebtduewithinoneyear-variableinterestentities6161 Accountspayable1,297987(40)b2,509144m 121nAccountspayable-variableinterestentities152152 Accruedexpenses87834721h1,246 Deferredincometaxes2020 Regulatoryliabilities632386 Mark-to-marketderivativeliabilities50494(26)b518 Unamortizedenergycontractliabilities131917d1,048 Other5675511,118Totalcurrentliabilities4,2682,9191,1378,324Long-termdebt11,7643,948345k16,057Long-termdebt-variableinterestentities371371Long-termdebttofinancingtrusts390390DeferredcreditsandotherliabilitiesDeferredincometaxesandunamortizedinvestmenttaxcredits7,3912,693140o10,118(58)m,o (48)n,oAssetretirementobligations3,597333,630 Pensionobligations1,4952181,713 Non-pensionpostretirementbenefitobligations2,3113702,681 Spentnuclearfuelobligation1,0191,019 Regulatoryliabilities3,7061963,902 Mark-to-marketderivativeliabilities66270(6)b330 PayableforZionStationdecommissioning640640 Unamortizedenergycontractliabilities3621,185d1,547 Other1,1372471,384Totaldeferredcreditsandotherliabilities21,3624,3891,21326,964Totalliabilities37,78411,6272,69552,106Commitmentsandcontingencies Preferredsecuritiesofsubsidiary871903g280ShareholdersequityCommonstock9,0543,266(3,266)q17,0938,039Note4Treasurystock,atcost(2,327)(2,327)

Retainedearnings9,8945,345(5,345)q9,735(86)m,q (73)n,qAccumulatedothercomprehensiveloss,net(2,509)(596)596q(2,509)Totalshareholdersequity14,1128,015(135)21,992Noncontrollinginterest3100103Totalequity14,1158,115(135)22,095Totalliabilitiesandshareholdersequity$51,986$19,932$2,563$74,481SeeaccompanyingNotestotheUnauditedProFormaCondensedCombinedConsolidatedFinancialStatements,whichareanintegralpartofthesestatements.

167 EXELONANDCONSTELLATIONNOTESTOTHEUNAUDITEDPROFORMACONDENSEDCOMBINEDCONSOLIDATEDFINANCIALSTATEMENTSNote1.DescriptionoftheMergerOnApril28,2011,ExelonenteredintoamergeragreementwithMergerSubandConstellation.ThemergeragreementprovidesforthemergerofMergerSubwithandintoConstellation,withConstellationcontinuingasthesurvivingcorporationinthemerger.Asaresultofthemerger,Constellationwill becomeawholly-ownedsubsidiaryofExelon,andConstellationstockholderswillreceivesharesofExelon commonstockinexchangefortheirConstellationcommonstock.Attheeffectivetimeofthemerger,eachshare ofcommonstockofConstellationissuedandoutstandingimmediatelypriortotheeffectivedatewillbe cancelledandconvertedintotherighttoreceive0.930sharesofcommonstockofExelon(whichwerefertoas theexchangeratio)(otherthansharesthatareownedbyExelon,MergerSuborConstellationoranywholly-ownedsubsidiaryofExelonorConstellation).Theexchangeratiowasnegotiatedonanarms-lengthbasis.Uponcompletionofthemerger,Constellationequity-basedawardswillgenerallyconvertintoequivalentExelonequity-basedawards,aftergivingeffecttotheexchangeratio.EachoutstandingoptiontopurchasesharesofConstellationstock,whethervestedorunvested,willbecomeimmediatelyvestedandconvertedintoanoptiontopurchasethatnumberofsharesofExeloncommonstock determinedbymultiplyingthenumberofsharesofConstellationcommonstocksubjecttotheConstellation stockoptionbytheexchangeratioof0.930,roundeddowntothenearestwholenumberofshares.Theexercise pricepershareofExeloncommonstocksubjecttotheadjustedExelonstockoptionwillbeequaltothepershare exercisepriceoftheConstellationstockoptiondividedbytheexchangeratio,roundeduptothenearestwhole cent.ForpurposesoftheunauditedproformacondensedcombinedconsolidatedfinancialstatementsatJune30, 2011,Constellationsoutstandingstockoptionstopurchase10.7millionsharesofConstellationcommonstock areconvertedintooutstandingstockoptionstopurchase10.0millionsharesofExeloncommonstock.EachoutstandingawardofConstellationrestrictedshareswillbecomevestedonaproratabasis(determinedbasedonthenumberofmonthsfromthestartoftheapplicablerestrictedperiodtotheeffectivetime ofthemerger).Totheextenttherestrictedsharesbecomevested,theywillbeadjustedsothattheirholderswill beentitledtoreceiveanumberofsharesofExeloncommonstockequaltothenumberofsharesofConstellation commonstocksubjecttotheConstellationawardmultipliedbytheexchangeratio.Totheextenttherestricted sharesdonotbecomevested,suchrestrictedshareswillbeconvertedintoanumberofExelonrestrictedshares equaltothenumberofsharesofConstellationrestrictedsharessubjecttotheConstellationawardmultipliedby theexchangeratio.Forpurposesoftheunauditedproformacondensedcombinedconsolidatedfinancial statementsatJune30,2011,Constellationsoutstanding0.5millionofrestrictedsharesarevestedandconverted into0.4millionofExeloncommonstock,andConstellationsoutstanding0.4millionofunvestedrestricted sharesareconvertedinto0.4millionofExelonrestrictedshares.EachoutstandingawardofConstellationsfullyvestedcommonstockunitswithsalesrestrictionswillbeadjustedsothattheirholderswillbeentitledtoreceive,uponsettlement,anumberofsharesofExeloncommon stockequaltothenumberofsharesofConstellationcommonstocksubjecttotheConstellationawardmultiplied bytheexchangeratio.Forpurposesoftheunauditedproformacondensedcombinedconsolidatedfinancial statementsatJune30,2011,Constellationsoutstanding0.2millionoffullyvestedcommonstockunitswith salesrestrictionsremainvestedandconvertedinto0.2millionofExeloncommonstock.Eachcash-settledConstellationperformanceunitwillbecomevestedonaproratabasis(determinedbasedonthenumberofmonthsfromthestartoftheapplicableperformanceperiodtotheeffectivetimeofthemerger),

andeachholderthereofwillbeentitledtoreceiveacashpaymentwithinthirtydaysfollowingthecompletion ofthemergerinanamountequalto$2.00multipliedbythetotalnumberofperformanceunitsthathavebecome vestedasofthecompletionofthemerger.Eachoutstandingperformanceunitthatdoesnotbecomevested willremainoutstanding(withtheappropriateadjustmentstotheapplicableperformancemetricstoaccount 168 forconsummationofthemerger).ForpurposesoftheunauditedproformacondensedcombinedfinancialinformationatJune30,2011,21.4millionofConstellationsoutstandingperformanceunitsareassumedto bevestedandpaidincashassumingmaximumperformancelevels,and16.9millionoftheoutstanding Constellationperformanceunitsareassumedtoremainunvested.Note2.BasisofProFormaPresentationTheproformafinancialstatementswerederivedfromhistoricalconsolidatedfinancialstatementsofExelonandConstellation.CertainreclassificationshavebeenmadetothehistoricalfinancialstatementsofConstellation toconformwithExelonspresentation.Thisresultedinincomestatementadjustmentstooperatingrevenues, operatingexpenses,otherincomeanddeductions,andincometaxesandbalancesheetadjustmentstocurrent assets,deferreddebits,currentliabilitiesanddeferredcredits.Thehistoricalconsolidatedfinancialstatementshavebeenadjustedintheproformafinancialstatementstogiveeffecttoproformaeventsthatare(1)directlyattributabletothemerger,(2)factuallysupportable,and (3)withrespecttotheproformastatementofoperations,expectedtohaveacontinuingimpactonthecombined results.Thefollowingmattershavenotbeenreflectedintheproformafinancialstatementsastheydonotmeet theaforementionedcriteria.*Costsavings(orassociatedcoststoachievesuchsavings)fromoperatingefficiencies,synergiesorotherrestructuringthatcouldresultfromthemergerwithConstellation.Thetimingandeffectof actionsassociatedwithintegrationarecurrentlyuncertain.*Adjustmentstoeliminatethefairvalue,operatingrevenuesandexpensesdirectlyassociatedwithConstellationsBrandonShores,H.A.WagnerandC.P.Cranegenerationplantsthathavebeen proposedtobesoldafterthemergeriscompletedtomitigatemarketpowerinPJM,giventhe mitigationplanispreliminaryandnospecificsaleagreementshaveyetbeennegotiated.*Anyfairvalueadjustmentsforassetsorliabilitiessubjecttorate-settingprovisionsforConstellationsregulatedutility,BaltimoreGasandElectricCompany,orBGE.BGEiscomprisedofelectric transmissionanddistributionandgasdistributionoperations.Theseoperationsaresubjecttotherate-settingauthorityoftheFederalEnergyRegulatoryCommissionandthePublicServiceCommissionof MarylandandareaccountedforpursuanttoGAAP,includingtheaccountingguidanceforregulated operations.Therate-settingandcostrecoveryprovisionscurrentlyinplaceforConstellations regulatedoperationsproviderevenuesderivedfromcostsincludingareturnoninvestmentofassets andliabilitiesincludedinratebase.Exceptfordebtandregulatoryassetsnotearningareturnas furtherdescribedinNote5-ProFormaAdjustmentstoFinancialStatements,thefairvaluesof Constellationstangibleandintangibleassetsandliabilitiessubjecttotheserate-settingprovisionsare assumedtoapproximatetheircarryingvaluesandthereforetheproformafinancialstatementsdonot reflectanynetadjustmentsrelatedtotheseamounts.*AfairvalueadjustmentforConstellationspensionandotherpostretirementbenefitobligations.ExelonmanagementbelievestheactuarialassumptionsandmethodsusedtomeasureConstellations obligationsandcostsforfinancialaccountingpurposesfor2010and2011areappropriateinthe circumstances.Thefinalfairvaluedeterminationofthepensionandpostretirementbenefitobligations maydiffermaterially,largelyduetopotentialchangesindiscountratesandreturnonplanassetsupto thedateofcompletionofthemergerandtheconformingofcertainExelonandConstellation assumptionssurroundingthedeterminationoftheseobligationsandrelatedregulatoryimplications.*ExelonsandConstellationscommitmentstobuildorrenovateastate-of-the-artLeadershipinEnergyandEnvironmentalDesign(LEED)officecenterinBaltimore,investingtodevelop25megawattsof renewableenergyinMarylandand$10milliontosupportthedevelopmentoftheelectricvehicle infrastructureinMaryland.Giventheinformationavailableasofthefilingofthisdocument,Exelon doesnotbelievethatthesecommitmentswouldberecognizedasliabilitiesuponconsummationofthe

merger.169

• Asoftheeffectivetimeofthemerger,contingenciesarerequiredtobemeasuredatfairvalueiffairvalueisdeterminable,oratareasonablyestimableamountifitisrealizableorprobablethatafuture gainorloss,respectively,mayoccur.Atthistime,Exelondoesnothavesufficientinformationto recordanyproformaadjustmentstomeasurelegalorenvironmentalcontingenciesatfairvalueorata reasonablyestimableamount,whichcouldbesignificant.*OnJuly7,2011,theU.S.EPApublishedthefinalrule,nowknownastheCross-StateAirPollutionRule(CSAPR).TheCSAPRrequires27statesintheeasternhalfoftheUnitedStatestosignificantly improveairqualitybyreducingpowerplantemissionsthatcrossstatelinesandcontributetoground-levelozoneandfineparticlepollutioninotherstates.WearestillevaluatingtheimpactofCSAPRon thecombinedentity.TheproformafinancialstatementswerepreparedusingtheacquisitionmethodofaccountingunderGAAPandtheregulationsoftheSEC.Exelonhasbeentreatedastheacquirerinthemergerforaccountingpurposes.

Acquisitionaccountingrequires,amongotherthings,thatmostassetsacquiredandliabilitiesassumedbe recognizedatfairvalueasoftheacquisitiondate.Inaddition,acquisitionaccountingestablishesthatthe considerationtransferredbemeasuredattheclosingdateofthemergeratthethen-currentmarketprice.Because acquisitionaccountingisdependentuponcertainvaluationsandotherstudiesthatmustbecompletedasofthe mergerdate,thereisnotcurrentlysufficientinformationforadefinitivemeasurement,theproformafinancial statementsarepreliminaryandhavebeenpreparedsolelyforthepurposeofprovidingunauditedproforma condensedcombinedfinancialinformation.Differencesbetweenthesepreliminaryestimatesandthefinal acquisitionaccountingwilloccurandthesedifferencescouldhaveamaterialimpactontheaccompanyingpro formafinancialstatementsandthecombinedcompanysfutureresultsofoperationsandfinancialposition.Note3.SignificantAccountingPoliciesBaseduponExelonsinitialreviewofConstellationssummaryofsignificantaccountingpolicies,asdisclosedintheConstellationconsolidatedhistoricalfinancialstatementsincorporatedbyreferenceintothisjoint proxystatement/prospectus,aswellasonpreliminarydiscussionswithConstellationsmanagement,thepro formacombinedconsolidatedfinancialstatementsassumetherewillbenosignificantadjustmentsnecessaryto conformConstellationsaccountingpoliciestoExelonsaccountingpolicies.Uponcompletionofthemergerand amorecomprehensivecomparisonandassessment,differencesmaybeidentifiedthatwouldnecessitatechanges toConstellationsfutureaccountingpoliciesandsuchchangescouldresultinmaterialdifferencesinfuture reportedresultsofoperationsandfinancialpositionforConstellationsoperationsascomparedtohistorically reportedamounts.

170 Note4.EstimatedPurchasePriceandPreliminaryPurchasePriceAllocationExelonisproposingtoacquirealloftheoutstandingcommonsharesofConstellationforafixedratioof0.930ExelonsharesperConstellationshare.Thepurchasepriceforthebusinesscombinationisestimatedas follows(inmillionsexceptconversionratioandshareprice):Numberof Shares/Awards Issued Total EstimatedFairValueIssuanceofExeloncommonstocktoConstellationstockholdersattheexchangeratioof0.930sharesforeachshareofConstellationcommonstock;basedontheclosingpriceof ExeloncommonstockasofSeptember30,2011of$42.61186.7$7,955IssuanceofExelonequityawardstoreplaceexistingConstellationequityawards(seeNote1)10.284Totalestimatedpurchaseprice$8,039PreliminaryPurchasePriceAllocationCurrentassets$6,852Property,plantandequipment9,380

GoodwillOtherlong-termassets,excludinggoodwill6,335Totalassets 22,567Currentliabilities,includingcurrentmaturitiesoflong-termdebt3,857 Deferredcreditsandotherliabilitiesandpreferredsecurities5,907 Long-termdebt 4,664Noncontrollinginterest 100Totalliabilities,preferredsecuritiesandnoncontrollinginterest14,528Totalestimatedpurchaseprice$8,039ThepreliminarypurchasepricewascomputedusingConstellationsoutstandingsharesasofJuly29,2011,adjustedfortheexchangeratio.ThepreliminarypurchasepricereflectsthemarketvalueofExelonscommon stocktobeissuedinconnectionwiththemergerbasedontheclosingpriceofExelonscommonstockon September30,2011.ThepreliminarypurchasepricealsoreflectsthetotalestimatedfairvalueofConstellations share-basedcompensationawardsoutstandingasofJune30,2011,excludingthevalueassociatedwithemployee serviceyettoberendered.TheallocationofthepreliminarypurchasepricetothefairvaluesofassetsacquiredandliabilitiesassumedincludesproformaadjustmentstoreflectthefairvaluesofConstellationsassetsandliabilitiesatthetimeofthe completionofthemerger.Thefinalallocationofthepurchasepricecoulddiffermateriallyfromthepreliminary allocationusedfortheUnauditedProFormaCondensedCombinedConsolidatedBalanceSheetprimarily becausepowermarketprices,interestratesandothervaluationvariableswillfluctuateovertimeandbedifferent atthetimeofcompletionofthemergercomparedtotheamountsassumedintheproformaadjustments.In addition,futureregulatoryratedeterminationsforBGEcouldmateriallyimpacttheamountofregulatoryassets orliabilitiesultimatelyrecorded.ThepurchasepricewillfluctuatewiththemarketpriceofExelonscommonstockuntilitisreflectedonanactualbasiswhenthemergeriscompleted.Anincreaseordecreaseof20%inExelonscommonsharepricefrom thepriceusedabovewouldincreaseordecreasethepurchasepricebyapproximately$1.6billion.Assessing sensitivityata20%rateofchangeisconsistentwiththedifferentialbetweenthemostrecent52-weekhighand lowclosingpricesofExelonscommonstock.

171 Note5.ProFormaAdjustmentstoFinancialStatementsTheproformaadjustmentsincludedintheproformafinancialstatementsareasfollows: (a)ExelonandConstellationhistoricalpresentation-CertainfinancialstatementlineitemsincludedinConstellationshistoricalpresentationhavebeenreclassifiedtocorrespondinglineitemsincludedinExelons historicalpresentation.Thesereclassificationshadnoimpactonthehistoricaloperatingincome,netincomefrom continuingoperationsorshareholdersequityreportedbyConstellation.Theadjustmentstototalassetsand liabilitieswerenotmaterialtoConstellationsbalancesheet.(b)IntercompanyTransactions-TheproformabalancesheetandstatementsofoperationsincludeproformaadjustmentstoeliminatetransactionsbetweenExelonandConstellationincludedineachcompanyshistorical financialstatements,primarilyforpurchasesandsalesofenergybetweenthecompanies.UnauditedProFormaCombinedConsolidatedStatementofOperations(inmillions)SixMonthsEndedJune30,2011YearEndedDecember31,2010Operatingrevenues$(295)$(165)OperatingexpensesPurchasedpower(294)(165)

Fuel(1)Proformastatementofoperationsadjustment$$UnauditedProFormaCombinedConsolidatedBalanceSheet(inmillions)AsofJune30,2011Currentassets AccountsreceivableCustomer$(40)Mark-to-marketderivativeassets(26)

Noncurrentassets Mark-to-marketderivativeassets(6)

Currentliabilities Accountspayable(40)

Mark-to-marketderivativeliabilities(26)

Noncurrentliabilities Mark-to-marketderivativeliabilities(6)(c)UnregulatedProperty,PlantandEquipment-Theproformabalancesheetincludesaproformaadjustmentof$1,239milliontoreflectConstellationsunregulatedproperty,plantandequipmentatestimatedfairvalue drivenbyadecreaseinthecarryingvalueofConstellationsunregulatedgeneratingassetspartiallyoffsetbyan increaseinthecarryingvalueofConstellationsupstreamnaturalgasassets.Theproformastatementsof operationsincludetheproformaadjustmentstoreflectthedecreaseindepreciationanddepletionexpense resultingfromthefairvaluationadjustmenttoConstellationsunregulatedgeneratingassets,resultinginnet decreaseddepreciationexpenseof$72millionand$99millionforthesixmonthsendedJune30,2011andthe yearendedDecember31,2010,respectively.Theseestimatesarepreliminary,subjecttochangeandcouldvary materiallyfromtheactualadjustmentatthetimethemergeriscompleted,drivenbyvariousfactorsincluding changesinenergycommoditypricesandinterestrates.Thefollowingsensitivitiesillustratetheeffectsonfair valueofchangingcertainassumptions,whileholdingallotherassumptionsconstant.Thesesensitivitiescould varymateriallyfromtheactualimpactofchangesincommoditypricesandinterestrates.A10%change inpowermarketpriceswouldresultinachangeinthefairvalueadjustmenttounregulatedgeneratingassets ofapproximately$200millionandachangeintheannualdepreciationexpenseadjustmentofapproximately

$12million.A10%changeinnaturalgaspriceswouldresultinachangeinthefairvalueadjustmentto unregulatedupstreamnaturalgasassetsofapproximately$55millionandachangeintheannualdepletion 172 expenseadjustmentofapproximately$2million.A1%increaseininterestrateswouldresultinadecreaseinthefairvalueadjustmenttoproperty,plantandequipmentofapproximately$300millionandadecreaseinthe annualdepreciationanddepletionexpenseadjustmentofapproximately$11million.Theestimatedusefullifeof Constellationsproperty,plantandequipmentrangesfrom10to44years.(d)PowerSupplyandFuelContracts-TheproformabalancesheetincludesproformaadjustmentstoreflectthefairvalueofConstellationsnon-derivativeenergyandfuelcontracts(includingthosedesignatedasnormal purchasesnormalsales)recordedtotheunamortizedenergycontractcurrentasset,noncurrentasset,current liabilityandnoncurrentliabilityaccountsintheamountsof$2,087million,$1,355million,$917million,and

$1,185million,respectively.Theproformastatementsofoperationsincludeproformaadjustmentstoreflectthe netreductioninoperatingrevenuesforsalesandareductioninpurchasedpowerexpenseforpurchasesresulting fromtheamortizationofthefairvaluationadjustmentrelatedtoConstellationsnon-derivativeenergyandfuel contracts.Theproformastatementsofoperationsincludeareductionofoperatingrevenuesof$254millionand

$935millionandareductioninpurchasedpowerexpenseof$14millionand$12millionforthesixmonths endedJune30,2011andtheyearendedDecember31,2010,respectively.Theproformaestimatednetannual amortizationforthenon-derivativeenergyandfuelcontractsis$565million,$138million,$(48)million,

$(32)millionand$21millionfortheyearsendingDecember31,2011,2012,2013,2014and2015,respectively, basedonthetimingandfairvalueoftheunderlyingcontracts.Theseestimatesarepreliminary,subjecttochange andcouldvarymateriallyfromtheactualadjustmentsatthetimethemergeriscompleted,drivenbyvarious factorsincludingchangesinenergyprices,fuelprices,marketconditionsandexpectedload.(e)InvestmentsinAffiliates-Theproformabalancesheetincludesaproformaadjustmentof$275milliontoreflectConstellationsinvestmentinConstellationEnergyNuclearGroup,LLC(CENG)atestimatedfairvalue.

Theproformastatementsofoperationsincludetheproformaadjustmentsreflectingdecreasesinthebasis differenceamortizationof$33millionand$118millionforthesixmonthsendedJune30,2011andtheyear endedDecember31,2010,respectively.Thebasisdifferencerepresentsthedifferencebetweenthecarrying amountandfairvalueofConstellationsinvestmentinCENG.Thebasisdifferenceisamortizedoverthe respectiveusefullivesoftheassetsandliabilitiesofCENGorasCENGsassetsandliabilitiesimpactthe earningsofCENG.(f)OtherInvestments-Theproformabalancesheetincludesaproformaadjustmentof$339milliontoreflectConstellationsinvestmentinahydroelectricgenerationfacilityatestimatedfairvalue.Theproformastatements ofoperationsincludetheproformaadjustmentsforthebasisdifferenceamortizationof$5millionand$9million forthesixmonthsendedJune30,2011andtheyearendedDecember31,2010,respectively.Thebasis differencerepresentsthedifferencebetweenthecarryingamountandfairvalueofConstellationsinvestmentand isassumedtobeamortizedstraightlineoveratermof40yearsbasedontheanticipatedlifeoftheasset.(g)PreferredSecurities-Theproformabalancesheetincludesaproformaadjustmentof$3milliontoreflectBGEspreferredsecuritiesatestimatedfairvalue.Theadjustmenttoreflectthefairvalueofthepreferred securitieswasoffsetbyacorrespondingincreasetoregulatoryassetsasitisassumedtobeprobableofrecovery inBGEsfuturerates.(h)Share-BasedCompensation-EachConstellationshareawardwillbeconvertedasdescribedinNote1,DescriptionoftheMerger.Theauthoritativeguidanceforaccountingforbusinesscombinationsrequiresthat thefairvalueofreplacementawardsandcashpaymentsmadetosettlevestedawardsattributableto pre-combinationservicebeincludedinthedeterminationofthepurchaseprice.Accordingly,thefairvalueof Constellationshare-basedawardswhichwillimmediatelyvestattheeffectivetimeofthemergerhasbeen attributedtopre-combinationserviceandreflectedinpurchaseprice.ForunvestedConstellationshare-based awardsconvertedattheeffectivetimeofthemerger,theexpectedcompensationexpenseisconsistentwiththe compensationexpenserecordedinConstellationshistoricalincomestatements.Theproformabalancesheet includesaproformaadjustmenttoreflectaliabilityof$21millionforvestedperformanceunitstobepaidoutin cashat$2.00perunit,assumingmaximumperformancelevels.Theseestimatesarepreliminary,subjectto changeandcouldvarymateriallyfromtheactualadjustmentsatthetimethemergeriscompleted,drivenby variousfactorsincludingchangesinExelonandConstellationsharepricesascomparedtothevaluationon September30,2011,usedforpurposesofdeterminingtheseproformaadjustments.

173 (i)EmissionAllowances-Theproformabalancesheetincludesaproformaadjustmentof$2milliontoreflectemissionallowancesnotcurrentlyonConstellationsbalancesheetatestimatedfairvalue.(j)IntangibleAssets-Theproformabalancesheetincludesaproformaadjustmentof$183millionand$281milliontorecordConstellationNewEnergystradenamesandcustomerrelationships,respectively,atestimatedfairvalues.

TheproformastatementsofoperationsincludetheproformaadjustmentstoreflectthenetincrementalamortizationresultingfromtheproformafairvaluationofConstellationNewEnergystradenamesandcustomerrelationshipsof$26millionand$52millionforthesixmonthsendedJune30,2011andtheyearendedDecember31,2010, respectively.Thetradenameandcustomerrelationshipsintangibleassetsareassumedtobeamortizedstraightline overtheirusefullives,whichrangefrom5to15years.(k)Debt-Theproformabalancesheetincludesaproformaadjustmentof$345milliontoreflectConstellationsthird-partydebtatestimatedfairvalueandaproformaadjustmentof$100milliontoeliminateConstellations carryingvalueofdeferreddebtissuanceandcreditfacilitycosts.Oftheseadjustments,$170millionand$19million arerelatedtodebtatBGEwhichwasreflectedasanincreasetolong-termdebtandareductionofothernoncurrent assets,respectively,withacorrespondingincreasetoregulatoryassetsasExelonbelievesallofBGEsdebtcostsare probableofrecoveryinBGEsfuturerates.Thefinalfairvaluedeterminationfordebtwillbebasedonprevailing marketinterestratesatthecompletionofthemerger,andthenecessaryadjustmentwillbeamortizedasareduction(in thecaseofapremiumtobookvalue)oranincrease(inthecaseofadiscounttobookvalue)tointerestexpenseover theremaininglifeoftheindividualdebtissues,withthelongestamortizationperiodbeingapproximately52years.The proformastatementsofoperationsincludeproformaadjustmentstoreflectthenetreductionininterestexpense resultingfromthefairvaluationofConstellationsthird-partydebtof$5millionand$10millionforthesixmonths endedJune30,2011andtheyearendedDecember31,2010,respectively.Inaddition,theproformastatementsof operationsincludeproformaadjustmentstoreflecttheeliminationoftheamortizationofConstellationsdeferreddebt issuanceandcreditfacilitycostsof$3millionand$7millionrecordedininterestexpenseforthesixmonthsended June30,2011andtheyearendedDecember31,2010,respectively,and$13millionand$30millionrecordedinother, netforthesixmonthsendedJune30,2011andtheyearendedDecember31,2010,respectively.A1%increasein interestrateswoulddecreasethefairvalueofdebtadjustmentbyapproximately$200million,whichwouldresultinan annualdecreaseintheinterestexpenseadjustmentofapproximately$8million.(l)RegulatoryAssets-Theproformabalancesheetincludesaproformaadjustmentof$9milliontoreflectBGEsregulatoryassetsnotearningareturnatestimatedfairvalue.Theproformastatementsofoperations includetheproformaadjustmentstoreflecttheamortizationexpenseresultingfromtheproformafairvaluation ofBGEsregulatoryassetsnotearningareturnof$1millionforthesixmonthsendedJune30,2011andtheyear endedDecember31,2010.Thefairvaluationadjustmentisassumedtobeamortizedstraightlineoveratermof 7yearsbasedonthecurrentexpectedrecoveryperiodoftheassociatedregulatoryassets.(m)MergerTransactionCosts-Theproformabalancesheetincludesaproformaadjustmenttoreflectestimatedmergertransactioncostsof$144million,consistingofinvestmentbankingfees,legalfeesandothermerger-related transactioncosts.Theproformastatementsofoperationsincludetheproformaadjustmentstoeliminatethemerger transactioncostsincurredbyExelonandConstellationof$24millionand$32million,respectively,forthesixmonths endedJune30,2011.Themergertransactioncostshavebeenexcludedfromtheproformastatementsofoperationsas theyreflectnon-recurringchargesnotexpectedtohaveacontinuingimpactonthecombinedresults.(n)RegulatoryCommitments-Theproformabalancesheetincludesaproformaadjustmenttoreflectcommitmentsannouncedaspartofthemergeragreement.Includedarecommitmentstoallowa$100directratecreditonthe customersmonthlybilltoeachBGEresidentialcustomerasofaspecifieddatefollowingtheeffectivedateofthe mergeraggregating$112million,tocontribute$5milliontotheElectricUniversalServiceProgram,andtocontribute

$4milliontosupportEmPowerMarylandEnergyEfficiencyAct.Thesecostshavebeenexcludedfromtheproforma statementofoperationsastheyreflectnon-recurringchargesnotexpectedtohaveacontinuingimpactonthe combinedresults.(o)IncomeTaxes-Theproformabalancesheetincludesaproformaadjustmenttoestimatetheimpactsondeferredincometaxesoftheallocationofpurchaseprice,mergertransactioncostsandregulatorycommitments 174 of$(140)million,$58millionand$48million,respectively.Theseestimatesarebasedontheestimatedprospectivestatutorytaxrateof40%forthecombinedcompany.Theproformastatementsofoperationsinclude theproformaadjustmentstoreflectthetaxeffectsoftheproformaadjustmentsbasedonanestimated prospectivestatutorytaxrateof40%forthecombinedcompany.Theestimatedprospectivestatutorytaxrateof 40%couldchangebasedonfuturechangesintheapplicabletaxratesandfinaldeterminationofthecombined companystaxposition.(p)Goodwill-TheproformabalancesheetincludesapreliminaryestimateoftheallocationoftheexcessofthepurchasepricepaidoverthefairvalueofConstellationsidentifiableassetsacquiredandliabilitiesassumed.The estimatedpurchasepriceofthetransaction,basedontheclosingpriceofExelonscommonstockontheNYSE onSeptember30,2011,andtheexcesspurchasepriceoverthefairvalueoftheidentifiablenetassetsacquiredis calculatedasfollows(inmillions):Preliminarypurchaseprice$8,039Less:Fairvalueofnetassetsacquired8,039Totalproformagoodwill Less:Constellationexistinggoodwill181Proformagoodwilladjustment$(181)(q)ShareholdersEquity-TheproformabalancesheetreflectstheeliminationofConstellationshistoricalequitybalances,recognitionoftheissuanceofnewExeloncommonshares,andadjustmentstoretainedearnings of$86million(netoftax)and$73million(netoftax)formergertransactioncostsandestimatedregulatory commitments,respectively.(r)CommonStockSharesoutstanding-ReflectstheeliminationoftheConstellationcommonstockoffsetbyissuanceof186,789,086sharesofExeloncommonstock.Theproformaweightedaveragenumberofbasic sharesoutstandingiscalculatedbyaddingExelonsweightedaveragenumberofbasicsharesofcommonstock outstandingforthesixmonthsendedJune30,2011ortheyearendedDecember31,2010,asapplicable,and Constellationsweightedaveragenumberofbasicsharesofcommonstockoutstandingforthosesameperiods multipliedbytheexchangeratioof0.930.Thefollowingtableillustratesthesecomputations(inmillionsexcept conversionratio):

DescriptionSixMonthsEndedJune30,2011YearEndedDecember31,2010 Basic:Constellationweightedaveragebasiccommonshares200201 Conversionratio0.9300.930EquivalentExeloncommonshares186187 Exelonweightedaveragebasiccommonshares663661Proformaweightedaveragebasiccommonshares849848 Diluted:Constellationweightedaveragedilutedcommonshares201201 Conversionratio0.9300.930EquivalentExeloncommonshares187187 Exelonweightedaveragedilutedcommonshares664663Proformaweightedaveragedilutedcommonshares851850 175 MARKETPRICEANDDIVIDENDDATASharesofExelonscommonstockandConstellationscommonstocktradeontheNYSEunderthetickersEXCandCEG,respectively.Thefollowingtablesetsforth,onapersharebasisfortheperiodsindicated,the highandlowsalespriceofsharesofExelonscommonstockandConstellationscommonstockasreportedon theNYSE.Inaddition,thetablealsosetsforthfortheperiodsindicatedthequarterlycashdividendspershare declaredbyeachofExelonandConstellationwithrespecttotheirrespectivecommonstock.

ExelonCommonStock ConstellationCommonStock High Low Dividend High Low DividendFiscalYearEndingDecember31,2011:FourthQuarter(throughOctober7,2011)$42.80$39.93$$38.26$35.50$

ThirdQuarter$45.27$39.51$0.525$40.22$33.84$0.24 SecondQuarter$42.89$39.53$0.525$38.09$30.92$0.24 FirstQuarter$43.58$39.06$0.525$33.19$29.70$0.24 FiscalYearEndedDecember31,2010:

FourthQuarter$44.49$39.05$0.525$33.18$27.64$0.24 ThirdQuarter$43.32$37.63$0.525$35.10$28.21$0.24 SecondQuarter$45.10$37.24$0.525$38.73$32.09$0.24 FirstQuarter$49.88$42.97$0.525$36.99$31.08$0.24 FiscalYearEndedDecember31,2009:

FourthQuarter$51.98$45.90$0.525$36.55$30.24$0.24 ThirdQuarter$54.47$47.30$0.525$33.37$25.76$0.24 SecondQuarter$51.46$44.24$0.525$28.05$20.18$0.24 FirstQuarter$58.98$38.41$0.525$27.97$15.05$0.24 FiscalYearEndedDecember31,2008:

FourthQuarter$63.84$41.23$0.525$30.17$21.70$0.4775 ThirdQuarter$92.13$60.00$0.50$85.53$13.00$0.4775 SecondQuarter$91.84$81.00$0.50$94.62$78.74$0.4775 FirstQuarter$87.25$70.00$0.50$107.97$81.94$0.4775Theinformationintheprecedingtableishistoricalonly.ThemarketpricesofsharesofExeloncommonstockandConstellationcommonstockwillfluctuatebetweenthedateofthisjointproxystatement/prospectus andthecompletionofthemerger.NoassurancecanbegivenconcerningthemarketpricesofsharesofExelon commonstockandConstellationcommonstockbeforethecompletionofthemergerorExeloncommonstock afterthecompletionofthemerger.Becausetheexchangeratiowillnotbeadjustedtoreflectchangesinthe marketpricesforsharesofExeloncommonstockandConstellationcommonstock,themarketvalueofthe considerationthatConstellationstockholderswillreceiveinconnectionwiththemergermayvarysignificantly fromthepricesshowninthetableabove.ExelonandConstellationurgeyoutoobtaincurrentmarketquotations forsharesofExeloncommonstockandConstellationcommonstockbeforemakinganydecisionregardingthe proposalscontainedinthisjointproxystatement/prospectus.

176 COMPARISONOFSHAREHOLDERRIGHTSUponcompletionofthemerger,alloutstandingsharesofConstellationcommonstock(otherthansharesheldbyExelon,Constellationoranyoftheirsubsidiaries)willbeconvertedintosharesofExeloncommonstock.

ConstellationisorganizedunderthelawsoftheStateofMaryland,andExelonisorganizedunderthelawsofthe CommonwealthofPennsylvania.Accordingly,differencesintherightsofholdersofConstellationcapitalstock andExeloncapitalstockarisebothfromdifferencesbetweentheirCharters,Bylawsandanycertificatesof designationandalsofromdifferencesbetweenPennsylvaniaandMarylandlaw.AsholdersofExeloncommon stock,yourrightswithrespecttheretowillbegovernedbyPennsylvanialaw,includingthePennsylvania BusinessCorporationLawof1988,referredtoasthePBCL,aswellasExelonsconstituentdocuments.This sectionsummarizesthematerialdifferencesbetweentherightsofConstellationstockholdersandtherightsof Exelonshareholders.Thefollowingsummaryisnotacompletestatementoftherightsofshareholdersofeitherofthetwocompaniesoracompletedescriptionofthespecificprovisionsreferredtobelow.Thissummaryisqualifiedinits entiretybyreferencetotheMarylandGeneralCorporationLaw,referredtoastheMGCL,thePBCL,and ConstellationsandExelonsconstituentdocuments,whichyouareurgedtoreadcarefully.Thereareanumber ofdifferencesbetweenthePBCLandtheMGCLstatutes,many(butnotall)ofwhicharesummarizedbelow.

CopiesofthecompaniesconstituentdocumentshavebeenfiledwiththeSEC.Tofindoutwhereyoucanget copiesofthesedocuments,seethesectioncaptionedWhereYouCanFindMoreInformation.ExelonShareholderRightsConstellationStockholderRightsCorporateGovernanceTherightsofholdersofConstellationcommonstockthatreceiveExeloncommonstockinthemergerwillbe governedbythePBCL,ExelonsAmendedandRestated ArticlesofIncorporationandExelonsAmendedand RestatedBylaws.TherightsofConstellationstockholdersaregovernedbyConstellationsCharter,ConstellationsBylaws andtheMGCL.AuthorizedCapitalStockTheauthorizedcapitalstockofExelonconsistsof:

• 2,000,000,000sharesofcommonstock,withoutparvalue,662,692,262ofwhichwereissuedand outstandingasofJune30,2011;and*100,000,000sharesofpreferredstock,withoutparvalue,ofwhichtherearecurrentlynoshares

outstanding.TheauthorizedcapitalstockofConstellationconsists of:*600,000,000sharesofcommonstock,withoutparvalue,201,321,543ofwhichwereissued andoutstandingasofJuly29,2011;and*25,000,000sharesofpreferredstock,parvalue$0.01pershare,ofwhich10,000shareshave beendesignatedandclassifiedasSeriesA ConvertiblePreferredStock,and11,600shares havebeendesignatedandclassifiedasSeriesB PreferredStock.Therearecurrentlynosharesof preferredstockoutstanding.PreemptiveRightsNone.None.

177 ExelonShareholderRightsConstellationStockholderRightsCommonStockEachholderofExeloncommonstockisentitledtoonevoteforeachshareheldofrecordonallmatters submittedtoavoteofshareholdersofExelon,including directorelections.EachholderofConstellationcommonstockisentitledtoonevoteforeachshareofcommonstock standinginhisorhername,includingdirector

elections.TherightsofholdersofConstellationcommonstockaresubjectto,andmaybeadverselyaffectedby,the rightsofholdersofsharesofanyseriesofpreferred stockthatConstellationmayissue.TheConstellation boardofdirectorsmayauthorizeConstellationto issuepreferredstockwithouttheapprovalof stockholdersandmayclassifyandreclassifyany unissuedsharesofConstellationpreferredstock,by fixingthenumberofshareswithintheseriesandall otherterms,rights,restrictionsandqualificationsof theshares,includingpreferences,votingpowers, dividendrightsandredemption,sinkingfundand conversionrights.PreferredStockExelonhasnopreferredstockoutstanding.Constellationhasnopreferredstockoutstanding.

DividendsExelonsAmendedandRestatedArticlesofIncorporationprovidethatdividendsmaybedeclared andpaidoutoflegallyavailablefundssolongasany dividendsordistributionsduetopreferredshareholders havebeenpaidorsetaside.UnderPennsylvanialaw,adividendmaynotbemadeif,aftergivingeffecttosuchdividend,either*thecorporationwouldbeunabletopayitsdebtsastheybecomedueintheusualcourseofitsbusiness;

or*thetotalassetsofthecorporationwouldbelessthanthesumofitstotalliabilitiesplus(unless otherwiseprovidedinitsarticlesofincorporation) theamountthatwouldbeneeded,werethe corporationtobedissolvedatthetimethedividend ismeasured,tosatisfythepreferentialrightsof shareholderswithsuperiorrightstothosereceiving thedividend.Theboardofdirectorsmaybaseitsdeterminationthatadividendisnotprohibitedunderthesecondbulletpoint ononeormoreofthefollowing:*thebookvaluesoftheassetsandliabilitiesofthe corporation;UnderMarylandlaw,nodividends,redemptions,stockrepurchasesorotherdistributionsmaybe declaredorpaidif,aftergivingeffecttothedividend, redemption,stockrepurchaseorotherdistribution, (1)thecorporationwouldnotbeabletopayitsdebts astheybecomedueintheusualcourseofbusinessor (2)thecorporationstotalassetswouldbelessthan thesumofitstotalliabilitiesplus,unlessthe corporationsCharterprovidesotherwise,theamount thatwouldbeneeded,ifthecorporationweretobe dissolvedatthetimeofthedistribution,tosatisfythe preferentialrightsupondissolutionofstockholders whosepreferentialrightsaresuperiortothose receivingthedistribution.AMarylandcorporationthatwouldbeprohibitedfrommakingadistributionunderthattestbecauseits assetswouldbelessthanthesumofitstotal liabilitiesandpreferencesofoutstandingpreferred stockmaymakeadistributionfromthenetearnings ofthecorporationforthefiscalyearinwhichthe distributionismade,thenetearningsofthe corporationfortheprecedingfiscalyear,orthesum ofthenetearningsofthecorporationforthe precedingeightfiscalquarters.Theboardofdirectors 178 ExelonShareholderRightsConstellationStockholderRights*avaluationthattakesintoconsiderationunrealizedappreciationanddepreciationorotherchangesin valueoftheassetsandliabilitiesofthecorporation;*thecurrentvalueoftheassetsandliabilitiesofthecorporation,eithervaluedseparatelyorinsegments orasanentiretyasagoingconcern;or*anyothermethodthatisreasonableinthe circumstances.maybaseadeterminationregardingthelegalityofthedeclarationorpaymentofadistributionon financialstatementspreparedonthebasisof accountingpracticesandprinciplesthatare reasonableinthecircumstancesoronafairvaluation orothermethodthatisreasonableinthe

circumstances.InspectionRightsPennsylvanialawprovidesthateveryshareholderhasastatutoryrighttoinspectacorporationsshareregister, booksandrecordsofaccountsandrecordsofthe proceedingsofincorporators,shareholdersanddirectors, andtomakecopiestherefromforaproperpurpose duringtheusualhoursforbusinessuponsubmittinga writtenverifieddemandstatingsuchpurpose.Ifa corporationrefusestopermitinspectionordoesnot replytothedemandwithinfivebusinessdaysof receivingademand,theshareholdermayapplytothe courtforanordertoenforcehisorherdemand.A properpurposeisanypurposereasonablyrelatedtothe personsinterestasashareholderofacorporation.Marylandlawprovidesthatanystockholder,onwrittenrequest,mayinspectandcopyduringusual businesshoursanyofthefollowingcorporate documents:(1)Bylaws;(2)minutesofthe proceedingsofthestockholders;(3)annual statementsofaffairs;and(4)votingtrustagreements depositedwiththecorporationatthecorporations principaloffice.Within7daysafterarequestfor documentsispresentedtoanofficerortheresident agentofacorporation,thecorporationshallhavethe requesteddocumentsavailableonfileatitsprincipal

office.Anystockholdermaypresenttoanyofficerorresidentagentofthecorporationawrittenrequestfor astatementshowingallstockandsecuritiesissuedby thecorporationduringaspecifiedperiodofnotmore than12monthsbeforethedateoftherequest.Within 20daysafterarequestismade,thecorporationshall prepareandhaveavailableonfileatitsprincipal officeaswornstatementofitspresidentortreasurer oroneofitsvice-presidentsorassistanttreasurers whichstates:(1)thenumberofsharesoramountsof eachclassofstockorothersecuritiesissuedduring thespecifiedperiod;(2)theconsiderationreceived pershareorunit,whichmaybeaggregatedastoall issuancesforthesameconsiderationpershareor unit;and(3)thevalueofanyconsiderationotherthan moneyassetinaresolutionoftheboardofdirectors.NumberofDirectorsTheboardofdirectorsofExeloncurrentlyconsistsoffifteendirectors.ExelonsAmendedandRestated ArticlesofIncorporationprovidethatthenumberof directorsshallbedeterminedbyresolutionofamajority ofthedirectors,exceptasotherwiseprovidedintheConstellationsBylawsrequiretheboardofdirectorstoconsistofnolessthan7directorsandnomore than20directors.Directorsserveforone-yearterms andwillholdofficeuntiltheirsuccessorsareelected andqualified,oruntiltheirearlierresignationor 179 ExelonShareholderRightsConstellationStockholderRightstermsofpreferredstock.TheAmendedandRestatedArticlesofIncorporationprovidethat,exceptas providedintheexpresstermsofanyclassorseriesof preferredstockwithrespecttotheelectionofdirectors upontheoccurrenceofadefaultinthepaymentof dividendsorintheperformanceofanotherexpress requirementofthetermsofsuchpreferredstock,the directorswillbeelectedannually,foraone-yearterm expiringatthenextannualmeetingoftheshareholders.removal.Anyalterationinthenumberofdirectorswillnotaffectthetenureofofficeofanydirector.TheMGCLprovidesthataMarylandcorporationwithaclassofstockregisteredundertheExchange Actandatleastthreeindependentdirectorsmay elect,withoutstockholderapproval,tobegoverned byaprovisionoftheMGCLthatprovidesthatthe numberofdirectorsshallbefixedonlybyvoteofthe boardofdirectors.Constellationhaselectedinits Chartertobesubjecttothisprovision.TheMGCLprovidesthataMarylandcorporationwithaclassofstockregisteredundertheExchange Actandatleastthreeindependentdirectorsmay elect,withoutstockholderapproval,tobegoverned byaprovisionoftheMGCLthatallowsthecreation ofaclassifiedboardofdirectors.Constellationhas notelectedtobegovernedbythisprovision.Constellationsboardofdirectorscurrentlyconsistsof10directors.NominationofDirectorsforElectionExelonsAmendedandRestatedBylawsprovidethatnominationsfordirectorsmaybemadeatmeetingsby theboardofdirectorsofExelonorbyashareholderwho complieswiththenoticeproceduresinExelons AmendedandRestatedBylaws.Allnominationsfor electionofdirectors,whetherornottheproposed nominationistobeincludedinthecorporationsproxy statement,shallbemadeinaccordancewithsuch procedures.Ashareholderwhonominatesadirector mustbeentitledtovotefortheelectionofdirectorsand bepresent,inpersonorbyproxy,attheannualmeeting.ThenoticeprocedureinExelonsAmendedandRestatedBylawsrequiresthatashareholdersnotice mustbegiventimelyandinproperwrittenformto Exelonssecretary.Inordertonominateoneormore personsforelectionasadirector,ashareholdermust complywiththenoticerequirementsandnoactionof thecorporation,includingwithoutlimitation,the provisionofthenoticetotheshareholdersorthe deliveryorfilingofaproxystatementbythe corporation,willbedeemedtosatisfythisrequirement foranyshareholderornomination.Inordertobetimely, thenoticemustbedeliveredtoormailedandreceivedat Exelonsprincipalexecutiveoffices:*notlessthan120dayspriortothedatetheproxystatementwasfirstmailedtoshareholdersin connectionwiththeprioryearsannualmeeting;orConstellationsBylawscontainadvancenoticeproceduresforthenominationofcandidatesfor electionasdirectorsatanannualmeetingof

stockholders.ThenoticeprocedureinConstellationsBylawsfordirectornominationstobebroughtproperlybeforean annualmeetingbyastockholderrequiresthe stockholdertogivetimelywrittennoticetothe secretaryofConstellation.Tobetimely,thenotice mustbereceivedattheprincipalofficeof Constellationnotlessthan75dayspriortothe anniversaryofthedateonwhichnoticeoftheprior yearsannualmeetingwasgiventostockholders; provided,however,ifthedateoftheannualmeeting ismorethan30daysearlierormorethan60days laterthansuchanniversarydate,noticemustbe receivednotmorethan120dayspriortosuchannual meetingandnotlessthanthelaterof90dayspriorto suchannualmeetingor10daysfollowingthedayon whichpublicannouncementofthedateofsuch meetingismade.Fordirectornominations,astockholdersnoticetoConstellationssecretarymustsetforthcertain information,including:*astoeachnominee,theinformationrequiredbySECrulestobeincludedinaproxystatement 180 ExelonShareholderRightsConstellationStockholderRights*notlaterthanthecloseofbusinessonthetenthdayfollowingpublicannouncementofthedateofthe annualmeetingifpublicannouncementofthe annualmeetingisnotmadeatleast75dayspriorto theannualmeetingdate.Tobeinproperwrittenform,thenoticemustinclude,amongotherthings,informationonthenominating shareholder,informationregardingthenomineerequired bytheproxyrulesoftheSEC,arepresentationasto whethertheshareholdergivingthenoticeintendsto deliveraproxystatementtotheothershareholdersof thecorporation,arepresentationby(1)theshareholder givingthenotice,(2)thebeneficialowneroranyother personsonwhosebehalfthenoticeisgivingand(3) eachnominee,providingthatsuchpersondoesnotand willnothaveanyundisclosedvotingcommitmentsor otherarrangementswithrespecttoanomineesactions asadirectorandarepresentationthatthenomineemeets thecriteriaforindependenceunderapplicableNYSE listingstandardsorothercorporategovernance principlesapprovedbytheboardofdirectors.Thenotice alsomustbeaccompaniedbyasignedconsentofthe proposednomineetoserveasadirectorifelectedandto beboundbytheQualificationandSelectionof DirectorsandNumberandTermofOfficesections ofExelonsAmendedandRestatedBylawsanda descriptionofallarrangementsorunderstandings betweenthenomineeandthenominatingshareholder.regardingthenominee,includingsuchpersonswrittenconsenttobeingnamedintheproxyasa nomineeandtoserveasadirectorifelected;*adescriptionofalldirectandindirectcompensationandothermaterialmonetary agreementsduringthepast3yearsandanyother materialrelationshipsbetweenthestockholder givingnoticeandthenominee;*arepresentationbythestockholdermakingthenomination,statingthattheproposednomineeis orisnoteligibletoserveasanindependent director,asdefinedinConstellationsCorporate GovernanceGuidelines.AllstockholdernoticestoConstellationssecretarymustincludethefollowinginformationastosuch stockholderand,ifapplicable,thebeneficialowner ofstockonwhosebehalfthenominationismade:(1) thenameandaddressofthestockholderasthey appearonConstellationsbooksandofthebeneficial owner,ifany;(2)theclassandnumberofsharesof stockofConstellationwhicharebeneficiallyowned bythestockholderandbythebeneficialowner,if any,asofthedateofnotice,andarepresentationthat thestockholderwillnotifyConstellationinwritingof theclassandnumberofsharesofstockof Constellationownedofrecordandbeneficiallyasof therecorddate;(3)adescriptionofanyagreementor understandingwithrespecttosuchnomination betweenoramongthestockholder,thebeneficial owner,ifany,andanyothersactinginconcertwith anyoftheforegoing,andarepresentationthatthe stockholderwillnotifyConstellationinwritingof anysuchagreementineffectasoftherecorddatefor themeeting;(4)adescriptionofanyagreementor understandingenteredintoasofthedateofthe stockholdersnoticeby,oronbehalfof,the stockholder,thebeneficialowner,ifany,oranyof theirrespectiveaffiliatesorassociates,theeffectof whichistomitigateloss,manageriskorbenefitof sharepricechangesfor,orincreaseordecreasethe votingpowerofanyofthemwithrespecttosharesof stockofConstellation,andarepresentationthatthe stockholderwillnotifyConstellationinwritingof anysuchagreementineffectasoftherecorddatefor themeeting;(5)arepresentationthatthestockholder orthebeneficialowner,ifany,istheholderofrecord orbeneficialownerofsharesofstockof Constellationentitledtovoteatthemeetingand intendstoappearinpersonorbyproxyatthe 181 ExelonShareholderRightsConstellationStockholderRightsmeetingtonominatethepersonspecifiedinthenotice;and(6)arepresentationwhetherthe stockholderorthebeneficialowner,ifany,intendsto deliveraproxystatementorformofproxytoholders ofConstellationsoutstandingsharesofstockor otherwisetosolicitproxiesfromstockholdersin supportofthenominationandadescriptionofsuch intendedactions.ElectionofDirectorsExelonsAmendedandRestatedBylawsprovidethat,exceptasrequiredbythetermsofanypreferredstock, directorsareelectedbytheshareholdersonlyatan annualmeetingoftheshareholders.Inanelectionof directors,wheretheboardofdirectorsdeterminesthat thenumberofnomineesexceedsthenumberof directorshipstobefilled,thedirectorsshallbeelected byapluralityofthevotescast,evenifthenumberof nomineesdoesnotexceedthenumberofdirectorships tobefilledatthetimeofanymeetingforsuchelection.

Ifinanelectionofdirectorsinwhichthenumberof nomineesdoesnotexceedthenumberofdirectorstobe elected,anynomineewhoisnotanincumbentdirector receivesapluralityofthevotescastbutdoesnotreceive amajorityofthevotescast,theresignationofsuch nomineewillbeautomaticallyaccepted.Ifthenominee isanincumbentdirectorwhoisstandingforre-election andsuchnomineereceivesapluralityofthevotescast butdoesnotreceiveamajorityofthevotescast,the committeeoftheboardauthorizedtonominate candidatesforelectiontotheboardwillmakea recommendationtotheboardonwhethertoacceptthe directorsresignationorwhetherotheractionshouldbe taken.Thedirectornotreceivingamajorityofthevotes castwillnotparticipateinthecommittees recommendationortheboardsdecisionregardingthe tenderedresignation.Theindependentmembersofthe boardwillconsiderthecommitteesrecommendation andpubliclydisclosetheboardsdecisionandthebasis forthatdecisionwithin90daysfromthedateofthe certificationofthefinalelectionresults.Iflessthantwo membersofthecommitteeareelectedatameetingfor theelectionofdirectors,theindependentmembersof theboardwhowereelectedshallconsiderandactupon thetenderedresignation.TheholdersofsharesofExeloncommonstockareentitledtocastonevoteforeachshareofcommonstock

held.ConstellationsBylawsprovidethatdirectorsareelectedbyamajorityofvotescast;provided, however,thatdirectorswillbeelectedbyaplurality voteincontestedelections.UnderConstellations CorporateGovernanceGuidelines,anydirectorwho failstobesoelectedmustoffertotenderhisorher resignationtotheboardofdirectorsforconsideration bytheNominatingandCorporateGovernance Committee.Thecommitteewillevaluateanysuch offertoresigninlightofthebestinterestsof Constellationandwillmakearecommendationtothe boardofdirectors.Theboardofdirectorswill considertherecommendationandpubliclydisclose itsdecisionandthebasisforthatdecisionwithin90 daysfromthedateofthefinalcalculationofelection results.Adirectorwhohasofferedtoresignwillnot participateinthecommitteesrecommendationorthe boardsdecisionregardingthetenderedresignation.

Ifamajorityofthemembersofthecommitteehave offeredtoresign,thentheindependentdirectorswho havenotofferedtoresignwillformacommittee fromamongthemselvestoconsidereachofferto resignandmakearecommendationtotheboardof directors.Iftherearenosuchindependentdirectors, thenalloftheindependentdirectors,otherthanthose whohaveofferedtoresign,shallconstitutea committeetoconsidereachoffertoresignandmake arecommendationtotheboardofdirectors.TheholdersofsharesofConstellationcommonstockareentitledtocastonevoteforeachshareof commonstockheld.UnderPennsylvanialaw,unlessthearticlesofincorporationprovideotherwise,shareholdershavetheUnderMarylandlaw,thecharterofacorporationmaygivestockholderstherighttomultiplythe 182 ExelonShareholderRightsConstellationStockholderRightsrighttomultiplythenumberofvotestowhichtheymaybeentitledtovotebythenumberofdirectorstobe elected,andtheymaycastthewholenumberoftheir votesforonecandidateordistributethemamongthe candidates.ExelonsAmendedandRestatedArticlesof IncorporationstatethatExelonsshareholdersshallnot havesuchrighttocumulatetheirvotesfortheelection ofdirectors.numberofvotestowhichtheymaybeentitledtovotebythenumberofdirectorstobeelected,and theymaycastthewholenumberoftheirvotesfor onecandidateordistributethemamongthe candidates.ConstellationsCharterdoesnotgive stockholderssuchrighttocumulatetheirvotesforthe electionofdirectors.VacanciesontheboardofdirectorsExelonsAmendedandRestatedBylawsprovidethat,exceptasprovidedinthetermsofthepreferredstock, vacanciesoftheboardofdirectorsandnewlycreated directorshipsresultingfromanincreaseinthe authorizednumberofdirectorsmaybefilledbya majorityvoteofthedirectorstheninoffice,evenifless thanaquorum.Iftheboardofdirectorsfillsany vacancy,thenewdirectorservesuntilthenextannual meetingofshareholdersanduntilasuccessorhasbeen electedandqualifiedoruntilhisorherearlierdeath, resignationorremoval.Anydirectormayresignatanytimeuponwrittennoticetothecorporation.Eachdirectorwhoisnominatedto standforelectionshalltenderanirrevocableresignation inadvanceofthemeetingfortheelection.Such resignationwillbeeffectiveifthedirectordoesnot receiveamajorityvoteatthenextmeetingofthe electionofdirectorsandinthecaseofanincumbent director,theboardacceptstheresignation.Whenoneormoredirectorsresignfromtheboardeffectiveatafuturedate,thedirectorstheninoffice, includingthosewhohavesoresigned,shallhavepower bytheapplicablevotetofillthevacancies,thevoteto takeeffectwhentheresignationsbecomeeffective.TheMGCLprovidesthataMarylandcorporationwithaclassofstockregisteredundertheExchange Actandatleastthreeindependentdirectorsmay elect,withoutstockholderapproval,tobegoverned byaprovisionoftheMGCLthatprovidesthatany vacancyontheboardofdirectorsthatresultsfroman increaseinthesizeoftheboardofdirectorsorthe death,resignationorremovalofadirectormaybe filledonlybytheaffirmativevoteofamajorityofthe remainingdirectorsinoffice,eveniftheremaining directorsdonotconstituteaquorum.ConstellationhaselectedinitsChartertobesubjecttothisprovision.Anydirectorelectedtofilla vacancywillholdofficefortheremainderoftheterm anduntilasuccessoriselectedandqualified.RemovalofDirectorsUnderPennsylvanialaw,directorsmayberemovedfromofficewithoutassigninganycausebyvoteofthe shareholdersentitledtoelectdirectors,unlessotherwise providedinabylawadoptedbytheshareholders.

ExelonsAmendedandRestatedBylawsstatethatthe entireboardoranyindividualdirectormayberemoved fromofficebythemajorityvoteofshareholdersthen entitledtovoteatanelectionofdirectorsonlyforcause.ExelonsAmendedandRestatedBylawsalsoprovidethatadirectormayberemovedfromofficebytheboard ofdirectorsifsuchdirectorhasbeenjudiciallydeclaredMarylandlawprovidesthatstockholdersofacorporationmayremoveadirector,withorwithout cause,bytheaffirmativevoteofamajorityofallthe votesentitledtobecastexceptasotherwiseprovided inthecharterofthecorporation.ConstellationsCharterprovidesthatdirectorsmayberemovedatanytime,butonlyforcauseandbythe affirmativevoteoftheholdersofatleastamajority ofthecombinedvotingpowerofallclassesofshares ofcapitalstockentitledtovoteintheelectionfor directorsvotingtogetherasasingleclass.The 183 ExelonShareholderRightsConstellationStockholderRightsofunsoundmindorhasbeenconvictedofanoffensepunishablebyimprisonmentforatermofmorethanone yearorif,within60daysafternoticeofsuchdirectors selectiontotheboard,thedirectordoesnotacceptthe officeeitherinwritingorbyattendingameetingofthe boardofdirectors.Charterdefinescauseasdishonesty,fraud,intentionalmaterialdamagetothepropertyor businessoftheCompany,commission(resultingin conviction)ofafelonyorotheractionsnotmeeting thestandardofcarerequiredofdirectorsunderthe

MGCL.TheMGCLprovidesthataMarylandcorporationwithaclassofstockregisteredundertheExchange Actandatleastthreeindependentdirectorsmay elect,withoutstockholderapproval,tobegoverned byaprovisionoftheMGCLthatrequiresthe affirmativevoteofstockholdersentitledtocastat leasttwo-thirdsofthevotesentitledtobecast generallyintheelectionofdirectorstoremovea director.Constellationhasnotelectedtobegoverned bythisprovision.NoticeofMeetingsofShareholdersExelonsAmendedandRestatedBylawsprovidethatwrittennoticeoftheplace,timeandpurposeofevery meetingofshareholdersbegiventoeachshareholderof recordandentitledtovotenotlessthanfivenormore than90calendardayspriortothedateofthemeeting, eitherpersonally,bymail,telegram,facsimileor

telegraph.ConstellationsBylawsprovidethatnoticeinwritingorbyelectronictransmissionstatingtheplace,day andhourofsuchmeetingand,inthecaseofaspecial meeting,thepurpose,begivennotlessthan10nor morethan90daysbeforethedateofthemeeting.RecordDateforDeterminingRightsofShareholdersExelonsAmendedandRestatedBylawsprovidethattheboardofdirectorsmayfixinadvanceadate,not morethan90calendardayspriortothedateofsuch meeting,asarecorddatefordeterminingthe shareholdersentitledtonoticeof,andtovoteat,any meetingofshareholders.ConstellationsBylawsprovidethattheboardofdirectorsmayfixinadvanceadate,notmorethan90 days(andinthecaseofameetingofstockholdersnot lessthan10days)priortothedateonwhichthe particularactionrequiringsuchdeterminationof stockholdersistobetaken,asarecorddatefor determiningthestockholdersentitledtonoticeof,or tovoteat,anymeetingofstockholders.Inlieuof fixingarecorddate,theboardofdirectorsmayclose thestocktransferbooksofConstellationforaperiod notexceeding20norlessthan10daysprecedingthe dateofanymeetingofstockholders.QuorumofShareholdersExelonsAmendedandRestatedBylawsprovidethat,exceptasotherwiseprovidedinthetermsofthe preferredstock,thepresenceofshareholdersentitledto castatleastamajorityofthevotesthatallshareholders areentitledtocastonaparticularmatteratthemeeting constitutesaquorum.SharesownedbyExelon,directly orindirectly,arenotcountedindeterminingthetotal numberofsharesoutstandingforquorumpurposes.ConstellationsBylawsprovidethatthepresenceinpersonorbyproxyofstockholdersentitledtocasta majorityofvotesconstitutesaquorum.

184 ExelonShareholderRightsConstellationStockholderRightsCallofSpecialMeetingofDirectorsExelonsAmendedandRestatedBylawsallowthechairmanoftheboard,thechiefexecutiveofficer,the LeadDirectorortwoormoreofthedirectorstocalla specialmeetingofdirectors.Noticeofeveryspecialmeetingoftheboardofdirectorsshallbegiventoeachdirectorbytelephoneorinwriting atleast24hours(inthecaseofnoticebytelephone, telex,TWX,facsimileorotherelectronictransmission) or48hours(inthecaseofnoticebytelegraph,courier serviceorexpressmail)orfivedays(inthecaseof noticebyfirstclassmail)beforethetimeatwhichthe meetingistobeheld.ConstellationsBylawsprovidethatspecialmeetingsofthedirectorsmaybeheldatanytimeorplace uponthecallofthechairman,orthepresident,orin theirabsence,onorderoftheExecutiveCommittee.

Amajorityofdirectorsinofficeshallconstitutea

quorum.Noticeofeveryspecialmeetingshallbegivenbythesecretarytoeachdirectorpersonallyorbytelephone, facsimileorelectronicallydirectedto,orbywritten noticedepositedinthemailsaddressedto,hisorher residenceorbusinessaddressatleast48hoursbefore suchmeeting.Directorsmaywaivenoticeofany meetinginwritingatorbeforethemeeting.IndemnificationofDirectorsExelonsAmendedandRestatedBylawsincludeindemnificationprovisionsunderwhichExelonis requiredtoindemnify,tothefullestextentpermitted underPennsylvanialaw,eachpersonmade,threatened tobemadeorotherwiseinvolvedin,anyclaim,action, suitorproceedingasaresultofbeingorhavingbeena directororofficer,ofExelon,orservingorhaving servedasadirector,officer,employeeoragentto anotherentityatExelonsrequest,solongassuch proceedingwasauthorizedbytheboardofdirectorsof

Exelon.Exelonisrequiredtopay,inadvance,anyexpensesapersonentitledtoindemnificationincursindefending anysuchclaim,actionorproceeding;providedthatif thePBCLsorequires,Exelonobtainsanundertakingby suchpersontorepayallamountssoadvancedifitis ultimatelydeterminedbyfinaljudicialdecisionthat suchpersonisnotentitledtoindemnification.Theseindemnityprovisionssurviverepealoramendmentforclaimsarisingoutofperiodsinwhich theprovisionswereeffective.ExelonsAmendedandRestatedArticlesofIncorporationandAmendedandRestatedBylaws includeaprovisioneliminatingthepersonalliabilityof directorstothefullestextentpermittedbythePBCL.

UnderthePBCL,personalliabilityisnoteliminatedfor breachesoffiduciarydutiesthatconstituteself-dealing, willfulmisconductorrecklessness,pursuanttoany criminalstatuteorforthepaymentofanytaxesunder federal,stateorlocallaw.ConstellationsCharterincludesaprovisionthatlimitsthepersonalliabilityofadirectororofficerto Constellationanditsstockholdersformonetary damagestothefullextentpermittedbyMarylandlaw andfurthermandatesindemnificationof Constellationsdirectorsandofficerstothefull extentpermittedbytheMGCL,including advancementofexpenses,andpermits indemnificationofotheremployeesandagents,to suchextentasauthorizedbytheboardofdirectorsor ConstellationsBylaws.UnderMarylandlaw,directorsandofficersliabilitytothecorporationoritsstockholdersformoney damagesmaybeexpandedorlimited,exceptthat liabilityofadirectororofficermaynotbelimited:

(1)totheextentthatitisprovedthattheperson actuallyreceivedanimproperbenefitorprofitin money,propertyorservicesfortheamountofthe benefitorprofitinmoney,propertyorservices actuallyreceived;or(2)totheextentthatajudgment orotherfinaladjudicationadversetothepersonis enteredinaproceedingbasedonafindinginthe proceedingthatthepersonsaction,orfailuretoact, wastheresultofactiveanddeliberatedishonestyand wasmaterialtothecauseofactionadjudicatedinthe

proceeding.ConstellationsBylawsobligateittoprovideformandatoryindemnificationofandadvancementof expensesforthebenefitofpresentandformer 185 ExelonShareholderRightsConstellationStockholderRightsdirectorsandofficersofConstellationanddirectorsandofficersofConstellationsdirectandindirect wholly-ownedsubsidiariestothefullextent permittedbyMarylandlawandfurtherprovidethat Constellationmayindemnify,andadvance reasonableexpensesto,otheremployeesandagents ofConstellationoranysubsidiaryofConstellationto theextentauthorizedbytheboardofdirectors.The indemnificationandadvancementofexpensesshall notbedeemedexclusiveofanyotherrightstowhich apersonmaybeentitled.UnderMarylandlaw,acorporationmaynotindemnifyadirectororofficerifitisestablishedthat:

(1)theactoromissionofthedirectororofficerwas materialtothemattergivingrisetotheproceeding; and(A)wascommittedinbadfaithor(B)wasthe resultofactiveanddeliberatedishonesty;or(2)the directororofficeractuallyreceivedanimproper personalbenefitinmoney,propertyorservices;or (3)inthecaseofanycriminalproceeding,the directororofficerhadreasonablecausetobelieve thattheactoromissionwasunlawful.UnderMarylandlaw,acorporationmaynotindemnifyadirectororofficerwhohasbeen adjudgedliableinasuitbyorintherightofthe corporationorinwhichthedirectororofficerwas adjudgedliabletothecorporationoronthebasisthat apersonalbenefitwasimproperlyreceived.Acourt mayorderindemnificationifitdeterminesthatthe directorisfairlyandreasonablyentitledto indemnification,eventhoughthedirectordidnot meettheprescribedstandardofconduct,was adjudgedliabletothecorporationorwasadjudged liableonthebasisthatpersonalbenefitwas improperlyreceived;however,indemnificationforan adversejudgmentinasuitbyorintherightofthe corporation,orforajudgmentofliabilityonthebasis thatpersonalbenefitwasimproperlyreceived,is limitedtoexpenses.Exceptforaproceedingbrought toenforceindemnificationorwherearesolutionof theboardofdirectorsoranagreementapprovedby theboardexpresslyprovidesotherwise,acorporation maynotindemnifyadirectorforaproceeding broughtbythedirectoragainstthecorporation.

186 ExelonShareholderRightsConstellationStockholderRightsCallofSpecialMeetingsofShareholdersExelonsAmendedandRestatedBylawsprovidethataspecialmeetingofExelonsshareholdersmaybecalled atanytimebyresolutionoftheboardofdirectorsof Exelonorasprovidedinthetermsofitspreferredstock.

Thedatefixedforthespecialmeetingofshareholders mustnotbemorethan60daysaftertheboardresolution callingthespecialmeeting.ExelonsAmendedandRestatedBylawsprovidethatwrittennoticemustbegiventoeachshareholderof recordentitledtovotenotlessthanfivenormorethan 90daysbeforethedateofthespecialmeetingandshall specifythegeneralnatureofthebusinesstobe transacted.UnderPennsylvanialaw,ifafundamental change,suchasamerger,willbeconsideredatthe specialmeeting,noticetoshareholdersmustbegivenat least10dayspriortothedateofthespecialmeeting.UnderPennsylvanialaw,theshareholdersofaregisteredcorporationsuchasExelonarenotentitledbystatuteto callaspecialmeetingoftheshareholders.Neither ExelonsAmendedandRestatedArticlesofIncorporation norExelonsAmendedandRestatedBylawsgive shareholderstherighttocallaspecialmeeting.ConstellationsBylawsprovidethatspecialmeetingsofstockholdersmaybecalledbythechairman, presidentoramajorityoftheboardofdirectors whenevertheydeemexpedient,orbythesecretary uponwrittenrequestoftheholdersofsharesentitled tocastnotlessthanamajorityofallvotesentitledto becastatsuchmeeting.Suchrequestbystockholders shallstatethepurposeofthemeetingandthematters proposedtobeactedon.Constellationmayrequest thateachstockholderwhohasrequestedaspecial meetingprovidetheinformationthatthestockholder wouldberequiredbyConstellationsBylawsto provide(asfurtherdescribedbelow)ifthe stockholderproposalhadbeenproposedforactionat anannualmeeting.Noticeinwritingorbyelectronictransmissionstatingtheplace,dayandhourofsuchmeetingand, inthecaseofaspecialmeeting,thepurpose,shallbe givennotlessthan10normorethan90daysbefore thedateofthemeeting.ShareholderProposalsExelonsAmendedandRestatedBylawsprovidethatashareholdermaybringbusinessbeforeanannual meeting,providedtimelywrittennoticeofsuch shareholdersintentiontomakeaproposalisgivenand isinproperform,whetherornottheproposedbusiness istobeincludedinthecorporationsproxystatement.Tobetimely,thenoticemustbeaddressedtoExelonssecretaryattheprincipalexecutiveofficersandreceived bythesecretary:*notlessthan120dayspriortothedatetheproxystatementwasreleasedtoshareholdersin connectionwiththeprecedingyearsannual meeting;or*notlaterthanthecloseofbusinessonthetenthdayfollowingpublicannouncementofthedateofthe annualmeetingifpublicnoticeoftheannual meetingisnotmadeatleast75dayspriortothe annualmeetingdate.ConstellationsBylawscontainadvancenoticeproceduresforbusinesstobeproperlybroughtbefore anannualmeetingofstockholders.ThestockholdermustgivetimelywrittennoticetothesecretaryofConstellation.Tobetimely,the noticemustbereceivedattheprincipalofficeof

Constellation:*notlessthan75dayspriortotheanniversaryofthedateonwhichnoticeoftheprioryears annualmeetingwasgiventostockholders; provided,however,*ifthedateoftheannualmeetingismorethan30daysearlierormorethan60dayslaterthansuch anniversarydate,noticemustbereceivednot morethan120dayspriortosuchannualmeeting andnotlessthanthelaterof90dayspriorto suchannualmeetingor10daysfollowingthe dayonwhichpublicannouncementofthedate ofsuchmeetingismade.

187 ExelonShareholderRightsConstellationStockholderRightsTobeinproperform,thenoticemustsetforth:*adescriptioninreasonabledetailofthebusinessdesiredtobebroughtandthereasonsfor conductingsuchbusiness;*thenameandrecordaddressoftheshareholderproposingthebusinessandofthebeneficialowner, ifany,onwhosebehalftheproposalwasmade;*theclassandnumberofsharesandanyotherownershipinterests,includingderivatives,hedged positionsandothereconomicorvotinginterestsin thecorporationthatareownedbeneficiallyandof recordbytheshareholderproposingsuchbusiness orbythebeneficialowner,ifany,onwhosebehalf theproposalismade;*anymaterialinterestoftheshareholderproposingsuchbusinessandthebeneficialowner,ifany,on whosebehalftheproposalismade,insuch proposal;and*arepresentationastowhethertheshareholderproposingthebusinesscombinationintendsto deliveraproxystatementregardingsuchmattersto theothershareholdersofthecorporation.Tobeinproperform,thenoticemustsetforthinwritingastoeachmatterthestockholderproposesto bringbeforetheannualmeetingthefollowing informationastosuchstockholderand,ifapplicable, thebeneficialownerofstockonwhosebehalfthe nominationismade:*thenameandaddressofthestockholderastheyappearonConstellationsbooksandofthe beneficialowner,ifany;*theclassandnumberofsharesofstockofConstellationwhicharebeneficiallyownedby thestockholderandbythebeneficialowner,if any,asofthedateofnotice,anda representationthatthestockholderwillnotify Constellationinwritingoftheclassandnumber ofsharesofstockofConstellationownedof recordandbeneficiallyasoftherecorddate;*adescriptionofanyagreementorunderstandingwithrespecttosuchbusinessbetweenoramong thestockholder,thebeneficialowner,ifany,and anyothersactinginconcertwithanyofthe foregoing,andarepresentationthatthe stockholderwillnotifyConstellationinwriting ofanysuchagreementineffectasoftherecord dateforthemeeting;*adescriptionofanyagreementorunderstandingenteredintoasofthedateofthestockholders noticeby,oronbehalfof,thestockholder,the beneficialowner,ifany,oranyoftheir respectiveaffiliatesorassociates,theeffectof whichistomitigateloss,manageriskorbenefit ofsharepricechangesfor,orincreaseor decreasethevotingpowerofanyofthemwith respecttosharesofstockofConstellation,anda representationthatthestockholderwillnotify Constellationinwritingofanysuchagreement ineffectasoftherecorddateforthemeeting;*arepresentationthatthestockholderorthebeneficialowner,ifany,istheholderofrecord orbeneficialownerofsharesofstockof Constellationentitledtovoteatthemeetingand intendstoappearinpersonorbyproxyatthe meetingtonominatethepersonspecifiedinthe notice;and*arepresentationwhetherthestockholderorthebeneficialowner,ifany,intendstodelivera proxystatementorformofproxytoholdersof Constellationsoutstandingsharesofstockor otherwisetosolicitproxiesfromstockholdersin supportofthenominationandadescriptionof suchintendedactions.

188 ExelonShareholderRightsConstellationStockholderRightsShareholderActionbyWrittenConsentExelonsAmendedandRestatedBylawsprovidethat,exceptasotherwiseprovidedinthetermsofany preferredstock,orwhenshareholdersactbyunanimous consenttoremoveadirectorordirectors,the shareholdersmayonlyactatadulyorganizedmeeting.ConstellationsBylawsprovidethat,exceptasotherwiseprovidedundertheMGCL,allelections andallotherquestionsshallbedecidedatameeting atwhichaquorumispresent.UnderMarylandlaw,commonstockholdersofConstellationmaytakeactionbyunanimouswritten consentinlieuofameeting.AppointmentandRemovalofOfficersExelonsAmendedandRestatedBylawsprovidethattheofficersbechosenbytheboardofdirectors.Officers willholdtheirofficesatthediscretionoftheboardof directorsuntildeath,resignationorremovalwithor withoutcauseandwillhaveauthorityandperformsuch dutiesasprovidedbyresolutionsorordersoftheboard ofdirectors,orintheabsenceofcontrollingprovisions intheresolutionsororders,assetforthinExelons AmendedandRestatedBylaws.Anyvacancyoccurring inanyofficewillbefilledbytheboardofdirectorsor bytheofficerorcommitteetowhichpowertofillsuch officehasbeendelegated.ConstellationsBylawsprovidethattheofficersbechosenbytheboardofdirectorsortheCEOifso authorizedbyaboardofdirectorsresolution.Each officerholdsofficeuntilhisorhersuccessoris electedandqualifiedorappointed,oruntilhisorher earlierremovalorresignation.Officersmaybe removedbytheboardofdirectorsinitssole judgment,andanyofficerappointedbytheCEOmay beremovedbytheCEOinhisorhersolejudgment.

Anyvacancyshallbefilledbytheboardofdirectors, orbytheCEOifauthorizedbytheboardofdirectors, andtheofficersoelectedorappointedshallhold officefortheunexpiredterminrespectofwhichthe vacancyoccurredanduntilhisorhersuccessoris dulyelectedandqualifiedorappointed.DissentersRightsUnderPennsylvanialaw,ashareholdermaydissentfrom,andreceivepaymentofthefairvalueofitsshares intheeventofcertainmergers,consolidations,share exchanges,assettransfersandcorporatedivisions.

However,nodissentersrightsareavailablewithrespect toshareswhich,attheapplicablerecorddate,were eitherlistedonanationalsecuritiesexchangeor designatedasanationalmarketsystemsecurityonan interdealerquotationsystembytheNationalAssociation ofSecuritiesDealersorheldbeneficiallyorofrecordby morethan2,000shareholders,unlessthesharesareofa preferredorspecialclassandthetermsoftransactiondo notrequirefortheeffectuationofthetransactionthe affirmativevoteofamajorityofthevotescastbyall shareholdersofsuchclassorseries.UnderMarylandlaw,adissentingorobjectingstockholderhastherighttodemandandreceive paymentofthefairvalueofthestockholdersstock fromthesuccessorif(1)thecorporationconsolidates ormergeswithanothercorporation;(2)the corporationsstockistobeacquiredinastatutory shareexchange;(3)thecorporationtransfersits assetsinamannerrequiringstockholderapproval; (4)thecorporationamendsitscharterinawaywhich altersthecontractrights,asexpresslysetforthinthe charter,ofanyoutstandingstockandsubstantially adverselyaffectsthestockholdersrights,unlessthe righttodosoisreservedinthecharterofthe corporation;or(5)thetransactionissubjecttocertain provisionsoftheMarylandBusinessCombination Act,referredtoastheMBCA.Marylandlawprovidesthatastockholdermaynotdemandthefairvalueofthestockholdersstockand 189 ExelonShareholderRightsConstellationStockholderRightsisboundbythetermsofthetransactionif,amongotherthings,(1)thestockislistedonanational securitiesexchangeontherecorddatefor determiningstockholdersentitledtovoteonthe matteror,incertainmergers,thedatenoticeisgiven orwaived(exceptcertainmergerswherestockheld bydirectorsandexecutiveofficersisexchangedfor mergerconsiderationnotavailablegenerallyto stockholders);(2)thestockisthatofthesuccessorin themerger,unlesseither(A)themergeraltersthe contractrightsofthestockasexpresslysetforthin thecharterandthecharterdoesnotreservetheright todosoor(B)thestockistobechangedor convertedinwholeorinpartinthemergerinto somethingotherthaneitherstockinthesuccessoror cash,scriporotherrightsorinterestsarisingoutof provisionsforthetreatmentoffractionalsharesof stockinthesuccessor;or(3)thecharterprovidesthat theholdersofthestockarenotentitledtoexercise therightsofanobjectingstockholder.ConstellationscommonstockislistedontheNYSEandisexpectedtobelistedontheNYSEonthe recorddatefortheConstellationspecialmeeting.

Accordingly,holdersofConstellationcommonstock arenotexpectedtobeentitledtodemandandreceive paymentoffairvalueinaccordancewiththeMGCL (commonlyreferredtoasappraisalordissenters rights)inconnectionwiththemerger.BusinessCombinationandFairPriceProvisionsUnderPennsylvanialaw,Exelonisprohibitedfromengaginginabusinesscombinationwithaninterested shareholder(apersonowningatleast20%ofthevoting powerofacorporation)forfiveyearsaftersuch shareholderbecomesaninterestedshareholder,unless:*theboardofdirectorsofExelonapprovedthebusinesscombinationpriortothetimesuch shareholderbecameaninterestedshareholderor approvedthetransactioninwhichtheinterested shareholderbecameaninterestedshareholderprior tothetimeofsuchtransaction;*thebusinesscombinationisapprovedbytheaffirmativevoteofamajorityofthesharesheldby disinterestedshareholders,atameetingcalledfor suchpurposenoearlierthanthreemonthsafterthe datetheinterestedshareholderbecamean80%

shareholderifthepricepaidtoallshareholders meetsthefairpricecriteriaestablishedbythe statutoryprovisions;UnderMarylandlaw,aninterestedstockholderisdefinedtoincludeanyperson(otherthanthe corporationoritssubsidiaries)who,togetherwithits affiliatesandassociates,isthebeneficialownerof sharesofstockrepresenting10%ormoreofthetotal votingpowerofacorporationoranaffiliateor associateofthecorporationthatwasthebeneficial owner,directlyorindirectly,of10%ormoreofthe votingpowerofthethenoutstandingstockofthe corporationatanytimewithinthetwo-yearperiod immediatelypriortothedateinquestion.Theterm businesscombinationisbroadlydefinedtoinclude manycorporateactionsthataninterestedstockholder mightcontemplateinordertoincreasehisorher shareownershiporreducehisorheracquisitiondebt.

Thesesecondtiertransactionsincludeanymergeror consolidationofthecorporationinvolvingan interestedstockholder,anydispositionofassetsof thecorporationtoaninterestedstockholder,any issuancetoaninterestedstockholderofsecuritiesof thecorporationmeetingcertainthresholdamounts andanyreclassificationofsecuritiesofthe 190 ExelonShareholderRightsConstellationStockholderRights*theholdersofalltheoutstandingsharesofcommonstockapprovethebusinesscombination;or*thebusinesscombinationisapprovedbytheaffirmativevoteofalloftheholdersofallofthe outstandingcommonsharesentitlingsuchholders tocastamajorityofthevotesthatallshareholders wouldbeentitledtocastinanelectionofdirectors, notincludinganyvotingsharesbeneficiallyowned bytheinterestedshareholderoranyaffiliateor associateoftheinterestedshareholder,atameeting calledforsuchpurposenoearlierthanfiveyears aftertheinterestedshareholderbecamean interestedshareholder.Upontheexpirationofthefiveyearperiod,thecorporationmayengageinthebusinesscombinationifit isapprovedbyamajorityofsharesheldbydisinterested shareholdersatameetingcalledforthepurposeof approvingsuchcombinationorbyamajorityofshares heldbyallshareholdersifthefairpricecriteriaaremet.corporationhavingtheeffectofincreasingthevotingpowerorproportionateshareownershipofan interestedstockholder.UndertheMBCA,abusinesscombinationwithaninterestedstockholderissubjecttoafive-year moratoriumand,followingexpirationofthis moratorium,mustberecommendedbytheboardof directorsandapprovedbytheaffirmativevoteof 80%ofthevotesentitledtobecastbyholdersof outstandingsharesofvotingstockofthecorporation, votingtogetherasasingleclass,andtwo-thirdsofthe votesentitledtobecastbyholdersofvotingstock, excludingthesharesheldbytheinterested stockholderoritsaffiliatesandassociates,voting togetherasasingleclass(inadditiontoanyother votesrequiredunderlaworthecorporations Charter),unlessthetransactionisapprovedbythe boardofdirectorspriortothetimetheinterested stockholderfirstobtainedsuchstatusorthebusiness combinationsatisfiescertainminimumprice,formof considerationandproceduralrequirements.

ConstellationhasnotoptedoutoftheMBCAwith regardtothemerger.ControlTransactionsandShareAcquisitionsUnderPennsylvanialaw,Exelonsshareholdersmaydemandthatanypersonorgroupthatacquiresatleast 20%oftheoutstandingvotingstockofExelonpurchase suchdemandingshareholdersstockatitsfairvalue.

Fairvalueisdefinedasavaluenotlessthanthehighest pricepaidpersharebythecontrollingpersonatany timeduringthe90-dayperiodendingonthedatethe personacquired20%ofthevotingstock,plusan incrementrepresentinganyvaluethatmaynotbe reflectedinsuchprice.UnderPennsylvanialaw,sharesofExelonstockacquiredinacontrolshareacquisitionhavenovoting rightsunlesstheirvotingrightsarerestoredbythe affirmativevoteofamajorityof(1)allsharesheldby disinterestedshareholdersand(2)allthevotingshares ofthecorporationataspecialmeetingcalledforsuch purposewithin50daysfromthedeliveryofan informationstatementfromtheacquiringpersontothe corporation,oratanannualmeetingoftheshareholders.

Acontrolshareacquisitionisdefinedasan acquisitionbyapersonofsharesofacorporationthat would,whenaddedtoallvotingpoweroftheperson, resultinsuchpersonacquiringforthefirsttimevotingTheMarylandControlShareAcquisitionAct,referredtoastheMCSAA,providesthat,subjectto certainexceptions,anyoutstandingsharesofa Marylandcorporationacquiredbyapersonorgroup inanacquisitionthatcausessuchacquirortohavethe powertovoteordirectthevotingofsharesinthe electionofdirectorsinexcessof10%,33-1/3%or 50%thresholdsshallhaveonlysuchvotingpoweras shallbeaccordedbytheaffirmativevoteofthe holdersoftwo-thirdsofthevotesofeachvoting groupentitledtovoteseparatelyontheproposal, excludingallinterestedshares(asdefinedtherein),at ameetingthat,subjecttocertainexceptions,is requiredtobecalledforthatpurposeuponthe acquirorsrequest.UndertheMCSAA,the corporationhasarighttoredeemoutstandingcontrol sharesforwhichstockholdershavenotapproved votingrights.TheMarylandstatutepermitstheCharterorBylawsofacorporationtoexcludefromitsapplicationshare acquisitionsoccurringaftertheadoptionofthe statute.ConstellationhaselectedinitsBylawsto excludeitselffromtheprovisionsoftheMCSAA.

191 ExelonShareholderRightsConstellationStockholderRightscontrolover20%,33-1/3%or50%ormoreoftheoutstandingsharesofthecorporation.Wheresuch control-shareapprovalhasbeenobtained,Pennsylvania law(1)mandatesseverancecompensationforeligible employeeswhoareterminatedwithin90daysbeforethe control-shareapprovalifsuchterminationwaspursuant toanagreementwiththeacquiringpersonorwithin 24monthsafterthecontrol-shareapprovalperiodand (2)requiresthecontinuationofcertainlaborcontracts relatingtobusinessoperationsownedbyaregistered corporationatthetimeofthecontrol-shareapproval.TheAmendedandRestatedArticlesofIncorporationandBylawsofExelondonotcontainsuper-majority votingprovisions.Anti-GreenMailPennsylvanialawpermitsacorporationtorecoveranyprofitrealizedbyanyinterestedshareholder(apersonor groupthatacquiresvotingcontrolofatleast20%ofthe corporation)pursuanttoadispositionofstockwithin18 monthsafterthepersonbecameaninterested shareholderifthestockwasacquiredwithintwoyears priortoor18monthssubsequenttothetimesuchperson becameaninterestedshareholder.

None.TransactionsWithInterestedShareholdersPennsylvanialawrequirescertaintransactions(includingmergers)withinterestedshareholderstobe approvedbyamajorityofthedisinterestedshareholders, unlessthetransactionis(1)approvedbyamajorityof thedisinteresteddirectors,(2)oneinwhichthe considerationtobereceivedbyshareholdersisnotless thanthehighestamountpaidbytheinterested shareholderinacquiringtheinterestedshareholders sharesor(3)amergerwhereapartytothemergerowns 80%ormoreofthestockofanotherpartytothemerger andiseffectedbytheboardofdirectorswithout shareholderapprovalaspermittedunderthePBCL.

Interestedshareholderisdefinedasashareholderwho isapartytothetransactionorwhoistreateddifferently fromothershareholdersandanypersonorgroupof personsthatisactingjointlyorinconcertwiththe interestedshareholder.SeediscussionofMarylandbusinesscombinationandfairpriceprovisionsandcontroltransactions andshareacquisitionsabove.

192 ExelonShareholderRightsConstellationStockholderRightsAmendmenttoCharterandBylawsUnderPennsylvanialaw,ExelonsAmendedandRestatedArticlesofIncorporationmaybeamendedby themajorityvoteofallshareholdersentitledtovoteand, ifanyclassorseriesisentitledtovoteasaclass,the majorityvoteofeachsuchclass.Undercertain circumstances,ExelonsAmendedandRestatedArticles ofIncorporationmaybeamendedbytheboardof directorswithoutshareholderapproval,suchaswhere (1)theamendmentisrestrictedtochangingthe corporatenameoradding,changingoreliminatingthe parvalueofanyclassorseriesofsharesiftheparvalue doesnothaveanysubstantiveeffectunderthetermsof thatoranyotherclassorseriesofsharesor(2)the corporationhasonlyoneclassofvotingshares outstanding,doesnothaveanyclassofshares outstandingthatisconvertibleinto,juniorto,orentitled toparticipateincontributionswiththosevotingshares andthesolepurposeoftheamendmentistoincreasethe numberofauthorizedsharestoeffectuateastock dividendorstocksplit.ExelonsAmendedandRestatedBylawsmaybeamendedorrepealedbytheboardofdirectors,other thanprovisionsthatthePBCLspecifiesmayonlybe adoptedbyshareholdersorprovisionsadoptedby shareholders,whichprovidethatsuchprovisionsmay notbeamendedorrepealedbytheboardofdirectors.Withtheexceptionofanamechangeandcertainotherenumeratedminorchanges,whichdonot requirestockholderapproval,underMarylandlawan amendmenttoConstellationsChartermustbe declaredadvisablebytheboardofdirectorsand approvedbytheaffirmativevoteofstockholders entitledtocastatleasttwo-thirdsofthevotesentitled tobecastonthematter,unlessthecharterreduces therequiredvotetonotlessthanamajorityofthe outstandingvotingpower.ConstellationsCharter requiresacharteramendmenttoreceivethe affirmativevoteofamajorityofallthevotesentitled tobecastonthematter.ConstellationsBylawsmaybeamendedorrepealedandnewbylawsmadeoradoptedonlyatameeting oftheboardofdirectors,byvoteofamajorityofthe directorsoratameetingofstockholders,byavoteof two-thirdsofthestockholderseligibletovote,other thanprovisionsthatmayonlybeamendedby resolutionoftheboardofdirectors.FundamentalCorporateTransactionsUnderPennsylvanialaw,certainfundamentalcorporatetransactions,suchasmergers,consolidation,share exchangesandsalesofsubstantiallyallassetsand dissolutions,mustbeapprovedbytheboardofdirectors andsubmittedforavoteoftheshareholders.Such fundamentalcorporatetransactionsmustbeapprovedby theaffirmativevoteofamajorityofthevotesactually castbytheshareholdersentitledtovotethereon.UndertheMGCL,aboardofdirectorsmustgenerallydeclareamerger,consolidation,share exchangeortransferofallorsubstantiallyallofits assetsadvisableanddirectthatsuchtransactionbe submittedtothestockholdersofthecorporationfor consideration.Thetransactionmustbeapprovedby theaffirmativevoteofstockholdersentitledtocastat leasttwo-thirdsofallthevotesentitledtobecaston thematter,unlessthecharterprovidesforagreateror lesservote(whichmustbeatleastamajorityofall votesentitledtobecastonthematter).

ConstellationsCharterprovidesthatiftheboardof directorsapprovesthetransaction,thenonlya majoritystockholdervoteisrequired.ShareholderRightsPlanNone.None.

193 ExelonShareholderRightsConstellationStockholderRightsConstituenciesStatutesPennsylvanialawprovidesthatboardsofdirectors,committeesoftheboardandindividualdirectorsmay,in consideringthebestinterestsofthecorporation, considertotheextenttheydeemappropriate:*theeffectsofanyactiononanyorallgroupsaffectedbytheaction,includingshareholders, employees,suppliers,customersandcreditorsof thecorporation,anduponcommunitiesinwhich officesorotherestablishmentsofthecorporation arelocated;*theshort-termandlong-terminterestsofthecorporation,includingthebenefitsthatthe corporationmayenjoyfromitslong-termplansand thepossibilitythattheseinterestsmaybebest servedbythecontinuedindependenceofthe

corporation;*theresources,intentandconduct,past,statedandpotential,ofanypersonseekingtoacquirecontrol ofthecorporation;and*allotherpertinentfactors.Pennsylvanialawalsoprovidesthat,inconsideringthebestinterestsofthecorporation,theboardofdirectors, committeeoftheboardofdirectorsandindividual directorsarenotrequiredtoregardanycorporateor otherinterestasdominantorcontrolling.Marylandlawprovidesthatacorporationschartermayincludeaprovisionthatallowstheboardof directors,inconsideringapotentialacquisitionof controlofthecorporation,toconsidertheeffectof thepotentialacquisitionofcontrolon:*stockholders,employees,suppliers,customers,andcreditorsofthecorporation;and*communitiesinwhichofficesorotherestablishmentsofthecorporationarelocated.Marylandlawalsoprovidesthattheinclusionoromissionofaprovisioninthecharterthatallowsthe boardofdirectorstoconsidertheeffectofapotential acquisitionofcontrolonpersonsspecifiedabove doesnotcreateaninferenceconcerningfactorsthat maybeconsideredbytheboardofdirectors regardingapotentialacquisitionofcontrol.

ConstellationsCharterdoesnotincludesucha

provisionDerivativeSuitsUnderPennsylvanialaw,ashareholdermaymaintainaderivativesuiteveniftheshareholderwasnota shareholderatthetimeoftheallegedwrongdoing,ifa courtdeterminesthatapreliminaryshowinghasbeen madethatthereisastrongprimafaciecaseinfavorof theclaimandthatseriousinjusticewouldresultwithout suchsuit.UnderMarylandlaw,astockholdermaynotmaintainaderivativesuitunlessheorshewasastockholderat thetimetheeventcomplainedofoccurred(orwhose sharesdevolveduponhimorhersincebyoperation oflaw).194 LEGALMATTERSThevalidityofthesharesofExeloncommonstocktobeissuedinthemergerwillbepasseduponbyBallardSpahrLLP.CertainU.S.federalincometaxconsequencesrelatingtothemergerandthetransactions contemplatedbythemergeragreementwillbepasseduponbyKirkland&EllisLLPforConstellationandby Skadden,Arps,Slate,Meagher&FlomLLPforExelon.

EXPERTSTheconsolidatedfinancialstatements,therelatedfinancialstatementschedule,andmanagementsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting(whichisincludedinManagements reportonInternalControloverFinancialReporting)ofExelonCorporationincorporatedinthisjointproxy statement/prospectusbyreferencetotheAnnualReportonForm10-KfortheyearendedDecember31,2010 havebeensoincorporatedinrelianceonthereportofPricewaterhouseCoopersLLP,anindependentregistered publicaccountingfirm,givenontheauthorityofsaidfirmasexpertsinauditingandaccounting.Theconsolidatedfinancialstatements,therelatedfinancialstatementschedule,andmanagementsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting(whichisincludedinManagements reportonInternalControloverFinancialReporting)ofConstellationEnergyGroup,Inc.incorporatedinthis jointproxystatement/prospectusbyreferencetotheAnnualReportonForm10-Kfortheyearended December31,2010havebeensoincorporatedinrelianceonthereportofPricewaterhouseCoopersLLP,an independentregisteredpublicaccountingfirm,givenontheauthorityofsaidfirmasexpertsinauditingand

accounting.TheconsolidatedfinancialstatementsofConstellationEnergyNuclearGroup,LLC,incorporatedinthisjointproxystatement/prospectusbyreferencetoConstellationEnergyGroup,Inc.sAnnualReportonForm 10-KfortheyearendedDecember31,2010,havebeensoincorporatedinrelianceonthereportof PricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,givenontheauthorityofsaid firmasexpertsinauditingandaccounting.SUBMISSIONOFFUTURESHAREHOLDERPROPOSALS ExelonExelonwillholdanannualmeetingin2012regardlessofwhetherthemergerhasbeencompleted.InExelonsproxystatementforits2011annualmeetingofshareholders,heldonMay3,2011,Exelondisclosedthatforinclusionintheproxystatementandformofproxyrelatingtothe2012annualmeetingof shareholders,shareholderproposalssubmittedpursuanttoRule14a-8oftheExchangeActmusthavebeen receivedbyExelononorbeforeNovember25,2011.Exelonintendstoadvancethedateofitsannualmeetingby morethanthirtydays,toApril2,2012,inordertoaccommodateschedulingconflicts.Accordingly,forinclusion intheproxystatementandformofproxyforthe2012annualmeetingofshareholdersExelonmustreceive shareholderproposalsonorbeforeNovember4,2011.ShareholderproposalsshouldbesenttotheCorporate Secretary,ExelonCorporation,10South

DearbornStreet,

P.O.Box805398,Chicago,Illinois60680-5398.

ExelonwillconsideronlyproposalsmeetingtherequirementsoftheapplicablerulesoftheSEC.UnderExelons Bylaws,theproposalmustalsodisclosefullyallownershipintereststheproponenthasinExelonandcontaina representationastowhethertheshareholderhasanyintentionofdeliveringaproxystatementtotheother shareholdersofExelon.AnExelonshareholderwhootherwiseintendstopresentbusinessattheExelon2012annualmeetingofshareholders,orwhowishestonominateapersonforelectiontotheExelonboardofdirectors,mustcomplywith 195 ExelonsBylaws.ExelonsBylawsrequire,amongotherthings,thatforashareholdertobringanymatterbeforethe2012annualmeetingthatisnotincludedinthe2012proxystatement,theshareholderswrittennoticemust bereceivedbytheCorporateSecretarynotlessthan120dayspriortothefirstanniversaryofthe2011annual meeting,whichwillbeJanuary4,2012.ExelonsBylawsrequire,amongotherthings,thatashareholderwho wishestorecommendacandidate(includingaself-nomination)tobeconsideredbytheExeloncorporate governancecommitteefornominationasadirectormustsubmittherecommendationinwritingtothecorporate governancecommittee.Thecorporategovernancecommitteewillconsiderallrecommendedcandidatesandself-nomineeswhenmakingitsrecommendationtothefullboardofdirectorstonominateaslateofdirectorsfor election.TobetimelyfortheExelon2012annualmeetingofshareholders,ashareholdermusteithersubmita recommendationtothecorporategovernancecommitteeorprovidethepropernoticeandtheotherinformation requiredbyExelonsBylaws.TheBylawscurrentlyrequirethatthenoticeoftheproposednominationmustbe receivedbyExelonnolaterthanFriday,November25,2011.TheExelonshareholdersnoticemustcontainand beaccompaniedbycertaininformationasspecifiedinExelonsBylaws.PleasereviewtheBylawsonExelons websitetodetermineifanychangestothenominationprocessorrequirementshavebeenmade.

ConstellationConstellationdoesnotintendtoholda2012annualmeetingofstockholdersunlessthemergerisnotcompleted.AnyConstellationstockholderwhodesirestoincludeaproposalintheproxystatementforthe2012annualmeetingmustdeliveritsothatitisreceivedbyDecember16,2011.Inaddition,astockholdermustmeetall requirementsundertherulesoftheSECnecessarytohaveaproposalincludedinConstellationsproxy

statement.UndertheConstellationBylaws,anystockholderwhowantstoproposeanomineeforelectionasadirector,ortopresentanyotherproposal,atthe2012annualmeetingmustdelivertheproposalsoitisreceivedby January28,2012.UnderConstellationsBylaws,however,ifthedateofthe2012annualmeetingischangedso thatitismorethan30daysearlierormorethan60dayslaterthanMay27,2012,anysuchproposalsmustbe deliverednotmorethan120dayspriortothe2012annualmeetingandnotlessthanthelaterof(1)90daysprior tothe2012annualmeetingor(2)10daysfollowingthedayonwhichwefirstpubliclyannouncethedateofthe 2012annualmeeting.Anyproposalsmustbesent,inwriting,totheCorporateSecretary,ConstellationEnergyGroup,Inc.,100ConstellationWay,Suite1800P,Baltimore,Maryland21202.Proposalswillnotbeacceptedbyfacsimileor electronictransmission.

196 WHEREYOUCANFINDMOREINFORMATIONExelonandConstellationfileannual,quarterlyandcurrentreports,proxystatementsandotherinformationwiththeSEC.YoumayreadandcopyanyofthisinformationattheSECsPublicReferenceRoomat100F Street,N.E.,Room1580,Washington,D.C.20549.PleasecalltheSECat1-800-SEC-0330forfurther informationonthePublicReferenceRoom.TheSECalsomaintainsanInternetwebsitethatcontainsreports, proxyandinformationstatements,andotherinformationregardingissuers,includingExelonandConstellation, whofileelectronicallywiththeSEC.Theaddressofthatsiteiswww.sec.gov.InvestorsmayalsoconsultExelonsorConstellationsrespectivewebsitesformoreinformationconcerningthemergerdescribedinthisjointproxystatement/prospectus.Exelonswebsiteiswww.exeloncorp.com.

Constellationswebsiteisconstellation.com.Weprovideadditionalinformationat http://www.exelonconstellationmerger.com.Wedonotincorporatebyreferenceintothisjointproxystatement/

prospectusinformationincludedonthesewebsites.ExelonhasfiledwiththeSECaregistrationstatementtoregisterthesharesofExeloncommonstocktobeissuedtoConstellationstockholdersinconnectionwiththemerger.Thisjointproxystatement/prospectusforms apartofthatregistrationstatementandconstitutesaprospectusofExelon,inadditiontobeingaproxystatement ofExelonforitsspecialshareholdermeetingandofConstellationforitsspecialstockholdermeeting.The registrationstatement,includingtheattachedexhibitsandschedules,containsadditionalrelevantinformation aboutExeloncommonstock.TherulesandregulationsoftheSECallowExelonandConstellationtoomit certaininformationincludedintheregistrationstatementfromthisjointproxystatement/prospectus.Inaddition,theSECallowsExelonandConstellationtodiscloseimportantinformationtoyoubyreferringyoutootherdocumentsfiledseparatelywiththeSEC.Thisinformationisconsideredtobeapartofthisjoint proxystatement/prospectus,exceptforanyinformationthatissupersededbyinformationincludeddirectlyinthis jointproxystatement/prospectus.Thisjointproxystatement/prospectusincorporatesbyreferencethedocumentslistedbelowthatExelonandConstellationhavepreviouslyfiledwiththeSEC;provided,however,thatwearenotincorporatingbyreference, ineachcase,anydocuments,portionsofdocumentsorinformationdeemedtohavebeenfurnishedandnotfiled inaccordancewithSECrules.TheycontainimportantinformationaboutExelonandConstellation,thefinancial conditionofeachcompanyandothermatters.

197 ExelonFilings(FileNo.001-16169):ExelonFilingPeriodAnnualReportonForm10-KFiledonFebruary10,2011forthefiscalyearendedDecember31,2010.ProxyStatementonSchedule14AFiledonMarch24,2011,inconnectionwiththesolicitationofproxiesfortheExelon2011annual meetingofshareholders.QuarterlyReportsonForm10-QFiledonApril27,2011forthefiscalquarterendedMarch31,2011andfiledonJuly27,2011forthe fiscalquarterendedJune30,2011.CurrentReportsonForm8-KFiledonJanuary3,2011,February22,2011,March16,2011,March23,2011,March24,2011,April28, 2011,April28,2011,May5,2011,May12,2011, May20,2011,May25,2011,May26,2011,June30, 2011,August3,2011,August22,2011,August25, 2011,September9,2011,September30,2011and October7,2011(otherthandocumentsorportionsof thosedocumentsnotdeemedtobefiled).DescriptionofExeloncommonstockContainedinExelonsRegistrationStatement(FileNo.333-37082)onFormS-4,filedonMay15,2000, setforthundertheheadingDescriptionofExelon CapitalStock,includingallamendmentsandreports filedforthepurposeofupdatingsuchdescription.ConstellationFilings(FileNo.001-12869):ConstellationFilingPeriodAnnualReportonForm10-KFiledonMarch1,2011forthefiscalyearendedDecember31,2010.ProxyStatementonSchedule14AFiledonApril15,2011,inconnectionwiththesolicitationofproxiesfortheConstellation2011 annualmeetingofstockholders.QuarterlyReportsonForm10-QFiledonMay9,2011forthefiscalquarterendedMarch31,2011andfiledonAugust8,2011forthe fiscalquarterendedJune30,2011.CurrentReportsonForm8-KFiledonApril28,2011,April28,2011,May27,2011andJune30,2011(otherthandocumentsor portionsofthosedocumentsnotdeemedtobefiled).Thisjointproxystatement/prospectusalsoincorporatesbyreferencealladditionaldocumentsthatmaybefiledbyExelonandConstellationwiththeSECunderSections13(a),13(c),14or15(d)oftheExchangeAct betweenthedateofthisjointproxystatement/prospectusandthelatertooccurofthedateoftheExelonspecial meetingandthedateoftheConstellationspecialmeeting.Theseincludeperiodicreports,suchasAnnual ReportsonForm10-K,QuarterlyReportsonForm10-QandCurrentReportsonForm8-K,aswellasproxy statements(otherthanportionsofthosedocumentsdeemedtohavebeenfurnishedandnotfiled).ConstellationhassuppliedallinformationrelatingtoConstellation;ExelonhassuppliedallinformationrelatingtoExelon.ExelonandConstellationshareholderscanobtainanydocumentincorporatedbyreferenceintothisjointproxystatement/prospectusfromthecompanieswithoutcharge,excludingallexhibits,exceptthatifthe 198 companieshavespecificallyincorporatedbyreferenceanexhibitintothisjointproxystatement/prospectus,theexhibitwillalsobeprovidedwithoutchargebyrequestingitinwritingorbytelephonefromtheappropriate companyatthefollowingaddressesandtelephonenumbers:ExelonCorporationConstellationEnergyGroup,Inc.shareholdersshouldcontactstockholdersshouldcontactMacKenziePartners,Inc.105MadisonAvenueNewYork,NewYork10016Calltollfree:(800)322-2885orcallcollect:(212)929-5500Email:proxy@mackenziepartners.comInnisfreeM&AIncorporated501MadisonAvenue,20 th FloorNewYork,NewYork10022Stockholderscalltoll-free:(877)800-5182Banksandbrokerscallcollect:(212)750-5833Youshouldrelyonlyontheinformationcontainedorincorporatedbyreferenceintothisjointproxystatement/prospectus.Wehavenotauthorizedanyonetoprovideyouwithinformationthatisdifferentfromwhat iscontainedinthisjointproxystatement/prospectus.Therefore,ifanyonedoesgiveyouinformationofthissort, youshouldnotrelyonit.Ifyouareinajurisdictionwhereofferstoexchangeorsell,orsolicitationsofoffersto exchangeorpurchase,thesecuritiesofferedbythisjointproxystatement/prospectusorthesolicitationofproxies isunlawful,orifyouareapersontowhomitisunlawfultodirectthesetypesofactivities,thentheoffer presentedinthisjointproxystatement/prospectusdoesnotextendtoyou.Thisjointproxystatement/prospectus isdatedOctober11,2011andtheinformationcontainedinthisjointproxystatement/prospectusspeaksonlyas ofsuchdate.Youshouldnotassumethattheinformationcontainedinthisjointproxystatement/prospectusis accurateasofanydateotherthanthatdate.Neitherthemailingofthisjointproxystatement/prospectusto ExelonandConstellationshareholdersnortheissuanceofExeloncommonstockinthemergercreateany implicationtothecontrary.

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AnnexAEXECUTIONVERSIONAGREEMENTANDPLANOFMERGERbyandamongEXELONCORPORATION,BOLTACQUISITIONCORPORATION andCONSTELLATIONENERGYGROUP,INC.DatedasofApril28,2011 TableofContents PageARTICLEIDEFINITIONS A-1Section1.1CertainDefinedTermsA-1ARTICLEIITHEMERGERA-12Section2.1TheMergerA-12 Section2.2ClosingA-12 Section2.3EffectiveTimeA-12 Section2.4CharterandBy-lawsoftheSurvivingCorporationA-13 Section2.5DirectorsandOfficersoftheSurvivingCorporationA-13 Section2.6Post-MergerGovernanceofParentA-13ARTICLEIIICONVERSIONOFSHARES;EXCHANGEOFCERTIFICATESA-13Section3.1EffectonCapitalStockA-13 Section3.2TreatmentofCompanyEquity-BasedAwardsA-14 Section3.3AppraisalorDissentersRightsA-16 Section3.4ExchangeofSharesA-16ARTICLEIVREPRESENTATIONSANDWARRANTIESOFTHECOMPANYA-18Section4.1Qualification,Organization,Subsidiaries,etc.A-18 Section4.2CapitalStockA-19 Section4.3CorporateAuthorityRelativetothisAgreement;NoViolationA-20 Section4.4ReportsandFinancialStatementsA-21 Section4.5InternalControlsandProceduresA-22 Section4.6NoUndisclosedLiabilitiesA-22 Section4.7CompliancewithLaw;PermitsA-22 Section4.8EnvironmentalLawsandRegulationsA-23 Section4.9EmployeeBenefitPlansA-23 Section4.10AbsenceofCertainChangesorEventsA-25 Section4.11Investigations;LitigationA-25 Section4.12InformationSuppliedA-25 Section4.13RegulatoryMattersA-25 Section4.14TaxMattersA-26 Section4.15EmploymentandLaborMattersA-27 Section4.16IntellectualPropertyA-27 Section4.17RealPropertyA-28 Section4.18RequiredVoteoftheCompanyStockholdersA-28 Section4.19TakeoverStatute;NoRestrictionsonMergerA-28 Section4.20OwnershipofNuclearPowerPlantsA-28 Section4.21MaterialContractsA-28 Section4.22OpinionsofFinancialAdvisorsA-29 Section4.23FindersorBrokersA-30 Section4.24InsuranceA-30 Section4.25DerivativeProductsA-30 Section4.26RegulationasaUtilityA-30 Section4.27NuclearDecommissioningTrustsA-31 Section4.28RegulatoryProceedingsA-31 Section4.29ReorganizationUndertheCodeA-31 Section4.30NoAdditionalRepresentationsA-31ARTICLEVREPRESENTATIONSANDWARRANTIESOFPARENTANDMERGERSUBA-32Section5.1Qualification,Organization,Subsidiaries,etc.A-32 A-i PageSection5.2CapitalStockA-32Section5.3CorporateAuthorityRelativetothisAgreement;NoViolationA-34 Section5.4ReportsandFinancialStatementsA-34 Section5.5InternalControlsandProceduresA-35 Section5.6NoUndisclosedLiabilitiesA-35 Section5.7CompliancewithLaw;PermitsA-36 Section5.8EnvironmentalLawsandRegulationsA-36 Section5.9EmployeeBenefitPlansA-36 Section5.10AbsenceofCertainChangesorEventsA-38 Section5.11Investigations;LitigationA-38 Section5.12InformationSuppliedA-38 Section5.13RegulatoryMattersA-38 Section5.14TaxMattersA-39 Section5.15EmploymentandLaborMattersA-40 Section5.16IntellectualPropertyA-40 Section5.17RealPropertyA-41 Section5.18RequiredVoteofParentStockholders;MergerSubApprovalA-41 Section5.19OwnershipofNuclearPowerPlantsA-41 Section5.20MaterialContractsA-41 Section5.21OpinionsofFinancialAdvisorsA-42 Section5.22FindersorBrokersA-42 Section5.23InsuranceA-42 Section5.24DerivativeProductsA-43 Section5.25RegulationasaUtilityA-43 Section5.26NuclearDecommissioningTrustsA-43 Section5.27RegulatoryProceedingsA-44 Section5.28ReorganizationUndertheCodeA-44 Section5.29LackofOwnershipofCompanyCommonStockA-44 Section5.30NoAdditionalRepresentationsA-44ARTICLEVICOVENANTSANDAGREEMENTSA-45Section6.1ConductofBusinessbytheCompanyA-45 Section6.2ConductofBusinessbyParentA-48 Section6.3InvestigationA-50 Section6.4Non-SolicitationbytheCompanyA-51 Section6.5Non-SolicitationbyParentA-54 Section6.6Filings;OtherActionsA-56 Section6.7EmployeeMatters;ContinuingOperationsA-57 Section6.8RegulatoryApprovals;ReasonableBestEffortsA-58 Section6.9TakeoverStatuteA-60 Section6.10PublicAnnouncementsA-60 Section6.11IndemnificationandInsuranceA-60 Section6.12ControlofOperationsA-61 Section6.13CertainTransferTaxesA-61 Section6.14Section16MattersA-61 Section6.15ReorganizationTreatmentA-61 Section6.16TaxRepresentationLettersA-61 Section6.17StockExchangeListingA-62 Section6.18NoticeofChangesA-62 Section6.19StockholderLitigationA-62 Section6.20CoordinationofDividendsA-62 A-ii PageARTICLEVIICONDITIONSTOTHEMERGERA-62Section7.1ConditionstoEachPartysObligationtoEffecttheMergerA-62 Section7.2ConditionstoObligationoftheCompanytoEffecttheMergerA-63 Section7.3ConditionstoObligationofParenttoEffecttheMergerA-64 Section7.4FrustrationofClosingConditionsA-64ARTICLEVIIITERMINATIONA-64Section8.1TerminationorAbandonmentA-64 Section8.2TerminationFeesA-66ARTICLEIXMISCELLANEOUSA-67Section9.1NoSurvivalA-67 Section9.2ExpensesA-68 Section9.3Counterparts;EffectivenessA-68 Section9.4GoverningLawA-68 Section9.5Jurisdiction;SpecificEnforcementA-68 Section9.6WAIVEROFJURYTRIALA-68 Section9.7NoticesA-69 Section9.8Assignment;BindingEffectA-70 Section9.9SeverabilityA-70 Section9.10EntireAgreement;ThirdPartyBeneficiaries;SuitsforDamagesA-70 Section9.11Amendments;WaiversA-70 Section9.12HeadingsA-70 Section9.13InterpretationA-71 EXHIBITSExhibitAPost-MergerGovernanceofParent A-iii AGREEMENTANDPLANOFMERGER,datedasofApril28,2011(thisAgreement),byandamongExelonCorporation,aPennsylvaniacorporation(Parent),BoltAcquisitionCorporation,aMarylandcorporationandawholly-ownedsubsidiaryofParent(MergerSub),andConstellationEnergyGroup,Inc.,aMarylandcorporation(theCompany).

WITNESSETH:WHEREAS,therespectiveBoardsofDirectorsofParent,MergerSubandtheCompanyhaveeachdeterminedthatthetransactionsdescribedherein,uponthetermsandsubjecttotheconditionssetforthherein, areconsistentwith,andwillfurther,theirrespectivebusinessstrategiesandgoals;WHEREAS,therespectiveBoardsofDirectorsofParent,MergerSubandtheCompanyhave(a)approvedthisAgreement,themergerofMergerSubwithandintotheCompany(theMerger)inaccordancewiththeapplicableprovisionsoftheMarylandGeneralCorporationLaw(theMGCL)andtheothertransactionscontemplatedherebyand(b)determinedthatthetermsofthisAgreement,theMergerandtheothertransactions contemplatedherebyareadvisable,fairtoandinthebestinterestsoftheirrespectivecorporationsandtheir respectivestockholders;WHEREAS,forFederalincometaxpurposes,itisintendedthattheMergerqualifyasareorganizationwithinthemeaningofSection368(a)oftheInternalRevenueCodeof1986,asamended(theCode),andtheregulationspromulgatedthereunder,andthatthisAgreementwillbe,andherebyis,adoptedasaplanof reorganization;andWHEREAS,Parent,MergerSubandtheCompanydesiretomakecertainrepresentations,warranties,covenantsandagreementsspecifiedhereininconnectionwiththisAgreement.NOW,THEREFORE,inconsiderationfortheforegoingandtherepresentations,warranties,covenantsandagreementscontainedherein,andintendingtobelegallyboundhereby,Parent,MergerSubandtheCompany agreeasfollows:ARTICLEI DEFINITIONSSection1.1CertainDefinedTerms.AsusedinthisAgreement,thefollowingtermshavethemeaningsspecifiedinthisSection1.1.AffiliatemeansastoanyPerson,anyotherPersonwhich,directlyorindirectly,Controls,orisControlledby,orisundercommonControlwith,suchPerson.AgreementhasthemeaningsetforthinthePreambletothisAgreement.ArticlesofMergerhasthemeaningsetforthinSection2.3.AssumedStockOptionhasthemeaningsetforthinSection3.2(a).AtomicEnergyActhasthemeaningsetforthinSection4.3(c).BenefitPlansmeans,withrespecttoanyentity,anycompensationoremployeebenefitplans,programs,policies,agreementsorotherarrangements,whetherornotemployeebenefitplans(withinthemeaningof Section3(3)ofERISA,whetherornotsubjecttoERISA),includingbonus,cash-orequity-basedincentive, deferredcompensation,stockpurchase,health,medical,dental,disability,accident,lifeinsurance,orvacation, A-1 paidtimeoff,perquisite,fringebenefit,severance,changeofcontrol,retention,employment,separation,retirement,pension,orsavings,plans,programs,policies,agreementsorarrangements,thataresponsored, maintainedorcontributedbysuchentityoranyofitsSubsidiariesforthebenefitofcurrentorformerdirectors, officersoremployeesofsuchentityoranyofitsSubsidiariesoranydependentorbeneficiarythereof.BGEmeansBaltimoreGasandElectricCompany.BurdensomeActionmeans(a)anyactionthatinvolvesdivesting,holdingseparateorotherwisetransferringcontroloveranynuclearorhydroelectricorpumped-storagegenerationassetsofParent,the CompanyoranyoftheirrespectiveSubsidiariesorAffiliatesunlessotherwiseagreedbytheChiefExecutive OfficersofeachofParentandtheCompanyor(b)anyaction(including,asapplicable,anyactionthatinvolves divesting,holdingseparateorotherwisetransferringcontroloverbase-loadcapacity),withoutincludingthose actionsthatareproposedbythepartiesmutuallyagreed-uponanalysisofthemitigationsufficienttoaddressthe increasedmarketconcentrationresultingfromtheMergersetforthintheAppendixAanalysistobefiledby thepartiesaspartoftheirapplicationunderSection203oftheFPAwithFERCandtheconcessionsannounced bytheCompanyandParentinthepressreleaseannouncingtheexecutionofthisAgreement,would,individually orintheaggregate,reasonablybeexpectedtohaveamaterialadverseeffectonParentortheCompany.The partiesagreethattheactionssetforthinsuchAppendixAanalysisandtheconcessionsannouncedbythe CompanyandParentinthepressreleaseannouncingtheexecutionofthisAgreementarenotinandof themselvesaBurdensomeAction.BurdensomeOrderhasthemeaningsetforthinSection7.1(c)(ii).BusinessDaymeansanydayotherthanaSaturday,SundayorotherdayonwhichthebanksinNewYorkareauthorizedbyLaworexecutiveordertobeclosed.CancelledShareshasthemeaningsetforthinSection3.1(b).CENGmeansConstellationEnergyNuclearGroupLLCanditsSubsidiaries.CENGFinancialStatementshasthemeaningsetforthinSection4.4(c).Cleanupmeansallactionsrequiredto:(a)cleanup,remove,treatorremediateHazardousMaterialsintheindoororoutdoorenvironment;(b)preventtheReleaseofHazardousMaterialssothattheydonotmigrate, endangerorthreatentoendangerpublichealthorwelfareortheindoororoutdoorenvironment;(c)perform pre-remedialstudiesandinvestigationsandpost-remedialmonitoringandcare;or(d)respondtoanygovernment requestsforinformationordocumentsinanywayrelatingtocleanup,removal,treatmentorremediationor potentialcleanup,removal,treatmentorremediationofHazardousMaterialsintheindoororoutdoor

environment.ClosinghasthemeaningsetforthinSection2.2.ClosingDatehasthemeaningsetforthinSection2.2.CodehasthemeaningsetforthintheRecitalstothisAgreement.ComEdWarrantshasthemeaningsetforthinSection5.2(b).CompanyhasthemeaningsetforthinthePreambletothisAgreement.CompanyAcquisitionProposalmeansanyoffer,proposalorindicationofinterestreceivedfromathirdparty(otherthanapartytothisAgreement)providingforanyCompanyAcquisitionTransaction.CompanyAcquisitionTransactionmeansanytransactionorseriesoftransactionsinvolving:(a)anymerger,consolidation,shareexchange,recapitalization,businesscombinationorsimilartransactioninvolvingthe A-2 Company;(b)anydirectorindirectacquisitionofsecurities,tenderoffer,exchangeofferorothersimilartransactioninwhichaPersonorgroup(asdefinedintheExchangeAct)ofPersonsdirectlyorindirectly acquiresbeneficialorrecordownershipofsecuritiesrepresentingtwentypercent(20%)ormoreofthe outstandingCompanyCommonStock;(c)anydirectorindirectacquisitionofanybusinessorbusinessesorof assetsthatconstituteoraccountfortwentypercent(20%)ormoreoftheconsolidatednetrevenues,netincome orassetsoftheCompanyanditsSubsidiaries,takenasawhole(basedonthefairmarketvaluethereof);or (d)anyliquidationordissolutionoftheCompanyoranyofitsmaterialSubsidiaries.CompanyApprovalshasthemeaningsetforthinSection4.3(c).CompanyApprovedVaRLimithasthemeaningsetforthinSection4.25(a).CompanyBenefitPlanshasthemeaningsetforthinSection4.9(a).CompanyBudgetandCapitalExpenditurePlanhasthemeaningsetforthinSection6.1(b)(iv).CompanyChangeofRecommendationhasthemeaningsetforthinSection6.4(d).CompanyCommonStockhasthemeaningsetforthinSection3.1(a).CompanysCounselhasthemeaningsetforthinSection6.16.CompanyDesigneeshasthemeaningsetforthinExhibitAtothisAgreement.CompanyDisclosureSchedulehasthemeaningsetforthinthepreambletoArticleIV.CompanyEmployeeshasthemeaningsetforthinSection4.15(a).CompanyEquityAwardshasthemeaningsetforthinSection4.2(e).CompanyFinancialAdvisorhasthemeaningsetforthinSection4.22.CompanyJointVenturemeans(i)CENGand(ii)anyJointVentureoftheCompanyoranySubsidiaryoftheCompanyinwhichtheinvestedcapitalassociatedwiththeCompanysorsuchSubsidiarysinterestexceeds

$50million.CompanyMaterialAdverseEffectmeansanyevent,change,effect,development,conditionoroccurrencethat(I)ismateriallyadverseonorwithrespecttothebusiness,financialconditionorcontinuingresultsof operationsoftheCompanyanditsSubsidiaries,takenasawhole,otherthananyevent,change,effect, development,conditionoroccurrence:(a)inorgenerallyaffectingtheeconomyorthefinancial,commoditiesor securitiesmarketsintheUnitedStatesorelsewhereintheworldortheindustryorindustriesinwhichthe CompanyoritsSubsidiariesoperategenerally,or(b)resultingfromorarisingoutof(i)anychangesor developmentsinnationalorregionalwholesaleorretailmarketsforelectricpower,capacityorfuelorrelated products,(ii)anychangesordevelopmentsinnationalorregionalelectrictransmissionordistributionsystems, (iii)thependencyorannouncementoforcompliancewiththisAgreementorthetransactionscontemplatedhereby(providedthattheexceptionsinthisclause(iii)shallnotapplytoanyrepresentationorwarrantycontainedinArticleIV(oranyportionthereof)orSection7.3(a)totheextentthatitpurportstoaddressthe consequencesresultingfromtheexecutionanddeliveryofthisAgreementortheperformanceofobligationsor satisfactionofconditionsunderthisAgreement),(iv)anydepartureorterminationofanyofficers,directors, employeesorindependentcontractorsoftheCompany,anyofitsSubsidiariesoranyCompanyJointVenture, (v)anychangesinGAAPoraccountingstandardsorinterpretationsthereof,(vi)anyweather-relatedorother forcemajeureeventoroutbreakorescalationofhostilitiesoractsofwarorterrorismor(vii)thefailureofthe A-3 Companytomeetanyinternalorpublishedprojections,forecastsorrevenueorearningspredictions(itbeingunderstoodthatthefactsoroccurrencesgivingriseorcontributingtosuchfailuremaybedeemedtoconstitute, orbetakenintoaccountindeterminingwhethertherehasbeenorwouldreasonablybeexpectedtobe,a CompanyMaterialAdverseEffect),totheextent,ineachofclauses(a)and(b)(i),(ii),(v)or(vi),thatsuchevent, change,effect,development,conditionoroccurrencedoesnotaffecttheCompanyanditsSubsidiaries,takenasa whole,inamateriallydisproportionatemannerrelativetootherparticipantsinthebusinessandindustriesin whichtheCompanyanditsSubsidiariesoperate;or(II)wouldpreventormateriallydelaytheCompanyfrom consummatingthetransactionscontemplatedbythisAgreementorotherwisepreventormateriallydelaythe CompanyfromperformingitsobligationsunderthisAgreement.CompanyMaterialContractshasthemeaningsetforthinSection4.21(a).CompanyNuclearFacilitieshasthemeaningsetforthinSection4.20.CompanyPermitshasthemeaningsetforthinSection4.7(b).CompanyPermittedLienmeansanyLien(a)forTaxesorgovernmentalassessments,chargesorclaimsofpaymentnotyetdue,beingcontestedingoodfaithorforwhichadequateaccrualsorreserveshavebeen established;(b)whichisacarriers,warehousemens,mechanics,materialmens,repairmensorothersimilar lienarisingintheordinarycourseofbusinessconsistentwithpastpractice;(c)whichisdisclosedonthemost recentconsolidatedbalancesheetoftheCompanyornotestheretoorsecuringliabilitiesreflectedonsuch balancesheet;(d)whichwasincurredintheordinarycourseofbusinesssincethedateofthemostrecent consolidatedbalancesheetoftheCompanyconsistentwithpastpractice;(e)licensesoforothergrantsofrights touseIntellectualPropertynotincurredinconnectionwiththeborrowingofmoney;or(f)whichdoesnotand wouldnotreasonablybeexpectedtomateriallyimpairthecontinueduseofanyownedrealpropertyorleased realpropertyoftheCompanyoranyofitsSubsidiariesascurrentlyoperated.CompanyPowerPurchaserhasthemeaningsetforthinSection4.21(a)(i).CompanyPreferredStockhasthemeaningsetforthinSection4.2(a).CompanyRecommendationhasthemeaningsetforthinSection4.3(b).CompanyRSUshasthemeaningsetforthinSection3.2(c).CompanySECDocumentshasthemeaningsetforthinSection4.4(a).CompanyStockOptionhasthemeaningsetforthinSection3.2(a).CompanyStockPlansmeanstheCompanys1995Long-TermIncentivePlan,2002SeniorManagementLong-TermIncentivePlan,AmendedandRestated2007Long-TermIncentivePlan,AmendedandRestated ManagementLong-TermIncentivePlan,andExecutiveLong-TermIncentivePlan.CompanyStockholderApprovalhasthemeaningsetforthinSection4.18.CompanyStockholdersMeetinghasthemeaningsetforthinSection6.6(c).CompanySuperiorOffermeansabonafidewrittenCompanyAcquisitionProposal(forpurposesofthisdefinition,replacingallreferencesinsuchdefinitiontotwentypercent(20%)withfiftypercent(50%))onterms thattheCompanysBoardofDirectorsdetermines,ingoodfaith,afterconsultationwithitsoutsidelegalcounsel anditsfinancialadvisor,wouldbe,ifconsummated,morefavorabletotheCompanysstockholdersthanthe MergerandthetransactionscontemplatedbythisAgreement(includinganyproposalbyParenttoamendthe A-4 termsofthisAgreement)fromafinancialpointofview,aftertakingintoaccount,totheextentapplicable,alllegal,financial,regulatoryandotheraspectsoftheCompanyAcquisitionProposalthattheBoardofDirectorsof theCompanyconsidersrelevant,includingtheidentityofthePersonmakingtheCompanyAcquisitionProposal andthelikelihoodandtimingofconsummation.CompanyTerminationFeemeansafeepayablebytheCompanyintheamountof$200,000,000.CompanyTradingPolicieshasthemeaningsetforthinSection4.25(a).CompanyTradingPortfoliohasthemeaningsetforthinSection4.25(b).ConfidentialityAgreementhasthemeaningsetforthinSection6.3(b).ContinuingEmployeehasthemeaningsetforthinSection6.7(a).Contractmeansanywrittenororalagreement,undertaking,contract,commitment,lease,license,permit,franchise,concession,deedoftrust,contract,note,bond,mortgage,indenture,arrangementorotherinstrument orobligation.Control(including,withitscorrelativemeanings,ControlledbyandundercommonControlwith)meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofmanagementor policiesofaPerson,whetherthroughtheownershipofsecuritiesorpartnershiporotherownershipinterests,by Contractorotherwise.ControlledGroupLiabilitymeansanyandallliabilities(a)underTitleIVofERISA;(b)underSection302ofERISA;(c)underSections412and4971oftheCode;or(d)asaresultofafailuretocomplywith thecontinuationcoveragerequirementsofSection601etseq.ofERISAandSection4980BoftheCode,other than,ineachcase,suchliabilitiesthatarisesolelyoutof,orrelatesolelyto,theBenefitPlans,inthecaseoftheControlledGroupLiabilitiesrelatingtotheCompanyanditsAffiliates,setforthonSection4.9(a)ofthe CompanyDisclosureScheduleand,inthecaseoftheControlledGroupLiabilitiesrelatingtoParentanditsAffiliates,setforthonSection5.9(a)oftheParentDisclosureSchedule.DerivativeProductmeansany(a)swap,cap,floor,collar,futuresContract,forwardContract,optionandanyotherderivativefinancialinstrumentorContract,basedonanycommodity,security,instrument,asset,rate orindexofanykindornaturewhatsoever,whethertangibleorintangible,includingelectricity(including capacityandancillaryservicesproductsrelatedthereto),naturalgas,crudeoil,coalandothercommodities, emissionsallowances,weather,renewableenergycredits,currencies,interestratesandindices;and(b)forward Contractsfordeliveryofelectricity(includingcapacityandancillaryserviceproductsthereto),naturalgas,crude oil,petcoke,lignite,coalandothercommoditiesandemissionsandrenewableenergycredits.EffectiveTimehasthemeaningsetforthinSection2.3.EndDatehasthemeaningsetforthinSection8.1(b)(i).Environmentmeansanyambientair,surfacewater,drinkingwater,groundwater,landsurface(whetherbeloworabovewater),subsurfacestrata,sediment,plantoranimallifeandnaturalresources.EnvironmentalClaimmeansanyclaim,action,investigationornotice(writtenororal)byanyPersonorotherentityallegingpotentialliability(includingpotentialliabilityforinvestigatorycosts,Cleanupcosts, governmentalresponsecosts,naturalresourcesdamages,propertydamages,personalinjuries,orpenalties) arisingoutof,basedonorresultingfrom(a)thepresence,ReleaseorthreatenedReleaseoforexposureofany A-5 PersontoanyHazardousMaterialsatanylocation;or(b)anyviolation,orallegedviolation,ofanyEnvironmentalLaw.EnvironmentalLawmeansanyLaworanybindingagreementissuedorenteredbyorwithanyGovernmentalEntityrelatingto:(a)protectionofhumanhealth(asitrelatestothemanagementoforexposureto HazardousMaterials)ortheprotectionoftheEnvironment,includingpollution,contamination,Cleanup, preservation,protectionandreclamationoftheEnvironment;(b)anyReleaseorthreatenedReleaseofany HazardousMaterials,includinginvestigation,assessment,testing,monitoring,containment,removal, remediationandCleanupofanysuchReleaseorthreatenedRelease;(c)themanagementofanyHazardous Materials,includingtheuse,labeling,manufacture,processing,disposal,storage,treatment,transportor recyclingofanyHazardousMaterials;or(d)thepresenceofHazardousMaterialsinanybuilding,physical structure,productorfixture.EquityInterestshasthemeaningsetforthinthedefinitionofJointVentureinthisSection1.1.ERISAmeanstheEmployeeRetirementIncomeSecurityActof1974,asamended.ERISAAffiliatemeansanytradeorbusiness,whetherornotincorporated,thatwouldbedeemedtobeasingleemployerwithanotherpersonforpurposesofSection4001ofERISAorSections414(b),(c),(m),(n)or (o)oftheCode.ExchangeActhasthemeaningsetforthinSection4.3(c).ExchangeAgenthasthemeaningsetforthinSection3.4(a).ExchangeFundhasthemeaningsetforthinSection3.4(a).ExchangeRatiohasthemeaningsetforthinSection3.1(a).ExistingAgreementshasthemeaningsetforthinSection6.3(b).FairValuemeansfairvaluedeterminedinaccordancewithStatementofFinancialAccountingStandardsNumber157.FCChasthemeaningsetforthinSection4.3(c).FERChasthemeaningsetforthinSection4.3(c).FERCApprovalhasthemeaningsetforthinSection4.3(c).FormS-4hasthemeaningsetforthinSection4.12.FPAhasthemeaningsetforthinSection4.1(c).GAAPhasthemeaningsetforthinSection4.4(b).GovernmentalEntityhasthemeaningsetforthinSection4.3(c).HazardousMaterialsmeansanyregulatedpollutantorcontaminant(includinganyconstituent,rawmaterial,productorby-productthereof),petroleum,asbestosorasbestos-containingmaterial,polychlorinated biphenyls,leadpaint,anyhazardous,industrialorsolidwaste,andanytoxic,radioactive,infectiousorhazardous substance,materialoragent.

A-6 HSRActhasthemeaningsetforthinSection4.3(c).Indebtednessmeans,withrespecttoanyPerson,withoutduplication,(a)allobligationsofsuchPersonforborrowedmoney,orwithrespecttodepositsoradvancesofanykindtosuchPerson;(b)allobligationsofsuch Personevidencedbybonds,debentures,notesorotherdebtsecuritiesorwarrantsorotherrightstoacquireany debtsecuritiesofsuchPerson;(c)allcapitalizedleaseorleveragedleaseobligationsofsuchPersonor obligationsofsuchPersontopaythedeferredandunpaidpurchasepriceofpropertyandequipment;(d)all obligationsofsuchPersonpursuanttosecuritizationorfactoringprogramsorarrangements;and(e)allkeep wellandotherobligationsorundertakingsofsuchPersontomaintainorcausetobemaintainedthefinancial positionorcovenantsofothers.IndemnifiedPartyhasthemeaningsetforthinSection6.11(a).IntellectualPropertymeansallmaterialintellectualpropertyandindustrialpropertyrightsofanykindornature,includingallU.S.andforeign:(a)trademarks,tradenames,servicemarks,servicenames,logos,assumed names,domainnamesandothersimilardesignationsofsourceororigin,andanyregistrations,applicationsand renewalsforanyoftheforegoing,togetherwiththegoodwillsymbolizedbyanyoftheforegoing;(b)copyrights, worksofauthorship,databaserights,andallregistrations,applicationsandrenewalsforanyoftheforegoing; (c)patents,patentapplications,patentdisclosures,andallrelatedcontinuations,continuations-in-part, divisionals,reissues,reexaminations,substitutionsandextensionsthereof;(d)rightsincomputersoftware (includingsourcecodeandobjectcode,data,databasesandrelateddocumentation);and(e)proprietary inventions(whetherornotpatentableorreducedtopractice),improvements,processes,know-howandtrade

secrets.ISOhasthemeaningsetforthinSection4.21(a)(i).JointProxyStatement/ProspectushasthemeaningsetforthinSection4.12.JointVentureofaPersonmeansanyPersonthatisnotaSubsidiaryofsuchfirstPerson,inwhichsuchfirstPersonoroneormoreofitsSubsidiariesownsdirectlyorindirectlyanyshare,capitalstock,partnership,membershiporsimilarinterestofanyPersonoranyoptiontherefor(collectively,EquityInterests),otherthan EquityIntereststhatrepresentlessthan10%ofeachclassoftheoutstandingvotingsecuritiesorotherEquity InterestsofsuchsecondPerson.Knowledgemeans(a)withrespecttoParent,theactualknowledgeoftheexecutiveofficersofParentorthePersonslistedinSection1.1oftheParentDisclosureScheduleand(b)withrespecttotheCompany,theactualknowledgeoftheindividualslistedonSection1.1oftheCompanyDisclosureSchedule.Lawmeansanyapplicablefederal,state,localorforeignlaw(includingcommonlaw),statute,ordinance,rule,regulation,Order,administrativeorjudicialdoctrineoragencyrequirementofanyGovernmentalEntity.Lienmeansanylien,claim,mortgage,encumbrance,pledge,securityinterest,equityorchargeofany kind.MergerhasthemeaningsetforthintheRecitalstothisAgreement.MergerConsiderationhasthemeaningsetforthinSection3.1(a).MergerSubhasthemeaningsetforthinthePreambletothisAgreement.MGCLhasthemeaningsetforthintheRecitalstothisAgreement.

A-7 MPSChasthemeaningsetforthinSection4.3(c).NDFmeansaNDTthatisnotaQDF.NDTmeansanucleardecommissioningreservefund(withinthemeaningofSection468AoftheCode)maintainedbyanyPersonoranyofitsSubsidiaries.NERCmeanstheNorthAmericanElectricReliabilityCorporation,anyregionalreliabilityentityandanysuccessoragency.NetCompanyPositionhasthemeaningsetforthinSection4.25(b).NetParentPositionhasthemeaningsetforthinSection5.24(b).NewEnergyBusinessmeanstheCompanyscompetitivesupplybusiness,including(a)thewholesalecommodities,tradingandupstreamgasbusinesslinescurrentlyprimarilyoperatedbyConstellationEnergy CommoditiesGroup,Inc.and(b)theretailelectricandgas,solar,energyefficiencyandenergyservicesbusiness linescurrentlyprimarilyoperatedbyConstellationNewEnergy,Inc.,ConstellationEnergyProjects&Services Group,Inc.andBGEHomeProductsandServices,Inc.NRChasthemeaningsetforthinSection4.3(c).NRCApprovalhasthemeaningsetforthinSection4.3(c).NYPSChasthemeaningsetforthinSection4.3(c).NYSEhasthemeaningsetforthinSection3.1(d).Ordermeansany:(a)order,judgment,injunction,edict,decree,ruling,determination,decision,opinion,verdict,sentenceorawardissued,made,entered,renderedorotherwiseputintoeffectbyorundertheauthority ofanyGovernmentalEntityoranydulyappointedorconstitutedarbitratororarbitrationpanel;or(b)Contract withanyGovernmentalEntityenteredintoinconnectionwithanylegalproceeding.OrganizationalDocumentsmeanswithrespecttoanyentity,itscertificateorarticlesofincorporation,bylawsandanyothercharterorsimilarorganizationaldocumentsoragreementofsuchentity.ParenthasthemeaningsetforthinthePreambletothisAgreement.ParentAcquisitionProposalmeansanyoffer,proposalorindicationofinterestreceivedfromathirdparty(otherthanapartytothisAgreement)providingforanyParentAcquisitionTransaction.ParentAcquisitionTransactionmeansanytransactionorseriesoftransactionsinvolving:(a)anymerger,consolidation,shareexchange,recapitalization,businesscombinationorsimilartransactioninvolvingParent; (b)anydirectorindirectacquisitionofsecurities,tenderoffer,exchangeofferorothersimilartransactionin whichaPersonorgroup(asdefinedintheExchangeAct)ofPersonsdirectlyorindirectlyacquiresbeneficial orrecordownershipofsecuritiesrepresentingtwentypercent(20%)ormoreoftheoutstandingParentCommon Stock;(c)anydirectorindirectacquisitionofanybusinessorbusinessesorofassetsthatconstituteoraccount fortwentypercent(20%)ormoreoftheconsolidatednetrevenues,netincomeorassetsofParentandits Subsidiaries,takenasawhole(basedonthefairmarketvaluethereof);or(d)anyliquidationordissolutionof ParentoranyofitsmaterialSubsidiaries.ParentApprovalshasthemeaningsetforthinSection5.3(c).

A-8 ParentApprovedVaRLimithasthemeaningsetforthinSection5.24(a).ParentBenefitPlanshasthemeaningsetforthinSection5.9(a).ParentChangeofRecommendationhasthemeaningsetforthinSection6.5(d).ParentCommonStockhasthemeaningsetforthinSection3.1(a).ParentsCounselhasthemeaningsetforthinSection6.16.ParentDesigneeshasthemeaningssetforthinExhibitAtothisAgreement.ParentDisclosureSchedulehasthemeaningsetforthinthepreambletoArticleV.ParentEmployeeshasthemeaningsetforthinSection5.15(a).ParentEquityAwardshasthemeaningsetforthinSection5.2(f).ParentFinancialAdvisorshasthemeaningsetforthinSection5.21.ParentIncentivePlanhasthemeaningsetforthinSection5.2(a).ParentMaterialAdverseEffectmeansanyevent,change,effect,development,conditionoroccurrencethat(I)ismateriallyadverseonorwithrespecttothebusiness,financialconditionorcontinuingresultsof operationsofParentanditsSubsidiaries,takenasawhole,otherthananyevent,change,effect,development, conditionoroccurrence:(a)inorgenerallyaffectingtheeconomyorthefinancial,commoditiesorsecurities marketsintheUnitedStatesorelsewhereintheworldortheindustryorindustriesinwhichParentorits Subsidiariesoperategenerally,or(b)resultingfromorarisingoutof(i)anychangesordevelopmentsinnational orregionalwholesaleorretailmarketsforelectricpower,capacityorfuelorrelatedproducts,(ii)anychangesor developmentsinnationalorregionalelectrictransmissionordistributionsystems,(iii)thependencyorannouncementoforcompliancewiththisAgreementorthetransactionscontemplatedhereby(providedthattheexceptionsinthisclause(iii)shallnotapplytoanyrepresentationorwarrantycontainedinArticleV(oranyportionthereof)orSection7.2(a)totheextentthatitpurportstoaddresstheconsequencesresultingfromthe executionanddeliveryofthisAgreementortheperformanceofobligationsorsatisfactionofconditionsunder thisAgreement),(iv)anydepartureorterminationofanyofficers,directors,employeesorindependent contractorsofParent,anyofitsSubsidiariesoranyJointVentureofParent,(v)anychangesinGAAPor accountingstandardsorinterpretationsthereof,(vi)anyweather-relatedorotherforcemajeureeventoroutbreak orescalationofhostilitiesoractsofwarorterrorismor(vii)thefailureofParenttomeetanyinternalor publishedprojections,forecastsorrevenueorearningspredictions(itbeingunderstoodthatthefactsor occurrencesgivingriseorcontributingtosuchfailuremaybedeemedtoconstitute,orbetakenintoaccountin determiningwhethertherehasbeenorwouldreasonablybeexpectedtobe,aParentMaterialAdverseEffect),to theextent,ineachofclauses(a)and(b)(i),(ii),(v)or(vi),thatsuchevent,change,effect,development, conditionoroccurrencedoesnotaffectParentanditsSubsidiaries,takenasawhole,inamaterially disproportionatemannerrelativetootherparticipantsinthebusinessandindustriesinwhichParentandits Subsidiariesoperate;or(II)wouldpreventormateriallydelayParentfromconsummatingthetransactions contemplatedbythisAgreementorotherwisepreventormateriallydelayParentfromperformingitsobligations underthisAgreement.ParentMaterialContractshasthemeaningsetforthinSection5.20(a).ParentNuclearFacilitieshasthemeaningsetforthinSection5.19.

A-9 ParentPermitshasthemeaningsetforthinSection5.7(b).ParentPermittedLienmeansanyLien(a)forTaxesorgovernmentalassessments,chargesorclaimsofpaymentnotyetdue,beingcontestedingoodfaithorforwhichadequateaccrualsorreserveshavebeen established;(b)whichisacarriers,warehousemens,mechanics,materialmens,repairmensorothersimilar lienarisingintheordinarycourseofbusinessconsistentwithpastpractice;(c)whichisdisclosedonthemost recentconsolidatedbalancesheetofParentornotestheretoorsecuringliabilitiesreflectedonsuchbalancesheet; (d)whichwasincurredintheordinarycourseofbusinesssincethedateofthemostrecentconsolidatedbalance sheetofParentconsistentwithpastpractice;(e)licensesoforothergrantsofrightstouseIntellectualProperty notincurredinconnectionwiththeborrowingofmoney;or(f)whichdoesnotandwouldnotreasonablybe expectedtomateriallyimpairthecontinueduseofanyownedrealpropertyorleasedrealpropertyofParentor anyofitsSubsidiariesascurrentlyoperated.ParentPowerPurchaserhasthemeaningsetforthinSection5.20(a)(i).ParentPreferredStockhasthemeaningsetforthinSection5.2(a).ParentRecommendationhasthemeaningsetforthinSection5.3(b).ParentRSUshasthemeaningsetforthinSection6.2(b)(vii).ParentSECDocumentshasthemeaningsetforthinSection5.4(a).ParentStockOptionmeansanoptiontoacquiresharesofParentCommonStock.ParentStockholderApprovalhasthemeaningsetforthinSection5.18(a).ParentStockholdersMeetinghasthemeaningsetforthinSection6.6(b).ParentSuperiorOffermeansabonafidewrittenParentAcquisitionProposal(forpurposesofthisdefinition,replacingallreferencesinsuchdefinitiontotwentypercent(20%)withfiftypercent(50%))onterms thatParentsBoardofDirectorsdetermines,ingoodfaith,afterconsultationwithitsoutsidelegalcounselandits financialadvisor,wouldbe,ifconsummated,morefavorabletoParentsstockholdersthantheMergerandthe transactionscontemplatedbythisAgreement(includinganyproposalbytheCompanytoamendthetermsofthis Agreement)fromafinancialpointofview,aftertakingintoaccount,totheextentapplicable,alllegal,financial, regulatoryandotheraspectsoftheParentAcquisitionProposalthattheBoardofDirectorsoftheCompany considersrelevant,includingtheidentityofthePersonmakingtheParentAcquisitionProposalandthelikelihood andtimingofconsummation.ParentTerminationFeemeansafeepayablebyParentintheamountof$800,000,000.ParentTradingPolicieshasthemeaningsetforthinSection5.22(a).ParentTradingPortfoliohasthemeaningsetforthinSection5.22(b).PECOmeansPECOEnergyCompany.Personmeansanindividual,acorporation,apartnership,alimitedliabilitycompany,anassociation,atrustoranyotherentity,group(assuchtermisusedinSection13oftheExchangeAct)ororganization, includingaGovernmentalEntity,andanypermittedsuccessorsandassignsofsuchperson.PowerAgreementhasthemeaningsetforthinSection6.1(b)(xix).

A-10 PUCThasthemeaningsetforthinSection4.3(c).PURPAhasthemeaningsetforthinSection4.1(c).QDFmeansaNDTthatistreatedasaqualifiednucleardecommissioningfundwithinthemeaningofTreasuryRegulationSection1.468A-1(b)(4)andTreasuryRegulationSection1.468A-5.RegulatoryLawmeanstheShermanActof1890,theClaytonAntitrustActof1914,theHSRAct,theFPA,theAtomicEnergyAct,therulesandregulationsoftheNYPSC,MPSCandPUCTandallotherLaws, includinganyantitrust,competitionortraderegulationLaws,thataredesignedorintendedto(a)prohibit,restrict orregulateactionshavingthepurposeoreffectofmonopolizationorrestraintoftradeorlesseningcompetition throughmergeroracquisition;(b)regulateenergy,powerorratesthereof;or(c)protectthenationalsecurityor thenationaleconomyofanynation.Releasemeansanyrelease,spill,emission,discharge,leaking,pumping,injection,deposit,disposal,dispersal,leachingormigrationofHazardousMaterialsintotheindoororoutdoorEnvironment(including ambientair,surfacewater,groundwaterandsurfaceorsubsurfacestrata)orintooroutofanyproperty,including themigrationofHazardousMaterialsthroughorintheair,soil,surfacewater,groundwaterorproperty.RepresentativeshasthemeaningsetforthinSection6.3(a).RequisiteRegulatoryApprovalshasthemeaningsetforthinSection7.1(c)(i).RestraintshasthemeaningsetforthinSection7.1(b).RestrictedShareshasthemeaningsetforthinSection3.2(b).Sarbanes-OxleyActhasthemeaningsetforthinSection4.4(a).SEChasthemeaningsetforthinSection4.4(a).SecondRequesthasthemeaningsetforthinSection6.8(b).SecuritiesActhasthemeaningsetforthinSection4.3(c).SharehasthemeaningsetforthinSection3.1(a).SignificantSubsidiaryofanyPersonmeansaSubsidiaryofsuchPersonthatwouldconstituteasignificantsubsidiaryofsuchPersonwithinthemeaningofRule1.02(w)ofRegulationS-Xaspromulgatedby theSEC.StockIssuancehasthemeaningsetforthinSection5.3(b).Subsidiariesofanypartymeansanycorporation,partnership,association,trustorotherformoflegalentityofwhich(a)morethanfiftypercent(50%)ofthe(i)votingpoweroftheoutstandingvotingsecuritiesor (ii)outstandingeconomicequityinterestisdirectlyorindirectlyownedbysuchparty;or(b)suchpartyorany Subsidiaryofsuchpartyisageneralpartneronthedatehereof(excludingpartnershipsinwhichsuchpartyoranySubsidiaryofsuchpartydoesnothaveamajorityofthevotinginterestsinsuchpartnership);provided,however,that,withrespecttotheCompanyoranyofitsSubsidiaries,CENGshallnotbedeemedtobea

Subsidiary.SurvivingCorporationhasthemeaningsetforthinSection2.1.

A-11 SurvivingCorporationPlanshasthemeaningsetforthinSection6.7(a).TakeoverLawmeansanymoratorium,controlshareacquisition,fairprice,supermajority,affiliatetransactionsorbusinesscombinationstatuteorregulationorothersimilarstateantitakeoverLaw andregulation.TaxReturnmeansanyreturn,report,formorsimilarfiling(includinganyelections,declarationsorattachedschedules)filedorrequiredtobefiledwithrespecttoTaxes,includinganyinformationreturn,claimfor refund,amendedreturnordeclarationofestimatedTaxes.TaxorTaxesmeansanyandalldomesticorforeign,federal,state,localorothertaxesofanykind(togetherwithanyandallinterest,penalties,additionstotaxandadditionalamountsimposedwithrespect thereto)imposedbyanyGovernmentalEntity,includingtaxesonorwithrespecttoincome,franchises,windfall orotherprofits,grossreceipts,occupation,property,transfer,sales,use,capitalstock,payroll,employment, unemployment,socialsecurity,workerscompensationornetworth,andtaxesinthenatureofexcise, withholding,advaloremorvalueadded,whetherdisputedornot.TerminationDatehasthemeaningsetforthinSection6.1(a).VaRmeansthevalue-at-riskofthemark-to-marketportfoliosofaPersonanditsmarketingandtradingSubsidiariesbasedonafourstandarddeviationmoveinpricesandaone-dayholdingperiod.WARNActhasthemeaningsetforthinSection4.15(b).WillfulBreachmeansamaterialbreachthat(a)isaconsequenceofanactorfailuretoactofanexecutiveofficerofthepartytakingsuchactorfailingtotakesuchactwiththeactualknowledgethatthetakingofsuchact orthefailuretotakesuchactwould,orwouldbereasonablyexpectedto,causeabreachofthisAgreement;and (b)wouldpreventormateriallydelaytheClosingorgiveanotherpartytothisAgreementtherightnotto consummatetheMerger.ARTICLEIITHEMERGERSection2.1TheMerger.UponthetermsandsubjecttotheconditionssetforthinthisAgreementandinaccordancewiththeMGCL,attheEffectiveTime,MergerSubshallbemergedwithandintotheCompanyand theseparateexistenceofMergerSubshallcease.TheCompanyshallcontinueastheSurvivingCorporationandshallcontinuetobegovernedbythelawsoftheStateofMaryland(assuch,theSurvivingCorporation).Atthe EffectiveTime,theeffectsoftheMergershallbeasprovidedinthisAgreement,theArticlesofMergerandthe applicableprovisionsoftheMGCL.Withoutlimitingthegeneralityoftheforegoing,andsubjectthereto,atthe EffectiveTime,alloftheproperty,rights,privileges,powersandfranchisesofMergerSubshallvestinthe SurvivingCorporation,andalldebts,liabilitiesanddutiesofMergerSubshallbecomethedebts,liabilitiesand dutiesoftheSurvivingCorporation.Section2.2Closing.TheclosingoftheMerger(theClosing)shalltakeplaceat9:00a.m.,Chicagotime,onadatetobespecifiedbythepartieshereto,whichdateshallbenolaterthanthethird(3rd)BusinessDayafteralloftheconditionssetforthinArticleVIIhavebeenfulfilledorwaived(otherthanthoseconditionsthatby theirnaturearetobesatisfiedattheClosing,butsubjecttothefulfillmentorwaiverofthoseconditions)(theClosingDate),attheofficesofSkadden,Arps,Slate,Meagher&FlomLLP,155NorthWackerDrive, Chicago,Illinois60606,unlessanothertime,dateorplaceisagreedtobythepartieshereto.Section2.3EffectiveTime.SubjecttotheprovisionsofthisAgreement,ontheClosingDate,ParentandtheCompanyshallfileforrecordarticlesofmerger(ArticlesofMerger)withtheStateDepartmentof A-12 AssessmentsandTaxationoftheStateofMaryland,insuchformasrequiredby,andexecutedinaccordancewith,theMGCL.UnlessotherwisemutuallyagreeduponbyParentandtheCompany,theMergershallbecome effectiveatsuchtimeastheArticlesofMergeraredulyacceptedforrecordbytheStateDepartmentof AssessmentsandTaxationoftheStateofMaryland,oratsuchlatertime(nottoexceedthirty(30)daysafter suchacceptance)asParentandtheCompanyshallagreeandspecifyintheArticlesofMerger.Asusedherein,theEffectiveTimeshallmeanthetimeatwhichtheMergershallbecomeeffective.Section2.4CharterandBy-lawsoftheSurvivingCorporation.(a)AttheEffectiveTime,thecharteroftheCompanywillbeamendedandrestatedsothatthecharteroftheSurvivingCorporationshallbesubstantiallysimilartothecharterofMergerSubasineffectimmediatelypriortotheEffectiveTime,subjecttoSection6.11(a),untilthereafteramendedinaccordance withtheprovisionsthereofandhereofandapplicableLaw.(b)AttheEffectiveTime,theby-lawsofMergerSubasineffectimmediatelypriortotheEffectiveTimeshallbetheby-lawsoftheSurvivingCorporationuntilthereafteramendedinaccordancewiththe provisionsthereofandhereofandapplicableLaw.Section2.5DirectorsandOfficersoftheSurvivingCorporation.(a)TheArticlesofMergerwillprovidethatthedirectorsofMergerSubimmediatelypriortotheEffectiveTimeshallbethedirectorsoftheSurvivingCorporationandshallholdofficeuntiltheirrespective successorsareelectedandqualify,ortheirearlierdeath,resignationorremoval.(b)TheofficersoftheCompanyimmediatelypriortotheEffectiveTimeshallbetheofficersoftheSurvivingCorporationandshallholdofficeuntiltheirrespectivesuccessorsareelectedandqualify,ortheir earlierdeath,resignationorremoval.Section2.6Post-MergerGovernanceofParent.(a)ParentshalltakeallnecessarycorporateactiontocausethefollowingtooccurasoftheEffectiveTimeorasotherwiseprovidedinExhibitA:(i)thenumberofdirectorsconstitutingtheBoardofDirectorsofParentshallbeassetforthinExhibitAhereto,withtheidentityoftheParentDesignees(assuchtermisusedinExhibitAhereto)andtheCompanyDesignees(assuchtermisusedinExhibitAhereto)tobedeterminedinaccordancewiththeprovisionsofExhibitAhereto;and(ii)thecommitteesoftheBoardofDirectorsofParent,andthecompositionthereof,shallbeassetforthinExhibitAhereto.(b)ParentsBoardofDirectorsshallcausethecurrentChairmanoftheBoardandChiefExecutiveOfficeroftheCompanytobeappointedastheExecutiveChairmanoftheBoardofDirectorsofParent, effectiveasof,andconditionedupontheoccurrenceof,theEffectiveTime.Therolesandresponsibilitiesof theExecutiveChairmanoftheBoardofDirectorsandtheChiefExecutiveOfficerofParentfollowingtheEffectiveTimeshallbeasspecifiedonExhibitAhereto.(c)Duringtheten-yearperiodimmediatelyfollowingtheEffectiveTime,theSurvivingCorporationshallprovide,directlyorindirectly,charitablecontributionsandtraditionallocalcommunitysupportwithin theserviceareasoftheCompanyandeachofitsSubsidiariesatlevelssubstantiallycomparabletothelevels ofcharitablecontributionsandcommunitysupportprovidedbytheCompanyandsuchSubsidiarieswithin theirserviceareaswithinthetwo-yearperiodimmediatelypriortotheEffectiveTime.ARTICLEIIICONVERSIONOFSHARES;EXCHANGEOFCERTIFICATESSection3.1EffectonCapitalStock.AttheEffectiveTime,byvirtueoftheMergerandwithoutanyactiononthepartoftheCompany,MergerSubortheholdersofanysecuritiesoftheCompanyorMergerSub:(a)SubjecttoSections3.1(b)and3.1(d),eachissuedandoutstandingshareofcommonstock,withoutparvalue,oftheCompany(suchshares,collectively,CompanyCommonStock)outstandingimmediately A-13 priortotheEffectiveTime(eachsuchshare,aShare),otherthananyCancelledShares,shallthereuponbeconvertedautomaticallyintoandshallthereafterrepresenttherighttoreceive0.9300(theExchangeRatio)fullypaidandnonassessablesharesofcommonstock,withoutparvalue(ParentCommonStock),ofParent(theMergerConsideration).AsaresultoftheMerger,attheEffectiveTime,eachholderofSharesshallceasetohaveanyrightswithrespectthereto,excepttherighttoreceivetheMerger ConsiderationpayableinrespectofsuchShareswhichareissuedandoutstandingimmediatelypriortothe EffectiveTime,anycashinlieuoffractionalsharesofParentCommonStockpayablepursuanttoSection3.1(d)andanydividendsorotherdistributionspayablepursuanttoSection3.4(c),alltobeissuedor paid,withoutinterest,inconsiderationthereforuponthesurrenderofsuchSharesinaccordancewithSection3.4(b).(b)EachSharethatisownedbyParent,MergerSubortheCompany(oranywholly-ownedSubsidiaryofParentortheCompany)immediatelypriortotheEffectiveTime(theCancelledShares)shall,byvirtueoftheMergerandwithoutanyactiononthepartoftheholderthereof,becancelledandretiredandshall ceasetoexist,andnoconsiderationshallbedeliveredinexchangeforsuchcancellationandretirement.(c)AttheEffectiveTime,byvirtueoftheMergerandwithoutanyactiononthepartoftheholderthereof,eachshareofcommonstock,parvalue$0.01pershare,ofMergerSubissuedandoutstanding immediatelypriortotheEffectiveTimeshallbeconvertedintoandbecomeonevalidlyissued,fullypaid andnonassessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporationandshall constitutetheonlyoutstandingsharesofcapitalstockoftheSurvivingCorporation.Fromandafterthe EffectiveTime,allcertificatesrepresentingthecommonstockofMergerSubshallbedeemedforall purposestorepresentthenumberofsharesofcommonstockoftheSurvivingCorporationintowhichthey wereconvertedinaccordancewiththeimmediatelyprecedingsentence.(d)NocertificatesorscriprepresentingfractionalsharesofParentCommonStockshallbeissuedupontheconversionofSharespursuanttoSection3.1,andsuchfractionalshareinterestsshallnotentitletheownerthereoftovoteortoanyrightsofaholderofParentCommonStock.ForpurposesofthisSection3.1(d),allfractionalsharestowhichasinglerecordholderwouldbeentitledshallbeaggregatedand calculationsshallberoundedtothreedecimalplaces.Inlieuofanysuchfractionalshares,eachholderof Shareswhowouldotherwisebeentitledtosuchfractionalsharesshallbeentitledtoanamountincash, withoutinterest,roundeddowntothenearestcent,equaltotheproductof(i)theamountofthefractionalshareinterestinashareofParentCommonStocktowhichsuchholderisentitledunderSection3.1(orwouldbeentitledbutforthisSection3.1(d))and(ii)anamountequaltotheaverageoftheclosingsale pricesofParentCommonStockontheNewYorkStockExchangeorsuccessortotheNewYorkStockExchange(theNYSE)asreportedintheWallStreetJournalforeachoftheten(10)consecutivetrading daysendingwiththesecondcompletetradingdaypriortotheClosingDate(notcountingtheClosingDate).(e)IfatanytimeduringtheperiodbetweenthedateofthisAgreementandtheEffectiveTime,anychangeintheoutstandingsharesofcapitalstockoftheCompanyorParentshalloccurasaresultofany reclassification,stocksplit(includingareversestocksplit)orcombination,exchangeorreadjustmentof shares,oranystockdividendorstockdistributionwitharecorddateduringsuchperiod,theExchange Ratio,theMergerConsiderationandanyothersimilarlydependentitemsshallbeequitablyadjusted;provided,however,thatnothinginthisSection3.1(e)shallbedeemedtopermitorauthorizeanyparty heretotoeffectanysuchchangethatitisnototherwiseauthorizedorpermittedtoundertakepursuanttothis

Agreement.Section3.2TreatmentofCompanyEquity-BasedAwards.(a)EachoptiontopurchasesharesofCompanyCommonStock(each,aCompanyStockOption)grantedundertheCompanyStockPlans,whethervestedorunvested,thatisoutstandingimmediatelyprior totheEffectiveTimeshall,asoftheEffectiveTime,beassumedandautomaticallyandwithoutanyactiononthepartoftheholdersthereof,beconvertedintoanoption(each,anAssumedStockOption),onthesametermsandconditions(exceptasprovidedinthisSection3.2(a))aswereapplicableundersuch A-14 CompanyStockOptionimmediatelypriortotheEffectiveTime,topurchasethatnumberofsharesofParentCommonStockequaltotheproductof(i)thetotalnumberofsharesofCompanyCommonStocksubjectto suchCompanyStockOptionand(ii)theExchangeRatio,roundeddowntothenearestwholenumberof sharesofParentCommonStock.Theper-shareexercisepriceforthesharesofParentCommonStock issuableuponexerciseofsuchAssumedStockOptionswillbeequaltothequotientdeterminedbydividing (i)theexercisepricepershareofCompanyCommonStockatwhichtheCompanyStockOptionswere exercisableimmediatelypriortotheEffectiveTimeby(ii)theExchangeRatio,androundingtheresulting per-shareexercisepriceuptothenearestwholecent.EachAssumedStockOptionshallbevested immediatelyfollowingtheEffectiveTimeastothesamepercentageofthetotalnumberofsharessubject theretoasitwasvestedimmediatelypriortotheEffectiveTime,excepttotheextentsuchAssumedStock OptionbyitstermsineffectpriortothedatehereofandnototherwiseamendedpriortotheEffectiveTime providesforaccelerationofvesting.AssoonasreasonablypracticablefollowingtheClosingDate,Parent willdelivertoeachPersonwhoholdsanAssumedStockOptionadocumentevidencingtheforegoing assumptionofsuchAssumedStockOptionbyParent.(b)AttheEffectiveTime,eachawardofrestrictedCompanyCommonStockgrantedunderaCompanyStockPlanthatisoutstandingimmediatelypriortotheEffectiveTime(theRestrictedShares)shall,asoftheEffectiveTime,becomevestedonaproratabasis(determinedbasedonthenumberofmonthsfromthe startoftheapplicablerestrictedperiodtotheEffectiveTime)inaccordancewiththeapplicableCompany StockPlanandawardagreementpursuanttowhichsuchawardwasgranted.TotheextentsuchRestricted Sharesbecomesovested,suchRestrictedSharesshallbeexchangedforMergerConsiderationinaccordancewiththeprovisionsofSection3.1.TotheextentsuchRestrictedSharesdonotbecomesovested andremainsubjecttovestingrestrictionsasoftheEffectiveTime,suchRestrictedSharesshallbeassumed andautomaticallyandwithoutanyactiononthepartoftheholderthereof,beconvertedinto,inaccordancewithSection3.1,anumberofsharesofParentCommonStock(andcashinlieuoffractionalshares)equalto theproductof(i)thetotalnumberofsharesofCompanyCommonStocksubjecttosuchgrantofRestricted Sharesand(ii)theExchangeRatio.(c)EffectiveasoftheEffectiveTime,eachawardofrestrictedshareunitswithrespecttosharesofCompanyCommonStockunderaCompanyStockPlanthatisoutstandingimmediatelypriortotheEffectiveTime(collectively,theCompanyRSUs)shall,asoftheEffectiveTime,whetherornotthen vestedorfreeofconditionstopayment,becomevestedonaproratabasis(determinedbasedonthenumber ofmonthsfromthestartoftheapplicablerestrictedperiodtotheEffectiveTime)inaccordancewiththe applicableCompanyStockPlanandawardagreementpursuanttowhichsuchawardwasgranted,andshall beassumedandautomaticallyandwithoutanyactiononthepartoftheholderthereof,beconvertedintothe righttoreceivefromParentanumberofsharesofParentCommonStock(andcashinlieuoffractional sharestobepaidbytheSurvivingCorporationtotheholder)equaltotheproductof(i)thetotalnumberof sharesofCompanyCommonStocksubjecttosuchgrantofCompanyRSUsand(ii)theExchangeRatioand besettledinaccordancewithitsterms.(d)AsoftheEffectiveTime,eachoutstandingCompanyperformanceunitgrantedundertheCompanysAmendedandRestated2007Long-TermIncentivePlanthatbecomesvestedattheEffective Timepursuanttothetermsoftheapplicableawarddocuments(determinedonaproratabasisbythe numberofmonthsfromthestartoftheapplicableperformanceperiodtotheEffectiveTimeandassuming achievementofthemaximumperformancelevel)shallimmediatelyvestattheEffectiveTime,withthe holderofeachsuchCompanyperformanceunitbecomingentitledtoreceiveanamountincashequalto$2.00multipliedbythenumberofunitsthathavebecomevestedasoftheEffectiveTime(providedthat (A)amountspayablepursuanttothecancellationofalloutstandingCompanyperformanceunitspursuantto thissentenceshallbepaidoutwithinthirty(30)daysfollowingtheEffectiveTimewithoutinterestand (B)eachoutstandingCompanyperformanceunitthatdoesnotbecomevestedattheEffectiveTimepursuant tothetermsoftheapplicableawarddocumentsshallremainoutstandinginaccordancewiththetermsand conditionsthereof(withappropriateadjustmentstotheapplicableperformancemetricstoaccountforthe consummationoftheMerger).

A-15 (e)TheCompanyshalltakeallstepsnecessarytocausetheforegoingprovisionsofthisSection3.2tooccur,includingbutnotlimitedtoobtainingallnecessaryconsentsanddeliveringallrequirednotices.The CompanyandParentwillcooperateandcoordinatewithrespecttoanymaterialstobesubmittedtotheholdersofCompanyStockOptionsinconnectionwithanynoticeorconsentrequiredunderthisSection3.2.

PriortotheEffectiveTime,theCompanyshallpassresolutionstoeffecttheforegoingprovisionsofthisSection3.2.(f)ParentshalltakeallcorporateactionnecessarytoreserveforissuanceasufficientnumberofsharesofParentCommonStockfordeliveryuponexerciseofAssumedStockOptionsorvestingand/orpayment ofRestrictedSharesandCompanyRSUs.PromptlyaftertheEffectiveTime,ParentshallfilewiththeSEC aregistrationstatementonFormS-8(oranysuccessororotherappropriateforms)withrespecttotheshares ofParentCommonStocksubjecttoAssumedStockOptions,RestrictedSharesandCompanyRSUstothe fullestextentpermittedbyLaw.Section3.3AppraisalorDissentersRights.NorighttofairvalueorappraisalorsimilarrightsshallbeavailabletoholdersofCompanyCommonStockwithrespecttotheMergerortheothertransactions contemplatedhereby.Section3.4ExchangeofShares.(a)ExchangeAgent.PriortotheEffectiveTime,ParentshallappointanexchangeagentmutuallyacceptabletoParentandtheCompany(theExchangeAgent)forthepurposeofexchangingSharesforthe MergerConsiderationandenterintoanagreementreasonablyacceptabletotheCompanywiththe ExchangeAgentrelatingtotheservicestobeperformedbytheExchangeAgent.PriortotheEffective Time,Parentshalldeposit,orshallcausetobedeposited,withtheExchangeAgent,intrustforthebenefit ofholdersoftheSharesandtheRestrictedShares,certificatesrepresentingthesharesofParentCommonStockissuablepursuanttoSection3.1(a)(orappropriatealternativearrangementsshallbemadebyParentif uncertificatedsharesofParentCommonStockwillbeissued).FollowingtheEffectiveTime,Parentagrees tomakeavailabletotheExchangeAgent,fromtimetotimeasneeded,cashsufficienttopaycashinlieuoffractionalsharesofParentCommonStockpursuanttoSection3.1(d)andanydividendsandotherdistributionspursuanttoSection3.4(c).AllcertificatesrepresentingsharesofParentCommonStock (includingtheamountofanydividendsorotherdistributionspayablewithrespecttheretopursuanttoSection3.4(c)andcashinlieuoffractionalsharesofParentCommonStocktobepaidpursuanttoSection3.1(d))arehereinafterreferredtoastheExchangeFund.(b)SurrenderofShares.Assoonasreasonablypracticable(butnotlaterthanten(10)BusinessDays)aftertheEffectiveTime,ParentshallcausetheExchangeAgenttomailtoeachholderofShares,(i)aletter oftransmittal(whichshallspecifythatdeliveryshallbeeffected,andthatriskoflossandtitletotheShares shallpass,onlyupondeliveryoftheSharestotheExchangeAgent)and(ii)instructionsforuseineffecting thesurrenderoftheSharesinexchangeforwholesharesofParentCommonStock(whichshallbein uncertificatedbookentryformunlessaphysicalcertificateisrequested),cashinlieuofanyfractionalsharesofParentCommonStockpursuanttoSection3.1(d)andanydividendsorotherdistributionspayablepursuanttoSection3.4(c)ineachcaseincustomaryformandsubstanceandreasonablyacceptabletothe ParentandtheCompany.ExchangeofanySharesheldinbookentryform,ifany,shallbeeffectedin accordancewiththeExchangeAgentscustomaryprocedureswithrespecttosecuritiesheldinbookentry form.UponsurrenderofSharesforcancellationtotheExchangeAgent,togetherwithsuchletterof transmittal,dulycompletedandvalidlyexecutedinaccordancewiththeinstructionsthereto,andsuchother documentsasmayreasonablyberequiredbytheExchangeAgent,theholderofsuchSharesshallbe entitledtoreceiveinexchangethereforthatnumberofwholesharesofParentCommonStock(aftertakingintoaccountallSharessurrenderedbysuchholder)towhichsuchholderisentitledpursuanttoSection3.1 (whichshallbeinuncertificatedbookentryformunlessaphysicalcertificateisrequested),paymentbycash orcheckinlieuoffractionalsharesofParentCommonStockwhichsuchholderisentitledtoreceivepursuanttoSection3.1(d)andanydividendsordistributionspayablepursuanttoSection3.4(c),andthe A-16 Sharessosurrenderedshallforthwithbecancelled.IfanyportionoftheMergerConsiderationistoberegisteredinthenameofaPersonotherthanthePersoninwhosenametheapplicablesurrenderedShareis registered,itshallbeaconditiontotheregistrationthereofthatthesurrenderedSharebeinproperformfor transferandthatthePersonrequestingsuchdeliveryoftheMergerConsiderationpayanytransferorother similarTaxesrequiredasaresultofsuchregistrationinthenameofaPersonotherthantheregistered holderofsuchShareorestablishtothesatisfactionoftheExchangeAgentthatsuchTaxhasbeenpaidorisnotpayable.UntilsurrenderedascontemplatedbythisSection3.4(b),eachShareshallbedeemedatany timeaftertheEffectiveTimetorepresentonlytherighttoreceivetheMergerConsideration(andanyamountstobepaidpursuanttoSection3.1(d)orSection3.4(c))uponsuchsurrender.NointerestshallbepaidorshallaccrueonanyamountpayablepursuanttoSection3.1(d)orSection3.4(c).(c)Distributions.NodividendsorotherdistributionswithrespecttosharesofParentCommonStockwitharecorddateaftertheEffectiveTimeshallbepaidtotheholderofanyunsurrenderedSharewith respecttothesharesofParentCommonStockrepresentedthereby,andnocashpaymentinlieuoffractionalsharesofParentCommonStockshallbepaidtoanysuchholderpursuanttoSection3.1(d),untilsuchSharehasbeensurrenderedinaccordancewiththisArticleIII.SubjecttoapplicableLaws,followingsurrenderof anysuchShare,thereshallbepaidtotherecordholderthereof,withoutinterest,(i)promptlyaftersuch surrender,thenumberofwholesharesofParentCommonStockissuableinexchangethereforpursuanttothisArticleIII,togetherwithanycashpayableinlieuofafractionalshareofParentCommonStocktowhichsuchholderisentitledpursuanttoSection3.1(d)andtheamountofdividendsorotherdistributions witharecorddateaftertheEffectiveTimetheretoforepaidwithrespecttosuchwholesharesofParent CommonStockand(ii)attheappropriatepaymentdate,theamountofdividendsorotherdistributionswith arecorddateaftertheEffectiveTimeandapaymentdatesubsequenttosuchsurrenderpayablewithrespect tosuchwholesharesofParentCommonStock.TheExchangeAgentshallbeentitledtodeductand withholdfromtheconsiderationotherwisepayableunderthisAgreementtoanyholderofSharesorholder ofRestrictedShares,suchamountsasarerequiredtobewithheldordeductedunderanyTaxLawwith respecttothemakingofsuchpayment.Totheextentthatamountsaresowithheldordeductedandpaid overtotheapplicableGovernmentalEntity,suchwithheldordeductedamountsshallbetreatedforall purposesofthisAgreementashavingbeenpaidtotheholderoftheSharesorholderoftheRestricted Sharesinrespectofwhichsuchdeductionandwithholdingweremade.(d)ClosingofStockTransferBooksoftheCompany.AllsharesofParentCommonStockissueduponthesurrenderforexchangeofSharesinaccordancewiththetermsofthisArticleIIIandanycashpaidpursuanttoSection3.1(d)orSection3.4(c)shallbedeemedtohavebeenissued(orpaid)infullsatisfaction ofallrightspertainingtotheSharespreviouslyrepresentedbysuchShares.AftertheEffectiveTime,the stocktransferbooksoftheCompanyshallbeclosed,andthereshallbenofurtherregistrationoftransferson thestocktransferbooksoftheSurvivingCorporationoftheShareswhichwereoutstandingimmediately priortotheEffectiveTime.If,aftertheEffectiveTime,SharesarepresentedtotheSurvivingCorporationortheExchangeAgentforanyreason,theyshallbecancelledandexchangedasprovidedinthisArticleIII.(e)UndistributedPortionsoftheExchangeFund.AnyportionoftheExchangeFund(includingtheproceedsofanyinvestmentsthereof)thatremainsundistributedtotheformerholdersofSharesfortwelve (12)monthsaftertheEffectiveTimeshallbedeliveredtoParentupondemand,andanyholdersofShareswhohavenottheretoforecompliedwiththisArticleIIIshallthereafterlookonlytoParentforpaymentof theirclaimfortheMergerConsideration,anycashinlieuoffractionalsharesofParentCommonStockpursuanttoSection3.1(d)andanydividendsordistributionspursuanttoSection3.4(c).(f)UnclaimedAmounts.NoneoftheCompany,Parent,MergerSub,theSurvivingCorporation,theExchangeAgentoranyotherPersonshallbeliabletoanyformerholderofSharesforanyamountproperly deliveredtoapublicofficialpursuanttoanyapplicableabandonedproperty,escheatorsimilarLaw.Any MergerConsiderationremainingunclaimedbyholdersofsharesofCompanyCommonStockimmediately priortosuchtimeassuchamountswouldotherwiseescheattoorbecomepropertyofanyGovernmental Entityshall,totheextentpermittedbyapplicableLaw,becomethepropertyofParentfreeandclearofany claimsorinterestofanyPersonpreviouslyentitledthereto.

A-17 (g)Lost,StolenorDestroyedCertificates.IfanycertificatesrepresentingSharesshallhavebeenlost,stolenordestroyed,uponthemakingofanaffidavitofthatfactbythePersonclaimingsuchSharestobe lost,stolenordestroyedand,ifrequiredbyParent,thepostingbysuchPersonofabond,insuchreasonable amountasParentmaydirect,asindemnityagainstanyclaimthatmaybemadeagainstitwithrespectto suchShares,theExchangeAgentwillissueinexchangeforsuchlost,stolenordestroyedSharestheMergerConsiderationtobepaidinrespectofsuchSharesascontemplatedbythisArticleIII.ARTICLEIVREPRESENTATIONSANDWARRANTIESOFTHECOMPANYExceptasdisclosedin(a)theCompanySECDocumentsfiledonorpriortoApril26,2011(excludinganyriskfactordisclosureanddisclosureofrisksincludedinanyforward-lookingstatementsdisclaimerorsimilar statementsincludedinsuchCompanySECDocumentsthatarepredictive,forward-lookingorprimarilycautionaryinnature);providedthatthisclause(a)shallnotqualifySection4.2(solelytotheextentrelatedtothesecuritiesoftheCompany),Section4.3(a)orSection4.3(b),or(b)inthedisclosurescheduledeliveredbytheCompanytoParentpriortotheexecutionofthisAgreement(theCompanyDisclosureSchedule),whichshall bearrangedtocorrespondwithspecifiedsectionsofthisAgreementbutwhichshallservetodiscloseexceptions ortoqualifyanyothersectionsofthisAgreementifitisreasonablyapparentthatsuchdisclosureisapplicableto orqualifiessuchothersections,theCompanyrepresentsandwarrantstoParentandMergerSubasfollows:Section4.1Qualification,Organization,Subsidiaries,etc.(a)EachoftheCompanyanditsSubsidiariesisalegalentitydulyorganized,validlyexistingandingoodstandingundertheLawsofitsrespectivejurisdictionoforganizationandhasallrequisitecorporateor similarpowerandauthoritytoown,leaseandoperateitspropertiesandassets,tocarryonitsbusinessas presentlyconducted,exceptwherethefailureofanySubsidiarytobesoorganized,existingoringood standingortohavesuchpowerandauthoritywouldnotreasonablybeexpectedtohave,individuallyorin theaggregate,amaterialimpactontheCompany.EachoftheCompanyanditsSubsidiariesisqualifiedor licensedtodobusinessandisingoodstandingasaforeigncorporationineachjurisdictionwherethe ownership,leasingoroperationofitsassetsorpropertiesorconductofitsbusinessrequiressuch qualificationorlicense,exceptwherethefailuretobesoqualified,licensedoringoodstandingwouldnot reasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.(b)TheCompanyhasmadeavailabletoParentpriortothedateofthisAgreementatrueandcompletecopyoftheOrganizationalDocumentsoftheCompanyasamendedandineffectthroughthedatehereof.(c)Section4.1(c)oftheCompanyDisclosureSchedulelistseachSignificantSubsidiaryoftheCompanyanditsjurisdictionoforganizationandspecifieseachoftheSubsidiariesoftheCompanyand CompanyJointVenturesthatis(i)apublicutilitywithinthemeaningofSection201(e)oftheFederalPowerAct(theFPA)or(ii)aqualifyingfacilitywithinthemeaningofthePublicUtilityRegulatoryPoliciesActof1978(PURPA),orthatownssuchaqualifyingfacility.TheCompanyhasmadeavailable toParenttrue,correctandcompletecopiesoftheOrganizationalDocumentsofeachSignificantSubsidiary oftheCompany,asamendedandineffectonthedatehereof.(d)TheCompanyis,directlyorindirectly,theownerofalloftheoutstandingsharesofcapitalstockorotherequityinterestsofeachSubsidiaryoftheCompany,freeandclearofanyLiensandfreeofanyother limitationorrestriction(includinganylimitationorrestrictionontherighttovote,sell,transferorotherwise disposeofsuchcapitalstockorotherequityinterests).Allofsuchcapitalstockorotherequityinterestsso ownedbytheCompanyhavebeendulyauthorized,validlyissued,fullypaidandnonassessable(andno suchshareshavebeenissuedinviolationofanypreemptiveorsimilarrights).Exceptforthesharesof capitalstockorotherequityinterestsofeachSubsidiaryoftheCompanyandeachCompanyJointVenture, theCompanydoesnotown,directlyorindirectly,anysharesofcapitalstockorotherequityorownership interestsinanyPerson.

A-18 (e)Section4.1(e)oftheCompanyDisclosureSchedulesetsforthasofthedateofthisAgreementthenameoftheprojectassociatedwitheachmaterialCompanyJointVenture.TheCompanyhasmade availabletoParenttrue,correctandcompletecopiesofallOrganizationalDocumentsofsuchCompanyJointVentures.NotwithstandinganythingtothecontrarysetforthinthisArticleIV,eachrepresentationorwarrantymadebytheCompanyinthisArticleIVrelatingtoaCompanyJointVentureortoCENGthatis neitheroperatednormanagedbytheCompanyoranyofitsSubsidiariesshallbedeemedmadeonlytothe KnowledgeoftheCompany.(f)ExceptforinterestsintheSubsidiariesoftheCompanyandtheCompanyJointVentures,theCompanydoesnotdirectlyorindirectlyownanyEquityInterestsorinvestmentsinanyPersoninwhichthe investedcapitalassociatedwiththeCompanysoritsSubsidiarysortheCompanyJointVenturesinterest individuallyexceeds$50million.Section4.2CapitalStock.(a)TheauthorizedcapitalstockoftheCompanyconsistsof600,000,000sharesofCompanyCommonStockand25,000,000sharesofpreferredstock,parvalue$0.01(theCompanyPreferredStock).AsofthecloseofbusinessonApril21,2011,(i)201,004,807sharesofCompanyCommonStockwereissuedand outstanding,whichincludesalloftheRestrictedSharesoutstandingasofsuchdate,(ii)10,961,386shares ofCompanyCommonStockwerereservedforissuanceuponexerciseofCompanyStockOptionsgranted undertheCompanyStockPlans,(iii)188,165sharesofCompanyCommonStockwerereservedfor issuanceuponthevestingorsalerestrictionlapseofCompanyRSUs,(iv)10,138,790sharesofCompany CommonStockwerereservedforissuanceundertheCompanysAmendedandRestated2007Long-Term IncentivePlan,(v)8,647,631sharesofCompanyCommonStockwerereservedforissuanceunderthe CompanysShareholderInvestmentPlan,(vi)1,573,456shareswerereservedforissuanceunderthe CompanysEmployeeSavingsPlanand(vii)nosharesofCompanyPreferredStockwereissuedor outstanding.AlloutstandingsharesofCompanyCommonStockaredulyauthorized,validlyissued,fully paidandnonassessableandfreeofpre-emptiverights,andallsharesofCompanyCommonStockreserved forissuanceasnotedinclauses(ii),(iii),(iv),(v)and(vi),whenissuedinaccordancewiththerespective termsthereof,willbedulyauthorized,validlyissued,fullypaidandnonassessableandfreeofpre-emptive

rights.(b)ExceptforawardstoacquiresharesofCompanyCommonStockundertheCompanyStockPlans,therearenooutstandingsubscriptions,options,warrants,calls,convertiblesecuritiesorothersimilarrights, agreementsorcommitmentsrelatingtotheissuanceofcapitalstocktowhichtheCompany,anyofits SubsidiariesorCENGisapartyobligatingtheCompany,anyofitsSubsidiariesorCENGto(i)issue, transferorsellanysharesofcapitalstockorotherequityinterestsoftheCompany,anySubsidiaryofthe CompanyorCENGorsecuritiesconvertibleintoorexchangeableforsuchsharesorequityinterests, (ii)grant,extendorenterintoanysuchsubscription,option,warrant,call,convertiblesecuritiesorother similarright,agreementorarrangement,(iii)redeemorotherwiseacquireanysuchsharesofcapitalstockor otherequityinterestsor(iv)provideamaterialamountoffundsto,ormakeanymaterialinvestment(inthe formofaloan,capitalcontributionorotherwise)in,anySubsidiaryorCENG.(c)ExceptforawardstoacquiresharesofCompanyCommonStockundertheCompanyStockPlans,neithertheCompanynoranyofitsSubsidiarieshasoutstandingbonds,debentures,notesorother obligations,theholdersofwhichhavetherighttovote(orwhichareconvertibleintoorexercisablefor securitieshavingtherighttovote)withthestockholdersoftheCompanyonanymatter.CENGhasno outstandingbonds,debentures,notesorotherobligations,theholdersofwhichhavetherighttovote(or whichareconvertibleintoorexercisableforsecuritieshavingtherighttovote)withtheequityholdersof CENGonanymatter.(d)TherearenovotingtrustsorotheragreementsorunderstandingstowhichtheCompany,anyofitsSubsidiariesorCENGisapartywithrespecttothevotingorregistrationofthecapitalstockorotherequity interestoftheCompany,anyofitsSubsidiariesorCENG.

A-19 (e)TheCompanyhasdeliveredormadeavailabletoParentanaccurateandcompletecopyoftheCompanyStockPlansandtheformsofCompanyStockOptions,RestrictedSharesorCompanyRSUs(collectively,CompanyEquityAwards).TherehavebeennorepricingsofanyCompanyStockOptions throughamendments,cancellationandreissuanceorothermeansduringthecurrentorpriortwo (2)calendaryears.NoneoftheCompanyEquityAwardshasbeengrantedincontemplationoftheMerger orthetransactionscontemplatedbythisAgreement(itbeingagreedthattheannualawardsmadein February2011werenotgrantedincontemplationoftheMergerorsuchtransactions)andnoCompany EquityAwardshavebeengrantedsinceMarch18,2011.NoneoftheCompanyStockOptionswasgranted withanexercisepricebelowordeemedtobebelowtheperShareclosingpriceontheNYSEonthedateof grant.AllgrantsofCompanyEquityAwardswerevalidlymadeandproperlyapprovedbytheBoardof DirectorsoftheCompany(oradulyauthorizedcommitteeorsubcommitteethereoforadulyauthorized delegatethereofinaccordancewiththeapplicableCompanyStockPlanandapplicableLaw)incompliance withallapplicableLawsandrecordedontheconsolidatedfinancialstatementsoftheCompanyin accordancewithGAAP,and,whereapplicable,nosuchgrantsinvolvedanybackdating,forward dating,springloadingorsimilarpracticeswithrespecttograntsofCompanyStockOptions.Section4.3CorporateAuthorityRelativetothisAgreement;NoViolation.(a)TheCompanyhasrequisitecorporatepowerandauthoritytoenterintothisAgreementand,subjecttoreceiptoftheCompanyStockholderApproval,toconsummatethetransactionscontemplatedhereby.The executionanddeliveryofthisAgreementandtheconsummationofthetransactionscontemplatedhereby havebeendulyandvalidlyauthorizedbytheBoardofDirectorsoftheCompanyand,exceptforthe CompanyStockholderApproval,noothercorporateproceedingsonthepartoftheCompanyarenecessary toauthorizetheconsummationofthetransactionscontemplatedhereby.ThisAgreementhasbeendulyand validlyexecutedanddeliveredbytheCompanyand,assumingthisAgreementconstitutesthelegal,valid andbindingagreementofParentandMergerSub,constitutesthelegal,validandbindingagreementofthe Company,enforceableagainsttheCompanyinaccordancewithitsterms,subjecttobankruptcy,insolvency, fraudulenttransfer,reorganization,moratoriumandsimilarlawsofgeneralapplicabilityrelatingtoor affectingcreditorsrightsandtogeneralequityprinciples.(b)TheBoardofDirectorsoftheCompany,atameetingdulycalledandheld,dulyandunanimouslyadoptedresolutions(i)determiningthatthetermsoftheMergerandtheothertransactionscontemplatedby thisAgreementareadvisable,fairtoandinthebestinterestsoftheCompanyanditsstockholders, (ii)approvingthisAgreement,theMergerandtheothertransactionscontemplatedbythisAgreement,and (iii)recommendingthattheCompanysstockholdersapprovetheMergerandthetransactionscontemplatedhereby(theCompanyRecommendation).(c)Otherthaninconnectionwithorincompliancewith(i)theMGCL,(ii)theSecuritiesExchangeActof1934(theExchangeAct),(iii)theSecuritiesActof1933(theSecuritiesAct),(iv)therulesandregulationsoftheNYSE,(v)theHart-Scott-RodinoAntitrustImprovementsActof1976(theHSRAct),(vi)theFPA,andtheapprovaloftheFederalEnergyRegulatoryCommission(theFERC)thereunder(theFERCApproval),(vii)theAtomicEnergyActof1954,asamended(theAtomicEnergyAct),andtheapprovaloftheNuclearRegulatoryCommission(theNRC)thereunder(theNRCApproval),(viii)therulesandregulationsoftheMarylandPublicServiceCommission(theMPSC),(ix)therulesandregulationsoftheNewYorkStatePublicServiceCommission(theNYPSC),(x)therulesandregulationsofthePublicUtilityCommissionofTexas(thePUCT),(xi)pre-approvalsoflicensetransfersbytheFederalCommunicationsCommission(theFCC),and(xii)theapprovalssetforthinSection4.3(c)oftheCompanyDisclosureSchedule(collectively,theCompanyApprovals),and,subjecttotheaccuracyoftherepresentationsandwarrantiesofParentandMergerSubinSection5.3(c),noauthorization,consent,Order,license,permitorapprovalof,orregistration,declaration,noticeorfilingwith,anyUnitedStatesfederal, stateoftheUnitedStatesorforeigngovernmentalorregulatoryagency,commission,court,body,entityorauthority(each,aGovernmentalEntity)isnecessary,underapplicableLaw,fortheconsummationbythe CompanyofthetransactionscontemplatedbythisAgreement,exceptforsuchauthorizations,consents, A-20 approvalsorfilingsthat,ifnotobtainedormade,wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.(d)TheexecutionanddeliveryofthisAgreementbytheCompanydoesnot,and,exceptasdescribedinSection4.3(c),theconsummationofthetransactionscontemplatedherebyandcompliancewiththeprovisionshereofwillnot(i)resultinanyviolationof,ordefault(withorwithoutnoticeorlapseoftime,or both)under,orgiverisetoarightoftermination,cancellationoraccelerationofanymaterialobligationor tothelossofamaterialbenefitunderanyloan,guaranteeofindebtednessorcreditagreement,note,bond, mortgage,indenture,lease,agreement,Contract,instrument,permit,concession,franchise,rightorlicense bindingupontheCompany,anyofitsSubsidiariesoranyCompanyJointVentureorresultinthecreationof anyLien,otherthanaCompanyPermittedLien,uponanyofthepropertiesorassetsoftheCompany,anyof itsSubsidiariesoranyCompanyJointVenture,(ii)conflictwithorresultinanyviolationofanyprovision oftheOrganizationalDocumentsoftheCompany,anyofitsSubsidiariesoranyCompanyJointVentureor (iii)conflictwithorviolateanyapplicableLaws,otherthan,inthecaseofclauses(i)and(iii),anysuch violation,conflict,default,termination,cancellation,acceleration,right,lossorLienthatwouldnot reasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.(e)ThisSection4.3excludesanyrepresentationorwarrantybytheCompanyoranyofitsSubsidiariesoranyCompanyJointVenturewithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterials,whichareaddressedinSection4.8.Section4.4ReportsandFinancialStatements.(a)TheCompanyandeachofitsSubsidiarieshastimelyfiledorfurnishedallforms,documentsandreportsrequiredtobefiledorfurnishedpriortothedatehereofbyitwiththeSecuritiesandExchangeCommission(theSEC)sinceJanuary1,2007(theCompanySECDocuments).Asoftheirrespective datesor,ifamended,asofthedateofthelastsuchamendment,theCompanySECDocumentscomplied, and,asoftheClosing,allforms,documentsandreportsfiledwiththeSECsubsequenttothedatehereof willcomply,inallmaterialrespectswiththerequirementsoftheSecuritiesAct,theExchangeActandtheSarbanes-OxleyActof2002(theSarbanes-OxleyAct),asthecasemaybe,andnoneoftheCompany SECDocumentscontain,and,asofClosing,noneoftheforms,documentsandreportsfiledwiththeSEC subsequenttothedatehereofwillcontain,anyuntruestatementofamaterialfactoromittedtostateany materialfactrequiredtobestatedthereinornecessarytomakethestatementstherein,inlightofthe circumstancesunderwhichtheyweremade,notmisleading.(b)Theconsolidatedfinancialstatements(includingtherelatednotesandschedules)oftheCompanyincludedintheCompanySECDocumentsfairlypresent,andasofClosing,allconsolidatedfinancial statements(includingtherelatednotesandschedules)oftheCompanyincludedinanyforms,documents andreportsfiledwiththeSECsubsequenttothedatehereoffairlywillpresent,inallmaterialrespectsthe consolidatedfinancialpositionoftheCompanyanditsconsolidatedSubsidiaries,asattherespectivedates thereof,andtheconsolidatedresultsoftheiroperationsandtheirconsolidatedcashflowsfortherespective periodsthenended(subject,inthecaseoftheunauditedstatements,tonormalyear-endauditadjustments andtoanyotheradjustmentsdescribedtherein,includingthenotesthereto)inconformitywithUnitedStatesgenerallyacceptedaccountingprinciples(GAAP)(except,inthecaseoftheunauditedstatements,as permittedbytheSEC)appliedonaconsistentbasisduringtheperiodsinvolved(exceptasmaybeindicated thereinorinthenotesthereto).(c)TheCompanyhasmadeavailabletoParenttheauditedfinancialstatementsofCENGasofDecember31,2009andDecember31,2010(includingallnotesthereto),consistingofauditedbalance sheetsasofeachsuchdateandtherelatedstatementsofincome,changesinshareholdersequityandcomprehensiveincomeandcashflowsforthefiscalyearthenended(theCENGFinancialStatements).

TheCENGFinancialStatements(includingallrelatednotesandschedules)fairlypresentinallmaterial respectsthefinancialpositionofCENG,asattherespectivedatesthereof,andtheresultsofitsoperations anditscashflowsfortherespectiveperiodsthenendedinconformitywithGAAPappliedonaconsistent basisduringtheperiodsinvolved(exceptasmaybeindicatedthereinorinthenotesthereto).

A-21 Section4.5InternalControlsandProcedures.TheCompanyhasestablishedandmaintainsdisclosurecontrolsandproceduresandinternalcontroloverfinancialreporting(assuchtermsaredefinedinparagraphs (e)and(f),respectively,ofRule13a-15undertheExchangeAct)asrequiredbyRule13a-15undertheExchange Act.TheCompanysdisclosurecontrolsandproceduresarereasonablydesignedtoensurethatallmaterial informationrequiredtobedisclosedbytheCompanyinthereportsthatitfilesorfurnishesundertheExchange Actisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintherulesandformsof theSEC,andthatallsuchmaterialinformationisaccumulatedandcommunicatedtotheCompanys managementasappropriatetoallowtimelydecisionsregardingrequireddisclosureandtomakethecertifications requiredpursuanttoSections302and906oftheSarbanes-OxleyAct.TheCompanysmanagementhas completedanassessmentoftheeffectivenessoftheCompanysinternalcontroloverfinancialreportingin compliancewiththerequirementsofSection404oftheSarbanes-OxleyActfortheyearendedDecember31, 2010,andsuchassessmentconcludedthatsuchcontrolswereeffective.Section4.6NoUndisclosedLiabilities.Except(a)asreflectedorreservedagainstintheCompanysconsolidatedbalancesheets(orthenotesthereto)includedintheCompanysAnnualReportonForm10-Kfor theyearendedDecember31,2010,(b)aspermittedorcontemplatedbythisAgreement,(c)forliabilitiesand obligationsincurredsinceDecember31,2010intheordinarycourseofbusinessand(d)forliabilitiesor obligationswhichhavebeendischargedorpaidinfullintheordinarycourseofbusiness,neithertheCompany noranySubsidiaryoftheCompanyhasanyliabilitiesorobligationsofanynature,whetherornotaccrued, contingentorotherwise,thatwouldberequiredbyGAAPtobereflectedonaconsolidatedbalancesheetofthe CompanyanditsconsolidatedSubsidiaries(orinthenotesthereto),otherthanthosewhichwouldnotreasonably beexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.NeithertheCompany noranyofitsSubsidiariesisapartyto,orhasanycommitmenttobecomeapartyto,anyjointventure,off-balancesheetpartnershiporanysimilarmaterialContract(includinganymaterialContractrelatingtoany transactionorrelationshipbetweenoramongtheCompanyandanyofitsSubsidiaries,ontheonehand,andany unconsolidatedAffiliate,includinganystructuredfinance,specialpurposeorlimitedpurposeentityorPerson,on theotherhand,oranyoff-balancesheetarrangement(asdefinedinItem303(a)ofRegulationS-Kofthe SEC),wheretheresult,purposeoreffectofsuchContractistoavoiddisclosureofanymaterialtransaction involving,ormaterialliabilitiesof,theCompanyoranyofitsSubsidiaries,intheCompanysoranyofitsSubsidiarysauditedfinancialstatementsorotherCompanySECDocuments)).ThisSection4.6excludesany representationorwarrantybytheCompanyoranyofitsSubsidiariesoranyCompanyJointVenturewithrespect tomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterials,whichareaddressedinSection4.8.Section4.7CompliancewithLaw;Permits.(a)TheCompany,eachofitsSubsidiariesandeachCompanyJointVentureareincompliancewithandarenotindefaultunderorinviolationofanyapplicableLaws,exceptwheresuchnon-compliance,default orviolationwouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpacton theCompany.SinceJanuary1,2008,neithertheCompany,anyofitsSubsidiariesnoranyCompanyJoint Venturehasreceivedanywrittennoticeor,totheCompanysKnowledge,othercommunicationfromany GovernmentalEntityregardinganyactualorpossibleviolationof,orfailuretocomplywith,anyLaw, exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpacton theCompany.(b)TheCompany,itsSubsidiariesandtheCompanyJointVenturesareinpossessionofallfranchises,grants,authorizations,licenses,permits,easements,variances,exceptions,consents,certificates,approvals, clearances,permissions,qualificationsandregistrationsandOrdersofanyGovernmentalEntitynecessary fortheCompany,itsSubsidiariesandtheCompanyJointVenturestoown,leaseandoperatetheirpropertiesandassetsortocarryontheirbusinessesastheyarenowbeingconducted(theCompanyPermits),except wherethefailuretohaveanyoftheCompanyPermitswouldnotreasonablybeexpectedtohave, individuallyorintheaggregate,amaterialimpactontheCompany.AllCompanyPermitsarevalidandin fullforceandeffect,exceptwherethefailuretobeinfullforceandeffectwouldnotreasonablybeexpected A-22 tohave,individuallyorintheaggregate,amaterialimpactontheCompany.TheCompanyis,andeachofitsSubsidiariesandtheCompanyJointVenturesis,incomplianceinallrespectswiththetermsand requirementsofsuchCompanyPermits,exceptwherethefailuretobeincompliancewouldnotreasonably beexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.(c)ThisSection4.7excludesanyrepresentationorwarrantybytheCompanyoranyofitsSubsidiariesoranyCompanyJointVenturewithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterials,whichareaddressedinSection4.8.Section4.8EnvironmentalLawsandRegulations.Exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany:(i)thereisnoEnvironmentalClaimpending orthreatenedagainsttheCompany,anyCompanySubsidiaryoranyCompanyJointVentureor,tothe KnowledgeoftheCompany,eachCompanySubsidiaryandeachCompanyJointVenture,againstanyPerson whoseliabilityforanyEnvironmentalClaimtheCompany,anyCompanySubsidiaryoranyCompanyJoint Venturehaveretainedorassumedeithercontractuallyorbyoperationoflaw,(ii)theCompany,itsSubsidiaries andtheCompanyJointVenturesareand,exceptformattersthathavebeenfullyresolved,sinceJanuary1,2008 havebeenincompliancewithallEnvironmentalLaws(whichcomplianceincludespossessionofandcompliance withallmaterialpermitsrequiredunderEnvironmentalLawsfortheoperationoftheirbusiness),andneitherthe Company,anyCompanySubsidiary,noranyCompanyJointVenture,hasreceivedanywrittencommunication, whetherfromaGovernmentalEntityoranyotherPerson,allegingthattheCompany,anyCompanySubsidiary oranyCompanyJointVentureisnotinsuchcompliance,(iii)theCompanyisnotobligatedtoconductorpay for,andisnotconductingorpayingfor,anyCleanupatanylocation,(iv)therearenopresent,ortothe KnowledgeoftheCompany,eachCompanySubsidiaryandeachCompanyJointVenture,pastactions,activities, circumstances,conditions,eventsorincidents,includingtheRelease,threatenedReleaseorpresenceofany HazardousMaterial,whichwouldreasonablybeexpectedtoformthebasisofanyEnvironmentalClaimagainst theCompany,anyCompanySubsidiaryoranyCompanyJointVenture,ortotheKnowledgeoftheCompany, eachCompanySubsidiaryandeachCompanyJointVenture,againstanyPersonwhoseliabilityforany EnvironmentalClaimtheCompany,anyCompanySubsidiaryoranyCompanyJointVenturehasretainedor assumedeithercontractuallyorbyoperationoflaw,(v)neithertheCompany,anyCompanySubsidiarynorany CompanyJointVentureisapartytoanyorder,judgmentordecreethatimposesanyobligationsorliabilities underanyEnvironmentalLaw,and(vi)neitherthisAgreementnortheconsummationofthetransactionthatis thesubjectofthisAgreementwillresultinanyobligationsforsiteinvestigationorCleanup,ornotificationtoor consentofanyGovernmentalEntityorthirdparty,pursuanttoanytransaction-triggeredorresponsibleparty transferEnvironmentalLaws.Section4.9EmployeeBenefitPlans.(a)Section4.9(a)oftheCompanyDisclosureSchedulelistsallmaterialBenefitPlanssponsored,maintainedorcontributedtobytheCompanyorCENGoranyoftheirERISAAffiliates(theCompanyBenefitPlans).(b)EachCompanyBenefitPlanhasbeenmaintainedandadministeredincompliancewithitstermsandwithapplicableLaw,includingERISAandtheCodetotheextentapplicablethereto,exceptforsuch non-compliancewhichwouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,a materialimpactontheCompany.AnyCompanyBenefitPlanintendedtobequalifiedunderSection401(a) or401(k)oftheCodehasreceivedadeterminationletter(ortheprototypeplanonwhichsuchCompany BenefitPlanisbasedhasreceivedafavorableopinionletter)fromtheInternalRevenueService.Neitherthe CompanynoranyofitsSubsidiariesmaintainsorcontributestoanyplanorarrangementwhichprovides retireemedicalorwelfarebenefits,exceptasrequiredbyapplicableLaw.Exceptaswouldnotreasonably beexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany,theredoesnotnow exist,nortotheCompanysKnowledgedoanycircumstancesexistthatwouldreasonablybeexpectedto resultin,anyControlledGroupLiabilitythatwouldbealiabilityoftheCompanyoranyofitsSubsidiaries followingtheEffectiveTime.

A-23 (c)NoCompanyBenefitPlanissubjecttoTitleIVorSection302ofERISAorSection412or4971oftheCode,andneithertheCompanynoranyofitsERISAAffiliateshasanyliabilitythereunderexceptas wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonthe Company.NoneoftheCompanyBenefitPlansisamultipleemployerwelfarearrangement(asdefinedin Section3(40)ofERISA),amultipleemployerplan(asdefinedinSection413(c)oftheCode)ora multiemployerplan(asdefinedinSection3(37)ofERISA).(d)TheconsummationofthetransactionscontemplatedbythisAgreementwillnot,eitheraloneorincombinationwithanotherevent,(i)entitleanycurrentorformeremployee,consultantorofficerofthe CompanyoranyofitsSubsidiariestoseverancepay,unemploymentcompensationoranyotherpayment, exceptasexpresslyprovidedinthisAgreementorasrequiredbyapplicableLawor(ii)acceleratethetime ofpaymentorvesting,orincreasetheamountofcompensationduetoanysuchemployee,consultant, officerordirector,exceptasexpresslyprovidedinthisAgreement.(e)EachCompanyBenefitPlanhasbeenoperatedingoodfaithcomplianceinallmaterialrespectswithSection409AoftheCodeandhassinceJanuary1,2009beenoperatedincomplianceinallmaterialrespectswithSection409AoftheCode.ExceptassetforthonSection4.9(e)oftheCompanyDisclosure Schedule,nodirector,officer,employeeorserviceprovideroftheCompanyoritsAffiliatesisentitledtoa gross-up,make-wholeorindemnificationpaymentwithrespecttotaxesimposedunderSection409Aor Section4999oftheCode.(f)Exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany,therearenopendingor,totheCompanysKnowledge,threatenedclaimswith respecttoanyCompanyBenefitPlan,byanyemployeeorbeneficiarycoveredunderanyCompanyBenefit PlanorotherwiseinvolvinganyCompanyBenefitPlan(otherthanroutineclaimsforbenefits).(g)ExceptasprovidedinthisAgreementorasrequiredunderapplicableLaw,neithertheexecutionanddeliveryofthisAgreementnortheconsummationofthetransactionscontemplatedbythisAgreement will(eitheraloneortogetherwithanyothereventwheresuchothereventwouldnotalonehaveaneffect describedinthissentence):(i)resultinanymaterialpayment(includinganybonus,severance,deferred compensation,forgivenessofindebtednessorgoldenparachutepayment)becomingduetoanycurrentor formeremployeeunderanyCompanyBenefitPlan;(ii)increaseinanymaterialrespectanybenefit otherwisepayableunderanyCompanyBenefitPlan;(iii)resultintheaccelerationinanymaterialrespectof thetimeofpaymentorvestingofanysuchbenefitsunderanyCompanyBenefitPlan;(iv)resultinany obligationtofundanytrustorotherarrangementwithrespecttocompensationorbenefitsunderaCompany BenefitPlan;or(v)limit,inanyway,ParentsabilitytoamendorterminateanyCompanyBenefitPlan.No paymentorbenefitwhichhasbeen,willormaybemadebytheCompanyoranyofitsSubsidiarieswith respecttoanycurrentorformeremployeeinconnectionwiththeexecutionanddeliveryofthisAgreement ortheconsummationofthetransactioncontemplatedbythisAgreementcouldresultinamaterialamountof excessparachutepaymentswithinthemeaningofSection280G(b)(1)oftheCodeormaterial nondeductibilityunderSection162(m)oftheCode.(h)CorrectandcompletecopieshavebeendeliveredormadeavailabletoParentbytheCompanyofallwrittenCompanyBenefitPlans(includingallamendmentsandattachmentsthereto),otherthanany CompanyBenefitPlansponsored,maintainedorcontributedtobyCENGoritsERISAAffiliates,allrelated trustdocuments;allmaterialinsuranceContractsorotherfundingarrangementstothedegreeapplicable;the twomostrecentannualinformationfilings(Form5500)andannualfinancialreportsforthoseCompany BenefitPlans(whererequired);themostrecentdeterminationletterfromtheInternalRevenueService (whererequired);andthemostrecentsummaryplandescriptions;ifany,forthoseCompanyBenefitPlans (including,foranysuchCompanyBenefitPlanthatisnotembodiedinadocument,awrittendescriptionof suchCompanyBenefitPlan).(i)TotheCompanysKnowledge,neithertheCompanynoranyERISAAffiliatehasanyliabilityorobligation,contingentorotherwise,withrespecttoBenefitPlanssponsored,maintainedorcontributedtoby A-24 CENG,exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.Section4.10AbsenceofCertainChangesorEvents.SinceJanuary1,2011andthroughthedateofthisAgreement,exceptasotherwisecontemplatedbythisAgreement,thebusinessesoftheCompanyandits Subsidiarieshavebeenconductedintheordinarycourseofbusinessinallmaterialrespects,andtherehasnot beenanyevent,change,effect,development,conditionoroccurrencethat,individuallyorintheaggregate,has beenorwouldreasonablybeexpectedtohave,aCompanyMaterialAdverseEffect.Section4.11Investigations;Litigation.(a)Thereisnoinvestigationorreviewpending(or,totheKnowledgeoftheCompany,threatened)byanyGovernmentalEntitywithrespecttotheCompany,anyofits SubsidiariesoranyCompanyJointVenture,(b)therearenoactions,suits,inquiries,investigationsor proceedingspending(or,totheKnowledgeoftheCompany,threatened)againstoraffectingtheCompany,any ofitsSubsidiariesoranyCompanyJointVenture,oranyoftheirrespectivepropertiesatlaworinequityand (c)therearenoOrders,judgmentsordecreesof,orbefore,anyGovernmentalEntity,inthecasesofeachof clauses(a),(b)or(c),thatwouldreasonablybeexpectedtohaveamaterialimpactontheCompany.ThisSection4.11excludesanyrepresentationorwarrantybytheCompanyoranyofitsSubsidiariesoranyCompany JointVenturewithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterials,whichareaddressedinSection4.8.Section4.12InformationSupplied.NoneoftheinformationprovidedbyoronbehalfoftheCompanyforinclusionorincorporationbyreferencein(a)theregistrationstatementonFormS-4tobefiledwiththeSECby ParentinconnectionwiththeissuanceofParentCommonStockintheMerger(includinganyamendmentsorsupplements,theFormS-4)will,atthetimetheFormS-4becomeseffectiveundertheSecuritiesAct,contain anyuntruestatementofamaterialfactoromittostateanymaterialfactrequiredtobestatedthereinornecessary tomakethestatementsthereinnotmisleadingor(b)theproxystatement/prospectusrelatingtomatterstobe submittedtothestockholdersoftheCompanyattheCompanyStockholdersMeetingandtothestockholdersof ParentattheParentStockholdersMeeting(suchproxystatement/prospectus,asamendedorsupplementedfromtimetotime,theJointProxyStatement/Prospectus)will,atthedateitisfirstmailedtotheCompanys stockholdersandParentsstockholdersoratthetimeoftheCompanyStockholdersMeetingortheParent StockholdersMeeting,containanyuntruestatementofamaterialfactoromittostateanymaterialfactrequired tobestatedthereinornecessaryinordertomakethestatementstherein,inlightofthecircumstancesunderwhichtheyweremade,notmisleading;provided,however,that,withrespecttoprojectedfinancialinformation providedbyoronbehalfoftheCompany,theCompanyrepresentsonlythatsuchinformationwaspreparedin goodfaithbymanagementoftheCompanyonthebasisofassumptionsbelievedbysuchmanagementtobe reasonableasofthetimemade.TheJointProxyStatement/Prospectus(otherthantheportionthereofrelating solelytotheParentStockholdersMeeting)andtheFormS-4(solelywithrespecttotheportionthereofrelating totheCompanyStockholdersMeeting)willcomplyastoforminallmaterialrespectswiththerequirementsof theSecuritiesActandtheExchangeActandtherulesandregulationspromulgatedthereunder.Section4.13RegulatoryMatters.(a)EachoftheCompanysSubsidiariesthatengagesinthesaleofelectricityatwholesale(otherthananysuchSubsidiariesthatownoneormorefacilitiesthatconstituteaqualifyingfacilityassuchtermis definedunderPURPAandtherulesandregulationsofFERCthatareentitledtoexemptionfromregulation underSection205oftheFPA)isregulatedasapublicutilityundertheFPAandhasmarket-basedrate authorizationtomakesuchsalesatmarket-basedrates.EachoftheCompanysSubsidiariesthatdirectly ownsgeneratingfacilitiesandoperatestheirpowergenerationfacilitiesincompliancewithallapplicable standardsofNERC,otherthannon-compliancethatwouldnotreasonablybeexpectedtohave,individually orintheaggregate,amaterialimpactontheCompany.Therearenopending,ortotheKnowledgeofthe Company,threatened,judicialoradministrativeproceedingstorevokeaCompanysSubsidiarysmarket-basedrateauthorization.TotheKnowledgeoftheCompany,therearenofactsthatarereasonablylikelyto A-25 causeanyoftheCompanysSubsidiariesthatsellelectricityatwholesaletoloseitsmarket-basedrateauthorization,ifapplicable,otherthanwheresuchlosswouldnotreasonablybeexpectedtohave, individuallyorintheaggregate,amaterialimpactontheCompany.(b)Allfilings(otherthanimmaterialfilings)requiredtobemadebytheCompany,anyofitsSubsidiariesoranyCompanyJointVenturesinceJanuary1,2009,withtheFERCundertheFPA,theNRC undertheAtomicEnergyAct,theDepartmentofEnergyandanyapplicablestatepublicutility commissions,asthecasemaybe,havebeenmade,includingallforms,statements,reports,agreementsand alldocuments,exhibits,amendmentsandsupplementsappertainingthereto,includingallrates,tariffsand relateddocuments,andallsuchfilingscomplied,asoftheirrespectivedates,withallapplicable requirementsofapplicablestatutesandtherulesandregulationspromulgatedthereunder,exceptforfilings thefailureofwhichtomakeorthefailureofwhichtomakeincompliancewithallapplicablerequirements ofapplicablestatutesandtherulesandregulationspromulgatedthereunder,wouldnotreasonablybe expectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany.(c)SinceJanuary1,2008,neithertheCompany,anyofitsSubsidiariesnorCENGhasreceivedanywrittennoticeor,totheCompanysKnowledge,othercommunicationfromtheNERCregardinganyactual orpossiblematerialviolationof,ormaterialfailuretocomplywith,anyLaw.(d)ThisSection4.13excludesanyrepresentationorwarrantybytheCompanyoranyofitsSubsidiariesoranyCompanyJointVenturewithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterialswhichareaddressedinSection4.8.Section4.14TaxMatters.Exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany:(a)TheCompanyanditsSubsidiaries(i)havedulyandtimelyfiled(takingintoaccountanyextensionoftimewithinwhichtofile)allTaxReturnsrequiredtohavebeenfiledbyorwithrespecttotheCompany oranyofitsSubsidiaries,andallsuchTaxReturnsaretrue,correctandcomplete,(ii)havedulyandtimely paidallTaxesshownasdueonsuchTaxReturns,(iii)haveadequateaccrualsandreserves,inaccordance withGAAP,onthefinancialstatementsincludedintheCompanySECDocumentsforallTaxespayableby theCompanyanditsSubsidiariesforalltaxableperiodsandportionsthereofthroughthedateofsuch financialstatementsand(iv)havenotreceivedwrittennoticeofanydeficienciesforanyTaxfromany taxingauthority,againsttheCompanyoranyofitsSubsidiariesforwhichtherearenotadequatereserveson thefinancialstatementsincludedintheCompanySECDocuments.(b)NeithertheCompanynoranyofitsSubsidiariesisthesubjectofanycurrentlyongoingtaxauditorotherproceedingwithrespecttoTaxesnorhasanyTaxauditorotherproceedingwithrespecttoTaxesbeen proposedagainstanyoftheminwriting.AsofthedateofthisAgreement,therearenopendingrequestsfor waiversofthetimetoassessanyTax.NeithertheCompanynoranyofitsSubsidiarieshaswaivedany statuteoflimitationsinrespectofTaxesoragreedtoanyextensionoftimewithrespecttoaTaxassessment ordeficiency.TherearenoLiensforTaxesonanyoftheassetsoftheCompanyoranyofitsSubsidiaries otherthanCompanyPermittedLiens.Noclaimhaseverbeenmadeinwritingbyataxingauthorityofa jurisdictionwheretheCompanyoroneofitsSubsidiarieshasnotfiledTaxReturnsclaimingthatthe CompanyorsuchSubsidiaryisormaybesubjecttotaxationbythatjurisdiction.(c)NeithertheCompanynoranyofitsSubsidiariesisobligatedbyanywrittenContract,agreementorotherarrangementtoindemnifyanyotherPerson(otherthantheCompanyanditsSubsidiaries)withrespect toTaxes.NeithertheCompanynoranyofitsSubsidiariesisapartytoorboundbyanywrittenTax allocation,indemnificationorsharingagreement(otherthananagreementwiththeCompanyorits Subsidiaries).NeithertheCompanynoranyofitsSubsidiariesisliableunderTreasuryRegulation Section1.1502-6(oranysimilarprovisionoftheTaxLawsofanystate,localorforeignjurisdiction)for anyTaxofanyPersonotherthantheCompanyanditsSubsidiaries.

A-26 (d)TheCompanyanditsSubsidiarieshavewithheldandpaidallTaxesrequiredtohavebeenwithheldandpaidinconnectionwithamountspaidorowingtoanyemployee,independentcontractor,creditor, stockholderorotherthirdparty.(e)NeithertheCompanynoranyofitsSubsidiarieswasadistributingcorporationorcontrolledcorporationinatransactionintendedtoqualifyunderSection355oftheCodewithinthepasttwo(2)years orotherwiseaspartofaplanthatincludestheMerger.(f)NeithertheCompanynoranyofitsSubsidiarieshasparticipatedinanylistedtransactionwithinthemeaningofTreasuryRegulationSection1.6011-4.(g)TheCompanyhasmadeavailabletoParentoritslegaloraccountingrepresentativecopiesofallforeign,federalandstateincomeTaxReturnsfortheCompanyandeachofitsSubsidiariesfiledforall periodsincludingandaftertheperiodendedDecember31,2008.(h)NeithertheCompanynoranyofitsSubsidiaries(i)hasfiledanyextensionoftimewithinwhichtofileanyTaxReturnsthathavenotbeenfiled,exceptintheordinarycourseofbusiness,(ii)hasgrantedany powerofattorneythatisinforcewithrespecttoanymattersrelatingtoanyTaxes,(iii)hasappliedfora rulingfromataxingauthorityrelatingtoanyTaxesthathasnotbeengrantedorhasproposedtoenterinto anagreementwithataxingauthoritythatispendingor(iv)has,sinceDecember31,2008,enteredintoany closingagreementasdescribedinSection7121oftheCode(oranysimilarprovisionofstate,localor foreignTaxLaw)orbeenissuedanyprivateletterrulings,technicaladvicememorandaorsimilar agreementorrulingsbyanytaxingauthority.Section4.15EmploymentandLaborMatters.(a)(i)NeithertheCompanynoranyofitsSubsidiariesisapartytoorboundbyanycollectivebargainingorsimilaragreementorworkrulesorpracticeswithanylaborunion,labororganizationoremployeeassociationapplicabletoemployeesoftheCompanyoranyofitsSubsidiaries(CompanyEmployees),(ii)therearenostrikesorlockoutswithrespecttoanyCompanyEmployees,(iii)tothe KnowledgeoftheCompany,thereisnounionrecognition,certificationororganizingeffortpendingor threatenedagainsttheCompanyoranyofitsSubsidiaries,(iv)thereisnounfairlaborpractice,labor dispute,grievance(otherthanroutineindividualgrievances)orlaborarbitrationproceedingpendingor,to theKnowledgeoftheCompany,threatenedwithrespecttoCompanyEmployeesand(v)thereisno organizedslowdownorworkstoppageineffector,totheKnowledgeoftheCompany,threatenedwith respecttoCompanyEmployees;except,withrespecttoclause(iv),aswouldnotreasonablybeexpectedto have,individuallyorintheaggregate,amaterialimpactontheCompany.(b)Exceptforsuchmatterswhichwouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany,theCompanyanditsSubsidiariesare,andhavebeen,in compliancewithallapplicableLawsrespecting(i)employmentandemploymentpractices,(ii)termsand conditionsofemploymentandwagesandhoursand(iii)unfairlaborpractices.NeithertheCompanynor anyofitsSubsidiarieshasanyliabilitiesundertheWorkerAdjustmentandRetrainingNotificationActof1998oranysimilarstateorlocallawrelatingtoplantclosingsandlayoffs(collectively,theWARNAct) asaresultofanyactiontakenbytheCompanyoranyofitsSubsidiaries(otherthanatthewrittendirection ofParentorasaresultofanyofthetransactionscontemplatedhereby)thatwouldreasonablybeexpectedto have,individuallyorintheaggregate,amaterialimpactontheCompany.Section4.16IntellectualProperty.Exceptaswouldnotreasonablybeexpectedtobe,individuallyorintheaggregate,material,eithertheCompanyoraSubsidiaryoftheCompanyowns,orislicensedorotherwise possesseslegallyenforceablerightstouse,allIntellectualPropertyusedinornecessaryfortheirrespective businessesascurrentlyconducted,freeandclearofallLiensotherthanCompanyPermittedLiens.Exceptas wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheCompany, (a)asofthedatehereof,therearenopendingor,totheKnowledgeoftheCompany,threatenedclaimsbyany PersonalleginginfringementorotherviolationofanyIntellectualPropertyofanyPersonbytheCompanyorany ofitsSubsidiariesfortheiruseoftheIntellectualPropertyownedbytheCompanyoranyofitsSubsidiariesor A-27 theconductoftheirrespectivebusinessesascurrentlyconducted,(b)totheKnowledgeoftheCompany,theconductoftherespectivebusinessesoftheCompanyanditsSubsidiariesdoesnotinfringeorotherwiseviolate anyIntellectualPropertyrightsofanyPerson,(c)asofthedatehereof,neithertheCompanynoranyofits SubsidiarieshasanyclaimpendingagainstanyPersonalleginginfringementorotherviolationofanyIntellectual PropertyownedbytheCompanyoranyofitsSubsidiariesand(d)totheKnowledgeoftheCompany,noPerson isinfringingorotherwiseviolatinganyIntellectualPropertyownedbytheCompanyoranyofitsSubsidiaries.Section4.17RealProperty.TheCompanyoritsapplicableSubsidiaryhas(a)goodandinsurabletitleor(b)goodandvalidleaseholdinterestinandtoeachmaterialparcelofrealpropertyownedorleased,as applicable,bytheCompanyoranyofitsSubsidiaries,subjecttoanyLiens(otherthanCompanyPermitted Liens)orexceptionsthatwouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveamaterial impactontheCompany.Section4.18RequiredVoteoftheCompanyStockholders.TheapprovaloftheMergerbyamajorityofthevotesentitledtobecastbytheholdersoftheoutstandingsharesofCompanyCommonStock(theCompanyStockholderApproval)istheonlyvoteofholdersofsecuritiesoftheCompanywhichisrequiredtoapprovethis Agreement,theMergerandtheothertransactionscontemplatedhereby.Section4.19TakeoverStatute;NoRestrictionsonMerger.Nostatefairprice,moratorium,controlshareacquisitionorsimilaranti-takeoverstatuteisapplicabletothisAgreement,theMergerortheother transactionscontemplatedhereby.TheCompanyhastakenallnecessaryactiontorendertherestrictionson businesscombinationscontainedintheMarylandBusinessCombinationActoftheMGCLinapplicabletothis Agreement,theMergerandtheothertransactionscontemplatedhereby.Section4.20OwnershipofNuclearPowerPlants.Theoperationsofthenucleargenerationstationsowned,inwholeorpart,bytheCompany,itsSubsidiariesorCENG(suchoperations,collectively,theCompanyNuclearFacilities)areandhavebeenconductedincompliancewithallapplicableLawsandCompanyPermits, exceptforsuchfailurestocomplythat,individuallyorintheaggregate,havenothadandcouldnotreasonablybe expectedtohaveamaterialimpactontheCompany.EachoftheCompanyNuclearFacilitiesmaintains,andisin materialcompliancewith,emergencyplansdesignedtorespondtoanunplannedreleasetherefromofradioactive materialsandeachsuchplanconformswiththerequirementsofapplicableLawinallmaterialrespects.The plansforthedecommissioningofeachoftheCompanyNuclearFacilitiesandforthestorageofspentnuclear fuelconformwiththerequirementsofapplicableLawinallmaterialrespectsand,solelywithrespecttothe portionoftheCompanyNuclearFacilitiesowned,directlyorindirectly,bytheCompany,arefundedtothefull extentrequiredbyapplicableLawwithoutrelianceuponsubstitutefundingmechanismssuchasguaranteesor lettersofcredit.SinceDecember31,2008,theoperationsoftheCompanyNuclearFacilitieshavenotbeenthe subjectofanynoticesofviolation,anyongoingproceeding,NRCDiagnosticTeamInspectionsorrequestsfor informationfromtheNRCoranyotheragencywithjurisdictionoversuchfacility,exceptforsuchnoticesor requestsforinformationthat,individuallyorintheaggregate,havenothadandcouldnotreasonablybeexpected tohaveamaterialimpactontheCompany.NoCompanyNuclearFacilityislistedbytheNRCinthe UnacceptablePerformancecolumnoftheNRCActionMatrix,asapartofNRCsAssessmentofLicensee Performance.LiabilityinsurancetothefullextentrequiredbylawforoperatingtheCompanyNuclearFacilities remainsinfullforceandeffectregardingsuchfacilities,exceptforfailurestomaintainsuchinsuranceinfull forceandeffectthat,individuallyorintheaggregate,havenothadandcouldnotreasonablybeexpectedtohave amaterialimpactontheCompany.Section4.21MaterialContracts.(a)ExceptforthisAgreement,theCompanyBenefitPlansandagreementsfiledasexhibitstotheCompanySECDocumentsortoanyforms,reportsordocumentsfiledwiththeSECsubsequenttothedate hereof,neithertheCompanynoranyofitsSubsidiariesisapartytoorboundby:(i)anycoalsupplyagreement,coaltransportationagreement,powersale,powerpurchaseorofftakeagreementorotherfuelpurchase,saleortransportationagreementthat(A)issubjecttoprofit-A-28 sharingarrangementswheretheamountrequiredtobesharedwithathirdpartycouldreasonablybeexpectedtoexceed$100millionoverthelifeofthetransaction,(B)containstakeorpay,liquidated damagesortermination,closeoutorliquidationprovisionsassociatedwithatransactionwitha notionalamountof$500millionormoreor(C)createsactualindebtednessoftheCompanyorresults inimputedindebtednesstotheCompanyasassignedbyStandard&PoorsorMoodysinanamountgreaterthan$100million(usingcustomarydiscounting);provided,forthepurposesofthisSection4.21(a)(i),anyimputedindebtednessamountassociatedwithaphysicalpowertransactionenteredintobytheCompanyoranyofitsSubsidiaries(theCompanyPowerPurchaser)shallbenetofexpectedindependentsystemoperator(ISO)revenuesrelatedtothecapacityrightsandother relatedenergyproductsassignedtotheCompanyPowerPurchaserinsuchtransactionfortheyearsin whichsuchcapacityorotherrelatedenergyproductshavebeensoldpriortotheexecutionofsuchtransactioninaforwardISOcapacityauction;provided,however,suchnettingonlyshalloccurwith respecttoapowertransactionifthetransaction(i)specifiesthegenerationunitwhichwillbethe sourceofthepower,capacityandotherrelatedenergyproductsdeliveredtotheCompanyPower Purchaserand(ii)assignstherightstotheISOrevenuesforsuchcapacityorotherrelatedenergy productsinsuchyearstotheCompanyPowerPurchaser;(ii)anyContractimposinganymaterialrestrictionontherightorabilityoftheCompanyoranyofitsSubsidiariesto(A)competewithanyotherPerson,(B)acquireordisposeofthesecuritiesof anotherPersonor(C)engageorcompeteinanylineofbusinessorinanygeographicareaorthat containsrestrictionsonpricingorexclusivityornon-solicitationprovisionswithrespectto customers;or(iii)anyContractwithanaggregateprincipalamount,orprovidingforanaggregateobligation,inexcessof$50million(A)evidencinganycreditfacilityoftheCompanyoranyofitsSubsidiariesor (B)guaranteeingobligationsforborrowedmoneyorotherobligationsofathirdpartyotherthanany

Subsidiary.AllContractsofthetypesreferredtoinclauses(i),(ii)and(iii)inthisSection4.21(a)andanyContract thatisamaterialContractrequiredtobefiledasanexhibittotheCompanysAnnualReporton Form10-KpursuanttoItem601(b)(10)ofRegulationS-KoftheSECarereferredtohereinasCompanyMaterialContracts.(b)NeithertheCompanynoranySubsidiaryoftheCompanyisinbreachofordefaultunderthetermsofanyCompanyMaterialContractwheresuchbreachordefaultwouldreasonablybeexpectedto, individuallyorintheaggregate,haveamaterialimpactontheCompany.TotheKnowledgeofthe Company,nootherpartytoanyCompanyMaterialContractisinbreachofordefaultunderthetermsofany CompanyMaterialContractwheresuchbreachordefaultwouldreasonablybeexpectedto,individuallyor intheaggregate,haveamaterialimpactontheCompany.Exceptaswouldnotreasonablybeexpectedto, individuallyorintheaggregate,haveamaterialimpactontheCompany,eachCompanyMaterialContract isavalidandbindingobligationoftheCompanyortheSubsidiaryoftheCompanywhichispartythereto and,totheKnowledgeoftheCompany,ofeachotherpartythereto,andisinfullforceandeffect,except that(i)suchenforcementmaybesubjecttoapplicablebankruptcy,insolvency,reorganization,moratorium orothersimilarLaws,noworhereafterineffect,relatingtocreditorsrightsgenerallyand(ii)equitable remediesofspecificperformanceandinjunctiveandotherformsofequitablereliefmaybesubjectto equitabledefensesandtothediscretionofthecourtbeforewhichanyproceedingthereformaybebrought.Section4.22OpinionsofFinancialAdvisors.TheBoardofDirectorsoftheCompanyhasreceivedtheopinionsofMorganStanley&Co.IncorporatedandGoldman,Sachs&Co.(theCompanyFinancialAdvisors),datedasofonedaywithinthedateofthisAgreement,substantiallytotheeffectthat,asofsuchdate, andsubjecttothelimitationsandassumptionssetforththerein,theExchangeRatioisfairtotheholdersof CompanyCommonStockfromafinancialpointofview.TheCompanyshall,promptlyfollowingreceiptofsaid opinionsinwrittenform,furnishanaccurateandcompletecopyofsaidopinionstoParentforinformational purposesonly.

A-29 Section4.23FindersorBrokers.ExceptfortheCompanyFinancialAdvisorsandCreditSuisseSecurities(USA)LLC,neithertheCompanynoranyofitsSubsidiarieshasemployedanyinvestmentbanker,brokeror finderinconnectionwiththetransactionscontemplatedbythisAgreementwhoisentitledtoanyfeeorany commissionfromtheCompanyoranyofitsSubsidiariesinconnectionwithoruponconsummationofthe

Merger.Section4.24Insurance.TheCompanyanditsSubsidiariesmaintaininsuranceinsuchamountsandagainstsuchriskssubstantiallyastheCompanybelievestobecustomaryfortheindustriesinwhichitandits Subsidiariesoperate.NeithertheCompanynoranyofitsSubsidiarieshasreceivednoticeofanypendingor threatenedcancellationwithrespecttoanysuchmaterialinsurancepolicy,andeachofitsSubsidiariesisin complianceinallmaterialrespectswithallconditionscontainedtherein.Section4.25DerivativeProducts.(a)TheCompanyandeachofitsSubsidiarieshasestablishedriskparameters,limitsandguidelines,includingdailyvalueatriskandstoplosslimitsandliquidityguidelines,incompliancewiththeriskmanagementpoliciesapprovedbytheCompanyscorporateriskmanagementcommittee(theCompanyTradingPolicies),andtheCompanysBoardofDirectorshasapprovedVaRlimitsassetforthinSection4.25(a)oftheCompanyDisclosureSchedule(theCompanyApprovedVaRLimit).Tothe KnowledgeoftheCompany,allDerivativeProductsenteredintofortheaccountoftheCompanyoranyof itsSubsidiariesonorpriortothedatehereofwereenteredintoinaccordancewiththeCompanyTrading Policies,withexceptionshavingbeenhandledinallmaterialrespectsaccordingtotheCompanysrisk managementprocessesasineffectatthetimeatwhichsuchexceptionswerehandled,torestrictthelevelof riskthattheCompanyoranyofitsSubsidiariesisauthorizedtotake,individuallyandintheaggregate,with respecttoDerivativeProductsandmonitorcompliancewithsuchriskparametersandapplicableLawand policiesofanyGovernmentalEntity.CompliancewiththeCompanyTradingPoliciesismonitoredbythe SeniorVicePresidentandChiefRiskOfficeroftheCompanyandisperiodicallyreviewedwiththeaudit committeeoftheBoardofDirectorsoftheCompany.(b)AtnotimesinceJanuary1,2009has(i)thenetpositionresultingfromallphysicalcommoditytransactions,exchange-tradedfuturesandoptionstransactions,over-the-countertransactionsandderivativesthereofandsimilartransactions(theNetCompanyPosition)inthetradingportfoliooftheCompanyanditsSubsidiaries(theCompanyTradingPortfolio)notbeenwithintheriskparametersinallmaterial respectsthataresetforthintheCompanyTradingPoliciesexceptforsuchNetCompanyPositionsthathave beensubsequentlycorrectedinaccordancewiththeCompanyTradingPoliciesand(ii)eithertheCompany oranyofitsSubsidiaries,inaccordancewiththeirrespectivemark-to-marketaccountingpolicies, experiencedanaggregatenetlossintheCompanyTradingPortfoliothatwouldreasonablybeexpectedto have,individuallyorintheaggregate,amaterialimpactontheCompany.TheCompanyTradingPortfolio hasbeenmarkedtomarketatFairValue.(c)AsofthedateofthisAgreement,theCompanysVaRisincompliancewiththeCompanyApprovedVaRLimit(exceptfortemporaryincreasessetforthinSection4.25(c)oftheCompanyDisclosureSchedule),andtheCompanyanditsSubsidiariesareoperatingincompliancewiththeCompany TradingPoliciesinallmaterialrespects.(d)TheCompanyhasmadeavailabletoParentatrueandcompletecopyoftheCompanyTradingPolicies,andtheCompanyTradingPoliciescontainatrueandcorrectdescriptionofthepracticeofthe CompanyanditsSubsidiarieswithrespecttoDerivativeProducts,asofthedateofthisAgreement.Section4.26RegulationasaUtility.BGEisregulatedasapublicutilitybytheStateofMarylandandbynootherstate.ExceptassetforthaboveandforanyoftheCompanysSubsidiariesthatisregulatedasanelectric corporationbytheNYPSC,neithertheCompanynoranysubsidiarycompanyoraffiliateoftheCompanyis subjecttoregulationasapublicutilityorpublicservicecompany(orsimilardesignation)byanyotherstatein theUnitedStatesoranyforeigncountry.

A-30 Section4.27NuclearDecommissioningTrusts.(a)EachNDToftheCompanyandCENGisatrust,validlyexistingunderthelawsofthestateinwhichthetrustisorganizedwithallrequisiteauthoritytoconductitsaffairsasitnowdoes.EachNDTof theCompanyandCENGisinfullcomplianceinallmaterialrespectswithallapplicableLawsoftheNRC.

TheCompany,CENGand/orthetrusteeofeachNDToftheCompanyorCENG,asapplicable,has/have filedorcausedtobefiledwiththeNRCandanyotherGovernmentalEntityallmaterialforms,statements, reports,documents(includingallexhibits,amendmentsandsupplementsthereto)requiredtobefiledby suchentities.(b)NoQDFoftheCompanyorCENGhasengagedinanyactsofself-dealingwithinthemeaningofTreasuryRegulationSection1.468A-5(b)(2).Noexcesscontribution,withinthemeaningofTreasury RegulationSection1.468A-5(c)(2)(ii),hasbeenmadetoanyQDFoftheCompanyorCENGwhichhasnot beenwithdrawnwithintheperiodprovidedunderTreasuryRegulationSection1.468A-5(c)(2)(i).Eachof theCompanyandCENGhastimelymadeavalidelectiondescribedinSection468A(a)oftheCodewhich meetstherequirementsofTreasuryRegulationSection1.468A-7withrespecttoeachQDFoftheCompany orCENG,asapplicable,sincethefirsttaxableyearaftertheestablishmentofsuchQDF.(c)EachoftheQDFsoftheCompanyandCENGhasfiledallincomeandothermaterialTaxReturnsrequiredtobefiled,includingreturnsforestimatedincomeTaxes,suchTaxReturnsaretrue,correctand completeinallmaterialrespects,andallTaxesoftheQDFsoftheCompanyandCENG(regardlessofbeing showntobedueonsuchTaxReturns)havebeenpaidinfull.Nonoticeofdeficiencyorassessmenthas beenthreatenedorreceivedfromanytaxingauthoritywithrespecttoanyTaxesofanyQDFofthe CompanyorCENGwhichhavenotbeenfullypaidorfinallysettled.TherearenoLiensforTaxes(other thanforTaxesnotyetdueandpayable)ontheassetsofanyQDFoftheCompanyorCENG.(d)EachNDFoftheCompanyandCENGisclassifiedasagrantortrustownedbytheCompanyorCENG,asapplicable,underSections671through677oftheCode.Section4.28RegulatoryProceedings.Otherthanfueladjustmentorpurchasegasadjustmentorsimilaradjustingratemechanisms,anyannualMPSCratecasesforBGEorassetforthonSchedule4.28ofthe CompanyDisclosureSchedule,noneoftheCompanynoranyofitsSubsidiaries,allorpartofwhoseratesor servicesareregulatedbyaGovernmentalEntity,(a)isapartytoanyrateproceedingbeforeaGovernmental EntitywithrespecttorateschargedbytheCompanyoranyofitsSubsidiariesotherthanintheordinarycourse, (b)hasratesthathavebeenorarebeingcollectedsubjecttorefund,pendingfinalresolutionofanyrate proceedingpendingbeforeaGovernmentalEntityoronappealtoacourtor(c)isapartytoanyContractwith anyGovernmentalEntityenteredintootherthanintheordinarycourseimposingconditionsonratesorservices ineffectasofthedatehereoforwhich,totheKnowledgeoftheCompany,areasofthedatehereofscheduledto gointoeffectatalatertime,exceptincaseofclauses(a)through(c)thatwouldnot,individuallyorinthe aggregate,reasonablybeexpectedtohaveamaterialimpactontheCompany.NorepresentationorwarrantywithrespecttotheCompanyPermitsismadebythisSection4.28.Section4.29ReorganizationUndertheCode.NeithertheCompanynoranyofitsSubsidiarieshastakenoragreedtotakeanyactionorknowsofanyfactthatisreasonablylikelytopreventorimpedetheMergerfrom qualifyingasareorganizationwithinthemeaningofSection368(a)oftheCode.Section4.30NoAdditionalRepresentations.TheCompanyacknowledgesthatneitherParentnorMergerSubmakesanyrepresentationorwarrantyastoanymatterwhatsoeverexceptasexpresslysetforthinthis AgreementorinanycertificatedeliveredbyParentorMergerSubtotheCompanyinaccordancewiththeterms hereof,andspecifically(butwithoutlimitingthegeneralityoftheforegoing)thatneitherParentnorMergerSub makesanyrepresentationorwarrantywithrespectto(a)anyprojections,estimatesorbudgetsdeliveredormade availabletotheCompany(oranyoftheirrespectiveAffiliates,officers,directors,employeesorRepresentatives) offuturerevenues,resultsofoperations(oranycomponentthereof),cashflowsorfinancialcondition(orany A-31 componentthereof)ofParent,itsSubsidiariesorJointVenturesofParentor(b)thefuturebusinessandoperationsofParent,itsSubsidiariesorJointVenturesofParent.ARTICLEVREPRESENTATIONSANDWARRANTIESOFPARENTANDMERGERSUBExceptasdisclosedin(a)theParentSECDocumentsfiledonorpriortoApril26,2011(excludinganyriskfactordisclosureanddisclosureofrisksincludedinanyforward-lookingstatementsdisclaimerorsimilar statementsincludedinsuchParentSECDocumentsthatarepredictive,forward-lookingorprimarilycautionaryinnature);providedthatthisclause(a)shallnotqualifySection5.2(solelytotheextentrelatedtothesecuritiesofParent)Section5.3(a)orSection5.3(b),or(b)inthedisclosurescheduledeliveredbyParenttotheCompanypriortotheexecutionofthisAgreement(theParentDisclosureSchedule),whichshallbearrangedto correspondwithspecifiedsectionsofthisAgreementbutwhichshallservetodiscloseexceptionsortoqualify anyothersectionsofthisAgreementifitisreasonablyapparentthatsuchdisclosureisapplicabletoorqualifies suchothersections,ParentandMergerSubrepresentandwarranttotheCompanyasfollows:Section5.1Qualification,Organization,Subsidiaries,etc.(a)EachofParentanditsSubsidiariesisalegalentitydulyorganized,validlyexistingandingoodstandingundertheLawsofitsrespectivejurisdictionoforganizationandhasallrequisitecorporateor similarpowerandauthoritytoown,leaseandoperateitspropertiesandassets,tocarryonitsbusinessas presentlyconducted,exceptwherethefailureofanySubsidiarytobesoorganized,existingoringood standingortohavesuchpowerandauthoritywouldnotreasonablybeexpectedtohave,individuallyorin theaggregate,amaterialimpactonParent.EachofParentanditsSubsidiariesisqualifiedorlicensedtodo businessandisingoodstandingasaforeigncorporationineachjurisdictionwheretheownership,leasing oroperationofitsassetsorpropertiesorconductofitsbusinessrequiressuchqualificationorlicense, exceptwherethefailuretobesoqualified,licensedoringoodstandingwouldnotreasonablybeexpectedto have,individuallyorintheaggregate,amaterialimpactonParent.(b)ParenthasmadeavailabletotheCompanypriortothedateofthisAgreementatrueandcompletecopyoftheOrganizationalDocumentsofParentasamendedandineffectthroughthedatehereof.(c)Section5.1(c)oftheParentDisclosureSchedulelistseachSignificantSubsidiaryofParentanditsjurisdictionoforganizationandspecifieseachoftheSubsidiariesofParentthatis(i)apublicutility withinthemeaningofSection201(e)oftheFPAor(ii)aqualifyingfacilitywithinthemeaningof PURPA,orthatownssuchaqualifyingfacility.ParenthasmadeavailabletotheCompanytrue,correctand completecopiesoftheOrganizationalDocumentsofeachSignificantSubsidiaryofParent,asamendedand ineffectonthedatehereof.(d)Parentis,directlyorindirectly,theownerofalloftheoutstandingsharesofcapitalstockorotherequityinterestsofeachSubsidiaryofParent,freeandclearofanyLiensandfreeofanyotherlimitationor restriction(includinganylimitationorrestrictionontherighttovote,sell,transferorotherwisedisposeof suchcapitalstockorotherequityinterests).Allofsuchcapitalstockorotherequityinterestssoownedby Parenthavebeendulyauthorized,validlyissued,fullypaidandnonassessable(andnosuchshareshave beenissuedinviolationofanypreemptiveorsimilarrights).Exceptforthesharesofcapitalstockorother equityinterestsofeachSubsidiaryandJointVentureofParent,Parentdoesnotown,directlyorindirectly, anysharesofcapitalstockorotherequityorownershipinterestsinanyPerson.Section5.2CapitalStock.(a)TheauthorizedcapitalstockofParentconsistsof2,000,000,000sharesofParentCommonStockand100,000,000sharesofpreferredstock(theParentPreferredStock).Asofcloseofbusinesson A-32 April21,2011,(i)662,418,406sharesofParentCommonStockwereoutstanding,(ii)34,743,157sharesofParentCommonStockwereheldastreasurystock,(iii)19,375,250sharesofParentCommonStockwereauthorizedforissuancepursuanttothelong-termincentiveplanoftheParent(theParentIncentivePlan) and(iv)nosharesofParentPreferredStockwereissuedoroutstanding.AlloutstandingsharesofParent CommonStockaredulyauthorized,validlyissued,fullypaidandnonassessableandfreeofpre-emptive rightsandallsharesofParentCommonStockauthorizedforissuanceasnotedinclause(iii),whenissuedin accordancewiththerespectivetermsthereof,willbedulyauthorized,validlyissued,fullypaidand nonassessableandfreeofpre-emptiverights.(b)Exceptassetforthinsubsection(a)above(andotherthanthe75,139outstandingCommonwealthEdisonCompanywarrants(theComEdWarrants)asofDecember31,2010,pursuanttowhich25,046sharesofCommonwealthEdisonCompanycommonstockwerereservedfortheconversionofComEd Warrants),therearenooutstandingsubscriptions,options,warrants,calls,convertiblesecuritiesorother similarrights,agreementsorcommitmentsrelatingtotheissuanceofcapitalstocktowhichParentoranyof itsSubsidiariesisapartyobligatingParentoranyofitsSubsidiariesto(i)issue,transferorsellanyshares ofcapitalstockorotherequityinterestsofParentoranySubsidiaryofParentorsecuritiesconvertibleinto orexchangeableforsuchsharesorequityinterests,(ii)grant,extendorenterintoanysuchsubscription, option,warrant,call,convertiblesecuritiesorothersimilarright,agreementorarrangement,(iii)redeemor otherwiseacquireanysuchsharesofcapitalstockorotherequityinterestsor(iv)provideamaterialamount offundsto,ormakeanymaterialinvestment(intheformofaloan,capitalcontributionorotherwise)in, anySubsidiary.(c)ExceptfortheComEdWarrantsandawardstoacquiresharesofParentCommonStockundertheParentIncentivePlan,neitherParentnoranyofitsSubsidiarieshasoutstandingbonds,debentures,notesor otherobligations,theholdersofwhichhavetherighttovote(orwhichareconvertibleintoorexercisable forsecuritieshavingtherighttovote)withthestockholdersofParentonanymatter.(d)TherearenovotingtrustsorotheragreementsorunderstandingstowhichParentoranyofitsSubsidiariesisapartywithrespecttothevotingorregistrationofthecapitalstockorotherequityinterestof ParentoranyofitsSubsidiaries.(e)AsofthedateofthisAgreement,theauthorizedcapitalstockofMergerSubconsistsof1,000sharesofcommonstock,parvalue$0.01pershare,100ofwhicharevalidlyissuedandoutstanding.Allof theissuedandoutstandingcapitalstockofMergerSubis,andattheEffectiveTimewillbe,ownedby Parent.MergerSubhasoutstandingnooption,warrant,rightoranyotheragreementpursuanttowhichany PersonotherthanParentmayacquireanyequitysecurityofMergerSub.MergerSubhasnotconductedany businesspriortothedatehereofandhas,andpriortotheEffectiveTimewillhave,noassets,liabilitiesor obligationsofanynatureotherthanthoseincidenttoitsformationandpursuanttothisAgreementandthe MergerandtheothertransactionscontemplatedbythisAgreement.(f)ParenthasdeliveredormadeavailabletotheCompanyanaccurateandcompletecopyoftheParentIncentivePlanandtheformsofParentStockOptionsorParentRSUs(collectively,ParentEquityAwards).TherehavebeennorepricingsofanystockoptionsgrantedunderanyParentIncentivePlanthroughamendments,cancellationandreissuanceorothermeansduringthecurrentorpriortwo (2)calendaryears.NoneoftheParentEquityAwardshasbeengrantedincontemplationoftheMergeror thetransactionscontemplatedbythisAgreementandnoParentEquityAwardshavebeengrantedotherthan intheordinarycoursesinceMarch18,2011.NoneofthestockoptionsgrantedunderanyParentIncentive Planwasgrantedwithanexercisepricebelowordeemedtobebelowfairmarketvalueonthedateofgrant.

AllgrantsofParentEquityAwardswerevalidlymadeandproperlyapprovedbytheBoardofDirectorsof Parent(oradulyauthorizedcommitteeorsubcommitteethereof)incompliancewithallapplicableLaws andrecordedontheconsolidatedfinancialstatementsofParentinaccordancewithGAAP,and,where applicable,nosuchgrantsinvolvedanybackdating,forwarddatingorsimilarpracticeswithrespectto grantsofstockoptionsgrantedunderanyParentIncentivePlan.

A-33 Section5.3CorporateAuthorityRelativetothisAgreement;NoViolation.(a)EachofParentandMergerSubhasrequisitecorporatepowerandauthoritytoenterintothisAgreementand,subjecttoreceiptoftheParentStockholderApproval,toconsummatethetransactions contemplatedhereby.TheexecutionanddeliveryofthisAgreementandtheconsummationofthe transactionscontemplatedherebyhavebeendulyandvalidlyauthorizedbytheBoardofDirectorsofParent andtheBoardofDirectorsofMergerSubandbyParent,asthesolestockholderofMergerSuband,except fortheParentStockholderApproval,noothercorporateproceedingsonthepartofParentorMergerSubare necessarytoauthorizetheconsummationofthetransactionscontemplatedhereby.ThisAgreementhasbeen dulyandvalidlyexecutedanddeliveredbyParentandMergerSuband,assumingthisAgreement constitutesthelegal,validandbindingagreementoftheCompany,constitutesthelegal,validandbinding agreementofeachofParentandMergerSub,enforceableagainstParentandMergerSubinaccordancewith itsterms,subjecttobankruptcy,insolvency,fraudulenttransfer,reorganization,moratoriumandsimilar lawsofgeneralapplicabilityrelatingtooraffectingcreditorsrightsandtogeneralequityprinciples.(b)TheBoardofDirectorsofParent,atameetingdulycalledandheld,dulyandunanimouslyadoptedresolutions(i)determiningthatthetermsoftheMergerandtheothertransactionscontemplatedbythis Agreementareadvisable,fairtoandinthebestinterestsofParentanditsstockholders,(ii)approvingthis Agreement,theMerger,theStockIssuanceandtheothertransactionscontemplatedbythisAgreement,(iii)determiningthattheissuanceofsharesofParentCommonStock(theStockIssuance)isadvisableand(iv)recommendingthatParentsstockholdersgranttheParentStockholderApproval(theParentRecommendation).(c)Otherthaninconnectionwithorincompliancewith(i)theExchangeAct,(ii)theSecuritiesAct,(iii)therulesandregulationsoftheNYSE,(iv)theHSRAct,(v)theFPAandtheFERCApproval,(vi)theAtomicEnergyActandtheNRCApproval,(vii)therulesandregulationsoftheMPSC,(viii)therulesand regulationsoftheNYPSC,(ix)therulesandregulationsofthePUCT,(x)pre-approvalsoflicensetransfersbytheFCC,and(xi)theapprovalssetforthinSection5.3(c)oftheParentDisclosureSchedule(collectively,theParentApprovals),and,subjecttotheaccuracyoftherepresentationsandwarrantiesoftheCompanyinSection4.3(c),noauthorization,consent,Order,license,permitorapprovalof,or registration,declaration,noticeorfilingwith,anyGovernmentalEntityisnecessary,underapplicableLaw, fortheconsummationbyParentorMergerSubofthetransactionscontemplatedbythisAgreement,except forsuchauthorizations,consents,approvalsorfilingsthat,ifnotobtainedormade,wouldnotreasonablybe expectedtohave,individuallyorintheaggregate,amaterialimpactonParent.(d)TheexecutionanddeliveryofthisAgreementbyParentandMergerSubdoesnot,and,exceptasdescribedinSection5.3(c),theconsummationofthetransactionscontemplatedherebyandcompliancewiththeprovisionshereofwillnot,(i)resultinanyviolationof,ordefault(withorwithoutnoticeorlapseof time,orboth)under,orgiverisetoarightoftermination,cancellationoraccelerationofanymaterial obligationortothelossofamaterialbenefitunderanyloan,guaranteeofindebtednessorcreditagreement, note,bond,mortgage,indenture,lease,agreement,Contract,instrument,permit,concession,franchise,right orlicensebindinguponParentoranyofitsSubsidiariesorresultinthecreationofanyLiens,otherthanany ParentPermittedLien,uponanyofthepropertiesorassetsofParentoranyofitsSubsidiaries,(ii)conflict withorresultinanyviolationofanyprovisionoftheOrganizationalDocumentsofParentoranyofits Subsidiariesor(iii)conflictwithorviolateanyapplicableLaws,otherthan,inthecaseofclauses(i)and (iii),anysuchviolation,conflict,default,termination,cancellation,acceleration,right,lossorLienthat wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent.(e)ThisSection5.3excludesanyrepresentationorwarrantybyParentoranyofitsSubsidiariesoranyJointVentureofParentwithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterialswhichareaddressedinSection5.8.Section5.4ReportsandFinancialStatements.(a)ParentandeachofitsSubsidiarieshastimelyfiledorfurnishedallforms,documentsandreportsrequiredtobefiledorfurnishedpriortothedatehereofbyitwiththeSECsinceJanuary1,2007(the A-34 ParentSECDocuments).Asoftheirrespectivedatesor,ifamended,asofthedateofthelastsuchamendment,theParentSECDocumentscomplied,andasoftheClosing,allforms,documentsandreports filedwiththeSECsubsequenttothedatehereofwillcomply,inallmaterialrespectswiththerequirements oftheSecuritiesAct,theExchangeActandtheSarbanes-OxleyAct,asthecasemaybe,andnoneofthe ParentSECDocumentscontain,andasoftheClosing,noneoftheforms,documentsandreportsfiledwith theSECsubsequenttothedatehereofwillcontain,anyuntruestatementofamaterialfactoromittedto stateanymaterialfactrequiredtobestatedthereinornecessarytomakethestatementstherein,inlightof thecircumstancesunderwhichtheyweremade,notmisleading.(b)Theconsolidatedfinancialstatements(includingtherelatednotesandschedules)ofParentincludedintheParentSECDocumentsfairlypresent,andasoftheClosing,allconsolidatedfinancialstatements (includingtherelatednotesandschedules)ofParentincludedintheforms,documentsandreportsfiledwith theSECsubsequenttothedatehereofwillfairlypresent,inallmaterialrespectstheconsolidatedfinancial positionofParentanditsconsolidatedSubsidiaries,asattherespectivedatesthereof,andtheconsolidated resultsoftheiroperationsandtheirconsolidatedcashflowsfortherespectiveperiodsthenended(subject,in thecaseoftheunauditedstatements,tonormalyear-endauditadjustmentsandtoanyotheradjustments describedtherein,includingthenotesthereto)inconformitywithGAAP(except,inthecaseofthe unauditedstatements,aspermittedbytheSEC)appliedonaconsistentbasisduringtheperiodsinvolved (exceptasmaybeindicatedthereinorinthenotesthereto).Section5.5InternalControlsandProcedures.Parenthasestablishedandmaintainsdisclosurecontrolsandproceduresandinternalcontroloverfinancialreporting(assuchtermsaredefinedinparagraphs(e)and(f),

respectively,ofRule13a-15undertheExchangeAct)asrequiredbyRule13a-15undertheExchangeAct.

Parentsdisclosurecontrolsandproceduresarereasonablydesignedtoensurethatallmaterialinformation requiredtobedisclosedbyParentinthereportsthatitfilesorfurnishesundertheExchangeActisrecorded, processed,summarizedandreportedwithinthetimeperiodsspecifiedintherulesandformsoftheSEC,andthat allsuchmaterialinformationisaccumulatedandcommunicatedtoParentsmanagementasappropriatetoallow timelydecisionsregardingrequireddisclosureandtomakethecertificationsrequiredpursuanttoSections302 and906oftheSarbanes-OxleyAct.Parentsmanagementhascompletedanassessmentoftheeffectivenessof ParentsinternalcontroloverfinancialreportingincompliancewiththerequirementsofSection404ofthe Sarbanes-OxleyActfortheyearendedDecember31,2010,andsuchassessmentconcludedthatsuchcontrols wereeffective.Section5.6NoUndisclosedLiabilities.Except(a)asreflectedorreservedagainstinParentsconsolidatedbalancesheets(orthenotesthereto)includedintheParentsAnnualReportonForm10-Kfortheyearended December31,2010,(b)aspermittedorcontemplatedbythisAgreement,(c)forliabilitiesandobligations incurredsinceDecember31,2010intheordinarycourseofbusinessand(d)forliabilitiesorobligationswhich havebeendischargedorpaidinfullintheordinarycourseofbusiness,neitherParentnoranySubsidiaryof Parenthasanyliabilitiesorobligationsofanynature,whetherornotaccrued,contingentorotherwise,thatwould berequiredbyGAAPtobereflectedonaconsolidatedbalancesheetofParentanditsconsolidatedSubsidiaries (orinthenotesthereto),otherthanthosewhichwouldnotreasonablybeexpectedtohave,individuallyorinthe aggregate,amaterialimpactonParent.NeitherParentnoranyofitsSubsidiariesisapartyto,orhasany commitmenttobecomeapartyto,anyjointventure,off-balancesheetpartnershiporanysimilarmaterial Contract(includinganymaterialContractrelatingtoanytransactionorrelationshipbetweenoramongParent andanyofitsSubsidiaries,ontheonehand,andanyunconsolidatedAffiliate,includinganystructuredfinance, specialpurposeorlimitedpurposeentityorPerson,ontheotherhand,oranyoff-balancesheetarrangement (asdefinedinItem303(a)ofRegulationS-KoftheSEC),wheretheresult,purposeoreffectofsuchContractis toavoiddisclosureofanymaterialtransactioninvolving,ormaterialliabilitiesof,Parentoranyofits Subsidiaries,inParentsoranyofitsSubsidiarysauditedfinancialstatementsorotherParentSECDocuments)).ThisSection5.6excludesanyrepresentationorwarrantybyParentoranyofitsSubsidiariesoranyJointVenture ofParentwithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterials,whichareaddressedinSection5.8.

A-35 Section5.7CompliancewithLaw;Permits.(a)ParentandeachofitsSubsidiariesareincompliancewithandarenotindefaultunderorinviolationofanyapplicableLaws,exceptwheresuchnon-compliance,defaultorviolationwouldnot reasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactontheParent.Since January1,2008,neitherParentnoranyofitsSubsidiarieshasreceivedanywrittennoticeor,toParents Knowledge,othercommunicationfromanyGovernmentalEntityregardinganyactualorpossibleviolation of,orfailuretocomplywith,anyLaw,exceptaswouldnotreasonablybeexpectedtohave,individuallyor intheaggregate,amaterialimpactonParent.(b)ParentanditsSubsidiariesareinpossessionofallfranchises,grants,authorizations,licenses,permits,easements,variances,exceptions,consents,certificates,approvals,clearances,permissions, qualificationsandregistrationsandOrdersofanyGovernmentalEntitynecessaryforParentandits Subsidiariestoown,leaseandoperatetheirpropertiesandassetsortocarryontheirbusinessesastheyarenowbeingconducted(theParentPermits),exceptwherethefailuretohaveanyoftheParentPermits wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent.All ParentPermitsarevalidandinfullforceandeffect,exceptwherethefailuretobeinfullforceandeffect wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent.

Parentis,andeachofitsSubsidiariesis,incomplianceinallrespectswiththetermsandrequirementsof suchParentPermits,exceptwherethefailuretobeincompliancewouldnotreasonablybeexpectedtohave, individuallyorintheaggregate,amaterialimpactonParent.(c)ThisSection5.7excludesanyrepresentationorwarrantybyParentoranyofitsSubsidiarieswithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterials,whichareaddressedinSection5.8.Section5.8EnvironmentalLawsandRegulations.Exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent:(i)thereisnoEnvironmentalClaimpendingor threatenedagainstParentoranyParentSubsidiaryor,totheKnowledgeofParentandeachParentSubsidiary, againstanyPersonwhoseliabilityforanyEnvironmentalClaimtheParentoranyParentSubsidiaryhave retainedorassumedeithercontractuallyorbyoperationoflaw,(ii)ParentanditsSubsidiariesareand,exceptfor mattersthathavebeenfullyresolved,sinceJanuary1,2008havebeenincompliancewithallEnvironmental Laws(whichcomplianceincludespossessionofandcompliancewithallmaterialpermitsrequiredunder EnvironmentalLawsfortheoperationoftheirbusiness),andneitherParent,noranyParentSubsidiary,has receivedanywrittencommunication,whetherfromaGovernmentalEntityoranyotherPerson,allegingthat ParentoranyParentSubsidiaryisnotinsuchcompliance,(iii)Parentisnotobligatedtoconductorpayfor,and isnotconductingorpayingfor,anyCleanupatanylocation,(iv)therearenopresent,ortotheKnowledgeof ParentandeachParentSubsidiary,pastactions,activities,circumstances,conditions,eventsorincidents, includingtheRelease,threatenedReleaseorpresenceofanyHazardousMaterial,whichwouldreasonablybe expectedtoformthebasisofanyEnvironmentalClaimagainstParentoranyParentSubsidiary,ortothe KnowledgeofParentandeachParentSubsidiary,againstanyPersonwhoseliabilityforanyEnvironmental ClaimtheParentoranyParentSubsidiaryhaveretainedorassumedeithercontractuallyorbyoperationoflaw, (v)neitherParentnoranyParentSubsidiaryisapartytoanyorder,judgmentordecreethatimposesany obligationsorliabilitiesunderanyEnvironmentalLaw,and(vi)neitherthisAgreementnortheconsummationof thetransactionthatisthesubjectofthisAgreementwillresultinanyobligationsforsiteinvestigationor Cleanup,ornotificationtoorconsentofanyGovernmentalEntityorthirdparty,pursuanttoanytransaction-triggeredorresponsiblepartytransferEnvironmentalLaws.Section5.9EmployeeBenefitPlans.(a)Section5.9(a)oftheParentDisclosureSchedulelistsallmaterialBenefitPlanssponsored,maintainedorcontributedtobyParentoranyofitsERISAAffiliates(theParentBenefitPlans).(b)EachParentBenefitPlanhasbeenmaintainedandadministeredincompliancewithitstermsandwithapplicableLaw,includingERISAandtheCodetotheextentapplicablethereto,exceptforsuch A-36 non-compliancewhichwouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent.AnyParentBenefitPlanintendedtobequalifiedunderSection401(a)or401(k) oftheCodehasreceivedadeterminationletter(ortheprototypeplanonwhichsuchParentBenefitPlanis basedhasreceivedafavorableopinionletter)fromtheInternalRevenueService.NeitherParentnoranyof itsSubsidiariesmaintainsorcontributestoanyplanorarrangementwhichprovidesretireemedicalor welfarebenefits,exceptasrequiredbyapplicableLaw.Exceptaswouldnotreasonablybeexpectedtohave, individuallyorintheaggregate,amaterialimpactonParent,theredoesnotnowexist,nortoParents Knowledgedoanycircumstancesexistthatwouldreasonablybeexpectedtoresultin,anyControlledGroup LiabilitythatwouldbealiabilityofParentoranyofitsSubsidiariesfollowingtheEffectiveTime.(c)NoParentBenefitPlanissubjecttoTitleIVorSection302ofERISAorSection412or4971oftheCode,andneithertheParentnoranyofitsERISAAffiliateshasanyliabilitythereunderexceptaswouldnot reasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent.Noneofthe ParentBenefitPlansisamultipleemployerwelfarearrangement(asdefinedinSection3(40)ofERISA),

amultipleemployerplan(asdefinedinSection413(c)oftheCode)oramultiemployerplan(asdefined inSection3(37)ofERISA).(d)TheconsummationofthetransactionscontemplatedbythisAgreementwillnot,eitheraloneorincombinationwithanotherevent,(i)entitleanycurrentorformeremployee,consultantorofficerofParentor anyofitsSubsidiariestoseverancepay,unemploymentcompensationoranyotherpayment,exceptas expresslyprovidedinthisAgreementorasrequiredbyapplicableLawor(ii)acceleratethetimeofpayment orvesting,orincreasetheamountofcompensationduetoanysuchemployee,consultant,officeror director,exceptasexpresslyprovidedinthisAgreement.(e)EachParentBenefitPlanhasbeenoperatedingoodfaithcomplianceinallmaterialrespectswithSection409AoftheCodeandhassinceJanuary1,2009beenoperatedincomplianceinallmaterialrespectswithSection409AoftheCode.ExceptassetforthonSection5.9(e)oftheParentDisclosure Schedule,nodirector,officer,employeeorserviceproviderofParentoritsAffiliatesisentitledtoa gross-up,make-wholeorindemnificationpaymentwithrespecttotaxesimposedunderSection409Aor Section4999oftheCode.(f)Exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent,therearenopendingor,toParentsKnowledge,threatenedclaimswithrespecttoany ParentBenefitPlan,byanyemployeeorbeneficiarycoveredunderanyParentBenefitPlanorotherwise involvinganyParentBenefitPlan(otherthanroutineclaimsforbenefits).(g)ExceptasprovidedinthisAgreementorasrequiredunderapplicableLaw,neithertheexecutionanddeliveryofthisAgreementnortheconsummationofthetransactionscontemplatedbythisAgreement will(eitheraloneortogetherwithanyothereventwheresuchothereventwouldnotalonehaveaneffect describedinthissentence):(i)resultinanymaterialpayment(includinganybonus,severance,deferred compensation,forgivenessofindebtednessorgoldenparachutepayment)becomingduetoanycurrentor formeremployeeunderanyParentBenefitPlan;(ii)increaseinanymaterialrespectanybenefitotherwise payableunderanyParentBenefitPlan;(iii)resultintheaccelerationinanymaterialrespectofthetimeof paymentorvestingofanysuchbenefitsunderanyParentBenefitPlan;(iv)resultinanyobligationtofund anytrustorotherarrangementwithrespecttocompensationorbenefitsunderaParentBenefitPlan;or (v)limit,inanyway,ParentsabilitytoamendorterminateanyParentBenefitPlan.Nopaymentorbenefit whichhasbeen,willormaybemadebyParentoranyofitsSubsidiarieswithrespecttoanycurrentor formeremployeeinconnectionwiththeexecutionanddeliveryofthisAgreementortheconsummationof thetransactioncontemplatedbythisAgreementcouldresultinamaterialamountofexcessparachute paymentswithinthemeaningofSection280G(b)(1)oftheCodeormaterialnondeductibilityunder Section162(m)oftheCode.NeithertheexecutionanddeliveryofthisAgreementnortheconsummationof thetransactionscontemplatedbythisAgreementwillconstituteachangeincontrol(withinthemeaning ofsuchtermortermsoflikeimport)underanyParentBenefitPlan.

A-37 (h)CorrectandcompletecopieshavebeendeliveredormadeavailabletotheCompanybyParentofallwrittenParentBenefitPlans(includingallamendmentsandattachmentsthereto),allrelatedtrust documents;allmaterialinsuranceContractsorotherfundingarrangementstothedegreeapplicable;thetwo mostrecentannualinformationfilings(Form5500)andannualfinancialreportsforthoseParentBenefit Plans(whererequired);themostrecentdeterminationletterfromtheInternalRevenueService(where required);andthemostrecentsummaryplandescriptions;ifany,forParentBenefitPlans(including,for anyParentBenefitPlanthatisnotembodiedinadocument,awrittendescriptionoftheParentBenefit

Plan).Section5.10AbsenceofCertainChangesorEvents.SinceJanuary1,2011andthroughthedateofthisAgreement,exceptasotherwisecontemplatedbythisAgreement,thebusinessesoftheCompanyandits Subsidiarieshavebeenconductedintheordinarycourseofbusinessinallmaterialrespects,andtherehasnot beenanyevent,change,effect,development,conditionoroccurrencethat,individuallyorintheaggregate,has beenorwouldreasonablybeexpectedtohave,aParentMaterialAdverseEffect.Section5.11Investigations;Litigation.(a)Thereisnoinvestigationorreviewpending(or,totheKnowledgeofParent,threatened)byanyGovernmentalEntitywithrespecttoParentoranyofitsSubsidiaries, (b)therearenoactions,suits,inquiries,investigationsorproceedingspending(or,totheKnowledgeofParent, threatened)againstoraffectingParentoranyofitsSubsidiaries,oranyoftheirrespectivepropertiesatlaworin equityand(c)therearenoOrders,judgmentsordecreesof,orbefore,anyGovernmentalEntity,inthecasesof eachofclauses(a),(b)or(c),thatwouldreasonablybeexpectedtohaveamaterialimpactonParent.ThisSection5.11excludesanyrepresentationorwarrantybyParentoranyofitsSubsidiariesoranyJointVentureof ParentwithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterialswhichareaddressedinSection5.8.Section5.12InformationSupplied.NoneoftheinformationprovidedbyoronbehalfofParentoritsSubsidiariesforinclusionorincorporationbyreferencein(a)theFormS-4will,atthetimetheFormS-4 becomeseffectiveundertheSecuritiesAct,containanyuntruestatementofamaterialfactoromittostateany materialfactrequiredtobestatedthereinornecessarytomakethestatementsthereinnotmisleadingor(b)the JointProxyStatement/Prospectuswill,atthedateitisfirstmailedtoParentsstockholdersandtheCompanys stockholdersoratthetimeoftheParentStockholdersMeetingortheCompanyStockholdersMeeting,contain anyuntruestatementofamaterialfactoromittostateanymaterialfactrequiredtobestatedthereinornecessary inordertomakethestatementstherein,inlightofthecircumstancesunderwhichtheyweremade,notmisleading;provided,however,that,withrespecttoprojectedfinancialinformationprovidedbyoronbehalfof ParentoritsSubsidiaries,Parentrepresentsonlythatsuchinformationwaspreparedingoodfaithby managementofParentonthebasisofassumptionsbelievedbysuchmanagementtobereasonableasofthetime made.TheJointProxyStatement/Prospectus(otherthantheportionthereofrelatingsolelytotheCompany StockholdersMeeting)andtheFormS-4(otherthantheportionthereofrelatingsolelytotheCompany StockholdersMeeting)willcomplyastoforminallmaterialrespectswiththerequirementsoftheSecurities ActandtheExchangeActandtherulesandregulationspromulgatedthereunder.Section5.13RegulatoryMatters.(a)EachofParentsSubsidiariesthatengagesinthesaleofelectricityatwholesale(otherthananysuchSubsidiariesthatownoneormorefacilitiesthatconstituteaqualifyingfacilityassuchtermis definedunderPURPAandtherulesandregulationsofFERCthatareentitledtoexemptionfromregulation underSection205oftheFPA)isregulatedasapublicutilityundertheFPAandhasmarket-basedrate authorizationtomakesuchsalesatmarket-basedrates.EachofParentsSubsidiariesthatdirectlyowns generatingfacilitiesandoperatestheirpowergenerationfacilitiesincompliancewithallapplicable standardsofNERC,otherthannon-compliancethatwouldnotreasonablybeexpectedtohave,individually orintheaggregate,amaterialimpactonParent.Therearenopending,ortotheKnowledgeofParent, threatened,judicialoradministrativeproceedingstorevokeaParentsSubsidiarysmarket-basedrate A-38 authorization.TotheKnowledgeofParent,therearenofactsthatarereasonablylikelytocauseanyofParentsSubsidiariesthatsellelectricityatwholesaletoloseitsmarket-basedrateauthorization,if applicable,otherthanwheresuchlosswouldnotreasonablybeexpectedtohave,individuallyorinthe aggregate,amaterialimpactonParent.(b)Allfilings(otherthanimmaterialfilings)requiredtobemadebyParentoranyofitsSubsidiariessinceJanuary1,2009,withtheFERCundertheFPA,theNRCundertheAtomicEnergyAct,the DepartmentofEnergyandanyapplicablestatepublicutilitycommissions,asthecasemaybe,havebeen made,includingallforms,statements,reports,agreementsandalldocuments,exhibits,amendmentsand supplementsappertainingthereto,includingallrates,tariffsandrelateddocuments,andallsuchfilings complied,asoftheirrespectivedates,withallapplicablerequirementsofapplicablestatutesandtherules andregulationspromulgatedthereunder,exceptforfilingsthefailureofwhichtomakeorthefailureof whichtomakeincompliancewithallapplicablerequirementsofapplicablestatutesandtherulesand regulationspromulgatedthereunder,wouldnotreasonablybeexpectedtohave,individuallyorinthe aggregate,amaterialimpactonParent.(c)SinceJanuary1,2008,neitherParentnoranyofitsSubsidiarieshasreceivedanywrittennoticeor,toParentsKnowledge,othercommunicationfromtheNERCregardinganyactualorpossiblematerial violationof,ormaterialfailuretocomplywith,anyLaw.(d)ThisSection5.13excludesanyrepresentationorwarrantybyParentoranyofitsSubsidiariesoranyJointVentureofParentwithrespecttomattersrelatingtoorarisingunderEnvironmentalLawsorHazardousMaterialswhichareaddressedinSection5.8.Section5.14TaxMatters.Exceptaswouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent:(a)ParentanditsSubsidiaries(i)havedulyandtimelyfiled(takingintoaccountanyextensionoftimewithinwhichtofile)allTaxReturnsrequiredtohavebeenfiledbyorwithrespecttoParentoranyofits Subsidiaries,andallsuchTaxReturnsaretrue,correctandcomplete,(ii)havedulyandtimelypaidall TaxesshownasdueonsuchTaxReturns,(iii)haveadequateaccrualsandreserves,inaccordancewith GAAP,onthefinancialstatementsincludedintheParentSECDocumentsforallTaxespayablebyParent anditsSubsidiariesforalltaxableperiodsandportionsthereofthroughthedateofsuchfinancialstatements and(iv)havenotreceivedwrittennoticeofanydeficienciesforanyTaxfromanytaxingauthority,against ParentoranyofitsSubsidiariesforwhichtherearenotadequatereservesonthefinancialstatements includedintheParentSECDocuments.(b)NeitherParentnoranyofitsSubsidiariesisthesubjectofanycurrentlyongoingtaxauditorotherproceedingwithrespecttoTaxesnorhasanyTaxauditorotherproceedingwithrespecttoTaxesbeen proposedagainstanyoftheminwriting.AsofthedateofthisAgreement,therearenopendingrequestsfor waiversofthetimetoassessanyTax.NeitherParentnoranyofitsSubsidiarieshaswaivedanystatuteof limitationsinrespectofTaxesoragreedtoanyextensionoftimewithrespecttoaTaxassessmentor deficiency.TherearenoLiensforTaxesonanyoftheassetsofParentoranyofitsSubsidiariesotherthan ParentPermittedLiens.Noclaimhaseverbeenmadeinwritingbyataxingauthorityofajurisdictionwhere ParentoroneofitsSubsidiarieshasnotfiledTaxReturnsclaimingthatParentorsuchSubsidiaryisormay besubjecttotaxationbythatjurisdiction.(c)NeitherParentnoranyofitsSubsidiariesisobligatedbyanywrittenContract,agreementorotherarrangementtoindemnifyanyotherPerson(otherthanParentanditsSubsidiaries)withrespecttoTaxes.

NeitherParentnoranyofitsSubsidiariesisapartytoorboundbyanywrittenTaxallocation, indemnificationorsharingagreement(otherthananagreementwithParentoritsSubsidiaries).Neither ParentnoranyofitsSubsidiariesisliableunderTreasuryRegulationSection1.1502-6(oranysimilar provisionoftheTaxLawsofanystate,localorforeignjurisdiction)foranyTaxofanyPersonotherthan ParentanditsSubsidiaries.

A-39 (d)ParentanditsSubsidiarieshavewithheldandpaidallTaxesrequiredtohavebeenwithheldandpaidinconnectionwithamountspaidorowingtoanyemployee,independentcontractor,creditor, stockholderorotherthirdparty.(e)NeitherParentnoranyofitsSubsidiarieswasadistributingcorporationorcontrolledcorporationinatransactionintendedtoqualifyunderSection355oftheCodewithinthepasttwo(2)years orotherwiseaspartofaplanthatincludestheMerger.(f)NeitherParentnoranyofitsSubsidiarieshasparticipatedinanylistedtransactionwithinthemeaningofTreasuryRegulationSection1.6011-4.(g)ParenthasmadeavailabletotheCompanyoritslegaloraccountingrepresentativecopiesofallforeign,federalandstateincomeTaxReturnsforParentandeachofitsSubsidiariesfiledforallperiods includingandaftertheperiodendedDecember31,2008.(h)NeitherParentnoranyofitsSubsidiaries(i)hasfiledanyextensionoftimewithinwhichtofileanyTaxReturnsthathavenotbeenfiled,exceptintheordinarycourseofbusiness,(ii)hasgrantedanypowerof attorneythatisinforcewithrespecttoanymattersrelatingtoanyTaxes,(iii)hasappliedforarulingfroma taxingauthorityrelatingtoanyTaxesthathasnotbeengrantedorhasproposedtoenterintoanagreement withataxingauthoritythatispendingor(iv)has,sinceDecember31,2008,enteredintoanyclosing agreementasdescribedinSection7121oftheCode(oranysimilarprovisionofstate,localorforeignTax Law)orbeenissuedanyprivateletterrulings,technicaladvicememorandaorsimilaragreementorrulings byanytaxingauthority.Section5.15EmploymentandLaborMatters.(a)(i)NeitherParentnoranyofitsSubsidiariesisapartytoorboundbyanycollectivebargainingorsimilaragreementorworkrulesorpracticeswithanylaborunion,labororganizationoremployeeassociationapplicabletoemployeesofParentoranyofitsSubsidiaries(ParentEmployees),(ii)thereare nostrikesorlockoutswithrespecttoanyParentEmployees,(iii)totheKnowledgeofParent,thereisno unionrecognition,certificationororganizingeffortpendingorthreatenedagainstParentoranyofits Subsidiaries,(iv)thereisnounfairlaborpractice,labordispute,grievance(otherthanroutineindividual grievances)orlaborarbitrationproceedingpendingor,totheKnowledgeofParent,threatenedwithrespect toParentEmployeesand(v)thereisnoorganizedslowdownorworkstoppageineffector,tothe KnowledgeofParent,threatenedwithrespecttoParentEmployeesexcept,withrespecttoclause(iv),as wouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent.(b)Exceptforsuchmatterswhichwouldnotreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpactonParent,ParentanditsSubsidiariesare,andhavebeen,incompliancewith allapplicableLawsrespecting(i)employmentandemploymentpractices,(ii)termsandconditionsof employmentandwagesandhoursand(iii)unfairlaborpractices.NeitherParentnoranyofitsSubsidiaries hasanyliabilitiesundertheWARNActasaresultofanyactiontakenbyParentoranyofitsSubsidiaries (otherthanatthewrittendirectionoftheCompanyorasaresultofanyofthetransactionscontemplated hereby)thatwouldreasonablybeexpectedtohave,individuallyorintheaggregate,amaterialimpacton

Parent.Section5.16IntellectualProperty.Exceptaswouldnotreasonablybeexpectedtobe,individuallyorintheaggregate,material,eitherParentoraSubsidiaryofParentowns,orislicensedorotherwisepossesseslegally enforceablerightstouse,allIntellectualPropertyusedinornecessaryfortheirrespectivebusinessesascurrently conducted,freeandclearofallLiensotherthanParentPermittedLiens.Exceptaswouldnotreasonablybe expectedtohave,individuallyorintheaggregate,amaterialimpactonParent,(a)asofthedatehereof,thereare nopendingor,totheKnowledgeofParent,threatenedclaimsbyanyPersonalleginginfringementorother violationofanyIntellectualPropertyofanyPersonbyParentoranyofitsSubsidiariesfortheiruseofthe IntellectualPropertyownedbyParentoranyofitsSubsidiariesortheconductoftheirrespectivebusinessesas currentlyconducted,(b)totheKnowledgeofParent,theconductoftherespectivebusinessesofParentandits A-40 SubsidiariesdoesnotinfringeorotherwiseviolateanyIntellectualPropertyrightsofanyPerson,(c)asofthedatehereof,neitherParentnoranyofitsSubsidiarieshasanyclaimpendingagainstanyPersonalleging infringementorotherviolationofanyIntellectualPropertyownedbyParentoranyofitsSubsidiariesand(d)to theKnowledgeofParent,noPersonisinfringingorotherwiseviolatinganyIntellectualPropertyownedby ParentoranyofitsSubsidiaries.Section5.17RealProperty.ParentoritsapplicableSubsidiaryhas(a)goodandinsurabletitleor(b)goodandvalidleaseholdinterestinandtoeachmaterialparcelofrealpropertyownedorleased,asapplicable,by ParentoranyofitsSubsidiaries,subjecttoanyLiens(otherthanParentPermittedLiens)orexceptionsthat wouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveamaterialimpactonParentSection5.18RequiredVoteofParentStockholders;MergerSubApproval.(a)TheaffirmativevoteoftheholdersofamajorityoftheoutstandingParentCommonStockpresentinpersonorrepresentedbyproxyattheParentStockholdersMeeting,asrequiredbySection312.03ofthe NYSEListedCompanyManual,istheonlyvoteofholdersofsecuritiesofParentwhichisrequiredtoapprovetheStockIssuance(theParentStockholderApproval).(b)MergerSubhastakenallnecessarycorporateactiontoapprovethisAgreement,theMergerandtheothertransactionscontemplatedhereby.Section5.19OwnershipofNuclearPowerPlants.Theoperationsofthenucleargenerationstationsowned,inwholeorpart,byParentoritsSubsidiaries(suchoperations,collectively,theParentNuclearFacilities)are andhavebeenconductedincompliancewithallapplicableLawsandParentPermits,exceptforsuchfailuresto complythat,individuallyorintheaggregate,havenothadandcouldnotreasonablybeexpectedtohavea materialimpactonParent.EachoftheParentNuclearFacilitiesmaintains,andisinmaterialcompliancewith, emergencyplansdesignedtorespondtoanunplannedreleasetherefromofradioactivematerialsandeachsuch planconformswiththerequirementsofapplicableLawinallmaterialrespects.Theplansforthe decommissioningofeachoftheParentNuclearFacilitiesandforthestorageofspentnuclearfuelconformwith therequirementsofapplicablelawinallmaterialrespectsand,solelywithrespecttotheportionoftheParent NuclearFacilitiesowned,directlyorindirectly,bytheParent,arefundedtothefullextentrequiredbyapplicable Lawwithoutrelianceuponsubstitutefundingmechanismssuchasguaranteesorlettersofcredit.Since December31,2008,theoperationsoftheParentNuclearFacilitieshavenotbeenthesubjectofanynoticesof violation,anyongoingproceeding,NRCDiagnosticTeamInspectionsorrequestsforinformationfromtheNRC oranyotheragencywithjurisdictionoversuchfacility,exceptforsuchnoticesorrequestsforinformationthat, individuallyorintheaggregate,havenothadandcouldnotreasonablybeexpectedtohaveamaterialimpacton Parent.NoParentNuclearFacilityislistedbytheNRCintheUnacceptablePerformancecolumnoftheNRC ActionMatrix,asapartofNRCsAssessmentofLicenseePerformance.Liabilityinsurancetothefullextent requiredbylawforoperatingtheParentNuclearFacilitiesremainsinfullforceandeffectregardingsuch facilities,exceptforfailurestomaintainsuchinsuranceinfullforceandeffectthat,individuallyorinthe aggregate,havenothadandcouldnotreasonablybeexpectedtohaveamaterialimpactonParent.Section5.20MaterialContracts.(a)ExceptforthisAgreement,theParentBenefitPlansandagreementsfiledasexhibitstotheParentSECDocumentsortoanyforms,reportsordocumentsfiledwiththeSECsubsequenttothedatehereof, neitherParentnoranyofitsSubsidiariesisapartytoorboundby:(i)anycoalsupplyagreement,coaltransportationagreement,powersale,powerpurchaseorofftakeagreementorotherfuelpurchase,saleortransportationagreementthat(A)issubjecttoprofit-sharingarrangementswheretheamountrequiredtobesharedwithathirdpartycouldreasonablybe expectedtoexceed$400millionoverthelifeofthetransaction,(B)containstakeorpay,liquidated damagesortermination,closeoutorliquidationprovisionsassociatedwithatransactionwitha notionalamountof$2billionormoreor(C)createsactualindebtednessofParentorresultsinimputed A-41 indebtednesstoParentasassignedbyStandard&PoorsorMoodysinanamountgreaterthan$400million(usingcustomarydiscounting);provided,forthepurposesofthisSection5.20(a)(i),anyimputedindebtednessamountassociatedwithaphysicalpowertransactionenteredintobyParentoranyofitsSubsidiaries(theParentPowerPurchaser)shallbenetofexpectedISOrevenuesrelatedto thecapacityrightsandotherrelatedenergyproductsassignedtotheParentPowerPurchaserinsuch transactionfortheyearsinwhichsuchcapacityorotherrelatedenergyproductshavebeensoldpriortotheexecutionofsuchtransactioninaforwardISOcapacityauction;provided,however,suchnetting onlyshalloccurwithrespecttoapowertransactionifthetransaction(i)specifiesthegenerationunit whichwillbethesourceofthepower,capacityandotherrelatedenergyproductsdeliveredtothe ParentPowerPurchaserand(ii)assignstherightstotheISOrevenuesforsuchcapacityorotherrelated energyproductsinsuchyearstotheParentPowerPurchaser;(ii)anyContractimposinganymaterialrestrictionontherightorabilityofParentoranyofitsSubsidiariesto(A)competewithanyotherPerson,(B)acquireordisposeofthesecuritiesofanother Personor(C)engageorcompeteinanylineofbusinessorinanygeographicareaorthatcontains restrictionsonpricingorexclusivityornon-solicitationprovisionswithrespecttocustomers;or(iii)anyContractwithanaggregateprincipalamount,orprovidingforanaggregateobligation,inexcessof$200million(A)evidencinganycreditfacilityofParentoranyofitsSubsidiariesor (B)guaranteeingobligationsforborrowedmoneyorotherobligationsofathirdpartyotherthanany

Subsidiary.AllContractsofthetypesreferredtoinclauses(i),(ii)and(iii)inthisSection5.20(a)andanyContract thatisamaterialContractrequiredtobefiledasanexhibittoParentsAnnualReportonForm10-KpursuanttoItem601(b)(10)ofRegulationS-KoftheSECarereferredtohereinasParentMaterialContracts.(b)NeitherParentnoranySubsidiaryofParentisinbreachofordefaultunderthetermsofanyParentMaterialContractwheresuchbreachordefaultwouldreasonablybeexpectedto,individuallyorinthe aggregate,haveamaterialimpactonParent.TotheKnowledgeofParent,nootherpartytoanyParent MaterialContractisinbreachofordefaultunderthetermsofanyParentMaterialContractwheresuch breachordefaultwouldreasonablybeexpectedto,individuallyorintheaggregate,haveamaterialimpact onParent.Exceptaswouldnotreasonablybeexpectedto,individuallyorintheaggregate,haveamaterial impactonParent,eachParentMaterialContractisavalidandbindingobligationofParentortheSubsidiary ofParentwhichispartytheretoand,totheKnowledgeofParent,ofeachotherpartythereto,andisinfull forceandeffect,exceptthat(i)suchenforcementmaybesubjecttoapplicablebankruptcy,insolvency, reorganization,moratoriumorothersimilarLaws,noworhereafterineffect,relatingtocreditorsrights generallyand(ii)equitableremediesofspecificperformanceandinjunctiveandotherformsofequitable reliefmaybesubjecttoequitabledefensesandtothediscretionofthecourtbeforewhichanyproceeding thereformaybebrought.Section5.21OpinionsofFinancialAdvisors.TheBoardofDirectorsofParenthasreceivedtheopinionsofBarclaysCapitalInc.,J.P.MorganSecuritiesLLCandEvercoreGroupL.L.C.(collectively,theParentFinancialAdvisors),datedasofonedaywithinthedateofthisAgreement,substantiallytotheeffectthat,asof suchdate,andsubjecttothelimitationsandassumptionssetforththerein,theExchangeRatioisfairtoParent fromafinancialpointofview.Parentshall,promptlyfollowingreceiptofsaidopinionsinwrittenform,furnish anaccurateandcompletecopyofsaidopinionstotheCompanyforinformationalpurposesonly.Section5.22FindersorBrokers.ExceptfortheParentFinancialAdvisorsandLoopCapitalLLC,neitherParentnoranyofitsSubsidiarieshasemployedanyinvestmentbanker,brokerorfinderinconnectionwiththe transactionscontemplatedbythisAgreementwhoisentitledtoanyfeeoranycommissionfromParentoranyof itsSubsidiariesinconnectionwithoruponconsummationoftheMerger.Section5.23Insurance.ParentanditsSubsidiariesmaintaininsuranceinsuchamountsandagainstsuchriskssubstantiallyasParentbelievestobecustomaryfortheindustriesinwhichitanditsSubsidiariesoperate.

A-42 NeitherParentnoranyofitsSubsidiarieshasreceivednoticeofanypendingorthreatenedcancellationwithrespecttoanysuchmaterialinsurancepolicy,andeachofitsSubsidiariesisincomplianceinallmaterial respectswithallconditionscontainedtherein.Section5.24DerivativeProducts.(a)ParentandeachofitsSubsidiarieshasestablishedriskparameters,limitsandguidelines,includingdailyvalueatriskandstoplosslimitsandliquidityguidelines,incompliancewiththeriskmanagementpoliciesapprovedbyParentscorporateriskmanagementcommittee(theParentTradingPolicies),andParentsBoardofDirectorshasapprovedVaRlimitsassetforthinSection5.24(a)oftheParentDisclosureSchedule(theParentApprovedVaRLimit).TotheKnowledgeofParent,allDerivativeProductsentered intofortheaccountofParentoranyofitsSubsidiariesonorpriortothedatehereofwereenteredintoin accordancewiththeParentTradingPolicies,withexceptionshavingbeenhandledinallmaterialrespects accordingtoParentsriskmanagementprocessesasineffectatthetimeatwhichsuchexceptionswere handled,torestrictthelevelofriskthatParentoranyofitsSubsidiariesisauthorizedtotake,individually andintheaggregate,withrespecttoDerivativeProductsandmonitorcompliancewithsuchriskparameters andapplicableLawandpoliciesofanyGovernmentalEntity.CompliancewiththeParentTradingPolicies ismonitoredbytheSeniorVicePresidentandChiefRiskOfficerofParentandisperiodicallyreviewed withtheauditcommitteeoftheBoardofDirectorsofParent.(b)AtnotimesinceJanuary1,2009has(i)thenetpositionresultingfromallphysicalcommoditytransactions,exchange-tradedfuturesandoptionstransactions,over-the-countertransactionsandderivativesthereofandsimilartransactions(theNetParentPosition)inthetradingportfolioofParentanditsSubsidiaries(theParentTradingPortfolio)notbeenwithintheriskparametersinallmaterialrespectsthat aresetforthintheParentTradingPoliciesexceptforsuchNetParentPositionsthathavebeensubsequently correctedinaccordancewiththeParentTradingPoliciesand(ii)eitherParentoranyofitsSubsidiaries,in accordancewiththeirrespectivemark-to-marketaccountingpolicies,experiencedanaggregatenetlossin theParentTradingPortfoliothatwouldreasonablybeexpectedtohave,individuallyorintheaggregate,a materialimpactonParent.TheParentTradingPortfoliohasbeenmarkedtomarketatFairValue.(c)AsofthedateofthisAgreement,ParentsVaRisincompliancewiththeParentApprovedVaRLimit(exceptfortemporaryincreasessetforthinSection5.24(c)oftheParentDisclosureSchedule),andParentanditsSubsidiariesareoperatingincompliancewiththeParentTradingPoliciesinallmaterial

respects.(d)ParenthasmadeavailabletotheCompanyatrueandcompletecopyoftheParentTradingPolicies,andtheParentTradingPoliciescontainatrueandcorrectdescriptionofthepracticeofParentandits SubsidiarieswithrespecttoDerivativeProducts,asofthedateofthisAgreement.Section5.25RegulationasaUtility.CommonwealthEdisonCompanyisregulatedasapublicutilityandanelectricutilitybytheStateofIllinoisandbynootherstate.PECOisregulatedasapublicutilitybythe CommonwealthofPennsylvaniaandbynootherstate.ComEdofIndiana,Inc.isregulatedasapublicutilityby theStateofIndianaandbynootherstate.Exceptassetforthabove,neitherParentnoranysubsidiarycompany oraffiliateofParentissubjecttoregulationasapublicutilityorpublicservicecompany(orsimilar designation)byanyotherstateintheUnitedStatesoranyforeigncountry.Section5.26NuclearDecommissioningTrusts.(a)EachNDTofParentisatrust,validlyexistingunderthelawsofthestateinwhichthetrustisorganizedwithallrequisiteauthoritytoconductitsaffairsasitnowdoes.EachNDTofParentisinfull complianceinallmaterialrespectswithallapplicableLawsoftheNRC.Parentand/orthetrusteeofeach NDTofParenthas/havefiledorcausedtobefiledwiththeNRCandanyotherGovernmentalEntityall materialforms,statements,reports,documents(includingallexhibits,amendmentsandsupplements thereto)requiredtobefiledbysuchentities.

A-43 (b)NoQDFofParenthasengagedinanyactsofself-dealingwithinthemeaningofTreasuryRegulationSection1.468A-5(b)(2).Noexcesscontribution,withinthemeaningofTreasuryRegulation Section1.468A-5(c)(2)(ii),hasbeenmadetoanyQDFofParentwhichhasnotbeenwithdrawnwithinthe periodprovidedunderTreasuryRegulationSection1.468A-5(c)(2)(i).Parenthastimelymadeavalid electiondescribedinSection468A(a)oftheCodewhichmeetstherequirementsofTreasuryRegulation Section1.468A-7withrespecttoeachQDFofParentsincethefirsttaxableyearaftertheestablishmentof suchQDF.(c)TheQDFsofParenthavefiledallincomeandothermaterialTaxReturnsrequiredtobefiled,includingreturnsforestimatedincomeTaxes,suchTaxReturnsaretrue,correctandcompleteinall materialrespects,andallTaxesoftheQDFsofParent(regardlessofbeingshowntobedueonsuchTax Returns)havebeenpaidinfull.Nonoticeofdeficiencyorassessmenthasbeenthreatenedorreceivedfrom anytaxingauthoritywithrespecttoanyTaxesofanyQDFofParentwhichhavenotbeenfullypaidor finallysettled.TherearenoLiensforTaxes(otherthanforTaxesnotyetdueandpayable)ontheassetsof anyQDFofParent.(d)EachNDFofParentisclassifiedasagrantortrustownedbyParentunderSections671through677oftheCode.Section5.27RegulatoryProceedings.Otherthanfueladjustmentorpurchasegasadjustmentorsimilaradjustingratemechanisms,noneofParentnoranyofitsSubsidiariesallorpartofwhoseratesorservicesare regulatedbyaGovernmentalEntity(a)isapartytoanyrateproceedingbeforeaGovernmentalEntitywith respecttorateschargedbyParentoranyofitsSubsidiariesotherthanintheordinarycourse,(b)hasratesthat havebeenorarebeingcollectedsubjecttorefund,pendingfinalresolutionofanyrateproceedingpendingbefore aGovernmentalEntityoronappealtoacourtor(c)isapartytoanyContractwithanyGovernmentalEntity enteredintootherthanintheordinarycourseimposingconditionsonratesorservicesineffectasofthedate hereoforwhich,totheKnowledgeofParent,areasofthedatehereofscheduledtogointoeffectatalatertime, except,incaseofclauses(a)through(c)thatwouldnot,individuallyorintheaggregate,reasonablybeexpected tohaveamaterialimpactonParent.NorepresentationorwarrantywithrespecttotheParentPermitsismadebythisSection5.27.Section5.28ReorganizationUndertheCode.NeitherParentnoranyofitsSubsidiarieshastakenoragreedtotakeanyactionorknowsofanyfactthatisreasonablylikelytopreventorimpedetheMergerfromqualifying asareorganizationwithinthemeaningofSection368(a)oftheCode.Section5.29LackofOwnershipofCompanyCommonStock.ExceptasheldbyanyNDTofParentorParentBenefitPlan,neitherParentnoranyofitsSubsidiariesbeneficiallyownsdirectlyorindirectly,anyshares ofCompanyCommonStockorothersecuritiesconvertibleinto,exchangeablefororexercisableforsharesof CompanyCommonStockoranysecuritiesofanySubsidiaryoftheCompany,andneitherParentnoranyofits SubsidiarieshasanyrightstoacquireanySharesexceptpursuanttothisAgreement.Therearenovotingtrustsor otheragreementsorunderstandingstowhichParentoranyofitsSubsidiariesisapartywithrespecttothevoting ofthecapitalstockorotherequityinterestoftheCompanyoranyofitsSubsidiaries.Section5.30NoAdditionalRepresentations.ParentandMergerSubacknowledgethattheCompanymakesnorepresentationorwarrantyastoanymatterwhatsoeverexceptasexpresslysetforthinthisAgreementorin anycertificatedeliveredbytheCompanytoParentorMergerSubinaccordancewiththetermshereof,and specifically(butwithoutlimitingthegeneralityoftheforegoing)thattheCompanymakesnorepresentationor warrantywithrespectto(a)anyprojections,estimatesorbudgetsdeliveredormadeavailabletoParentor MergerSub(oranyoftheirrespectiveAffiliates,officers,directors,employeesorRepresentatives)offuture revenues,resultsofoperations(oranycomponentthereof),cashflowsorfinancialcondition(oranycomponent thereof)oftheCompany,itsSubsidiariesorCompanyJointVenturesor(b)thefuturebusinessandoperationsof theCompany,itsSubsidiariesorCompanyJointVentures.

A-44 ARTICLEVICOVENANTSANDAGREEMENTSSection6.1ConductofBusinessbytheCompany.(a)FromandafterthedatehereofandpriortotheearlieroftheEffectiveTimeorthedate,ifany,onwhichthisAgreementisterminatedpursuanttoSection8.1(theTerminationDate),andexcept(i)asmayberequiredbyapplicableLaworatthedirectionofanyindependentsystemoperator,regionaltransmission organization,orcontrolareaoperator,(ii)asmaybeagreedinwritingbyParent(whichconsentshallnotbe unreasonablywithheld,delayedorconditioned),(iii)asmaybecontemplatedorrequiredbythisAgreement,or(iv)assetforthinSection6.1oftheCompanyDisclosureSchedule,theCompanycovenantsandagrees withParentthatthebusinessoftheCompanyanditsSubsidiariesshallbeconductedin,andthatsuch entitiesshallnottakeanyactionexceptin,theordinarycourseofbusinessandshallusetheirreasonable besteffortstopreserveintacttheirpresentlinesofbusiness,maintaintheirrightsandfranchisesand preservesatisfactoryrelationshipswithGovernmentalEntities,employees,customersandsuppliers.(b)ExceptasmaybepermittedpursuanttoSections6.1(a)(i)-(iv),theCompanyagreeswithParent,onbehalfofitselfanditsSubsidiaries,thatbetweenthedatehereofandtheEffectiveTime,withouttheprior writtenconsentofParent(whichconsentshallnotbeunreasonablywithheld,delayedorconditioned),the

Company:(i)shallnot,andshallnotpermitanyofitsSubsidiariesto,declare,setasideorpayanydividendsonormakeanydistributionwithrespecttoitsoutstandingsharesofcapitalstock(whetherincash,assets,stockorothersecuritiesoftheCompanyoritsSubsidiaries),except(A)subjecttoSection6.20, thedeclarationandpaymentofquarterlycashdividendswithrespecttotheCompanyCommonStock nottoexceedthecurrentdividendrate,withrecorddatesandpaymentdatesconsistentwiththe Companyspastdividendpractice,(B)thedeclarationandpaymentofdividendsfromaSubsidiaryof theCompanytotheCompanyortoanotherwholly-ownedSubsidiaryoftheCompanyand(C)the paymentbyBGEoftheregularquarterlydividendsonits7.125%CumulativePreferenceStock,1993 Series,6.97%CumulativePreferenceStock,1993Series,6.70%CumulativePreferenceStock,1993 Series,and6.99%CumulativePreferenceStock,1995Series,ineachcasenottoexceedthecurrent dividendrate,withrecorddatesandpaymentdatesconsistentwithBGEspastdividendpractice;(ii)shallnot,andshallnotpermitanyofitsSubsidiariesto,adoptaplanofcompleteorpartialliquidation,dissolution,merger,consolidation,restructuring,recapitalizationorotherreorganization (exceptformergersandconsolidationsinconnectionwithtransactionspermittedpursuanttoSection6.1(b)(iv)orSection6.4(e)),otherthananymergers,consolidations,restructurings, recapitalizations,dissolutions,liquidationsorreorganizationsamongtheCompanyanditsSubsidiaries oramongtheCompanysSubsidiariesintheordinarycourseandthatdonotadverselyaffectthe

Company;(iii)exceptfortransactionsbetweentheCompanyanditsSubsidiariesoramongtheCompanysSubsidiariesintheordinarycourseandthatdonotadverselyaffecttheCompany,shallnot,andshall notpermitanyofitsSubsidiaries,toprepay,redeem,repurchase,defease,cancelorotherwiseacquire anyIndebtednessorguaranteesthereofoftheCompanyoranySubsidiary,excluding(A)atstated maturity,(B)anyrequiredamortizationpaymentsandmandatoryprepayments(includingmandatory prepaymentsarisingfromanychangeofcontrolputrightstowhichholdersofsuchIndebtednessor guaranteesthereofmaybeentitled)and(C)IndebtednessorguaranteesthereofarisingundertheagreementsdisclosedinSection6.1oftheCompanyDisclosureSchedule,ineachcaseinaccordance withthetermsoftheinstrumentgoverningsuchindebtednessasineffectonthedatehereof;(iv)shallnot,andshallnotpermitanyofitsSubsidiariesto,makeanyacquisitionofanyotherPersonorbusinessormakeanyloan,advanceorcapitalcontributionto,investmentin,orleasefrom anyotherPersonexcept(A)intheordinarycourseofbusiness,(B)ascontemplatedbytheCompanys A-45 annualbudgetfor2011andcapitalexpenditureplanfor2012,ineachcaseasmadeavailabletoParentpriortothedateofthisAgreement(theCompanyBudgetandCapitalExpenditurePlan),(C)asrequiredbyexistingContracts,(D)asmadeinconnectionwithanytransactionsolelybetweenthe Companyandawholly-ownedSubsidiaryoftheCompanyorbetweenwholly-ownedSubsidiariesof theCompanyotherthanthroughtherepurchaseofequityawardsintheordinarycourseofbusiness,or (E)acquisitionswithinthesamelinesofbusinessastheNewEnergyBusinessofanyotherPersonor businessorinvestmentsorcapitalcontributionsinanyotherPersonwithavalueoflessthan$250 million,individually,or$400million,intheaggregate;(v)shallnot,andshallnotpermitanyofitsSubsidiariesto,authorizeanycapitalexpendituresinexcessof$100millionintheaggregate,exceptfor(A)expenditurescontemplatedbytheCompany BudgetandCapitalExpenditurePlan,(B)expendituresrequiredbyexistingContractsor (C)expendituresmadeasprudentinresponsetoanyrequirementofLaworCompanyPermitor casualty,accidentoremergency,whethercausedbywar,terrorism,weatherevents,publichealth events,outagesorotherwise;(vi)exceptfortransactionsamongtheCompanyanditswholly-ownedSubsidiariesoramongtheCompanyswholly-ownedSubsidiaries,shallnot,andshallnotpermitanyofitsSubsidiariesto, (A)split,combineorreclassifyanyofitscapitalstockorissueorauthorizeorproposetheissuanceof anyothersecuritiesinrespectof,inlieuoforinsubstitutionforsharesofitscapitalstockor (B)purchase,redeemorotherwiseacquireanysharesofitscapitalstockoranyrights,warrantsor optionstoacquireanysuchshares;(vii)exceptasrequiredbyLaw,writtenagreementsineffectpriortothedatehereofandpreviouslydisclosedtoParent,byCompanyBenefitPlansorinresponsetoanycasualty,accidentor emergency,whethercausedbywar,terrorism,weatherevents,publichealthevents,outagesor otherwise,shallnot,andshallnotpermitanyofitsSubsidiariesto,(A)increasethecompensationor otherbenefitspayableorprovidedtotheCompanysoranyofitsSubsidiariesdirectors,officersor employees,exceptintheordinarycourseofbusinessorwhichshallnotmateriallyincreaseaggregate compensationexpenseinanysalarygradeforemployeesoftheCompanyoranyofitsSubsidiaries, (B)enterintoanyemployment,changeofcontrol,severanceorretentionagreementwithanydirector, officeroremployeeoftheCompanyoranyofitsSubsidiariesexceptforseveranceagreementsentered intowithemployeeswhoarenotexecutiveofficersoftheCompanyinconnectionwithterminationsof employmentintheordinarycourseofbusiness,(C)establish,adopt,enterinto,accelerateanyrightsor benefitsunderoramendanyplan,policy,programorarrangementforthebenefitofanycurrentor formerdirectors,officersoremployeesoranyoftheirbeneficiaries,except,inthecaseofclauses(A),

(B)or(C),withrespecttoemployeeswhoarenotexecutiveofficersoftheCompanyinconnection withnewhiresorinconnectionwithpromotionsbasedonjobperformanceorworkplacerequirements, andineachcase,intheordinarycourseofbusiness,orwhichtogetherwithsuchotherincreasesshall notmateriallyincreaseaggregatecompensationexpenseinanysalarygradeforemployeesofthe CompanyoranyofitsSubsidiaries,(D)enterinto,terminate,accelerateanyrightsorbenefitsunder, amendorrenewanycollectivebargainingagreementor(E)hireorpromoteanyemployeetoan executiveofficerpositionoftheCompany,BGEortheNewEnergyBusinesswithoutconsultingwith

Parent;(viii)shallnot,andshallnotpermitanyofitsSubsidiariesto,materiallychangefinancialaccountingpoliciesorproceduresoranyofitsmethodsofreportingincome,deductionsorother materialitemsforfinancialaccountingpurposes,exceptasrequiredbyGAAP,SECruleorpolicyor applicableLaw(whichshallnotrestrictanynormalpurchase/normalsaledesignationordesignationof hedgeaccountingrelationshipsforderivativesintheordinarycourseofbusiness,ineachcasein accordancewithGAAP);(ix)shallnot(A)adoptanyamendmentstotheOrganizationalDocumentsoftheCompany,(B)permitBGEtoadoptanyamendmentstotheOrganizationalDocumentsofBGE,(C)permitCENG A-46 toadoptanyamendmentstotheOrganizationalDocumentsofCENGand(D)permitanyofitsotherSubsidiariestoadoptanyamendmentstotheirrespectiveOrganizationalDocumentsinanymaterial

respect;(x)exceptfortransactionsamongtheCompanyanditswholly-ownedSubsidiariesoramongtheCompanyswholly-ownedSubsidiaries,shallnot,andshallnotpermitanyofitsSubsidiariesto,issue, sell,pledge,disposeoforencumber,orauthorizetheissuance,sale,pledge,dispositionor encumbranceof,anysharesofitscapitalstockorotherownershipinterestintheCompanyoranyofits Subsidiariesoranysecuritiesconvertibleintoorexchangeableforanysuchsharesorownership interest,oranyrights,warrantsoroptionstoacquireanysuchsharesofcapitalstock,ownership interestorconvertibleorexchangeablesecuritiesortakeanyactiontocausetobeexercisableany otherwiseunexercisableoptionunderanyexistingstockoptionplan(exceptasotherwiseprovidedby thetermsofthisAgreementortheexpresstermsofanyunexercisableorunexercisedoptionsor warrantsoutstandingonthedatehereof),otherthan(A)issuancesofsharesofCompanyCommon StockunderanyretirementplanorshareholderinvestmentplanoftheCompanyineffectasofthedate hereoforinrespectofanyexerciseofCompanyStockOptionsandsettlementofanyCompanyRSUs outstandingonthedatehereoforasmaybegrantedafterthedatehereofaspermittedunderthisSection6.1(b)and(B)thesaleorwithholdingofsharesofCompanyCommonStockorthevesting and/orpaymentofRestrictedSharesorCompanyRSUspursuanttotheexerciseofoptionstopurchase CompanyCommonStockifnecessarytoeffectuateadirectionuponexercise,vestingand/orpayment, asapplicable,ofanysuchawardforthepaymentofanyapplicableexercisepriceorrequired withholdingofTaxes,ineachcaseasineffectasofthedatehereof;(xi)exceptfor(A)agreementsorarrangementsorborrowingsincurredunderexistingcreditfacilitiesorcommercialpaperprogramsintheordinarycourseofbusiness,(B)refinancingofexisting indebtednessatornearmaturity,(C)financingforanyutilitySubsidiaryoftheCompanyor (D)financingacquisitionscontemplatedbyclause(E)ofSection6.1(b)(iv)solongassuchacquisition-relatedfinancingdoesnotresultintheindebtednessoftheCompanybeingdowngradedbyStandard&

PoorsorMoodys,shallnot,andshallnotpermitanyofitsSubsidiariesto,incuranyindebtednessfor borrowedmoneyorguaranteeanysuchindebtednessofanotherPersonorissueorsellanydebt securitiesorwarrantsorotherrightstoacquireanydebtsecurities,guaranteeanydebtsecuritiesof anotherPersonorenterintoanykeepwellorotheragreementtomaintainanyfinancialconditionof anotherPerson;(xii)exceptfortransactionsamongtheCompanyanditswholly-ownedSubsidiariesoramongtheCompanyswholly-ownedSubsidiariesorrequiredbyexistingContractsorsalesofinventories,fuel, electricity,emissionsallowances,othercommoditiesorDerivativeProducts,othertradingormarketing activities,orsalesofobsoleteorworthlessassets,eachintheordinarycourseoftheCompanys business,shallnotsell,lease,license,transfer,exchangeorswap,mortgage(includingsecuritizations) orotherwisedisposeofanymaterialportionofitsmaterialpropertiesorassets,includingtheEquityInterestsofSubsidiariesorCompanyJointVentures;providedthattheCompanyshallnotsell,transfer orotherwisedisposeofanyEquityInterestinCENG;(xiii)shallnotenterintoanyContractsofthetypereferredtoinclauses(i)or(ii)ofSection4.21(a);(xiv)shallnot,andshallnotpermitanyofitsSubsidiaries,tomodifyoramendanyContractifthenewobligationcreatedbysuchmodificationoramendment,byitself,wouldconstituteaContractofthetypereferredtoinclauses(i)or(ii)ofSection4.21(a);(xv)shallnot,andshallnotpermitanyofitsSubsidiariestoenterintoanyoutsourcingContracts; (xvi)shallnotamendorterminatetheCompanyTradingPolicies,exceptforamendmentsthatdonotincreasetheoverallnetrisktotheCompanyanditsSubsidiariestakenasawholeinanymaterial respect,ortakeanyactionthatmateriallyviolatestheCompanyTradingPoliciesorthatcausestheNet A-47 CompanyPositiontobemateriallyoutsidetheriskparameterssetforthintheCompanyTradingPolicies;providedthattheCompanyshallnotamendanyVaRlimitundertheCompanyTrading Policies;(xvii)exceptasrequiredbyachangeinLaw,shallnotmake,changeorrevokeanymaterialTaxelection,fileanymaterialamendedTaxReturn,settleorcompromiseanymaterialTaxliabilityor refund,forgoanymaterialTaxrefund,enterintoanyclosingagreementorprivateletterrulingorsettle anymaterialclaimorassessmentrelatingtoTaxesorconsenttoanymaterialclaimorassessment relatingtoTaxesoranywaiverofthestatuteoflimitationsforanysuchclaimorassessment,ineach case,ifsuchactioncouldhaveanadverseeffectthat,individuallyorintheaggregate,ismaterialtothe CompanyoritsSubsidiaries;(xviii)waive,release,assign,settleorcompromiseanyclaim,actionorproceeding,otherthanwaivers,releases,assignments,settlementsorcompromisesthat(A)involvethepaymentofmonetary damagesequaltoorlesserthantheamountsspecificallyreservedwithrespecttheretoonthebalance sheetasofDecember31,2010includedintheCompanySECDocumentsorthatdonotexceed$100 millionindividuallyorintheaggregateinany12-monthperiodand(B)ifinvolvinganynon-monetary outcome,willnothaveamaterialeffectonthecontinuingoperationsoftheCompany;(xix)shallnotpermitBGEtopropose,makeorimplementanynew,oranychangestoanyofitsexisting,ratesorcharges,ratestructure,standardsofserviceorregulatoryaccountingorexecuteany agreementwithrespecttheretoexcept(A)pursuanttoroutinefilingsmadeintheordinarycourseofbusiness,providedthatageneralratecasefilingorafilingtoimplementanewsurchargeortracker(as opposedtoafilingtoadjustratesunderanexistingsurchargeortracker)willnotbeconsideredtobein theordinarycourseofbusinessor(B)asrequiredbyaGovernmentalEntityofcompetentjurisdiction;(xx)shallnot,andshallnotpermitanyofitsSubsidiariestoretire,committoretireorotherwiseindicateanintentiontoretireanygenerationfacilityoftheCompanyoranyofitsSubsidiaries;(xxi)shallnot,andshallnotpermitanyofitsSubsidiariestoagreeorconsenttoanymaterialagreementsormaterialmodificationsofexistingagreementswithanyGovernmentalEntityinrespect ofoperationsoftheCompanyanditsSubsidiariesexcept(A)asrequiredbyLaw,(B)intheordinary courseofbusinessor(C)torenewCompanyPermits;(xxii)shallnot,andshallnotpermitanyofitsSubsidiariesto,knowinglyorintentionallytakeanyactionthatwouldreasonablybeexpectedtopreventormateriallydelaytheconsummationofthe transactionscontemplatedbythisAgreement;and(xxiii)shallnot,andshallnotpermitanyofitsSubsidiariesto,authorize,resolve,oragreeorcommit,inwritingorotherwise,totakeanyoftheforegoingactions.(c)TheCompanyshallusecommerciallyreasonableeffortstotheextentexpresslypermittedbyContractsorOrganizationalDocumentstowhichtheCompanyanditsSubsidiariesarepartytocausetheCompanyJointVenturestocomplywiththisSection6.1unlessParentotherwiseconsents(whichconsentshallnotbeunreasonablywithheld,conditionedordelayed);provided,however,thattheforegoingshallnot requiretheCompanyoranyofitsSubsidiariestotakeanyactiontorequireanyCompanyJointVentureto(i)complywithSection6.1(b)(i),(ii)breachanyContracttowhichsuchCompanyJointVentureisaparty, (iii)imposeanyrestrictioninconnectionwith(A)anymatterrelatingtosafety,reliabilityofserviceor securityofthebusinessoroperationsoftheapplicableCompanyJointVentureor(B)anyactionor undertakingcontemplatedbyCENGsannualbudgetfor2011or2012orcapitalexpenditureplanfor2011 or2012.Section6.2ConductofBusinessbyParent.(a)FromandafterthedatehereofandpriortotheearlieroftheEffectiveTimeortheTerminationDate,ifany,andexcept(i)asmayberequiredbyapplicableLaworatthedirectionofanyindependent A-48 systemoperator,regionaltransmissionorganization,orcontrolareaoperator,(ii)asmaybeagreedinwritingbytheCompany(whichconsentshallnotbeunreasonablywithheld,delayedorconditioned),(iii)asmaybecontemplatedorrequiredbythisAgreement,or(iv)assetforthinSection6.2oftheParent DisclosureSchedule,ParentcovenantsandagreeswiththeCompanythatthebusinessofParentandits Subsidiariesshallbeconductedin,andthatsuchentitiesshallnottakeanyactionexceptin,theordinary courseofbusinessandshallusetheirreasonablebesteffortstopreserveintacttheirpresentlinesof business,maintaintheirrightsandfranchisesandpreservesatisfactoryrelationshipswithGovernmental Entities,employees,customersandsuppliers.(b)ExceptasmaybepermittedpursuanttoSections6.2(a)(i)(iv),ParentagreeswiththeCompany,onbehalfofitselfanditsSubsidiaries,thatbetweenthedatehereofandtheEffectiveTimewithouttheprior writtenconsentoftheCompany(whichconsentshallnotbeunreasonablywithheld,delayedor conditioned),Parent:(i)shallnot,andshallnotpermitanyofitsSubsidiariesto,declare,setasideorpayanydividendsonormakeanydistributionwithrespecttoitsoutstandingsharesofcapitalstock(whetherincash,assets,stockorothersecuritiesofParentoritsSubsidiaries),except(A)subjecttoSection6.20,the declarationandpaymentofquarterlycashdividendswithrespecttotheParentCommonStocknotto exceedthecurrentdividendrate,withrecorddatesandpaymentdatesconsistentwithParentspast dividendpractice,(B)thedeclarationandpaymentofdividendsfromaSubsidiaryofParenttoParent ortoanotherwholly-ownedSubsidiaryofParentand(C)thepaymentbyPECOoftheregular quarterlydividendsonits$4.68SeriesCumulativePreferredStock,$4.40SeriesCumulativePreferred Stock,$4.30SeriesCumulativePreferredStockand$3.80SeriesCumulativePreferredStock,ineach casenottoexceedthecurrentdividendrate,withrecorddatesandpaymentdatesconsistentwith PECOspastdividendpractice;(ii)shallnot,andshallnotpermitanyofitsSubsidiariesto,adoptaplanofcompleteorpartialliquidation,dissolution,merger,consolidation,restructuring,recapitalizationorotherreorganization (exceptformergersandconsolidationsinconnectionwithtransactionspermittedpursuanttoSection6.2(b)(iii)orSection6.5(e)),otherthananymergers,consolidations,restructuringsor reorganizationsamongParentanditsSubsidiariesoramongParentsSubsidiariesintheordinary courseandthatdonotadverselyaffectParent;(iii)shallnot,andshallnotpermitanyofitsSubsidiariestomakeanyacquisitionofanyotherPersonorbusinessormakeanyloanoradvancetoorleasefromanyotherPersonexcept(A)inthe ordinarycourseofbusiness,(B)ascontemplatedbyParentsannualbudgetfor2011andcapital expenditureplanfor2012,ineachcaseasmadeavailabletotheCompanypriortothedateofthis Agreement,(C)asrequiredbyexistingContracts,(D)asmadeinconnectionwithanytransaction solelybetweenParentandawholly-ownedSubsidiaryofParentorbetweenwholly-ownedSubsidiaries ofParentotherthanthroughtherepurchaseofequityawardsintheordinarycourseofbusiness, (F)loansoradvancestoorleasesfromanyotherPersonswithavalueoflessthan$400millioninthe aggregate,or(G)subjecttoSection6.2(b)(vii),acquisitionsofotherPersonsorbusinessesor investmentsorcapitalcontributionsinotherPersonswithavalueoflessthan$2.0billioninthe aggregatethatdonotrequiretheapprovalofthestockholdersofParent;(iv)exceptfortransactionsamongParentanditswholly-ownedSubsidiariesoramongParentswholly-ownedSubsidiaries,shallnot,andshallnotpermitanyofitsSubsidiariesto,(A)split,combine orreclassifyanyofitscapitalstockorissueorauthorizeorproposetheissuanceofanyothersecurities inrespectof,inlieuoforinsubstitutionforsharesofitscapitalstockor(B)purchase,redeemor otherwiseacquireanysharesofitscapitalstockoranyrights,warrantsoroptionstoacquireanysuch

shares;(v)shallnot,andshallnotpermitanyofitsSubsidiariesto,materiallyincreasethecompensationexpensesofParent,exceptasrequiredbyexistingwrittenagreementsorParentBenefitPlansand exceptformeritandcostoflivingincreasesconsistentwithpastpractices; A-49 (vi)shallnot,andshallnotpermitanyofitsSubsidiariesto,materiallychangefinancialaccountingpoliciesorproceduresoranyofitsmethodsofreportingincome,deductionsorother materialitemsforfinancialaccountingpurposes,exceptasrequiredbyGAAP,SECruleorpolicyor applicableLaw(whichshallnotrestrictanynormalpurchase/normalsaledesignationordesignationof hedgeaccountingrelationshipsforderivativesintheordinarycourseofbusiness,ineachcasein accordancewithGAAP);(vii)exceptfortransactionsamongParentanditswholly-ownedSubsidiariesoramongParentswholly-ownedSubsidiaries,shallnot,andshallnotpermitanyofitsSubsidiariesto,issue,sell,pledge, disposeoforencumber,orauthorizetheissuance,sale,pledge,dispositionorencumbranceof,any sharesofitscapitalstockorotherownershipinterestinParentoranyofitsSubsidiariesorany securitiesconvertibleintoorexchangeableforanysuchsharesorownershipinterest,oranyrights, warrantsoroptionstoacquireanysuchsharesofcapitalstock,ownershipinterestorconvertibleor exchangeablesecuritiesortakeanyactiontocausetobeexercisableanyotherwiseunexercisable optionunderanyexistingstockoptionplan(exceptasotherwiseprovidedbythetermsofthis Agreementortheexpresstermsofanyunexercisableorunexercisedoptionsorwarrantsoutstandingon thedatehereof),otherthan(A)issuancesofsharesofParentCommonStockinrespectofanyexercise ofstockoptionsgrantedunderanyParentStockOptionandsettlementofanyrestrictedshareunitsor phantomshareswithrespecttosharesofParentCommonStockunderaParentIncentivePlan(collectively,theParentRSUs)outstandingonthedatehereoforasmaybegrantedafterthedatehereofaspermittedunderthisSection6.2(b),(B)thesaleofsharesofParentCommonStockpursuant totheexerciseofoptionstopurchaseParentCommonStockifnecessarytoeffectuateanoptionee directionuponexerciseorforwithholdingofTaxesand(C)thegrantofequitycompensationawardsat times,inamounts,ontermsandconditionsandotherwiseintheordinarycourseofbusiness;(viii)shallnotamendorterminatetheParentTradingPolicies,exceptforamendmentsthatdonotincreasetheoverallnetrisktoParentanditsSubsidiariestakenasawholeinanymaterialrespect,or takeanyactionthatmateriallyviolatestheParentTradingPoliciesorthatcausestheNetParent PositiontobemateriallyoutsidetheriskparameterssetforthintheParentTradingPolicies;(ix)exceptasrequiredbyachangeinLaw,shallnotmake,changeorrevokeanymaterialTaxelection,fileanymaterialamendedTaxReturn,settleorcompromiseanymaterialTaxliabilityor refund,forgoanymaterialTaxrefund,enterintoanyclosingagreementorprivateletterrulingorsettle anymaterialclaimorassessmentrelatingtoTaxesorconsenttoanymaterialclaimorassessment relatingtoTaxesoranywaiverofthestatuteoflimitationsforanysuchclaimorassessment,ineach case,ifsuchactioncouldhaveanadverseeffectthat,individuallyorintheaggregate,ismaterialto ParentoritsSubsidiaries;(x)shallnot,andshallnotpermitanyofitsSubsidiariestoretire,committoretireorotherwiseindicateanintentiontoretireanynucleargenerationfacilityofParentoranyofitsSubsidiaries;(xi)shallnot,andshallnotpermitanyofitsSubsidiariesto,knowinglyorintentionallytakeanyactionthatwouldreasonablybeexpectedtopreventormateriallydelaytheconsummationofthe transactionscontemplatedbythisAgreement;and(xii)shallnot,andshallnotpermitanyofitsSubsidiariesto,authorize,resolve,agreeorcommit,inwritingorotherwise,totakeanyoftheforegoingactions.Section6.3Investigation.(a)EachoftheCompanyandParentshallaffordtheotherpartyand(i)theofficersandemployeesand(ii)theaccountants,consultants,legalcounsel,financialadvisorsandagentsandotherrepresentatives(suchPersonsdescribedinthisclause(ii),collectively,Representatives)ofsuchotherpartyreasonableaccess duringnormalbusinesshours,throughouttheperiodpriortotheearlieroftheEffectiveTimeandthe TerminationDate,toitsanditsSubsidiariespersonnelandproperties,Contracts,commitments,booksand A-50 recordsandanyreport,scheduleorotherdocumentfiledorreceivedbyitpursuanttotherequirementsofapplicableLawsandwithsuchadditionalaccounting,financing,operating,environmentalandotherdata andinformationregardingtheCompany,itsSubsidiariesandtotheextentpermitted,theCompanyJoint Ventures,asParentmayreasonablyrequest,andParentanditsSubsidiaries,astheCompanymay reasonablyrequest,asthecasemaybe.Notwithstandingtheforegoing,neithertheCompanynorParent shallberequiredtoaffordsuchaccessifitwouldunreasonablydisrupttheoperationsofsuchpartyoranyof itsSubsidiaries,wouldbereasonablylikelytoresultinaviolationofanyagreementtowhichsuchpartyoranyofitsSubsidiariesisaparty(providedthattheCompanyorParent,asthecasemaybe,hasusedits reasonablebesteffortstofindanalternativewaytoprovidetheaccessorinformationcontemplatedbythisSection6.3),wouldbereasonablylikelytoresultinariskofalossofprivilegetosuchpartyoranyofits SubsidiariesorwouldbereasonablylikelytoresultinaviolationofanyapplicableLaw.Theforegoing notwithstanding,neithertheCompanynorParent,noranyoftheirrespectiveofficers,employeesor Representatives,shallbepermittedtoperformanyonsiteprocedures(includinganonsiteenvironmental study)withrespecttoanypropertyoftheotherpartyoranyoftheotherpartysSubsidiarieswithoutthe otherpartyspriorwrittenconsent(whichconsentshallnotbeunreasonablywithheld,delayedor

conditioned).(b)FromandafterthedatehereofandpriortotheearlieroftheEffectiveTimeortheTerminationDateandexceptasisprohibitedbyLaw,theCompanyshallprovidetocertainpersonnelwithintheRisk ManagementGroupofParentweeklyreportsthatprovideaggregatedCompanyriskpositionsandother marketriskandcollateralmanagementmetricsoftheCompany,includingactualVaRincomparisontoVaR limitsapprovedbytheBoardofDirectorsoftheCompany,associatedlimitbreachesandassociated remediationstrategies,andcreditlimitbreachesorexceptionsinexcessof$10million,andsuchother informationastheCompanydeemsreasonablyappropriate.ThereportsshallbedeemedtobeEvaluation MaterialundertheConfidentialityAgreement.TheformofthesereportsshallbeasagreedtobytheChief RiskOfficerofParentandtheChiefRiskOfficerofCompany.ParentshallensurethatpersonneloftheRisk ManagementGroupofParentshallnotprovidethereportsoranyinformation,summariesorotheranalyses includedinorderivedfromsuchreportstoanyPersonotherthanotherpersonnelwithintheRisk ManagementGroupofParentexceptasisrequiredbyLaw.(c)Thepartiesheretoherebyagreethatallinformationprovidedtothemortheirrespectiveofficers,directors,employeesorRepresentativesinconnectionwiththisAgreementandtheconsummationofthe transactionscontemplatedherebyshallbedeemedtobeEvaluationMaterial,assuchtermisusedin,and shallbetreatedinaccordancewith,theConfidentialityAgreement,datedasofJanuary7,2011,betweentheCompanyandParent(theConfidentialityAgreement),andtheJointDefenseandCommonInterest Agreement,datedasofJanuary7,2011,betweentheCompanyandParent(collectivelywiththeConfidentialityAgreement,theExistingAgreements).Section6.4Non-SolicitationbytheCompany.(a)TheCompanyagreesthatneitheritnoranySubsidiaryoftheCompany,noranyoftheirrespectiveofficers,directorsoremployees,shall,andthatitshalluseitsreasonablebesteffortstocauseitsandtheir respectiveRepresentativesnotto(andshallnotauthorizeorgivepermissiontoitsandtheirrespective Representativesto),directlyorindirectly:(i)solicit,initiate,seekorknowinglyencouragethemaking, submissionorannouncementofanyCompanyAcquisitionProposal,(ii)furnishanynonpublicinformation regardingtheCompanyoranyofitsSubsidiariestoanyPerson(otherthanParentorMergerSub)in connectionwithorinresponsetoaCompanyAcquisitionProposal,(iii)continueorotherwiseengageor participateinanydiscussionsornegotiationswithanyPerson(otherthanParentorMergerSub)with respecttoanyCompanyAcquisitionProposal,(iv)approve,endorseorrecommendanyCompany AcquisitionProposalexceptinconnectionwithaCompanyChangeofRecommendationpursuanttoSection6.4(e)or(v)exceptinconnectionwithaCompanyChangeofRecommendationpursuanttoSection6.4(e),enterintoanyletterofintent,arrangementorunderstandingrelatingtoanyCompanyAcquisitionTransaction(otherthanaconfidentialityagreementascontemplatedbythisSection6.4(a));

A-51 provided,however,thatthisSection6.4shallnotprohibit(A)theBoardofDirectorsoftheCompany,directlyorindirectlythroughanyofficer,employeeorRepresentativeoftheCompanyoranyofits Subsidiaries,priortoobtainingtheCompanyStockholderApproval,fromfurnishingnonpublicinformation regardingtheCompanyoranyofitsSubsidiariesto,orenteringintoorparticipatingindiscussionsor negotiationswith,anyPersoninresponsetoanunsolicited,bonafidewrittenCompanyAcquisitionProposalthattheBoardofDirectorsoftheCompanyconcludesingoodfaith,afterconsultationwithits financialadvisors,constitutesorcouldreasonablybeexpectedtoresultinaCompanySuperiorOfferif(1)suchCompanyAcquisitionProposaldidnotresultfromamaterialbreachofthisSection6.4,(2)priortheretotheCompanyhasgivenParentthenoticerequiredbySection6.4(b)and(3)theCompanyfurnishes anynonpublicinformationprovidedtothemakeroftheCompanyAcquisitionProposalonlypursuanttoa confidentialityagreementbetweentheCompanyandsuchPersoncontainingcustomarytermsand conditionssubstantiallysimilartothosecontainedintheConfidentialityAgreement;or(B)theCompany fromcomplyingwithRules14d-9and14e-2promulgatedundertheExchangeActwithregardtoany CompanyAcquisitionProposal(itbeingunderstoodthatanysuchdisclosurethatconstitutesaCompanyChangeofRecommendationshallbesubjecttotheprovisionsofthisSection6.4withrespectthereto).(b)TheCompanyshallpromptly,andinnoeventlaterthantwenty-four(24)hours,afteritsreceiptofanyCompanyAcquisitionProposal,oranyrequestfornonpublicinformationrelatingtotheCompanyor anyofitsSubsidiariesinconnectionwithaCompanyAcquisitionProposal,adviseParentorallyandin writingofsuchCompanyAcquisitionProposalorrequest(includingprovidingtheidentityofthePerson makingorsubmittingsuchCompanyAcquisitionProposalorrequest,and,(i)ifitisinwriting,acopyof suchCompanyAcquisitionProposalandanyrelateddraftagreementsor(ii)ifitisoral,areasonably detailedsummarythereofthatismadeorsubmittedbyanyPersonduringtheperiodbetweenthedatehereof andtheClosing).TheCompanyshallkeepParentinformedonapromptbasiswithrespecttoanychangeto thematerialtermsofanysuchCompanyAcquisitionProposal(and,inthecaseofachangeoftheamountof considerationbeingoffered,innoeventlaterthantwenty-four(24)hoursfollowinganysuchchange),

includingprovidingParentwithacopyofanydraftagreementsandmodificationsthereof.(c)UpontheexecutionofthisAgreement,theCompanyshall,andshallcauseitsSubsidiariesanditsandtheirrespectiveofficers,directorsandemployees,andshalluseitsreasonablebesteffortstocauseits andtheirrespectiveRepresentativesto,immediatelyceaseandterminateanyexistingactivities,discussions ornegotiationsbetweentheCompanyoranyofitsSubsidiariesoranyoftheirrespectiveofficers,directors, employeesorRepresentativesandanyPerson(otherthanParent)thatrelatetoanyCompanyAcquisition Proposalandshallusereasonablebesteffortstoobtainthepromptreturnordestructionofanyconfidential informationpreviouslyfurnishedtosuchPersonswithintwelve(12)monthsofthedatehereof.(d)ExceptasotherwiseprovidedinSection6.4(e)orSection6.4(f),noneoftheCompany,theBoardofDirectorsoftheCompanynoranycommitteethereofmay(i)withhold,withdraw,qualifyormodify,or publiclyproposetowithhold,withdraw,qualifyormodify,theCompanyRecommendationinamanner adversetoParentormakeanyotherstatementinconsistentwiththeCompanyRecommendation(anyoftheforegoing,aCompanyChangeofRecommendation);or(ii)enterintoawrittendefinitiveagreement providingforaCompanyAcquisitionTransaction.(e)TheBoardofDirectorsoftheCompanymayatanytimepriortoreceiptoftheCompanyStockholderApproval,(A)effectaCompanyChangeofRecommendationinrespectofaCompanyAcquisitionProposal;and(B)terminatethisAgreementpursuanttoSection8.1(c)(iii)inordertoenterinto awrittendefinitiveagreementprovidingforaCompanyAcquisitionTransaction,if(andonlyif):(i)a CompanyAcquisitionProposalismadetotheCompanybyathirdparty,andsuchofferisnotwithdrawn; (ii)theCompanysBoardofDirectorsdeterminesingoodfaithafterconsultationwithitsfinancialadvisors thatsuchofferconstitutesaCompanySuperiorOffer;(iii)followingconsultationwithoutsidelegalcounsel, theCompanysBoardofDirectorsdeterminesthatthefailuretotakesuchactionwouldbereasonablylikely toresultinabreachofitsfiduciarydutiesunderapplicableLaws;(iv)theCompanyprovidesParentfive (5)BusinessDayspriorwrittennoticeofitsintentiontotakesuchaction,whichnoticeshallincludetheinformationwithrespecttosuchCompanySuperiorOfferthatisspecifiedinSection6.4(b)(itbeing A-52 understoodthatanymaterialrevisionoramendmenttothetermsofsuchCompanySuperiorOffershallrequireanewnoticeand,insuchcase,allreferencestofive(5)BusinessDaysinthisSection6.4(e)shallbedeemedtobethree(3)BusinessDays);and(v)attheendofthefive(5)BusinessDayperioddescribedin clause(iv),theBoardofDirectorsoftheCompanyagainmakesthedeterminationingoodfaithafter consultationwithitsoutsidelegalcounselandfinancialadvisors(afternegotiatingingoodfaithwithParent anditsRepresentatives,ifrequestedbyParent,duringsuchfive(5)BusinessDayperiodregardingany adjustmentsormodificationstothetermsofthisAgreementproposedbyParentandtakingintoaccountany suchadjustmentsormodifications)thattheCompanyAcquisitionProposalcontinuestobeaCompany SuperiorOfferandthatthefailuretotakesuchactionwouldbereasonablylikelytoresultinabreachofits fiduciarydutiesunderapplicableLaws.(f)TheBoardofDirectorsoftheCompanymay,atanytimepriortoreceiptoftheCompanyStockholderApproval,effectaCompanyChangeofRecommendationinresponsetoanevent,change, effect,development,conditionoroccurrencethataffectsorwouldbereasonablylikelytoaffect(x)the business,financialconditionorcontinuingresultsofoperationsoftheCompanyanditsSubsidiaries,taken asawhole,or(y)thestockholdersoftheCompany(includingthebenefitsoftheMergertotheCompanyor thestockholdersoftheCompany),ineithercasethatis(1)material,individuallyorintheaggregatewith anyothersuchevents,changes,effects,developments,conditionsoroccurrences,(2)doesnotinvolveor relatetoaCompanyAcquisitionProposaland(3)isnotknown(orthematerialconsequencesofwhichare notknownorunderstood)asofthedatehereofif(andonlyif):(i)followingconsultationwithoutsidelegal counsel,theCompanysBoardofDirectorsdeterminesthatthefailuretotakesuchactionwouldbe reasonablylikelytoresultinabreachofitsfiduciarydutiesunderapplicableLaws;(ii)theCompany providesParentfive(5)BusinessDayspriorwrittennoticeofitsintentiontotakesuchaction,whichnotice shallincludetheinformationwithrespecttoanysuchevents,changes,effects,developments,conditionsor occurrences;and(iii)attheendofthefive(5)BusinessDayperioddescribedinclause(ii),theBoardof DirectorsoftheCompanyagainmakesthedeterminationingoodfaithafterconsultationwithitsoutside legalcounselandfinancialadvisors(afternegotiatingingoodfaithwithParentanditsRepresentatives,if requestedbyParent,duringsuchfive(5)BusinessDayperiodregardinganyadjustmentsormodificationsto thetermsofthisAgreementproposedbyParentandtakingintoaccountanysuchadjustmentsor modifications)thatthefailuretotakesuchactionwouldbereasonablylikelytoresultinabreachofits fiduciarydutiesunderapplicableLaws.(g)NotwithstandingaCompanyChangeofRecommendationpursuanttoSection6.4(f),theCompanyshallneverthelesssubmitthisAgreementtothestockholdersoftheCompanyforthepurposeofobtaining theCompanyStockholderApprovalattheCompanyStockholdersMeetingandnothingcontainedherein shallbedeemedtorelievetheCompanyofsuchobligation,unlessthisAgreementshallhavebeen terminatedinaccordancewithitstermspriortotheCompanyStockholdersMeeting.(h)ThepartiesagreethataCompanyChangeofRecommendationeffectedinaccordancewithSection6.4(e)orSection6.4(f)shallnotinandofitselfviolateanyotherprovisionofthisAgreement.(i)DuringtheperiodfromthedateofthisAgreementthroughtheEffectiveTime,neithertheCompanynoranyofitsSubsidiariesshallterminate,amend,modifyorwaiveanyprovisionofanyconfidentiality agreementtowhichitisapartyrelatingtoaproposedbusinesscombinationinvolvingtheCompanyorany standstillagreementtowhichitisapartyunlesstheBoardofDirectorsoftheCompanydeterminesingood faith,afterconsultationwithoutsidelegalcounsel,thatfailuretotakesuchactionwouldbereasonably likelytoresultinabreachofitsfiduciarydutiesunderapplicableLaws.Duringsuchperiod,theCompany oritsSubsidiaries,asthecasemaybe,shallenforce,tothefullestextentpermittedunderapplicableLaw, theprovisionsofanysuchagreement,includingbyobtaininginjunctionstopreventanybreachesofsuch agreementsandtoenforcespecificallythetermsandprovisionsthereofineachcaseexcepttotheextentthat theBoardofDirectorsoftheCompanydeterminesingoodfaith,afterconsultationwithoutsidelegal counsel,thattakingsuchactionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunder applicableLaws.

A-53 Section6.5Non-SolicitationbyParent.(a)ParentagreesthatneitheritnoranySubsidiaryofParent,noranyoftheirrespectiveofficers,directorsoremployees,shall,andthatitshalluseitsreasonablebesteffortstocauseitsandtheirrespective Representativesnotto(andshallnotauthorizeorgivepermissiontoitsandtheirrespectiveRepresentatives to),directlyorindirectly:(i)solicit,initiate,seekorknowinglyencouragethemaking,submissionor announcementofanyParentAcquisitionProposal,(ii)furnishanynonpublicinformationregardingParent oranyofitsSubsidiariestoanyPerson(otherthantheCompany)inconnectionwithorinresponsetoa ParentAcquisitionProposal,(iii)continueorotherwiseengageorparticipateinanydiscussionsor negotiationswithanyPerson(otherthantheCompany)withrespecttoanyParentAcquisitionProposal,(iv)exceptinconnectionwithaParentChangeofRecommendationpursuanttoSection6.5(e),approve, endorseorrecommendanyParentAcquisitionProposalor(v)exceptinconnectionwithaParentChangeofRecommendationpursuanttoSection6.5(e),enterintoanyletterofintent,arrangementorunderstanding relatingtoanyParentAcquisitionTransaction(otherthanaconfidentialityagreementascontemplatedbythisSection6.5(a));provided,however,thatthisSection6.5shallnotprohibit(A)theBoardofDirectorsof Parent,directlyorindirectlythroughanyofficer,employeeorRepresentativeofParentoranyofits Subsidiaries,priortoobtainingtheParentStockholderApproval,fromfurnishingnonpublicinformation regardingParentoranyofitsSubsidiariesto,orenteringintoorparticipatingindiscussionsornegotiations with,anyPersoninresponsetoanunsolicited,bonafidewrittenParentAcquisitionProposalthattheBoardofDirectorsofParentconcludesingoodfaith,afterconsultationwithitsfinancialadvisors,constitutesor couldreasonablybeexpectedtoresultinaParentSuperiorOfferif(1)suchParentAcquisitionProposaldidnotresultfromamaterialbreachofthisSection6.5,(2)priortheretoParenthasgiventheCompanythenoticerequiredbySection6.5(b)and(3)Parentfurnishesanynonpublicinformationprovidedtothemaker oftheParentAcquisitionProposalonlypursuanttoaconfidentialityagreementbetweenParentandsuch Personcontainingcustomarytermsandconditionssubstantiallysimilartothosecontainedinthe ConfidentialityAgreement;or(B)ParentfromcomplyingwithRules14d-9and14e-2promulgatedunder theExchangeActwithregardtoanyParentAcquisitionProposal(itbeingunderstoodthatanysuch disclosurethatconstitutesaParentChangeofRecommendationshallbesubjecttotheprovisionsofthisSection6.5withrespectthereto).(b)Parentshallpromptly,andinnoeventlaterthantwenty-four(24)hours,afteritsreceiptofanyParentAcquisitionProposal,oranyrequestfornonpublicinformationrelatingtoParentoranyofits SubsidiariesinconnectionwithaParentAcquisitionProposal,advisetheCompanyorallyandinwritingof suchParentAcquisitionProposalorrequest(includingprovidingtheidentityofthePersonmakingor submittingsuchParentAcquisitionProposalorrequest,and,(i)ifitisinwriting,acopyofsuchParent AcquisitionProposalandanyrelateddraftagreementsor(ii)ifitisoral,areasonablydetailedsummary thereofthatismadeorsubmittedbyanyPersonduringtheperiodbetweenthedatehereofandtheClosing).

ParentshallkeeptheCompanyinformedonapromptbasiswithrespecttoanychangetothematerialterms ofanysuchParentAcquisitionProposal(and,inthecaseofachangeoftheamountofconsiderationbeing offered,innoeventlaterthantwenty-four(24)hoursfollowinganysuchchange),includingprovidingthe Companywithacopyofanydraftagreementsandmodificationsthereof.(c)UpontheexecutionofthisAgreement,Parentshall,andshallcauseitsSubsidiariesanditsandtheirrespectiveofficers,directorsandemployees,andshalluseitsreasonablebesteffortstocauseitsandtheir respectiveRepresentativesto,immediatelyceaseandterminateanyexistingactivities,discussionsor negotiationsbetweenParentoranyofitsSubsidiariesoranyoftheirrespectiveofficers,directors, employeesorRepresentativesandanyPerson(otherthantheCompany)thatrelatetoanyParentAcquisition Proposalandshallusereasonablebesteffortstoobtainthepromptreturnordestructionofanyconfidential informationpreviouslyfurnishedtosuchPersonswithintwelve(12)monthsofthedatehereof.(d)ExceptasotherwiseprovidedinSection6.5(e)orSection6.5(f),noneoftheParent,theBoardofDirectorsofParentnoranycommitteethereofmay(i)withhold,withdraw,qualifyormodify,orpublicly proposetowithhold,withdraw,qualifyormodify,theParentRecommendationinamanneradversetothe CompanyormakeanyotherstatementinconsistentwiththeParentRecommendation(anyoftheforegoing, A-54 aParentChangeofRecommendation);or(ii)enterintoawrittendefinitiveagreementprovidingforaParentAcquisitionTransaction.(e)TheBoardofDirectorsofParentmayatanytimepriortoreceiptoftheParentStockholderApproval,(A)effectaParentChangeofRecommendationinrespectofaParentAcquisitionProposal;and(B)terminatethisAgreementpursuanttoSection8.1(d)(iii)inordertoenterintoawrittendefinitive agreementprovidingforaParentAcquisitionTransaction,if(andonlyif):(i)aParentAcquisitionProposal ismadetoParentbyathirdparty,andsuchofferisnotwithdrawn;(ii)ParentsBoardofDirectors determinesingoodfaithafterconsultationwithitsfinancialadvisorsthatsuchofferconstitutesaParent SuperiorOffer;(iii)followingconsultationwithoutsidelegalcounsel,ParentsBoardofDirectors determinesthatthefailuretotakesuchactionwouldbereasonablylikelytoresultinabreachofits fiduciarydutiesunderapplicableLaws;(iv)ParentprovidestheCompanyfive(5)BusinessDaysprior writtennoticeofitsintentiontotakesuchaction,whichnoticeshallincludetheinformationwithrespecttosuchParentSuperiorOfferthatisspecifiedinSection6.5(b)(itbeingunderstoodthatanymaterialrevision oramendmenttothetermsofsuchParentSuperiorOffershallrequireanewnoticeand,insuchcase,allreferencestofive(5)BusinessDaysinthisSection6.5(e)shallbedeemedtobethree(3)BusinessDays);

and(v)attheendofthefive(5)BusinessDayperioddescribedinclause(iv),theBoardofDirectorsof Parentagainmakesthedeterminationingoodfaithafterconsultationwithitsoutsidelegalcounseland financialadvisors(afternegotiatingingoodfaithwiththeCompanyanditsRepresentatives,ifrequestedby theCompany,duringsuchfive(5)BusinessDayperiodregardinganyadjustmentsormodificationstothe termsofthisAgreementproposedbytheCompanyandtakingintoaccountanysuchadjustmentsor modifications)thatParentAcquisitionProposalcontinuestobeaParentSuperiorOfferandthatthefailure totakesuchactionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunderapplicable

Laws.(f)TheBoardofDirectorsoftheCompanymay,atanytimepriortoreceiptoftheParentStockholderApproval,effectaParentChangeofRecommendationinresponsetoanevent,change,effect,development, conditionoroccurrencethataffectsorwouldbereasonablylikelytoaffect(x)thebusiness,financial conditionorcontinuingresultsofoperationsofParentanditsSubsidiaries,takenasawhole,or(y)the benefitsoftheMergertoParentorthestockholdersofParent,ineithercasethatis(1)material,individually orintheaggregatewithanyothersuchevents,changes,effects,developments,conditionsoroccurrences, (2)doesnotinvolveorrelatetoaParentAcquisitionProposaland(3)isnotknown(orthematerial consequencesofwhicharenotknownorunderstood)asofthedatehereofif(andonlyif):(i)following consultationwithoutsidelegalcounsel,ParentsBoardofDirectorsdeterminesthatthefailuretotakesuch actionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunderapplicableLaws; (ii)ParentprovidestheCompanyfive(5)BusinessDayspriorwrittennoticeofitsintentiontotakesuch action,whichnoticeshallincludetheinformationwithrespecttoanysuchevents,changes,effects, developments,conditionsoroccurrences;and(iii)attheendofthefive(5)BusinessDayperioddescribed inclause(ii),theBoardofDirectorsofParentagainmakesthedeterminationingoodfaithafterconsultation withitsoutsidelegalcounselandfinancialadvisors(afternegotiatingingoodfaithwiththeCompanyand itsRepresentatives,ifrequestedbytheCompany,duringsuchfive(5)BusinessDayperiodregardingany adjustmentsormodificationstothetermsofthisAgreementproposedbytheCompanyandtakinginto accountanysuchadjustmentsormodifications)thatthefailuretotakesuchactionwouldbereasonably likelytoresultinabreachofitsfiduciarydutiesunderapplicableLaws.(g)NotwithstandingaParentChangeofRecommendationpursuanttoSection6.5(f),ParentshallneverthelesssubmitthisAgreementtothestockholdersofParentforthepurposeofobtainingtheParent StockholderApprovalattheParentStockholdersMeetingandnothingcontainedhereinshallbedeemedto relieveParentofsuchobligation,unlessthisAgreementshallhavebeenterminatedinaccordancewithits termspriortotheParentStockholdersMeeting.(h)ThepartiesagreethataParentChangeofRecommendationeffectedinaccordancewithSection6.5(e)orSection6.5(f)shallnotinandofitselfviolateanyotherprovisionofthisAgreement.

A-55 (i)DuringtheperiodfromthedateofthisAgreementthroughtheEffectiveTime,neitherParentnoranyofitsSubsidiariesshallterminate,amend,modifyorwaiveanyprovisionofanyconfidentiality agreementtowhichitisapartyrelatingtoaproposedbusinesscombinationinvolvingParentorany standstillagreementtowhichitisapartyunlesstheBoardofDirectorsofParentdeterminesingoodfaith, afterconsultationwithoutsidelegalcounsel,thatfailuretotakesuchactionwouldbereasonablylikelyto resultinabreachofitsfiduciarydutiesunderapplicableLaws.Duringsuchperiod,Parentorits Subsidiaries,asthecasemaybe,shallenforce,tothefullestextentpermittedunderapplicableLaw,the provisionsofanysuchagreement,includingbyobtaininginjunctionstopreventanybreachesofsuch agreementsandtoenforcespecificallythetermsandprovisionsthereofineachcaseexcepttotheextentthat theBoardofDirectorsofParentdeterminesingoodfaith,afterconsultationwithoutsidelegalcounsel,that takingsuchactionwouldbereasonablylikelytoresultinabreachofitsfiduciarydutiesunderapplicable

Laws.Section6.6Filings;OtherActions.(a)AspromptlyasreasonablypracticablefollowingthedateofthisAgreement,ParentandtheCompanyshallprepareandfilewiththeSECtheJointProxyStatement/Prospectus,andParentshallprepareandfilewith theSECtheFormS-4,inwhichtheJointProxyStatement/ProspectuswillbeincludedasParentsprospectus.

EachofParentandtheCompanyshallusereasonablebesteffortstohavetheFormS-4declaredeffective undertheSecuritiesActaspromptlyasreasonablypracticableaftersuchfilingandtokeeptheFormS-4 effectiveaslongasnecessarytoconsummatetheMergerandtheothertransactionscontemplatedhereby.

ParentwillcausetheJointProxyStatement/ProspectustobemailedtoParentsstockholders,andthe CompanywillcausetheJointProxyStatement/ProspectustobemailedtotheCompanysstockholders,ineach caseaspromptlyasreasonablypracticableaftertheFormS-4isdeclaredeffectiveundertheSecuritiesAct.No filingof,oramendmentorsupplementto,orcorrespondencewiththeSECoritsstaffwithrespectto,theForm S-4ortheJointProxyStatement/ProspectuswillbemadebyParentortheCompany,asapplicable,without providingtheotherpartyareasonableopportunitytoreviewandcommentthereonandwithouttheconsentoftheotherparty,whichshallnotbeunreasonablywithheld,conditionedordelayed;provided,however,thatthe foregoingshallnotapplytoanyfilingswiththeSECdeemedtosupplementtheFormS-4oranydocument whichformsapartthereofthroughitsincorporationbyreferencetherein.ParentortheCompany,as applicable,willadvisetheotherpromptlyafteritreceivesoralorwrittennoticeofthetimewhentheFormS-4 hasbecomeeffectiveoranysupplementoramendmenthasbeenfiled,theissuanceofanystoporder,the suspensionofthequalificationoftheParentCommonStockissuableinconnectionwiththeMergerfor offeringorsaleinanyjurisdiction,oranyoralorwrittenrequestbytheSECforamendmentoftheJointProxy Statement/ProspectusortheFormS-4orcommentsthereonandresponsestheretoorrequestsbytheSECfor additionalinformation,andwillpromptlyprovidetheotherwithcopiesofanywrittencommunicationfromthe SECoranystatesecuritiescommission.If,atanytimepriortotheEffectiveTime,anyinformationrelatingto ParentortheCompany,oranyoftheirrespectiveAffiliates,officersordirectors,shouldbediscoveredby ParentortheCompanywhichshouldbesetforthinanamendmentorsupplementtoanyoftheFormS-4orthe JointProxyStatement/Prospectus,sothatanyofsuchdocumentswouldnotincludeanymisstatementofa materialfactoromittostateanymaterialfactnecessarytomakethestatementstherein,inlightofthe circumstancesunderwhichtheyweremade,notmisleading,thepartywhichdiscoverssuchinformationshall promptlynotifytheotherpartiesheretoandanappropriateamendmentorsupplementdescribingsuch informationshallbepromptlyfiledwiththeSECand,totheextentrequiredbyLaw,disseminatedtothe respectivestockholdersofParentandtheCompany.(b)Parentshall,aspromptlyaspracticableaftertheFormS-4hasbeendeclaredeffective,takeallactionnecessarytodulygivenoticeof,conveneandholdameetingofitsstockholderstobeheldaspromptlyaspracticabletoconsidertheStockIssuance(theParentStockholdersMeeting).TheBoardofDirectorsofParentshall,subjecttoSection6.5,maketheParentRecommendationtothestockholdersof ParentandincludetheParentRecommendationintheJointProxyStatement/Prospectus.Parentshall,subjecttoSection6.5,usereasonablebesteffortstosolicititsstockholderstoobtaintheParentStockholder

Approval.A-56 (c)TheCompanyshall,aspromptlyaspracticableaftertheFormS-4hasbeendeclaredeffective,takeallactionnecessarytodulygivenoticeof,conveneandholdameetingofitsstockholderstobeheldas promptlyaspracticabletoconsidertheapprovaloftheMergerandthetransactionscontemplatedherebyandsuchothermattersasmaybethenlegallyrequired(theCompanyStockholdersMeeting).TheBoardofDirectorsoftheCompanyshall,subjecttoSection6.4,maketheCompanyRecommendationtothe stockholdersoftheCompanyandincludetheCompanyRecommendationintheJointProxyStatement/Prospectus.TheCompanyshall,subjecttoSection6.4,usereasonablebesteffortstosolicititsstockholders toobtaintheCompanyStockholderApproval.Section6.7EmployeeMatters;ContinuingOperations.(a)ForaperiodofnotlessthanoneyearfollowingtheClosingDate,theSurvivingCorporationshallcauseeachindividualwhoisemployedbytheCompanyoranySubsidiaryoftheCompanyimmediately beforetheEffectiveTimewhosetermsandconditionsofemploymentarenotgovernedbyacollectivebargainingagreement(each,aContinuingEmployee)andwhoisbelowtheexecutiveofficerlevelasof theEffectiveTimetobeprovidedwithbasesalaryandwagesthatarenolessfavorabletothoseprovidedto suchContinuingEmployeesimmediatelypriortotheEffectiveTime,a2012targetannualincentivelevel thatisnotlessthansuchemployeestargetannualincentivelevelasineffectfor2011,andemployee benefits(otherthanequity-basedbenefitsandotherthanindividualemploymentagreements)thatare substantiallycomparableintheaggregatetothoseprovidedtosuchPersonsimmediatelypriortotheEffectiveTime,providedthat,ifmorefavorabletotheContinuingEmployees,anysuchemployeebenefits maybeprovidedonabasisthatsubstantiallycomparablebenefitsareprovidedtosimilarlysituated employeesofParentoritsSubsidiariesasineffectatsuchtime,andnothinghereinshallbeconstruedto requiretheSurvivingCorporationtocontinuetoemployanyContinuingEmployeeforanyspecificperiod.

Excepttotheextentnecessarytoavoidtheduplicationofbenefits,theSurvivingCorporationshall recognizetheserviceofeachContinuingEmployeepriortotheEffectiveTimeasifsuchservicehadbeen performedwithParentoritsAffiliates(i)forallpurposesundertheCompanyBenefitPlansmaintainedby theSurvivingCorporationoritsAffiliatesaftertheEffectiveTime(totheextentsuchplans,programs,or agreementsareprovidedtoContinuingEmployees),(ii)forpurposesofeligibilityandvestingunderany employeebenefitplansandprogramsoftheSurvivingCorporationoritsERISAAffiliatesotherthantheCompanyBenefitPlans(theSurvivingCorporationPlans)inwhichtheContinuingEmployeeparticipates aftertheEffectiveTimeand(iii)forbenefitaccrualpurposesunderanySurvivingCorporationPlanthatisa vacationorseveranceplaninwhichtheContinuingEmployeeparticipatesaftertheEffectiveTime.(b)WithrespecttoanywelfareplanmaintainedbytheSurvivingCorporationoritsAffiliatesinwhichContinuingEmployeesareeligibletoparticipateaftertheEffectiveTime,theSurvivingCorporationandits Affiliatesshall(i)waivealllimitationsastopreexistingconditionsandexclusionswithrespectto participationandcoveragerequirementsapplicabletosuchemployeestotheextentsuchconditionsand exclusionsweresatisfiedordidnotapplytosuchemployeesunderthewelfareplansmaintainedbythe CompanyoritsAffiliatespriortotheEffectiveTimeand(ii)provideeachContinuingEmployeewithcredit foranyco-paymentsanddeductiblespaidpriortotheEffectiveTimeinsatisfyinganyanalogousdeductible orout-of-pocketrequirementstotheextentapplicableunderanysuchplan.(c)Parentshall,orshallcauseitsAffiliatesto,continuetohonorallobligationsunderanycontracts,agreements,plansandcommitments(assuchmaybeamendedinaccordancewiththisAgreement)ofthe CompanyanditsSubsidiariesthatexistonthedateofthisAgreement(orasestablishedoramendedin accordancewithorpermittedbythisAgreement)thatapplytoanycurrentorformeremployee,orcurrentorformerdirector,oftheCompanyoranyofitsSubsidiaries;provided,however,thattheundertakingsset forthinthissentencearenotintendedtopreventParentanditsAffiliatesfromenforcingsuchcontracts, agreements,plansandcommitments(assuchmaybeamendedinaccordancewiththisAgreement)in accordancewiththeirrespectiveterms,includinganyreservedrighttoamend,modify,suspend,revokeor terminateanysuchcontract,agreement,planorcommitment.

A-57 (d)WithrespecttoeachindividualwhoisemployedbytheCompanyoranyofitsSubsidiariesimmediatelybeforetheEffectiveTimewhosetermsandconditionsofemploymentaregovernedbya collectivebargainingagreement,theSurvivingCompanyshallcontinuetohonorsuchcollectivebargaining agreement,throughitsexpiration,modificationorterminationinaccordancewithitstermsorapplicable

Law.(e)TheprovisionsofthisSection6.7aresolelyforthebenefitofthepartiestothisAgreement,andnocurrentorformerofficer,director,employeeorindependentcontractororanyotherPersonshallbeathird-partybeneficiarytothisAgreement.(f)FromandaftertheClosing,theExelonGenerationCompany,LLCswholesalemarketingunitheadquartersshallbein,and,aspromptlyascommerciallypracticable,thebusinessshallbemovedto, Baltimore,Maryland.FromandaftertheClosing,thebusinessandheadquartersofBaltimoreGasand ElectricCompany,thecombinedcompetitiveenergybusinesses(includingtheNewEnergyBusiness)and therenewablesheadquartersofParentandtheCompanywillbelocatedinBaltimore,Maryland.(g)FromandaftertheClosing,theCompanyTradingPolicieswillcontinuetoremainineffectfortheNewEnergyBusinessuntilsuchpoliciesareamendedbytheRiskOversightCommitteeoftheBoardof DirectorsofParentand/ortheBoardofDirectorsofParent,asappropriate.Section6.8RegulatoryApprovals;ReasonableBestEfforts.(a)SubjecttothetermsandconditionssetforthinthisAgreement,eachofthepartiesheretoshalluseitsreasonablebestefforts(subjectto,andinaccordancewith,applicableLaw)totakepromptly,orcauseto betaken,allactions,andtodopromptly,orcausetobedone,andtoassistandcooperatewiththeother partiesindoing,allthingsnecessary,properoradvisableunderapplicableLawstoconsummateandmake effectivetheMergerandtheothertransactionscontemplatedbythisAgreement,including:(i)theobtaining ofallnecessaryactionsornonactions,waivers,consentsandapprovals,includingtheCompanyApprovals andtheParentApprovals,fromGovernmentalEntitiesandthemakingofallnecessaryregistrationsand filingsandthetakingofallstepsasmaybenecessarytoobtainanapprovalorwaiverfrom,ortoavoidan actionorproceedingby,anyGovernmentalEntity,(ii)theobtainingofallnecessaryconsents,approvalsor waiversfromthirdparties,(iii)thedefendingofanylawsuitsorotherlegalproceedings,whetherjudicialor administrative,challengingthisAgreementortheconsummationofthetransactionscontemplatedbythis Agreement,and(iv)theexecutionanddeliveryofanyadditionalinstrumentsnecessarytoconsummatethetransactionscontemplatedbythisAgreement;provided,however,thatinnoeventshalltheCompanyor Parent,oranyoftheirrespectiveSubsidiaries,berequiredtotakeanyactionoractionsinconnectionwith anyregulatoryproceedingthatwouldconstituteaBurdensomeAction.(b)Subjecttothetermsandconditionshereinprovidedandwithoutlimitingtheforegoing,theCompanyandParentshall,unlesssubsequentlyagreedtootherwisebycounselfortheparties,(i)as promptlyasreasonablypracticableafterthedatehereof,maketheirrespectivefilingsandthereaftermake anyotherrequiredsubmissionsundertheHSRAct,(ii)usereasonablebesteffortstocooperatewitheach otherin(A)determiningwhetheranyfilingsarerequiredtobemadewith,orconsents,permits, authorizations,waiversorapprovalsarerequiredtobeobtainedfrom,anythirdpartiesorother GovernmentalEntitiesinconnectionwiththeexecutionanddeliveryofthisAgreementandthe consummationofthetransactionscontemplatedherebyand(B)timelymakingallsuchfilingsandtimely seekingallsuchconsents,permits,authorizationsorapprovals,(iii)usereasonablebesteffortstotake,or causetobetaken,allotheractionsanddo,orcausetobedone,allotherthingsnecessary,properor advisabletoconsummateandmakeeffectivethetransactionscontemplatedhereby,(iv)subjecttoapplicable legallimitations,keepeachotherapprisedofthestatusofmattersrelatingtothecompletionofthe transactionscontemplatedthereby,includingpromptlyfurnishingtheotherwithcopiesofnoticesorother communicationsreceivedbytheCompanyorParent,asthecasemaybe,oranyoftheirrespective Subsidiaries,fromanythirdpartyand/oranyGovernmentalEntitywithrespecttosuchtransactions,(v)certifycompliancewithaRequestforAdditionalInformation(aSecondRequest)assoonas A-58 reasonablypracticableafterreceiptofsuchSecondRequestand(vi)nottakeanyactiontoextendthestatutorywaitingperiodsoftheHSRActwithouttheconsentoftheother.TheCompanyandParentshall usetheirrespectivereasonablebesteffortstofilewiththe:(i)FERCanapplicationfortheFERCApproval; (ii)NRCanapplicationfortheNRCApproval;(iii)NYPSCanapplicationfortheapprovaloftheNYPSC; (iv)MPSCanapplicationfortheapprovaloftheMPSC;and(v)PUCTanapplicationfortheapprovalof thePUCTaspromptlyaspracticableafterthedatehereof.TheCompanyandParentshallreasonably cooperatewiththeotherinconnectionwithanysuchfilings(including,ifrequestedbytheotherparty,to acceptallreasonableadditions,deletionsorchangessuggestedbytheotherpartyinconnectiontherewith) andinconnectionwithresolvinganyinvestigationorotherinquiryofanysuchagencyorother GovernmentalEntityunderanyoftheRegulatoryLaws.TotheextentnotprohibitedbyapplicableLaw,the CompanyandParentshalluseallreasonablebesteffortstofurnisheachotherallinformationrequiredfor anyapplicationorotherfilingtobemadepursuanttoanyapplicableLawinconnectionwiththe transactionscontemplatedbythisAgreement.EachoftheCompanyandParentshallusereasonablebest effortstogivetheotherpartyreasonablepriornoticeofanyplannedcommunicationwith,andanyproposed understanding,undertakingoragreementwith,anyGovernmentalEntityregardinganysuchfilingsoranysuchtransaction;providedthat(A)theCompanyandParentshallobtaintheotherpartyswrittenconsent, nottobeunreasonablywithheld,conditionedordelayed,priortomakinganyproposalorsettlementofferto orenteringintoanyunderstanding,undertakingoragreement,directlyorindirectly,withanyMaryland GovernmentalEntityoranynon-governmentalPersonrelatedtoactivitiesinMarylandwithrespectto MPSCapproval,and(B)ParentshallobtaintheCompanyswrittenconsent,nottobeunreasonably withheld,conditionedordelayed,priortomakinganyproposalorsettlementofferoradvocatingany positiontoorenteringintoanyunderstanding,undertakingoragreement,directlyorindirectly,withany MarylandGovernmentalEntityrelatedtoactivitiesinMarylandwithregardtoanyproceedingotherthan thosethatrelatetotheMergerandwithanynon-governmentalPersonrelatedtoactivitiesinMarylandthat wouldhavetheeffectofbindingorprejudicingtheCompanyoritsSubsidiariesintheeventtheMergerisnotconsummated;provided,further,thatParentshalluseitsreasonablebesteffortstoconsultwiththe Companypriortomakinganyproposalorsettlementoffertoorenteringintoanyunderstanding, undertakingoragreement,directlyorindirectly,withanynon-governmentalPersonrelatedtoactivitiesin MarylandthatwouldnotbindorprejudicetheCompanyoritsSubsidiariesintheeventtheMergerisnot consummated.NeithertheCompanynorParentshallindependentlyparticipateinanymeeting,orengagein anysubstantiveconversation,withanyGovernmentalEntityinrespectofanysuchfilings,investigationor otherinquirywithoutgivingtheotherpartypriornoticeofthemeetingorconversationand,unless prohibitedbysuchGovernmentalEntity,theopportunitytoattendorparticipate.TheCompanyandParent willconsultandcooperatewithoneanotherinconnectionwithanyanalyses,appearances,presentations, memoranda,briefs,arguments,opinionsandproposalsmadeorsubmittedbyoronbehalfofanypartyin connectionwithproceedingsunderorrelatingtotheRegulatoryLaws.(c)ParentandtheCompanyagreethatthereasonablebesteffortsobligationssetforthinthisSection6.8precludeParentandtheCompanyfromknowinglyorintentionallytakinganyactions(including,asapplicable,enteringintotransactionstoacquireothergenerationfacilitiesorregulatedutility operationsorPersonshavingadirectorindirectinterestingenerationfacilitiesorregulatedutility operations)thatwouldreasonablybeexpectedto(i)makeitmorelikelythatanyoftheconditionstothe consummationofthetransactionscontemplatedherebywouldnotbesatisfied,includingthereceiptofany authorization,consent,order,declarationorapprovalofanyGovernmentalEntitynecessarytoconsummate thetransactionscontemplatedbythisAgreementortheexpirationorterminationofanyapplicablewaiting period,or(ii)withoutlimitationtoclause(i),makeitmorelikelythatanyGovernmentalEntitywouldenter anOrderprohibitingtheconsummationofthetransactionscontemplatedbythisAgreementorthatanysuch Orderwouldnotbeabletoberemovedonappealorotherwise.(d)NotwithstandingtheforegoingoranyotherprovisionofthisAgreement,nothinginthisSection6.8shalllimitapartysrighttoterminatethisAgreementpursuanttoSection8.1(b)(i)or8.1(b)(ii)solongas suchpartyhas,priortosuchtermination,compliedwithitsobligationsunderthisAgreement,includingthisSection6.8.

A-59 Section6.9TakeoverStatute.IfanyTakeoverLawmaybecome,ormaypurporttobe,applicabletothetransactionscontemplatedhereby,eachoftheCompanyandParentshallgrantsuchapprovalsandtakesuch actionsasarereasonablynecessarysothatthetransactionscontemplatedherebymaybeconsummatedas promptlyaspracticableonthetermscontemplatedherebyandotherwiseacttoeliminateorminimizetheeffects ofsuchstatuteorregulationonthetransactionscontemplatedhereby.Section6.10PublicAnnouncements.Exceptwithrespecttoany(a)CompanyChangeofRecommendationundertakenpursuantto,andinaccordancewith,Section6.4;(b)ParentChangeofRecommendationundertakenpursuantto,andinaccordancewith,Section6.5;(c)actiontakenbytheCompanyoritsBoardofDirectorspursuantto,andinaccordancewith,Section6.4or(d)actiontakenbyParentoritsBoardofDirectorspursuantto,andinaccordancewith,Section6.5,solongasthisAgreementisineffect,thepartiesshallusereasonable besteffortstoconsultwitheachotherbeforeissuinganypressreleaseormakinganypublicannouncement primarilyrelatingtothisAgreementorthetransactionscontemplatedherebyand,exceptforanypressreleaseor publicannouncementasmayberequiredbyapplicableLaw,courtprocessoranylistingagreementwithany nationalsecuritiesexchange(andthenonlyafterasmuchadvancenoticeandconsultationasisfeasible),shall notissueanysuchpressreleaseormakeanysuchpublicannouncementwithouttheconsentoftheotherparties, whichshallnotbeunreasonablywithheldordelayed.ParentandtheCompanyagreetoissueamutually acceptableinitialjointpressreleaseannouncingthisAgreement.Section6.11IndemnificationandInsurance.(a)FromandaftertheEffectiveTime,ParentshallcausetheSurvivingCorporationtohonorallrightstoexculpation,indemnificationandadvancementofexpensesnowexistinginfavorofthecurrentorformer directors,officersoremployees,asthecasemaybe,oftheCompanyoritsSubsidiaries(each,anIndemnifiedParty)asprovidedintheirrespectiveOrganizationDocumentsorinanyContracttowhich theCompanyoranyofitsSubsidiariesisaparty,whichrightsshallsurvivetheMergerandshallcontinuein fullforceandeffecttotheextentpermittedbyLaw.ForaperiodofsixyearsfromtheEffectiveTime, ParentshallcausetheSurvivingCorporationtomaintainineffecttheexculpation,indemnificationand advancementofexpensesprovisionsoftheCompanysandanyCompanySubsidiarysOrganization DocumentsineffectasofthedatehereoforinanyindemnificationagreementsoftheCompanyorits Subsidiarieswithanyoftheirrespectivedirectors,officersoremployeesineffectimmediatelypriortothe EffectiveTimeforanyactionorfailuretoactpriortotheEffectiveTime,andshallnotamend,repealor otherwisemodifyanysuchprovisionsinanymannerthatwouldadverselyaffecttherightsthereunderfor anyactionorfailuretoactpriortotheEffectiveTimeofanyindividualswhoimmediatelybeforethe EffectiveTimewerecurrentorformerdirectors,officersoremployeesoftheCompanyoranyofitsSubsidiaries;provided,however,thatallrightstoindemnificationinrespectofanyclaim,action,suit, proceedingorinvestigation,whethercivil,criminal,administrativeorinvestigativependingorassertedor anyclaimmadewithinsuchperiodshallcontinueuntilthedispositionofsuchclaim,action,suit, proceedingorinvestigation,whethercivil,criminal,administrativeorinvestigativeorresolutionofsuch claim.Parentshallassume,bejointlyandseverallyliablefor,andhonor,guarantyandstandasasuretyfor, andshallcausetheSurvivingCorporationanditsSubsidiariestohonor,inaccordancewiththeirrespectiveterms,eachofthecovenantscontainedinthisSection6.11withoutlimitastotime.(b)Foraperiodofsix(6)yearsfromtheEffectiveTime,Parentshallcausetobemaintainedineffectthecoverageprovidedbythepoliciesofdirectorsandofficersliabilityinsuranceandfiduciaryliability insuranceineffectasofthedatehereofmaintainedbytheCompanyanditsSubsidiarieswithrespectto mattersarisingonorbeforetheEffectiveTimeeitherthroughtheCompanysexistinginsuranceprovideroranotherproviderreasonablyselectedbyParent;provided,however,that,aftertheEffectiveTime,Parent shallnotberequiredtopayannualpremiumsinexcessof300%ofthelastannualpremiumpaidbythe Companypriortothedatehereofinrespectofthecoveragesrequiredtobeobtainedpursuanthereto,butinsuchcaseshallpurchaseasmuchcoverageasreasonablypracticableforsuchamount;providedfurther,however,thatinlieuoftheforegoinginsurancecoverage,ParentmaydirecttheCompanytopurchasetail insurancecoverage,atacostnogreaterthantheaggregateamountwhichtheSurvivingCorporationwould A-60 bepermittedtospendduringthesix-yearperiodprovidedforinthisSection6.11(b),thatprovidescoveragenomateriallylessfavorablethanthecoveragedescribedabove.(c)Parentshallpayallreasonableexpenses,includingreasonableattorneysfees,thatmaybeincurredbyanyIndemnifiedPartyinenforcingtheindemnityandotherobligationsprovidedinthisSection6.11.(d)TherightsofeachIndemnifiedPartyhereundershallbeinadditionto,andnotinlimitationof,anyotherrightssuchIndemnifiedPartymayhaveundertheOrganizationDocumentsoftheCompanyoranyof itsSubsidiariesortheSurvivingCorporation,anyotherindemnificationarrangement,theMGCLorotherwise.TheprovisionsofthisSection6.11shallsurvivetheconsummationoftheMergerandexpressly areintendedtobenefit,andareenforceableby,eachoftheIndemnifiedParties.(e)IntheeventthattheSurvivingCorporationoranyofitsrespectivesuccessorsorassignsconsolidateswithormergesintoanyotherpersonandshallnotbethecontinuingorsurvivingcorporationor entityinsuchconsolidationormergerortransfersallorsubstantiallyallofitspropertiesandassetstoany person,then,andineithersuchcase,properprovisionshallbemadesothatthesuccessorsandassignsoftheSurvivingCorporationshallassumetheobligationssetforthinthisSection6.11.(f)TheobligationsoftheSurvivingCorporationunderthisSection6.11shallnotbeterminatedormodifiedinsuchamannerastoadverselyaffectanyindemniteetowhomthisSection6.11applieswithouttheconsentofsuchindemnitee(itbeingexpresslyagreedthattheindemniteestowhomthisSection6.11appliesshallbethirdpartybeneficiariesofthisSection6.11.Section6.12ControlofOperations.WithoutinanywaylimitinganypartysrightsorobligationsunderthisAgreement,thepartiesunderstandandagreethat(a)nothingcontainedinthisAgreementshallgiveParent, directlyorindirectly,therighttocontrolordirecttheCompanysoperationspriortotheEffectiveTimeand (b)priortotheEffectiveTime,theCompanyshallexercise,consistentwiththetermsandconditionsofthis Agreement,completecontrolandsupervisionoveritsoperations.Section6.13CertainTransferTaxes.AnyliabilityarisingoutofanyrealestatetransferTaxwithrespecttointerestsinrealpropertyowneddirectlyorindirectlybytheCompanyoranyofitsSubsidiariesimmediately priortotheMerger,ifapplicableandduewithrespecttotheMerger,shallbebornebytheSurvivingCorporation andexpresslyshallnotbealiabilityofstockholdersoftheCompany.Section6.14Section16Matters.PriortotheEffectiveTime,ParentandtheCompanyshalltakeallsuchstepsasmayberequiredtocauseanydispositionsofCompanyCommonStock(includingderivativesecurities withrespecttoCompanyCommonStock)oracquisitionsofParentCommonStock(includingderivative securitieswithrespecttoParentCommonStock)resultingfromthetransactionscontemplatedbythisAgreement byeachindividualwhoissubjecttothereportingrequirementsofSection16(a)oftheExchangeActtobe exemptunderRule16b-3promulgatedundertheExchangeAct,asdescribedintheNo-ActionLetterdated January12,1999,issuedbytheSECtoSkadden,Arps,Slate,Meagher&FlomLLP.Section6.15ReorganizationTreatment.ThepartiestothisAgreementintendthattheMergerqualifyasareorganizationwithinthemeaningofSection368(a)oftheCode,andeachshallnot,andshallnotpermitany oftheirrespectiveSubsidiariesto,takeanyaction,orfailtotakeanyaction,thatwouldreasonablybeexpected tojeopardizethequalificationoftheMergerasareorganizationwithinthemeaningofSection368(a)oftheCode.ProvidedthattheopinionconditionscontainedinSections7.2(e)and7.3(e)havebeensatisfied,ParentshallfiletheopinionsdescribedinSections7.2(e)and7.3(e)withtheSECbyapost-effectiveamendmenttothe FormS-4promptlyfollowingtheClosing.Section6.16TaxRepresentationLetters.ParentshalluseitsreasonablebesteffortstodelivertoSkadden,Arps,Slate,Meagher&FlomLLP,counseltoParent(ParentsCounsel),andKirkland&EllisLLP,counseltotheCompany(theCompanysCounsel),aTaxRepresentationLetter,datedasoftheClosingDate(and,if requested,datedasofthedatetheFormS-4shallhavebeendeclaredeffectivebytheSEC)andsignedbyan A-61 officerofParentandMergerSub,containingrepresentationsofParentandMergerSub.TheCompanyshalluseitsreasonablebesteffortstodelivertoParentsCounselandtheCompanysCounselaTaxRepresentation Letter,datedasoftheClosingDate(and,ifrequested,datedasofthedatetheFormS-4shallhavebeen declaredeffectivebytheSEC)andsignedbyanofficeroftheCompany,containingrepresentationsoftheCompany,ineachcase(notwithstandingSections4.29and5.28)asshallbereasonablynecessaryorappropriatetoenabletheCompanysCounseltorendertheopiniondescribedinSection7.2(e)andParentsCounseltorendertheopiniondescribedinSection7.3(e).Section6.17StockExchangeListing.ParentshalluseitsreasonableeffortstocausethesharesofParentCommonstocktobeissuedintheMergertobeapprovedforlistingontheNYSE,subjecttoofficialnoticeof issuance,priortotheClosingDate.Section6.18NoticeofChanges.EachofParentandtheCompanyshallgivepromptwrittennoticetotheother(andwillsubsequentlykeeptheotherinformedonacurrentbasisofanydevelopmentsrelatedtosuch notice)uponitsbecomingawareoftheoccurrenceorexistenceofanyfact,eventorcircumstancethatisreasonablylikelytoresultinanyoftheconditionssetforthinArticleVIInotbeingabletobesatisfiedpriortotheTerminationDate;provided,however,thatthedeliveryofanynoticepursuanttothisSection6.18shallnot, andshallnotbedeemedto,cureanybreachofanyrepresentationorwarrantyrequiringdisclosureofsuchmatteratorpriortothedateofthisAgreementoraffectanyoftheconditionssetforthinArticleVIIorotherwiselimit oraffecttheremediesavailable.Section6.19StockholderLitigation.Eachpartyshallpromptlyadvisetheotherorallyandinwritingofanylitigationbroughtbyanystockholderofsuchpartyand/oritsdirectorsrelatingtothisAgreementand/orthe transactionscontemplatedbythisAgreement,includingtheMerger,andshallkeeptheotherpartyfullyinformed regardinganysuchlitigation.Eachpartyshallgivetheothertheopportunitytoparticipatein,subjecttoa customaryjointdefenseagreement,thedefenseorsettlementofanysuchlitigation,shallgivedueconsideration totheothersadvicewithrespecttosuchlitigationandshallnotsettleanysuchlitigationwithouttheprior writtenconsentoftheotherparty(nottobeunreasonablywithheldordelayed).Section6.20CoordinationofDividends.FromthedateofthisAgreementuntiltheEffectiveTime,ParentandtheCompanyshallcoordinatewitheachotherregardingthedeclarationandpaymentofdividendsinrespect ofthesharesofParentCommonStockandCompanyCommonStockandtherecorddatesandpaymentdates relatingthereto,itbeingtheintentionofParentandtheCompanythatnoholderofParentCommonStockor CompanyCommonStockshallreceivetwodividends,orfailtoreceiveonedividend,foranysinglecalendar quarterwithrespecttoitssharesofParentCommonStockorCompanyCommonStock(includingParent CommonStockissuedinconnectionwiththeMerger),asthecasemaybe.ARTICLEVIICONDITIONSTOTHEMERGERSection7.1ConditionstoEachPartysObligationtoEffecttheMerger.TherespectiveobligationsofeachpartytoeffecttheMergershallbesubjecttothefulfillment(orwaiverbyallparties)atorpriortotheEffective Timeofthefollowingconditions:(a)EachoftheCompanyStockholderApprovalandParentStockholderApprovalshallhavebeen obtained.(b)NoLawsshallhavebeenadoptedorpromulgated,andnotemporary,preliminaryorpermanentOrdershallhavebeenissued,andremainineffect,byaU.S.,stateorlocalGovernmentalEntityof competentjurisdictionhavingtheeffectofmakingtheMergerillegalorotherwiseprohibitingconsummationoftheMerger(collectively,Restraints).

A-62 (c)RegulatoryConsents.(i)Theauthorizations,consents,Ordersorapprovalsof,ordeclarationsorfilingswithFERC,theNRC,theNYPSC,theMPSCandthePUCT,andtheexpirationofwaitingperiodsrequiredunderthe HSRAct,ineachcase,totheextentrequiredforconsummationoftheMergershallhavebeenfiled, haveoccurredorbeenobtained(allsuchpermits,approvals,filingsandconsentsandthelapseofallsuchwaitingperiodsbeingreferredtoastheRequisiteRegulatoryApprovals),andallsuchRequisite RegulatoryApprovalsshallbeinfullforceandeffect.(ii)NoGovernmentalEntityofcompetentjurisdictionshallhaveenacted,issued,promulgated,enforcedorenteredanyLaw(whethertemporary,preliminaryorpermanent)inconnectionwitha RequisiteRegulatoryApprovalthat(A)requiresParentortheCompanyoranyoftheirrespective AffiliatestotakeorcommittotakeanyBurdensomeActionor(B)wouldotherwiseconstituteaBurdensomeAction(aBurdensomeOrder)andisineffect.(d)ThesharesofParentCommonStocktobeissuedintheMergerandsuchothersharesofParentCommonStocktobereservedforissuanceinconnectionwiththeMergershallhavebeenapprovedfor listingontheNYSE,subjecttoofficialnoticeofissuance.(e)TheFormS-4shallhavebeendeclaredeffectivebytheSECundertheSecuritiesActandnostopordersuspendingtheeffectivenessoftheFormS-4shallhavebeenissuedbytheSECandremainineffect andnoproceedingsforthatpurposeshallhavebeeninitiatedorthreatenedbytheSEC.Section7.2ConditionstoObligationoftheCompanytoEffecttheMerger.TheobligationoftheCompanytoeffecttheMergerisfurthersubjecttothefulfillmentof,orthewaiverbytheCompanyonorpriortothe EffectiveTimeof,thefollowingconditions:(a)EachoftherepresentationsandwarrantiesofParentandMergerSubsetforthinthisAgreement,ineachcase,madeasifnoneofsuchrepresentationsandwarrantiescontainedanyqualificationsorlimitations astomateriality,shallbetrueandcorrect,ineachcase,asofthedateofthisAgreementandasofthe ClosingDateasthoughmadeonandasoftheClosingDate(excepttotheextentineithercasethatsuch representationsandwarrantiesspeakasofanotherdate),exceptwherethefailureofsuchrepresentations andwarrantiestobetrueandcorrectassomadedoesnothaveandisnot,individuallyorintheaggregate,reasonablyexpectedtohaveaParentMaterialAdverseEffect;provided,however,that,notwithstandingtheforegoing,eachoftherepresentationsandwarrantiesofParentandMergerSubsetforthinSections5.2,5.3(a),5.3(b)and5.18shallbetrueandcorrectasofthedateofthisAgreementandasoftheClosingDate asthoughmadeonandasoftheClosingDate,exceptfordeminimis inaccuracies.(b)ParentshallhaveperformedinallmaterialrespectsallobligationsandcompliedwithallcovenantsrequiredbythisAgreementtobeperformedorcompliedwithbyitpriortotheEffectiveTime.(c)SinceJanuary1,2011,thereshallnothaveoccurredanyevent,change,effect,development,conditionoroccurrence(excludinganyevent,change,effect,development,conditionoroccurrence resultingfromobligationsorconditionsimposedbyaGovernmentalEntityinconnectionwithitsapproval ofthetransactionscontemplatedbythisAgreementthatdoesnotconstituteaBurdensomeAction)thathas hadorwouldreasonablybeexpectedtohave,individuallyorintheaggregate,aParentMaterialAdverse

Effect.(d)ParentshallhavedeliveredtotheCompanyacertificate,datedtheEffectiveTimeandsignedbyitsChiefExecutiveOfficeroranotherexecutiveofficer,certifyingtotheeffectthattheconditionssetforthinSections7.2(a),7.2(b)and7.2(c)havebeensatisfied.(e)TheCompanyshallhavereceivedfromKirkland&EllisLLPawrittenopiniondatedasoftheClosingDatetotheeffectthatforU.S.federalincometaxpurposestheMergershouldqualifyasa reorganizationwithinthemeaningofSection368(a)oftheCode.Inrenderingsuchopinion,the CompanysCounselshallbeentitledtorelyuponassumptions,representations,warrantiesandcovenants, A-63 includingthosecontainedinthisAgreementandintheTaxRepresentationLettersdescribedinSection6.16.Section7.3ConditionstoObligationofParenttoEffecttheMerger.TheobligationofParenttoeffecttheMergerisfurthersubjecttothefulfillmentof,orthewaiverbyParentonorpriortotheEffectiveTimeof,the followingconditions:(a)EachoftherepresentationsandwarrantiesoftheCompanysetforthinthisAgreement,ineachcase,madeasifnoneofsuchrepresentationsandwarrantiescontainedanyqualificationsorlimitationsasto materiality,shallbetrueandcorrect,ineachcase,asofthedateofthisAgreementandasoftheClosing DateasthoughmadeonandasoftheClosingDate(excepttotheextentineithercasethatsuch representationsandwarrantiesspeakasofanotherdate),exceptwherethefailureofsuchrepresentations andwarrantiestobetrueandcorrectassomadedoesnothaveandisnot,individuallyorintheaggregate,reasonablyexpectedtohaveaCompanyMaterialAdverseEffect;provided,however,that,notwithstandingtheforegoing,eachoftherepresentationsandwarrantiesoftheCompanysetforthinSections4.2,4.3(a),4.3(b,4.18and4.19shallbetrueandcorrectasofthedateofthisAgreementandasoftheClosingDateas thoughmadeonandasoftheClosingDate,exceptfordeminimis inaccuracies.(b)TheCompanyshallhaveperformedinallmaterialrespectsallobligationsandcompliedwithallcovenantsrequiredbythisAgreementtobeperformedorcompliedwithbyitpriortotheEffectiveTime.(c)SinceJanuary1,2011,thereshallnothaveoccurredanyevent,change,effect,development,conditionoroccurrence(excludinganyevent,change,effect,development,conditionoroccurrence resultingfromobligationsorconditionsimposedbyaGovernmentalEntityinconnectionwithitsapproval ofthetransactionscontemplatedbythisAgreementthatdoesnotconstituteaBurdensomeAction)thathas hadorwouldreasonablybeexpectedtohave,individuallyorintheaggregate,aCompanyMaterialAdverse

Effect.(d)TheCompanyshallhavedeliveredtoParentacertificate,datedtheEffectiveTimeandsignedbyitsChiefExecutiveOfficeroranotherexecutiveofficer,certifyingtotheeffectthattheconditionssetforthinSections7.3(a),7.3(b)and7.3(c)havebeensatisfied.(e)ParentshallhavereceivedfromSkadden,Arps,Slate,Meagher&FlomLLPawrittenopiniondatedasoftheClosingDatetotheeffectthatforU.S.federalincometaxpurposestheMergershould qualifyasareorganizationwithinthemeaningofSection368(a)oftheCode.Inrenderingsuchopinion, ParentsCounselshallbeentitledtorelyuponassumptions,representations,warrantiesandcovenants, includingthosecontainedinthisAgreementandintheTaxRepresentationLettersdescribedinSection6.16.Section7.4FrustrationofClosingConditions.NeithertheCompanynorParentmayrely,eitherasabasisfornotconsummatingtheMergerorterminatingthisAgreementandabandoningtheMerger,onthefailureofanyconditionsetforthinSections7.1,7.2or7.3,asthecasemaybe,tobesatisfiedifsuchfailurewascausedby suchpartysWillfulBreachofanymaterialprovisionofthisAgreementorfailuretouseitsreasonablebest effortstoconsummatetheMergerandtheothertransactionscontemplatedhereby,asrequiredbyandsubjecttoSection6.8.ARTICLEVIII TERMINATIONSection8.1TerminationorAbandonmentNotwithstandinganythinginthisAgreementtothecontrary,thisAgreementmaybeterminatedandabandonedatanytimepriortotheEffectiveTime,whetherbeforeorafter receiptoftheCompanyStockholderApprovalortheParentStockholderApproval:(a)bythemutualwrittenconsentoftheCompanyandParent; A-64 (b)byeitherParentortheCompanyif:(i)theMergershallnothavebeenconsummatedonorpriortothefirstanniversaryofthedatehereof(theEndDate);provided,however,thatifalloftheconditionstoClosingshallhavebeensatisfiedorshallbethencapableofbeingsatisfied(otherthantheconditionssetforthinSection7.1(b)orSection7.1(c)),theEndDatemaybeextendedbyParentortheCompanyfromtimetotimebywrittennoticetotheotherpartyuptoadatenotbeyondninety(90)daysaftertheinitialEndDate,thelatestofanyofwhichdatesshallthereafterbedeemedtobetheEndDate;andprovided,further,thattherighttoterminatethisAgreementpursuanttothisSection8.1(b)(i)shallnotbeavailabletoaparty ifthefailureoftheClosingtooccurbysuchdateshallbeprimarilyduetoaWillfulBreachbysuch partyorthefailureofsuchpartytoperformanyofitsobligationssetforthinthisAgreement;(ii)(A)anyRestrainthavinganyoftheeffectssetforthinSection7.1(b)shallbeineffectandshallhavebecomefinalandnon-appealableor(B)anyGovernmentalEntityofcompetentjurisdiction shallhaveenacted,issued,promulgated,enforcedorenteredanyLawthatisaBurdensomeOrder whichshallhavebecomefinalandnon-appealable;(iii)theCompanyStockholdersMeeting(includinganyadjournmentsorpostponementsthereof)shallhaveconcludedandtheCompanyStockholderApprovalcontemplatedbythisAgreementshall nothavebeenobtained;or(iv)theParentStockholdersMeeting(includinganyadjournmentsorpostponementsthereof)shallhaveconcludedandtheParentStockholderApprovalcontemplatedbythisAgreementshallnot havebeenobtained;(c)bytheCompany:(i)ifParentshallhavebreachedorfailedtoperformanyofitsrepresentations,warranties,covenantsorotheragreementscontainedinthisAgreement,whichbreachorfailuretoperform(i)wouldresultinafailureofaconditionsetforthinSection7.2(a)or7.2(b)and(ii)isincapableof beingcuredbytheEndDateorisnotcuredbytheearlierof(A)thirty(30)BusinessDaysfollowing writtennoticetoParentbytheCompanyofsuchbreachor(B)theEndDate;(ii)ifParenteffectsaParentChangeofRecommendation;or (iii)iftheCompanyeffectsaCompanyChangeofRecommendationtoacceptaCompanyAcquisitionProposalinaccordancewithSection6.4(e),providedthattherighttoterminatethisAgreementpursuanttothisSection8.1(c)(iii)shallnotbeavailabletotheCompanyiftheCompanyhasnotpaidtheCompanyTerminationFeetoParentinaccordancewithSection8.2;itbeingunderstoodthattheCompanymayenterintoanyagreementprovidingforaCompanyAcquisitionTransactionsimultaneouslywiththeterminationofthisAgreementpursuanttothisSection8.1(c)(iii);(d)byParent:(i)iftheCompanyshallhavebreachedorfailedtoperformanyofitsrepresentations,warranties,covenantsorotheragreementscontainedinthisAgreement,whichbreachorfailuretoperform(i)wouldresultinafailureofaconditionsetforthinSection7.3(a)or7.3(b)and(ii)isincapableof beingcuredbytheEndDateorisnotcuredbytheearlierof(A)thirty(30)BusinessDaysfollowing writtennoticetotheCompanybyParentofsuchbreachor(B)theEndDate;(ii)iftheCompanyeffectsaCompanyChangeofRecommendation;or (iii)ifParenteffectsaParentChangeofRecommendationtoacceptaParentAcquisitionProposalinaccordancewithSection6.5(e),providedthattherighttoterminatethisAgreementpursuanttothisSection8.1(d)(iii)shallnotbeavailabletoParentifParenthasnotpaidtheParentTerminationFeetotheCompanyinaccordancewithSection8.2;itbeingunderstoodthatParentmayenterintoanyagreementprovidingforaParentAcquisitionTransactionsimultaneouslywiththeterminationofthisAgreementpursuanttothisSection8.1(d)(iii).

A-65 IntheeventofterminationofthisAgreementpursuanttothisSection8.1,thisAgreementshallterminate(exceptfortheprovisionsofthisSection8.1andSections1.1,6.3(c),8.2andArticleIX),andthereshallbenootherliabilityonthepartoftheCompanyorParenttotheotherexceptliabilityarisingoutofaWillfulBreachof thisAgreementorasprovidedforintheExistingAgreements,inwhichcasetheaggrievedpartyshallbeentitled toallrightsandremediesavailableatlaw,undercontractorinequity,exceptasotherwiseprovidedherein(includingSection8.2(c)andSection8.2(d)).Section8.2TerminationFees.(a)CompanyTerminationFee.TheCompanyshallpaytoParenttheCompanyTerminationFeeifthisAgreementisterminatedasfollows:(i)ifthisAgreementisterminated(A)byParentpursuanttoSection8.1(d)(ii)or(B)byeithertheCompanyorParentpursuanttoSection8.1(b)(iii)atatimewhenParentcouldhaveterminatedtheAgreementpursuanttoSection8.1(d)(ii)unlessatthetimeofsuchterminationpursuanttoSection8.1(b)(iii)ParentshallhavebeeninWillfulBreachofthisAgreement,thentheCompanyshall paytoParenttheentireCompanyTerminationFeebythefifth(5th)BusinessDayfollowingsuch

termination;(ii)ifthisAgreementisterminatedbytheCompanypursuanttoSection8.1(c)(iii),thentheCompanyshallpaytoParenttheentireCompanyTerminationFeeuponsuchtermination;or(iii)if(A)thisAgreementisterminated(1)pursuanttoSection8.1(d)(i)ifthebreachgivingrisetosuchterminationwasaWillfulBreach,(2)pursuanttoSection8.1(b)(iii)or(3)pursuanttoSection8.1(b)(i),(B)(x)inthecaseofclause(1)above,abonafideCompanyAcquisitionProposalshallhavebeenpubliclyannouncedorotherwisecommunicatedtoamemberofseniormanagementor theBoardofDirectorsoftheCompany(oranyPersonshallhavepubliclyannouncedorcommunicated

abonafideintention,whetherornotconditional,tomakeaCompanyAcquisitionProposal)atanytimeafterthedateofthisAgreementandpriortothedateofthebreachgivingrisetosuchtermination, (y)inthecaseofclause(2)above,abonafideCompanyAcquisitionProposalshallhavebeenpubliclyannounced(oranyPersonshallhavepubliclyannouncedorcommunicatedabonafide intention,whetherornotconditional,tomakeaCompanyAcquisitionProposal)atanytimeafterthedateofthis AgreementandpriortothetakingofthevoteofthestockholdersoftheCompanyattheCompany StockholdersMeetingor(z)inthecaseofclause(3)above,abonafideCompanyAcquisitionProposalshallhavebeenpubliclyannouncedorotherwisecommunicatedtoamemberofsenior managementortheBoardofDirectorsoftheCompany(oranyPersonshallhavepubliclyannounced orcommunicatedabonafideintention,whetherornotconditional,tomakeaCompanyAcquisitionProposal)atanytimeafterthedateofthisAgreement,and(C)withintwelve(12)monthsafterthedate ofsuchtermination,theCompanyentersintoadefinitiveagreementtoconsummate,orconsummates, anyCompanyAcquisitionTransaction,thentheCompanyshallpaytoParenttheCompany TerminationFeebythesecond(2nd)BusinessDayfollowingtheearlierofthedatetheCompany entersintoadefinitiveagreementtoconsummateorconsummatessuchCompanyAcquisition

Transaction.(b)ParentTerminationFee.ParentshallpaytotheCompanytheParentTerminationFeeifthisAgreementisterminatedasfollows:(i)ifthisAgreementisterminated(A)bytheCompanypursuanttoSection8.1(c)(ii)or(B)byParentortheCompanypursuanttoSection8.1(b)(iv)atatimewhentheCompanycouldhaveterminatedthisAgreementpursuanttoSection8.1(c)(ii)unlessatthetimeofsuchterminationpursuanttoSection8.1(b)(iv)theCompanyshallhavebeeninWillfulBreachofthisAgreement,thenParent shallpaytheentireParentTerminationFeebythefifth(5th)BusinessDayfollowingsuchtermination;(ii)ifthisAgreementisterminatedbyParentpursuanttoSection8.1(d)(iii),thenParentshallpaytotheCompanytheentireParentTerminationFeeuponsuchtermination;or A-66 (iii)if(A)thisAgreementisterminated(1)pursuanttoSection8.1(c)(i)ifthebreachgivingrisetosuchterminationwasaWillfulBreach,(2)pursuanttoSection8.1(b)(iv)or(3)pursuanttoSection8.1(b)(i),(B)(x)inthecaseofclause(1)above,abonafideParentAcquisitionProposalshallhavebeenpubliclyannouncedorotherwisecommunicatedtoamemberofseniormanagementorthe BoardofDirectorsofParent(oranyPersonshallhavepubliclyannouncedorcommunicateda bona fideintention,whetherornotconditional,tomakeaParentAcquisitionProposal)atanytimeafterthedateofthisAgreementandpriortothedateofthebreachgivingrisetosuchtermination,(y)inthe caseofclause(2)above,abonafideParentAcquisitionProposalshallhavebeenpubliclyannounced(oranyPersonshallhavepubliclyannouncedorcommunicatedabonafideintention,whetherornotconditional,tomakeaParentAcquisitionProposal)atanytimeafterthedateofthisAgreementand priortothetakingofthevoteofthestockholdersofParentattheParentStockholdersMeetingor (z)inthecaseofclause(3)above,abonafideParentAcquisitionProposalshallhavebeenpubliclyannouncedorotherwisecommunicatedtoamemberofseniormanagementortheBoardofDirectorsof Parent(oranyPersonshallhavepubliclyannouncedorcommunicatedabonafideintention,whetherornotconditional,tomakeaParentAcquisitionProposal)atanytimeafterthedateofthisAgreement, and(C)withintwelve(12)monthsafterthedateofsuchtermination,Parententersintoadefinitive agreementtoconsummate,orconsummates,anyParentAcquisitionTransaction,thentheCompany shallpaytotheCompanytheParentTerminationFeebythesecond(2nd)BusinessDayfollowingthe earlierofthedateParententersintoadefinitiveagreementtoconsummateorconsummatessuchParent AcquisitionTransaction.(c)CompanyCompleteSatisfaction.UponpaymentoftheCompanyTerminationFeeifrequiredinaccordancewiththisSection8.2,theCompanyshallhavenofurtherliabilitytoParentoritsstockholderswithrespecttothisAgreementorthetransactionscontemplatedhereby(providedthatnothinghereinshall releaseanypartyfromliabilityforWillfulBreachorfraud).Thepartiesacknowledgeandagreethatinno eventshalltheCompanyberequiredtopaytheCompanyTerminationFeeonmorethanoneoccasion.(d)ParentCompleteSatisfaction.UponpaymentoftheParentTerminationFeeifrequiredinaccordancewiththisSection8.2,ParentshallhavenofurtherliabilitytotheCompanyoritsstockholderswithrespecttothisAgreementorthetransactionscontemplatedhereby(providedthatnothinghereinshall releaseanypartyfromliabilityforWillfulBreachorfraud).Thepartiesacknowledgeandagreethatinno eventshallParentberequiredtopaytheParentTerminationFeeonmorethanoneoccasion.(e)CollectionandPayment.AllamountspaidpursuanttothisSection8.2shallbebywiretransferofimmediatelyavailablefundstoanaccountdirectedbythepartyentitledtopaymentaslongassuchaccounthasbeenidentifiedbysuchparty.EachpartyagreesthattheagreementscontainedinthisSection8.2arean integralpartofthetransactionscontemplatedbythisAgreement,andthat,withouttheseagreements,the otherpartywouldnotenterintothisAgreement;accordingly,ifanypartyfailspromptlytopayanyamountsdueunderthisSection8.2and,inordertoobtainsuchpayment,theotherpartycommencesasuitthat resultsinajudgmentagainstthepartyfailingtopayforsuchamounts,thenthepartyfailingtopaysuch amountsshallpayinterestonsuchamountsfromthedatepaymentofsuchamountswasduetothedateof actualpaymentattheprimerateoftheBankofNewYorkineffectonthedatesuchpaymentwasdue, togetherwiththereasonable,documentedout-of-pocketcostsandexpensesofthepartyseekingcollection (includingreasonablelegalfeesandexpenses)inconnectionwithsuchsuit.ARTICLEIX MISCELLANEOUSSection9.1NoSurvival.Noneoftherepresentations,warranties,covenantsandagreementsinthisAgreementorinanyinstrumentdeliveredpursuanttothisAgreementshallsurvivetheMerger,exceptfor covenantsandagreementswhichcontemplateperformanceaftertheEffectiveTimeorotherwiseexpresslyby theirtermssurvivetheEffectiveTime.

A-67 Section9.2Expenses.WhetherornottheMergerisconsummated,allcostsandexpensesincurredinconnectionwiththeMerger,thisAgreementandthetransactionscontemplatedherebyshallbepaidbytheparty incurringorrequiredtoincursuchexpenses,exceptthattheHSRActfilingfeesandexpensesincurredin connectionwiththeprinting,filingandmailingoftheJointProxyStatement/Prospectus(includingapplicable SECfilingfees)shallbeborneequallybyParentandtheCompany.Section9.3Counterparts;Effectiveness.ThisAgreementmaybeexecutedintwoormorecounterparts(includingbyemail),eachofwhichshallbeanoriginal,withthesameeffectasifthesignaturestheretoand heretowereuponthesameinstrument,andshallbecomeeffectivewhenoneormorecounterpartshavebeen signedbyeachofthepartiesanddelivered(bytelecopyorotherwise)totheotherparties.Section9.4GoverningLaw.ThisAgreementshallbegovernedbyandconstruedinaccordancewith(a)theLawsoftheStateofMarylandwithrespecttomatters,issuesandquestionsrelatingtotheMergerorthedutiesof theBoardofDirectorsoftheCompanyorMergerSub,(b)theLawsoftheCommonwealthofPennsylvaniawith respecttomatters,issuesandquestionsrelatingtothefiduciarydutiesoftheBoardofDirectorsofParentand (c)theLawsoftheStateofNewYorkwithrespecttoallothermatters,issuesandquestions,withoutgiving effecttoanychoiceorconflictoflawprovisionorrule(whetheroftheStateofNewYorkoranyother jurisdiction)thatwouldcausetheapplicationoftheLawsofanyjurisdictionotherthantheStateofNewYork.Section9.5Jurisdiction;SpecificEnforcement.ThepartiesagreethatirreparabledamagewouldoccurintheeventthatanyoftheprovisionsofthisAgreementwerenotperformed,orwerethreatenedtobenotperformed, inaccordancewiththeirspecifictermsorwereotherwisebreached.Itisaccordinglyagreedthat,inadditionto anyotherremedythatmaybeavailabletoit,includingmonetarydamages,eachofthepartiesshallbeentitledto aninjunctionorinjunctionstopreventbreachesofthisAgreementandtoenforcespecificallythetermsand provisionsofthisAgreementexclusivelyintheFederalorStatecourtlocatedintheBoroughofManhattanin TheCityofNewYork.ThepartiesfurtheragreethatnopartytothisAgreementshallberequiredtoobtain, furnishorpostanybondorsimilarinstrumentinconnectionwithorasaconditiontoobtaininganyremedyreferredtointhisSection9.5andeachpartywaivesanyobjectiontotheimpositionofsuchrelieforanyrightit mayhavetorequiretheobtaining,furnishingorpostingofanysuchbondorsimilarinstrument.Inaddition,each ofthepartiesheretoirrevocablyagreesthatanylegalactionorproceedingwithrespecttothisAgreementandthe rightsandobligationsarisinghereunder,orforrecognitionandenforcementofanyjudgmentinrespectofthis Agreementandtherightsandobligationsarisinghereunderbroughtbytheotherpartyheretooritssuccessorsor assigns,shallbebroughtanddeterminedexclusivelyintheFederalorStatecourtlocatedintheBoroughof ManhattaninTheCityofNewYork.Eachofthepartiesheretoherebyirrevocablysubmitswithregardtoany suchactionorproceedingforitselfandinrespectofitsproperty,generallyandunconditionally,tothepersonal jurisdictionoftheaforesaidcourtandagreesthatitwillnotbringanyactionrelatingtothisAgreementinany courtotherthantheaforesaidcourt.Eachofthepartiesheretoherebyirrevocablywaives,andagreesnotto assert,bywayofmotion,asadefense,counterclaimorotherwise,inanyactionorproceedingwithrespecttothis Agreement,(a)anyclaimthatitisnotpersonallysubjecttothejurisdictionoftheabovenamedcourtforanyreasonotherthanthefailuretoserveinaccordancewiththisSection9.5,(b)anyclaimthatitoritspropertyis exemptorimmunefromjurisdictionofsuchcourtorfromanylegalprocesscommencedinsuchcourt(whether throughserviceofnotice,attachmentpriortojudgment,attachmentinaidofexecutionofjudgment,executionof judgmentorotherwise)and(c)tothefullestextentpermittedbytheapplicableLaws,anyclaimthat(i)thesuit, actionorproceedinginsuchcourtisbroughtinaninconvenientforum,(ii)thevenueofsuchsuit,actionor proceedingisimproperor(iii)thisAgreement,orthesubjectmatterhereof,maynotbeenforcedinorbysuch

court.Section9.6WAIVEROFJURYTRIAL.EACHOFTHEPARTIESHERETOIRREVOCABLYWAIVESANYANDALLRIGHTTOTRIALBYJURYINANYLEGALPROCEEDINGARISINGOUTOFOR RELATINGTOTHISAGREEMENTORTHETRANSACTIONSCONTEMPLATEDHEREBY.

A-68 Section9.7Notices.Anynoticerequiredtobegivenhereundershallbesufficientifinwriting,andsentbyfacsimileoremailtransmission,byreliableovernightdeliveryservice(withproofofservice)orhanddelivery(providedthatanynoticereceivedonanynon-BusinessDayoranyBusinessDayafter5:00p.m.(addressees localtime)shallbedeemedtohavebeenreceivedat9:00a.m.(addresseeslocaltime)onthenextBusinessDay unlessthenoticeisrequiredbythisAgreementtobedeliveredwithinanumberofhoursorcalendardays),

addressedasfollows:ToParentorMergerSub:ExelonCorporation10S.DearbornStreet Chicago,Illinois60603 Attn:GeneralCounsel Facsimile:312-394-2368 Email:darryl.bradford@exeloncorp.comwithcopiesto:Skadden,Arps,Slate,Meagher&FlomLLP155NorthWackerDrive Chicago,Illinois60606 Attn:CharlesW.Mulaney,Jr.BrianW.DuweFacsimile:312-407-0411 Email:Charles.Mulaney@skadden.com Brian.Duwe@skadden.comTotheCompany:ConstellationEnergyGroup,Inc.100ConstellationWay Baltimore,Maryland21202 Attn:GeneralCounsel Facsimile:410-470-5766 Email:charles.berardesco@constellation.comwithcopiesto:Kirkland&EllisLLP655FifteenthStreet,N.W.

Washington,D.C.20005 Attn:GeorgeP.StamasMarkD.Director WilliamB.SorabellaFacsimile:202-879-5200 Email:george.stamas@kirkland.com mark.director@kirkland.com

william.sorabella@kirkland.comortosuchotheraddressasanypartyshallspecifybywrittennoticesogiven,andsuchnoticeshallbedeemedtohavebeendeliveredasofthedatesotelecommunicatedorpersonallydelivered.AnypartytothisAgreement maynotifyanyotherpartyofanychangestotheaddressoranyoftheotherdetailsspecifiedinthisparagraph;provided,however,thatsuchnotificationshallonlybeeffectiveonthedatespecifiedinsuchnoticeorfive A-69 (5)BusinessDaysafterthenoticeisgiven,whicheverislater.Rejectionorotherrefusaltoacceptortheinabilitytodeliverbecauseofchangedaddressofwhichnonoticewasgivenshallbedeemedtobereceiptofthenoticeas ofthedateofsuchrejection,refusalorinabilitytodeliver.Section9.8Assignment;BindingEffect.NeitherthisAgreementnoranyoftherights,interestsorobligationshereundershallbeassignedbyanyofthepartiesheretowithoutthepriorwrittenconsentoftheother parties,exceptforassignmentsbyMergerSubtoawholly-owneddirectorindirectSubsidiaryofParent.Subject totheprecedingsentence,thisAgreementshallbebindinguponandshallinuretothebenefitoftheparties heretoandtheirrespectivesuccessorsandassigns.Section9.9Severability.AnytermorprovisionofthisAgreementwhichisinvalidorunenforceableinanyjurisdictionshall,astothatjurisdiction,beineffectivetotheextentofsuchinvalidityorunenforceabilitywithout renderinginvalidorunenforceabletheremainingtermsandprovisionsofthisAgreementinanyother jurisdiction.IfanyprovisionofthisAgreementissobroadastobeunenforceable,suchprovisionshallbe interpretedtobeonlysobroadasisenforceable.Section9.10EntireAgreement;ThirdPartyBeneficiaries;SuitsforDamages.ThisAgreement(includingtheexhibitsandscheduleshereto)andtheExistingAgreementsconstitutetheentireagreement,andsupersedeall otherprioragreementsandunderstandings,bothwrittenandoral,betweentheparties,oranyofthem,with respecttothesubjectmatterhereofandthereof.NothinginthisAgreementisintendedtoconfer,anddoesnot confer,anyrightsorremediesunderorbyreasonofthisAgreement(oranybreachhereof)onanyPersons (includingtheholdersofCompanyCommonStock,CompanyStockOptions,theRestrictedSharesandthe CompanyRSUs)otherthanthepartiesheretoandtheirrespectivesuccessorsandpermittedassigns,except(a)forthethirdpartybeneficiariescontemplatedbySection6.11,(b)theCompanyshallhavetherighttopursue damagesonbehalfofitsstockholders(includingdamagesfortheirlossofeconomicbenefits)intheeventof ParentsorMergerSubsWillfulBreachofthisAgreement,whichrightisherebyacknowledgedbyParentandMergerSub(providedthatthisclause(b)isnotintendedtocreateanyrightoftheCompanysstockholdersto bringanactionagainstParentorMergerSubpursuanttothisAgreement),and(c)fromandaftertheEffective Time,holdersofCompanyCommonStock,CompanyStockOptions,theRestrictedSharesandtheCompanyRSUsshallhavetherighttoreceivetheapplicableMergerConsiderationsetforthinArticleIII.TheCompany acknowledgesthatParentshallhavetherighttopursuedamages(includingdamagesforthelossofeconomicbenefits)intheeventoftheCompanysWillfulBreachofthisAgreement;providedthattheforegoingisnot intendedtocreateanyrightofParentsstockholderstobringanactionagainsttheCompanypursuanttothis

Agreement.Section9.11Amendments;Waivers.AtanytimepriortotheEffectiveTime,anyprovisionofthisAgreementmaybeamendedorwaivedif,andonlyif,suchamendmentorwaiverisinwritingandsigned,inthe caseofanamendment,bytheCompany,ParentandMergerSubor,inthecaseofawaiver,bythepartyagainstwhomthewaiveristobeeffective;provided,however,thatafterreceiptofCompanyStockholderApprovalor ParentStockholderApproval,ifanysuchamendmentorwaivershallbyapplicableLaworinaccordancewith therulesandregulationsoftheNYSErequirefurtherapprovalofthestockholdersoftheCompanyorParent,the effectivenessofsuchamendmentorwaivershallbesubjecttotheapprovalofthestockholdersoftheCompany orParent,asapplicable.Notwithstandingtheforegoing,nofailureordelaybytheCompanyorParentin exercisinganyrighthereundershalloperateasawaiverthereofnorshallanysingleorpartialexercisethereof precludeanyotherorfurtherexerciseofanyotherrighthereunder.Section9.12Headings.HeadingsoftheArticlesandSectionsofthisAgreementareforconvenienceofthepartiesonlyandshallbegivennosubstantiveorinterpretiveeffectwhatsoever.Thetableofcontentstothis Agreementisforreferencepurposesonlyandshallnotaffectinanywaythemeaningorinterpretationofthis

Agreement.

A-70 Section9.13Interpretation.WhenareferenceismadeinthisAgreementtoanArticleorSection,suchreferenceshallbetoanArticleorSectionofthisAgreementunlessotherwiseindicated.Wheneverthewords include,includesorincludingareusedinthisAgreement,theyshallbedeemedtobefollowedbythe wordswithoutlimitation.Thewordshereof,hereinandhereunderandwordsofsimilarimportwhen usedinthisAgreementshallrefertothisAgreementasawholeandnottoanyparticularprovisionofthis Agreement.AlltermsdefinedinthisAgreementshallhavethedefinedmeaningswhenusedinanycertificateor otherdocumentmadeordeliveredpursuanttheretounlessotherwisedefinedtherein.Thedefinitionscontainedin thisAgreementareapplicabletothesingularaswellasthepluralformsofsuchtermsandtothemasculineas wellastothefeminineandneutergendersofsuchterm.Anyagreement,instrumentorstatutedefinedorreferred tohereinorinanyagreementorinstrumentthatisreferredtohereinmeanssuchagreement,instrumentorstatute asfromtimetotimeamended,modifiedorsupplemented,including(inthecaseofagreementsorinstruments) bywaiverorconsentand(inthecaseofstatutes)bysuccessionofcomparablesuccessorstatutesandreferences toallattachmentstheretoandinstrumentsincorporatedtherein.ReferencesinthisAgreementtothefiduciary dutiesoftheBoardofDirectorsoftheCompanyshallbedeemedtoincludereferencetothosedutiessetforthin Section2-405.1oftheMGCLinadditiontoanyotherapplicablecommonlawfiduciaryduties.Eachofthe partieshasparticipatedinthedraftingandnegotiationofthisAgreement.Ifanambiguityorquestionofintentor interpretationarises,thisAgreementmustbeconstruedasifitisdraftedbyalltheparties,andnopresumptionor burdenofproofshallarisefavoringordisfavoringanypartybyvirtueofauthorshipofanyoftheprovisionsof thisAgreement.ReferencesinthisAgreementtospecificlawsortospecificprovisionsoflawsshallincludeall rulesandregulationspromulgatedthereunder.Anystatutedefinedorreferredtohereinorinanyagreementor instrumentreferredtohereinshallmeansuchstatuteasfromtimetotimeamended,modifiedorsupplemented, includingbysuccessionofcomparablesuccessorstatutes.{RemainderofPageIntentionallyLeftBlank}

A-71 INWITNESSWHEREOF,thepartiesheretohavecausedthisAgreementtobedulyexecutedanddeliveredasofthedatefirstabovewritten.EXELONCORPORATION

B Y:/s/JohnW.RoweName:JohnW.RoweTitle:ChairmanandChiefExecutiveOfficerBOLTACQUISITIONCORPORATION

B Y:/s/ChristopherM.CraneName:ChristopherM.CraneTitle:PresidentCONSTELLATIONENERGYGROUP,INC.

B Y:/s/MayoA.ShattuckIIIName:MayoA.ShattuckIIITitle:Chairman,PresidentandChiefExecutive Officer A-72 ExhibitAPOST-MERGERGOVERNANCEOFPARENTRolesandResponsibilitiesoftheChiefExecutiveOfficerandtheExecutiveChairmanoftheBoardChiefExecutiveOfficerExecutiveChairman*MemberoftheBoard

• AssistsonthedevelopmentofBoardagenda

• Developsthestrategicplan

• Recommendsvision&missiontoExecutiveChairandBoard*Developspublicpolicypositions

• Followingtransition,selectsexecutivemanagementteamwithinputfromExecutiveChairman*Spokesmanonpublicpolicyinitiatives*ActiveroleinnationalandstategovernmentrelationsandEEImatters,incoordinationwith ExecutiveChairman*DevelopsannualbudgetforBoardapproval

• Drivesstrategicfinancialandoperationalresults

• Leadstheorganization

• RepresentsExelontopublicandinvestors*ChairmanoftheBoard*ApprovesagendaandconductsBoardmeetings

• SupportsBoardselectionprocess

• Approvesvision&missionwithBoard

• Providesguidanceonandapprovespublicpolicypositions*Spokesmanonpublicpolicyinitiatives*ActiveroleinnationalandstategovernmentrelationsandEEImatters,in coordinationwithCEO*ContinueroleaschairmanofINPO*Followingtransition,providesinputonselectionofexecutivemanagementteam*RepresentstheBoardtothepublic

• AssistsinrepresentingExelontopublicand investors*AdvisestheCEOinthegrowthanddevelopmentofthecompetitivebusinesses,and representsthecompanyinadvancingthe customersandotherexternalconstituencies*AdvisestheCEOonstrategyanddevelopmentandtransactionalactivitiesInitialmanagementteamofParentfollowingtheClosingtobeagreeduponbycurrentParentCEO,futureParentCEOandfutureParentExecutiveChairman.

A-73 BoardofDirectorsAttheEffectiveTime,ParentwilladdtoitsBoardofDirectors(A)threedirectorswhomeetthestandardsforindependencesetforthintheNewYorkStockExchangeListingStandardsandareotherwisedesignatedbythe BoardofDirectorsoftheCompanyand(B)theExecutiveChairmanoftheBoardofDirectorsofParentassetforthintheMergerAgreement(theCompanyDesignees).Bytheendof2012,thenumberofdirectorsconstitutingtheBoardofDirectorsofParentshallbe16,comprisedof12ParentDesignees(asdefinedbelow)andthefour(4)CompanyDesignees.TheParentDesigneeswillconsistof(A)11directorswhomeetthestandardsforindependencesetforthintheNewYorkStockExchange ListingStandardsandareotherwisedesignatedbytheBoardofDirectorsofParentand(B)theindividual designatedasChiefExecutiveOfficerofParentaftertheEffectiveTime.CommitteesoftheBoardofDirectorsandChairpersonsofCommitteesAsoftheEffectiveTime,eachofthethree(3)independentCompanyDesigneeswillbenamedtooneormoreofthefollowingcommitteesoftheBoardofDirectorsofParent:compensation,corporategovernance,auditand riskoversight.Inaddition,one(1)ofthethree(3)independentCompanyDesigneeswillbenamedasthechairof oneofsuchcommittees.LocationofStockholderMeetingsAftertheEffectiveTime,theannualstockholdermeetingsofParentwillbeheldonarotatingbasisbetweenChicago,PhiladelphiaandBaltimore.

A-74 AnnexB[BarclaysCapitalInc.letterhead]April28,2011BoardofDirectorsExelonCorporation 10SouthDearbornStreet P.O.Box805379 Chicago,IL60680-5379MembersoftheBoardofDirectors:WeunderstandthatExelonCorporation(ExelonortheCompany)intendstoenterintoatransaction(theProposedTransaction)withConstellationEnergyGroup,Inc.(Constellation)pursuanttowhich(i)Bolt AcquisitionCorporation,aMarylandcorporationandawholly-ownedsubsidiaryofExelon(MergerSub),will mergewithandintoConstellation(theMerger)and(ii)upontheeffectivenessoftheMerger,(x)theseparate corporateexistenceofMergerSubwillcease,Constellationwillcontinueasthesurvivingcompanyinthe Mergerandwillbecomeadirectorindirectwholly-ownedsubsidiaryofExelonand(y)eachissuedand outstandingshareofcommonstock,noparvalue,ofConstellation(ConstellationCommonStock),willbe convertedintotherighttoreceive0.9300shares(theExchangeRatio)ofcommonstock,noparvalue,of Exelon(ExelonCommonStock).ThetermsandconditionsoftheProposedTransactionaresetforthinmore detailinthedraftAgreementandPlanofMerger,datedasofApril27,2011,byandamongExelon,MergerSub andConstellation(theAgreement).WehavebeenrequestedbytheBoardofDirectorsoftheCompanytorenderouropinionwithrespecttothefairness,fromafinancialpointofview,totheCompanyoftheExchangeRatio.Wehavenotbeenrequestedto opineasto,andouropiniondoesnotinanymanneraddress,theCompanysunderlyingbusinessdecisionto proceedwithoreffecttheProposedTransactionorthelikelihoodofconsummationoftheProposedTransaction.

Inaddition,weexpressnoopinionon,andouropiniondoesnotinanymanneraddress,thefairnessofthe amountorthenatureofanycompensationtoanyofficers,directorsoremployeesofanypartiestotheProposed Transaction,oranyclassofsuchpersons,relativetotheconsiderationpaidintheProposedTransactionor

otherwise.Inarrivingatouropinion,wereviewedandanalyzed:(1)adraftoftheAgreement,datedasofApril27,2011,andthespecifictermsoftheProposedTransaction,(2)publiclyavailableinformationconcerningthe CompanyandConstellationthatwebelievetoberelevanttoouranalysis,includingeachof(i)AnnualReporton Form10-KforthefiscalyearendedDecember31,2010,QuarterlyReportsonForm10-Qforthefiscalquarters endedMarch31,2010,June30,2010andSeptember30,2010,(ii)theDefinitiveProxyStatementonForm14A datedApril15,2011forConstellation,theDefinitiveProxyStatementonForm14AdatedMarch24,2011for Exelon,andotherrelevantfilingswiththeSecuritiesandExchangeCommission,foreachofExelonand Constellation,respectively,and(iii)FederalEnergyRegulatoryCommission(theFERC)FERCFormNo.1 andFERCFormNo.2sforConstellation,(3)financialandoperatinginformationwithrespecttothebusiness, operationsandprospectsoftheCompanyfurnishedtousbytheCompany,includingfinancialprojectionsofthe CompanypreparedbymanagementoftheCompany(theCompanyProjections),(4)financialandoperating informationwithrespecttothebusiness,operationsandprospectsofConstellation,furnishedtousby ConstellationandtheCompany,including(i)financialprojectionsofConstellationpreparedbythemanagement ofConstellation(theConstellationProjections)and(ii)financialprojectionsofConstellationpreparedbythe managementoftheCompany(theCompanysConstellationProjections),(5)thetradinghistoryofthe CompanyscommonstockfromApril28,2008toApril26,2011,thetradinghistoryofConstellationscommon stockfromApril28,2008toApril26,2011andacomparisonofeachoftheirtradinghistorieswiththoseof B-1 othercompaniesthatwedeemedrelevant,(6)acomparisonofthehistoricalfinancialresultsandpresentfinancialconditionoftheCompanyandConstellationwitheachotherandwiththoseofothercompaniesthatwe deemedrelevant,(7)therelativecontributionsoftheCompanyandConstellationto,basedontheCompanys ProjectionsandtheCompanysConstellationProjections,thefuturefinancialperformanceofthecombined companyonaproformabasis,(8)theproformaimpactoftheProposedTransactiononthefuturefinancial performanceofthecombinedcompany,including(i)theexpectedcostsavings,operatingsynergiesandstrategic benefits,netofanycosts-to-achieve,expectedbythemanagementoftheCompanytoresultfromthe combinationofthebusinessesoftheCompanyandConstellation(theExpectedImpacts),(ii)certainpurchase accountingadjustmentstothebasisofConstellationforreportingpurposesundergenerallyacceptedaccounting principlesintheUnitedStatesasestimatedbythemanagementoftheCompany(thePurchaseAccounting Adjustments),and(iii)certainmeasuresdescribedtousbymanagementoftheCompanyasmeasuresthe CompanywouldbewillingtotaketofacilitategovernmentalandregulatoryapprovaloftheProposed Transaction(theDisclosedActions),(9)othersuchanalysesaswehavedeemedrelevant,and(10)published estimatesofindependentresearchanalystswithrespecttothefuturefinancialperformanceandpricetargetsof theCompanyandConstellation.Inaddition,wehavehaddiscussionswiththemanagementoftheCompany concerningitsbusiness,operations,assets,liabilities,financialconditionandprospectsandhaveundertakensuch otherstudies,analysesandinvestigationsaswedeemedappropriate.Inarrivingatouropinion,wehaveassumedandreliedupontheaccuracyandcompletenessofthefinancialandotherinformationusedbyuswithoutanyindependentverificationofsuchinformationandhavefurther reliedupontheassurancesofthemanagementoftheCompanythattheyarenotawareofanyfactsor circumstancesthatwouldmakesuchinformationinaccurateormisleading.WithrespecttotheCompany ProjectionsandtheCompanysConstellationProjections,upontheadviceoftheCompany,wehaveassumed thattheCompanyProjectionsandtheCompanysConstellationProjectionshavebeenreasonablypreparedona basisreflectingthebestcurrentlyavailableestimatesandjudgmentsofthemanagementoftheCompanyastothe futurefinancialperformancesofeachoftheCompanyandConstellation,andthateachoftheCompanyand Constellationwillperformsubstantiallyinaccordancewithsuchprojections.Wehavediscussedthese projectionswiththemanagementoftheCompanyandtheyhaveagreedwiththeappropriatenessoftheuseof suchprojectionsinperformingouranalysisandwehaverelieduponsuchprojectionsinarrivingatouropinion.

Furthermore,upontheadviceoftheCompany,wehaveassumedthattheamountsandtimingoftheExpected ImpactsarereasonableandthattheExpectedImpactswillberealizedinaccordancewithsuchestimates.

Furthermore,upontheadviceoftheCompany,wehaveassumedthattheamountsandtimingofthePurchase AccountingAdjustmentsarereasonableandthatthePurchaseAccountingAdjustmentswillhavetheeffect projectedbytheCompany.Weassumenoresponsibilityforandweexpressnoviewastoanysuchprojectionsor estimatesortheassumptionsonwhichtheyarebased.Inarrivingatouropinion,wehavenotconducteda physicalinspectionofthepropertiesandfacilitiesoftheCompanyorConstellationandhavenotmadeor obtainedanyevaluationsorappraisalsoftheassetsorliabilitiesoftheCompanyorConstellation.Ouropinion necessarilyisbaseduponmarket,economicandotherconditionsastheyexiston,andcanbeevaluatedasof,the dateofthisletter.Weassumenoresponsibilityforupdatingorrevisingthisopinionbasedoneventsor circumstancesthatmayoccurafterthedateofthisletter.Weexpressnoopinionastothepricesatwhichshares ofCompanyCommonStockwouldtradefollowingtheannouncementorconsummationoftheProposed TransactionorsharesofConstellationCommonStockwouldtradefollowingtheannouncementoftheProposed

Transaction.WehaveassumedthattheexecutedAgreementwillconforminallmaterialrespectstothelastdraftreviewedbyus.Inaddition,wehaveassumedtheaccuracyoftherepresentationsandwarrantiescontainedinthe Agreementandallagreementsrelatedthereto.Wehavealsoassumed,upontheadviceoftheCompany,thatall materialgovernmental,regulatoryandthirdpartyapprovals,consentsandreleasesfortheProposedTransaction willbeobtainedwithintheconstraintscontemplatedbytheDisclosedActionsandwithoutanymaterialadverse effectonConstellationortheCompanyoronthecontemplatedbenefitsoftheProposedTransactionandthatthe ProposedTransactionwillbeconsummatedinaccordancewiththetermsoftheAgreementwithoutwaiver, modificationoramendmentofanymaterialterm,conditionoragreementthereof.Wedonotexpressanyopinion B-2 astoanytaxorotherconsequencesthatmightresultfromtheProposedTransaction,nordoesouropinionaddressanylegal,tax,regulatoryoraccountingmatters,astowhichweunderstandthattheCompanyhas obtainedsuchadviceasitdeemednecessaryfromqualifiedprofessionals.Baseduponandsubjecttotheforegoing,weareoftheopinionasofthedatehereofthat,fromafinancialpointofview,theExchangeRatioisfairtotheCompany.WehaveactedasfinancialadvisortotheCompanyinconnectionwiththeProposedTransactionandwillreceiveafeeforourservicesaportionofwhichispayableuponrenderingthisopinionandasubstantialportion ofwhichiscontingentupontheconsummationoftheProposedTransaction.Inaddition,theCompanyhasagreed toreimburseourexpensesandindemnifyusforcertainliabilitiesthatmayariseoutofourengagement.Wehave performedvariousinvestmentbankingandfinancialservicesfortheCompanyandConstellationinthepast,and expecttoperformsuchservicesinthefuture,andhavereceived,andexpecttoreceive,customaryfeesforsuch services.Specifically,inthepasttwoyears,wehaveperformedthefollowinginvestmentbankingandfinancial servicesfortheCompanyandConstellation:(i)actedasjointleadarrangerandbookrunnerontherefinancingon theCompanysandtwoofitsprincipaloperatingcompanies$6.4billionrevolvingcreditfacilities,eachin March2011,(ii)actedasjointbookrunnerontheCompanysGenerationsubsidiarys$900millionnotes offeringinSeptember2010,(iii)actedasexclusivefinancialadvisortotheCompanyonits$860million acquisitionofJohnDeereRenewablesinAugust2010,(iv)actedasjointleadarrangerontherefinancingforone oftheCompanysprincipaloperatingcompanies$1billionrevolvingcreditfacilityinMarch2010,(v)actedas dealermanageronatenderofferfornotesdue2011andjointbookrunneronanofferingof$1.5billionofnew 10-and30-yearnotesfortheCompanyinSeptember2009,(vi)actedasfinancialadvisortotheCompanyonits proposedacquisitionofNRGEnergyin2008and2009(vii)providedvariousstrategicadvisoryservicestothe Company,(ix)actedasalenderinConstellations$1billion364-dayrevolvingcreditfacilityin2009,and (x)engagedinvarioushedging,derivativeandotherriskmanagementtransactionsfortheCompanyand Constellation.Inaddition,wearecurrentlyactingasexclusivefinancialadvisortotheCompanyoncertainother potentialtransactionsandwewillreceivecustomaryfeesinconnectiontherewith.BarclaysCapitalInc.anditsaffiliatesengageinawiderangeofbusinessesfrominvestmentandcommercialbanking,lending,assetmanagementandotherfinancialandnon-financialservices.Intheordinary courseofourbusiness,weandouraffiliatesmayactivelytradeandeffecttransactionsintheequity,debtand/or othersecurities(andanyderivativesthereof)andfinancialinstruments(includingloansandotherobligations)of theCompanyandConstellationforourownaccountandfortheaccountsofourcustomersand,accordingly,may atanytimeholdlongorshortpositionsandinvestmentsinsuchsecuritiesandfinancialinstruments.Thisopinion,theissuanceofwhichhasbeenapprovedbyourFairnessOpinionCommittee,isfortheuseandbenefitoftheBoardofDirectorsoftheCompanyandisrenderedtotheBoardofDirectorsinconnection withitsconsiderationoftheProposedTransaction.Thisopinionisnotintendedtobeanddoesnotconstitutea recommendationtoanyshareholderoftheCompanyastohowsuchshareholdershouldvotewithrespecttothe ProposedTransaction.Verytrulyyours,

/s/BarclaysCapitalInc.BARCLAYSCAPITALINC.

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AnnexC[J.P.MorganSecuritiesLLCletterhead]April27,2011TheBoardofDirectorsExelonCorporation 10SouthDearbornStreet 52ndFloor Chicago,IL60603MembersoftheBoardofDirectors:Youhaverequestedouropinionastothefairness,fromafinancialpointofview,toExelonCorporation(theCompany)oftheExchangeRatio(asdefinedbelow)intheproposedmerger(theTransaction)ofawholly-ownedsubsidiaryoftheCompany(MergerSub)withConstellationEnergyGroup,Inc.(theMergerPartner).

PursuanttotheAgreementandPlanofMerger(theAgreement),amongtheCompany,MergerSubandthe MergerPartner,theMergerPartnerwillbecomeawholly-ownedsubsidiaryoftheCompany,andeach outstandingshareofcommonstock,withoutparvalue,oftheMergerPartner(theMergerPartnerCommon Stock),otherthansharesofMergerPartnerCommonStockownedbytheCompany,MergerSubortheMerger Partner(oranywholly-ownedsubsidiaryoftheCompanyortheMergerPartner),willbeconvertedintotheright toreceive[0.9300]fullypaidandnonassessableshares(theExchangeRatio)oftheCompanyscommonstock, withoutparvalue(theCompanyCommonStock).Inconnectionwithpreparingouropinion,wehave(i)reviewedadraftdatedApril27,2011oftheAgreement;(ii)reviewedcertainpubliclyavailablebusinessandfinancialinformationconcerningtheMergerPartnerandthe Companyandtheindustriesinwhichtheyoperate;(iii)comparedtheproposedfinancialtermsoftheTransaction withthepubliclyavailablefinancialtermsofcertaintransactionsinvolvingcompanieswedeemedrelevantand theconsiderationreceivedforsuchcompanies;(iv)comparedthefinancialandoperatingperformanceofthe MergerPartnerandtheCompanywithpubliclyavailableinformationconcerningcertainothercompanieswe deemedrelevantandreviewedthecurrentandhistoricalmarketpricesoftheMergerPartnerCommonStockand theCompanyCommonStockandcertainpubliclytradedsecuritiesofsuchothercompanies;(v)reviewedcertain internalfinancialanalysesandforecastspreparedbyoratthedirectionofthemanagementsoftheMergerPartner andtheCompanyrelatingtotheirrespectivebusinesses,aswellastheestimatedamountandtimingofthecost savingsandrelatedexpensesandsynergiesexpectedtoresultfromtheTransaction(theSynergies);

(vi)consideredcertainmeasuresdescribedtousbymanagementoftheCompanyasmeasurestheCompany wouldbewillingtotaketofacilitategovernmentalandregulatoryapprovaloftheTransaction(theDisclosed Actions);and(vii)performedsuchotherfinancialstudiesandanalysesandconsideredsuchotherinformationas wedeemedappropriateforthepurposesofthisopinion.Inaddition,wehavehelddiscussionswithcertainmembersofthemanagementoftheMergerPartnerandtheCompanywithrespecttocertainaspectsoftheTransaction,andthepastandcurrentbusinessoperationsofthe MergerPartnerandtheCompany,thefinancialconditionandfutureprospectsandoperationsoftheMerger PartnerandtheCompany,theeffectsoftheTransactiononthefinancialconditionandfutureprospectsofthe Company,andcertainothermatterswebelievednecessaryorappropriatetoourinquiry.Ingivingouropinion,wehaverelieduponandassumedtheaccuracyandcompletenessofallinformationthatwaspubliclyavailableorwasfurnishedtoordiscussedwithusbytheMergerPartnerandtheCompanyor otherwisereviewedbyorforus,andwehavenotindependentlyverified(norhaveweassumedresponsibilityor liabilityforindependentlyverifying)anysuchinformationoritsaccuracyorcompleteness.Wehavenot conductedorbeenprovidedwithanyvaluationorappraisalofanyassetsorliabilities,norhaveweevaluatedthe C-1 solvencyoftheMergerPartnerortheCompanyunderanystateorfederallawsrelatingtobankruptcy,insolvencyorsimilarmatters.Inrelyingonfinancialanalysesandforecastsprovidedtousorderivedtherefrom, includingtheSynergies,wehaveassumedthattheyhavebeenreasonablypreparedbasedonassumptions reflectingthebestcurrentlyavailableestimatesandjudgmentsbymanagementastotheexpectedfutureresults ofoperationsandfinancialconditionoftheMergerPartnerandtheCompanytowhichsuchanalysesorforecasts relate.Weexpressnoviewastosuchanalysesorforecasts(includingtheSynergies)ortheassumptionson whichtheywerebased.WehavealsoassumedthattheTransactionandtheothertransactionscontemplatedby theAgreementwillhavethetaxconsequencesdescribedindiscussionswith,andmaterialsfurnishedtousby, representativesoftheCompany,andwillbeconsummatedasdescribedintheAgreement,andthatthedefinitive Agreementwillnotdifferinanymaterialrespectsfromthedraftthereoffurnishedtous.Wehavealsoassumed thattherepresentationsandwarrantiesmadebytheCompanyandtheMergerPartnerintheAgreementandthe relatedagreementsareandwillbetrueandcorrectinallrespectsmaterialtoouranalysis.Wearenotlegal, regulatoryortaxexpertsandhavereliedontheassessmentsmadebyadvisorstotheCompanywithrespectto suchissues.Wehavefurtherassumedthatallmaterialgovernmental,regulatoryorotherconsentsandapprovals necessaryfortheconsummationoftheTransactionwillbeobtainedwithintheconstraintscontemplatedbythe DisclosedActionsandwithoutanymaterialadverseeffectontheMergerPartnerortheCompanyoronthe contemplatedbenefitsoftheTransaction.Ouropinionisnecessarilybasedoneconomic,marketandotherconditionsasineffecton,andtheinformationmadeavailabletousasof,thedatehereof.Itshouldbeunderstoodthatsubsequentdevelopmentsmayaffectthis opinionandthatwedonothaveanyobligationtoupdate,revise,orreaffirmthisopinion.Ouropinionislimited tothefairness,fromafinancialpointofview,totheCompanyoftheExchangeRatiointheproposedTransaction andweexpressnoopinionastothefairnessoftheTransactiontotheholdersofanyclassofsecurities,creditors orotherconstituenciesoftheCompanyorastotheunderlyingdecisionbytheCompanytoengageinthe Transaction.Furthermore,weexpressnoopinionwithrespecttotheamountornatureofanycompensationto anyofficers,directors,oremployeesofanypartytotheTransaction,oranyclassofsuchpersonsrelativetothe ExchangeRatiointheTransactionorwithrespecttothefairnessofanysuchcompensation.Weareexpressing noopinionhereinastothepriceatwhichtheMergerPartnerCommonStockortheCompanyCommonStock willtradeatanyfuturetime.WehaveactedasfinancialadvisortotheCompanywithrespecttotheproposedTransactionandwillreceiveafeefromtheCompanyforourservices,asubstantialportionofwhichwillbecomepayableonlyiftheproposed Transactionisconsummated.Inaddition,theCompanyhasagreedtoindemnifyusforcertainliabilitiesarising outofourengagement.Duringthetwoyearsprecedingthedateofthisletter,weandouraffiliateshavehad commercialorinvestmentbankingrelationshipswiththeCompanyandtheMergerPartnerforwhichweand suchaffiliateshavereceivedcustomarycompensation.Suchservicesduringsuchperiodhaveincludedactingas (i)jointbookrunnerforofferingsofinvestmentgradedebtsecuritiesbytheCompanyssubsidiaries, CommonwealthEdisonCompany(ComEd)andExelonGenerationCompany,LLC(ExelonGeneration),in January2011andSeptember2009,respectively;(ii)leadarrangerforcreditfacilitiesforExelonGeneration,the Companyanditssubsidiary,PECOEnergyCompany(PECO),inMarch2011,forComEd,ExelonGeneration, andPECOinOctober2010andforComEdinMarch2010;and(iii)financialadvisortotheCompany,beginning inOctober2010,inconnectionwiththeCompanysanalysisandconsiderationofvariouspotentialtransactions.

Inaddition,ourcommercialbankingaffiliateisanagentbankandalenderunderoutstandingcreditfacilitiesof theCompanyandcertainofitsaffiliatesandalenderunderoutstandingcreditfacilitiesoftheMergerPartner,as wellasprovidingcertaincashmanagementandtreasuryservicesforeachoftheCompanyandtheMerger Partner,forwhichitreceivescustomarycompensationorotherfinancialbenefits.Intheordinarycourseofour businesses,weandouraffiliatesmayactivelytradethedebtandequitysecuritiesoftheCompanyortheMerger Partnerforourownaccountorfortheaccountsofcustomersand,accordingly,wemayatanytimeholdlongor shortpositionsinsuchsecurities.Onthebasisofandsubjecttotheforegoing,itisouropinionasofthedatehereofthattheExchangeRatiointheproposedTransactionisfair,fromafinancialpointofview,totheCompany.

C-2 TheissuanceofthisopinionhasbeenapprovedbyafairnessopinioncommitteeofJ.P.MorganSecuritiesLLC.ThisletterisprovidedtotheBoardofDirectorsoftheCompany(initscapacityassuch)inconnectionwithand forthepurposesofitsevaluationoftheTransaction.Thisopiniondoesnotconstitutearecommendationtoany shareholderoftheCompanyastohowsuchshareholdershouldvotewithrespecttotheTransactionoranyother matter.Thisopinionmaynotbedisclosed,referredto,orcommunicated(inwholeorinpart)toanythirdparty foranypurposewhatsoeverexceptwithourpriorwrittenapproval.Thisopinionmaybereproducedinfullinany proxyorinformationstatementmailedtoshareholdersoftheCompanybutmaynototherwisebedisclosed publiclyinanymannerwithoutourpriorwrittenapproval.Verytrulyyours,

/s/J.P.MorganSecuritiesLLCJ.P.MORGANSECURITIESLLC C-3

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AnnexD[EvercoreGroupL.L.C.letterhead]April27,2011TheBoardofDirectorsofExelonCorporation 10SouthDearbornStreet Chicago,Illinois60603MembersoftheBoardofDirectors:WeunderstandthatExelonCorporation,aPennsylvaniacorporation(Parent),proposestoenterintoanAgreementandPlanofMerger,tobedatedasofApril28,2011(theMergerAgreement),withBoltAcquisitionCorporation,aMarylandcorporationandawholly-ownedsubsidiaryofParent(MergerSub)andConstellationEnergyGroup,Inc.,aMarylandcorporation(theCompany),pursuanttowhichMergerSubwillbemergedwithandintotheCompany(theMerger).IntheMerger,eachissuedandoutstandingshareofcommonstock,withoutparvalue(theCompanyCommonStock),oftheCompany,otherthananysharesownedbyParent,MergerSubortheCompany(oranywholly-ownedsubsidiaryofParentortheCompany),willbeconvertedintotherighttoreceive0.9300ofashare(theExchangeRatio)ofcommonstock,withoutparvalue(ParentCommonStock),ofParent.ThetermsandconditionsoftheMergeraremorefullysetforthin theMergerAgreementandtermsusedhereinandnotdefinedshallhavethemeaningsascribedtheretointhe MergerAgreement.TheBoardofDirectorshasaskeduswhether,inouropinion,asofthedatehereof,theExchangeRatioisfair,fromafinancialpointofview,toParent.Inconnectionwithrenderingouropinion,wehave,amongotherthings:(i)reviewedcertainpubliclyavailablebusinessandfinancialinformationrelatingtoParentandtheCompanythatwedeemedtoberelevant,includingpubliclyavailableresearchanalystsestimates;(ii)reviewedcertainnon-publicfinancialandoperatingdatarelatingtotheCompanypreparedbythemanagementoftheCompanyandfurnishedtousviaParent,includingcertainCompanyfinancialforecastspreparedbyCompanymanagement(theCompanyProjections)(iii)reviewedcertainnon-publicprojectedfinancialdatarelatingtotheCompanyunderalternativebusinessassumptionspreparedandfurnishedtousbymanagementofParent(theAdjustedCompanyProjections),anddiscussedwiththemanagementofParentitsassessmentsastothelikelihoodofachievingthefuturefinancialresultsreflectedintheAdjustedCompanyProjections;(iv)reviewedcertainnon-publicfinancialandoperatingdatarelatingtoParentpreparedandfurnishedtousbythemanagementofParent,includingcertainParentfinancialforecastspreparedbyParentmanagement(theParentProjections);(v)reviewedcertainestimatesastotheamountandtimingofcertainsynergiesanticipatedbyParentmanagementtoresultfromtheMerger(theExpectedSynergies);(vi)discussedthepastandcurrentoperations,financialprojectionsandcurrentfinancialconditionofParentwithmanagementofParent(includingtheirviewsontherisksanduncertaintyofachievingthe ParentProjections);(vii)reviewedthereportedpricesandthehistoricaltradingactivitiesfortheCompanyandParentcommon stock;(viii)comparedthefinancialperformanceoftheCompanyandParentandtheirstockmarkettradingmultipleswiththoseofcertainotherpubliclytradedcompaniesthatwedeemrelevant; D-1 (ix)reviewedtherelativefinancialcontributionsoftheCompanyandParenttothefuturefinancialperformanceofthecombinedcompanyonaproformabasis;(x)reviewedadraftmergeragreementdatedApril26,2011,whichwehaveassumedisinsubstantiallyfinalformandfromwhichweassumethefinalformwillnotvaryinanyrespectmaterialtoour analysis;and(xi)performedsuchotheranalysesandstudiesandconsideredsuchotherinformationandfactorsaswedeemedappropriate.Forpurposesofouranalysisandopinion,wehaveassumedandreliedupon,withoutundertakinganyindependentverificationof,theaccuracyandcompletenessofalloftheinformationpubliclyavailable,andallof theinformationsuppliedorotherwisemadeavailableto,discussedwith,orreviewedbyus,andweassumeno liabilitytherefor.Forpurposesofouranalysis,atthedirectionofParentmanagement,weusedtheAdjusted CompanyProjectionsratherthantheCompanyProjections.Withrespecttotheprojectedfinancialdatarelating toParentreferredtoabove,wehaveassumedthattheyhavebeenreasonablypreparedonbasesreflectingthe bestcurrentlyavailableestimatesandgoodfaithjudgmentsofmanagementofParentastothefuturefinancial performanceoftheCompanyandParentunderthealternativebusinessassumptionsreflectedtherein.Weexpress noviewastoanyprojectedfinancialdatarelatingtotheCompanyorParentortheassumptionsonwhichthey arebased.WithrespecttotheExpectedSynergiesanticipatedbyParentmanagementtoresultfromtheMerger, wehaveassumedatthedirectionofParentmanagementthatthetimingandamountofsuchExpectedSynergies arereasonableandthattheywillberealizedsubstantiallyinaccordancewithsuchestimates.Atthedirectionof Parentmanagement,wehaveconsideredtheassetdivestituresandotherconcessionsthatParentintendsto proposeinconnectionwiththeprocesstoobtaingovernmentalandregulatoryapprovalsfortheMerger(theProposedConcessions),whicharereflectedinParentsinternalfinancialanalysesandforecasts.Weexpressno viewastothesufficiencyorimpactof,ortheassumptionsunderlyingParentsinternalfinancialforecasts regarding,theProposedConcessions.Forpurposesofrenderingouropinion,wehaveassumed,inallrespectsmaterialtoouranalysis,thattherepresentationsandwarrantiesofeachpartycontainedintheMergerAgreementaretrueandcorrect,thateach partywillperformallofthecovenantsandagreementsrequiredtobeperformedbyitundertheMerger AgreementandthatallconditionstotheconsummationoftheMergerwillbesatisfiedwithoutmaterialwaiveror modificationthereof.OtherthanascontemplatedbytheProposedConcessions,wehavefurtherassumedthatall governmental,regulatoryorotherconsents,approvalsorreleasesnecessaryfortheconsummationoftheMerger willbeobtainedwithoutanymaterialdelay,limitation,restrictionorconditionthatwouldhaveanadverseeffect ontheCompany,ParentortheconsummationoftheMergerormateriallyreducethebenefitstoParentofthe

Merger.WehavenotmadenorassumedanyresponsibilityformakinganyindependentvaluationorappraisaloftheassetsorliabilitiesoftheCompanyorParent,norhavewebeenfurnishedwithanysuchappraisals,norhavewe evaluatedthesolvencyorfairvalueoftheCompanyorParentunderanystateorfederallawsrelatingto bankruptcy,insolvencyorsimilarmatters.Ouropinionisnecessarilybaseduponinformationmadeavailableto usasofthedatehereofandfinancial,economic,marketandotherconditionsastheyexistandascanbe evaluatedonthedatehereof.Itisunderstoodthatsubsequentdevelopmentsmayaffectthisopinionandthatwe donothaveanyobligationtoupdate,reviseorreaffirmthisopinion.Wehavenotbeenaskedtopassupon,andexpressnoopinionwithrespectto,anymatterotherthanthefairnesstoParent,fromafinancialpointofview,oftheExchangeRatio.Wedonotexpressanyviewon,andour opiniondoesnotaddress,thefairnessoftheproposedtransactionto,oranyconsiderationreceivedinconnection therewithby,theholdersofanysecurities,creditorsorotherconstituenciesofParentortheCompany,norasto thefairnessoftheamountornatureofanycompensationtobepaidorpayabletoanyoftheofficers,directorsor employeesofParentortheCompany,oranyclassofsuchpersons,whetherrelativetotheExchangeRatioor otherwise.Wehaveassumedthatanymodificationtothestructureofthetransactionwillnotvaryinanyrespect D-2 materialtoouranalysis.OuropiniondoesnotaddresstherelativemeritsoftheMergerascomparedtootherbusinessorfinancialstrategiesthatmightbeavailabletoParent,nordoesitaddresstheunderlyingbusiness decisionofParenttoengageintheMerger.Thisletter,andouropinion,doesnotconstitutearecommendationto theBoardofDirectorsortoanyotherpersonsinrespectoftheMerger,includingastohowanyholderofshares ofParentCommonStockshouldvoteoractinrespectoftheStockIssuance.Weexpressnoopinionhereinasto thepriceatwhichsharesofParentCommonStockorCompanyCommonStockwilltradeatanytime.Weare notlegal,regulatory,accountingortaxexpertsandhaveassumedtheaccuracyandcompletenessofassessments byParentanditsadvisorswithrespecttolegal,regulatory,accountingandtaxmatters.Wewillreceiveafeeforourservicesupontherenderingofthisopinion.Parenthasalsoagreedtoreimburseourexpensesandtoindemnifyusagainstcertainliabilitiesarisingoutofourengagement.Wewillalso beentitledtoreceiveasuccessfee,portionsofwhichwillbepayablefollowingthereceiptofParents stockholdervoteontheStockIssuanceandtheconsummationoftheMerger.Priortothisengagement,we, EvercoreGroupL.L.C.,anditsaffiliatesprovidedfinancialadvisoryservicestoParentandhadreceivedfeesfor therenderingoftheseservicesincludingthereimbursementofexpenses.Duringthetwoyearperiodpriortothe datehereof,nomaterialrelationshipexistedbetweenEvercoreGroupL.L.C.anditsaffiliatesandtheCompany pursuanttowhichcompensationwasreceivedbyEvercoreGroupL.L.C.oritsaffiliatesasaresultofsucha relationship.WemayprovidefinancialorotherservicestoParentortheCompanyinthefutureandin connectionwithanysuchserviceswemayreceivecompensation.Intheordinarycourseofbusiness,EvercoreGroupL.L.C.oritsaffiliatesmayactivelytradethesecurities,orrelatedderivativesecurities,orfinancialinstrumentsoftheCompany,Parentandtheirrespectiveaffiliates,for itsownaccountandfortheaccountsofitscustomersand,accordingly,mayatanytimeholdalongorshort positioninsuchsecuritiesorinstruments.Thisletter,andtheopinionexpressedhereinisaddressedto,andfortheinformationandbenefitof,theBoardofDirectorsinconnectionwiththeirevaluationoftheproposedMerger.Theissuanceofthisopinionhas beenapprovedbyanOpinionCommitteeofEvercoreGroupL.L.C.Thisopinionmaynotbedisclosed,quoted,referredtoorcommunicated(inwholeorinpart)toanythirdpartyforanypurposewhatsoeverexceptwithourpriorwrittenapproval,exceptParentmayreproducethis opinioninfullinanydocumentthatisrequiredtobefiledwiththeU.S.SecuritiesandExchangeCommission andrequiredtobemailedbyParenttoitsstockholdersrelatingtotheMerger;provided,however,thatall referencestousorouropinioninanysuchdocumentandthedescriptionorinclusionofouropinionthereinshall besubjecttoourpriorconsentwithrespecttoformandsubstance,whichconsentshallnotbeunreasonably withheldordelayed.Baseduponandsubjecttotheforegoing,itisouropinionthat,asofthedatehereof,theExchangeRatioisfair,fromafinancialpointofview,toParent.Verytrulyyours, EVERCOREGROUPL.L.C.

By:/s/JaneSadowskyJaneSadowskySeniorManagingDirector D-3

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AnnexE[MorganStanley&Co.Incorporatedletterhead]April27,2011BoardofDirectorsConstellationEnergyGroup,Inc.

100ConstellationWay Baltimore,MD21202MembersoftheBoard:WeunderstandthatConstellationEnergyGroup,Inc.(ConstellationortheCompany),ExelonCorporation(theBuyer)andBoltAcquisitionCorporation,awhollyownedsubsidiaryoftheBuyer(MergerSub),

proposetoenterintoanAgreementandPlanofMerger,substantiallyintheformofthedraftdatedApril26, 2011(theMergerAgreement),whichprovides,amongotherthings,forthemerger(theMerger)ofMerger SubwithandintotheCompany.PursuanttotheMerger,theCompanywillbecomeawhollyownedsubsidiaryof theBuyer,andeachoutstandingshareofcommonstock,withoutparvalue,(theCompanyCommonStock)of theCompany,otherthansharesheldintreasuryorheldbytheBuyer,MergerSub,theCompanyoranywholly ownedsubsidiaryoftheBuyerortheCompany,willbeconvertedintotherighttoreceive0.930shares(the ExchangeRatio)ofcommonstock,withoutparvalue,oftheBuyer(theBuyerCommonStock).Theterms andconditionsoftheMergeraremorefullysetforthintheMergerAgreement.YouhaveaskedforouropinionastowhethertheExchangeRatiopursuanttotheMergerAgreementisfairfromafinancialpointofviewtotheholdersofsharesoftheCompanyCommonStock.Forpurposesoftheopinionsetforthherein,wehave:1.ReviewedcertainpubliclyavailablefinancialstatementsandotherbusinessandfinancialinformationoftheCompanyandtheBuyer,respectively;2.ReviewedcertaininternalfinancialstatementsandotherfinancialandoperatingdataconcerningtheCompanyandtheBuyer,respectively;3.ReviewedcertainfinancialprojectionspreparedbythemanagementsoftheCompanyandtheBuyer, respectively;4.DiscussedthepastandcurrentoperationsandfinancialconditionandtheprospectsoftheCompany,includinginformationrelatingtocertainstrategic,financialandoperationalbenefitsanticipatedfromthe Merger,withseniorexecutivesoftheCompany;5.DiscussedthepastandcurrentoperationsandfinancialconditionandtheprospectsoftheBuyer,includinginformationrelatingtocertainstrategic,financialandoperationalbenefitsanticipatedfromtheMerger,with seniorexecutivesoftheBuyer;6.ReviewedtheproformaimpactoftheMergerontheBuyersearningspershare,cashflow,consolidatedcapitalizationandfinancialratios;7.ReviewedthereportedpricesandtradingactivityfortheCompanyCommonStockandtheBuyerCommon Stock;8.ComparedthefinancialperformanceoftheCompanyandtheBuyerandthepricesandtradingactivityoftheCompanyCommonStockandtheBuyerCommonStockwiththatofcertainotherpublicly-traded companiescomparablewiththeCompanyandtheBuyer,respectively,andtheirsecurities;9.Reviewedthefinancialterms,totheextentpubliclyavailable,ofcertaincomparableacquisition transactions; E-1 10.ParticipatedindiscussionsandnegotiationsamongrepresentativesoftheCompanyandtheBuyerandtheirfinancialandlegaladvisors;11.ReviewedtheMergerAgreementandcertainrelateddocuments;and 12.Performedsuchotheranalysesandconsideredsuchotherfactorsaswehavedeemedappropriate.Wehaveassumedandreliedupon,withoutindependentverification,theaccuracyandcompletenessoftheinformationthatwaspubliclyavailableorsuppliedorotherwisemadeavailabletousbytheCompanyandthe Buyer,andformedasubstantialbasisforthisopinion.Withrespecttothefinancialprojections,including informationrelatingtocertainstrategic,financialandoperationalbenefitsanticipatedfromtheMerger,wehave assumedthattheyhavebeenreasonablypreparedonbasesreflectingthebestcurrentlyavailableestimatesand judgmentsoftherespectivemanagementsoftheCompanyandtheBuyerofthefuturefinancialperformanceof theCompanyandtheBuyer.Inaddition,wehaveassumedthattheMergerwillbeconsummatedinaccordance withthetermssetforthintheMergerAgreementwithoutanywaiver,amendmentordelayofanytermsor conditions,including,amongotherthings,thattheMergerwillbetreatedasatax-freereorganization,pursuantto theInternalRevenueCodeof1986,asamended.MorganStanleyhasassumedthatinconnectionwiththereceipt ofallthenecessarygovernmental,regulatoryorotherapprovalsandconsentsrequiredfortheproposedMerger, nodelays,limitations,conditionsorrestrictionswillbeimposedthatwouldhaveamaterialadverseeffectonthe contemplatedbenefitsexpectedtobederivedintheproposedMerger.Wearenotlegal,taxorregulatory advisors.Wearefinancialadvisorsonlyandhavereliedupon,withoutindependentverification,theassessment oftheBuyerandtheCompanyandtheirlegal,taxorregulatoryadvisorswithrespecttolegal,taxorregulatory matters.Weexpressnoopinionwithrespecttothefairnessoftheamountornatureofthecompensationtoanyof theCompanysofficers,directorsoremployees,oranyclassofsuchpersons,relativetotheconsiderationtobe receivedbytheholdersofsharesoftheCompanyCommonStockinthetransaction.Wehavenotmadeany independentvaluationorappraisaloftheassetsorliabilitiesoftheCompanyortheBuyer,norhavewebeen furnishedwithanysuchvaluationsorappraisals.Ouropinionisnecessarilybasedonfinancial,economic,market andotherconditionsasineffecton,andtheinformationmadeavailabletousasof,thedatehereof.Events occurringafterthedatehereofmayaffectthisopinionandtheassumptionsusedinpreparingit,andwedonot assumeanyobligationtoupdate,reviseorreaffirmthisopinion.Inarrivingatouropinion,wewerenotauthorizedtosolicit,anddidnotsolicit,interestfromanypartywithrespecttotheacquisition,businesscombinationorotherextraordinarytransaction,involvingtheCompany,nor didwenegotiatewithanyoftheparties,otherthantheBuyer,whichexpressedinteresttoMorganStanleyinthe possibleacquisitionoftheCompanyorcertainofitsconstituentbusinesses.WehaveactedasfinancialadvisortoBoardofDirectorsoftheCompanyinconnectionwiththistransactionandwillreceiveafeeforourservices,significantportionsofwhicharecontingentupon:theexecutionofadefinitive agreementrelatingtotheMerger,theapprovaloftheMergerbytherespectiveshareholdersoftheBuyerandthe Company,andtheclosingoftheMerger.Inthetwoyearspriortothedatehereof,wehaveprovidedfinancial advisoryandfinancingservicesfortheBuyerandtheCompanyandhavereceivedfeesinconnectionwithsuch services.MorganStanleymayalsoseektoprovidesuchservicestotheBuyerandtheCompanyinthefutureand expectstoreceivefeesfortherenderingoftheseservices.PleasenotethatMorganStanleyisaglobalfinancialservicesfirmengagedinthesecurities,investmentmanagementandindividualwealthmanagementbusinesses.Oursecuritiesbusinessisengagedinsecurities underwriting,tradingandbrokerageactivities,foreignexchange,commoditiesandderivativestrading,prime brokerage,aswellasprovidinginvestmentbanking,financingandfinancialadvisoryservices.MorganStanley, itsaffiliates,directorsandofficersmayatanytimeinvestonaprincipalbasisormanagefundsthatinvest,hold longorshortpositions,financepositions,andmaytradeorotherwisestructureandeffecttransactions,fortheir ownaccountortheaccountsofitscustomers,indebtorequitysecuritiesorloansofthetheBuyer,theCompany, oranyothercompany,oranycurrencyorcommodity,thatmaybeinvolvedinthistransaction,oranyrelated derivativeinstrument.

E-2 ThisopinionhasbeenapprovedbyacommitteeofMorganStanleyinvestmentbankingandotherprofessionalsinaccordancewithourcustomarypractice.ThisopinionisfortheinformationoftheBoardofDirectorsandmay notbeusedforanyotherpurposewithoutourpriorwrittenconsent,exceptthatacopyofthisopinionmaybe includedinitsentiretyinanyfilingtheCompanyisrequiredtomakewiththeSecuritiesandExchange Commissioninconnectionwiththistransactionifsuchinclusionisrequiredbyapplicablelaw.Inaddition,this opiniondoesnotinanymanneraddressthepricesatwhichtheCompanyCommonStockortheBuyerCommon Stockwilltradeatanytime,includingfollowingconsummationoftheMerger,andMorganStanleyexpressesno opinionorrecommendationastohowtheshareholdersoftheBuyerandtheCompanyshouldvoteatthe shareholdersmeetingstobeheldinconnectionwiththeMerger.Basedonandsubjecttotheforegoing,weareoftheopiniononthedatehereofthattheExchangeRatiopursuanttotheMergerAgreementisfairfromafinancialpointofviewtotheholdersofsharesoftheCompanyCommon

Stock.Verytrulyyours, MORGANSTANLEY&CO.INCORPORATED By:/s/JeffreyR.HolzschuhJeffreyR.HolzschuhViceChairman ManagingDirector E-3

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AnnexF[Goldman,Sachs&Co.letterhead]PERSONALANDCONFIDENTIAL April28,2011 BoardofDirectorsConstellationEnergyGroup,Inc.

100ConstellationWay Baltimore,MD21202LadiesandGentlemen:Youhaverequestedouropinionastothefairnessfromafinancialpointofviewtotheholdersoftheoutstandingsharesofcommonstock,withoutparvalue(theShares),ofConstellationEnergyGroup,Inc.(theCompany) oftheexchangeratioof0.9300sharesofcommonstock,withoutparvalue(ExelonCommonStock),ofExelon Corporation(Exelon)tobepaidforeachShare(theExchangeRatio)pursuanttotheAgreementandPlanof Merger,datedasofApril28,2011(theAgreement),byandamongExelon,BoltAcquisitionCorporation,a whollyownedsubsidiaryofExelon,andtheCompany.Goldman,Sachs&Co.anditsaffiliatesareengagedininvestmentbankingandfinancialadvisoryservices,commercialbanking,securitiestrading,investmentmanagement,principalinvestment,financialplanning, benefitscounseling,riskmanagement,hedging,financing,brokerageactivitiesandotherfinancialand non-financialactivitiesandservicesforvariouspersonsandentities.Intheordinarycourseoftheseactivitiesand services,Goldman,Sachs&Co.anditsaffiliatesmayatanytimemakeorholdlongorshortpositionsand investments,aswellasactivelytradeoreffecttransactions,intheequity,debtandothersecurities(orrelated derivativesecurities)andfinancialinstruments(includingbankloansandotherobligations)oftheCompany, Exelonandanyoftheirrespectiveaffiliatesandthirdpartiesoranycurrencyorcommoditythatmaybeinvolved inthetransactioncontemplatedbytheAgreement(theTransaction)fortheirownaccountandfortheaccounts oftheircustomers.WehaveactedasfinancialadvisortotheCompanyinconnectionwith,andhaveparticipated incertainofthenegotiationsleadingto,theTransaction.Weexpecttoreceivefeesforourservicesinconnection withtheTransaction,aportionofwhichispayableattransactionannouncement,aportionofwhichispayable uponshareholderapproval,andaportionofwhichiscontingentuponconsummationoftheTransaction,andthe Companyhasagreedtoreimburseourexpensesarising,andindemnifyusagainstcertainliabilitiesthatmay arise,outofourengagement.WehaveprovidedcertaininvestmentbankingservicestotheCompanyandits affiliatesfromtimetotime.WealsohaveprovidedcertaininvestmentbankingservicestoExelonandits affiliatesfromtimetotimeforwhichourInvestmentBankingDivisionhasreceived,andmayreceive, compensation,includinghavingactedasjointbook-runningmanagerwithrespecttoapublicofferingofExelon GenerationCompanys6.25%SeniorNotesdue2039($900millionaggregateprincipalamount)inSeptember 2009;asco-managerwithrespecttoapublicofferingofExelonGenerationCompanys5.20%SeniorNotesdue 2019($600millionaggregateprincipalamount)inSeptember2009;andasjointbook-runningmanagerwith respecttoapublicofferingofExelonGenerationCompanys4.00%SeniorNotesdue2020($550million aggregateprincipalamount)and5.75%SeniorNotesdue2041($350millionaggregateprincipalamount)in September2010.WemayalsointhefutureprovideinvestmentbankingservicestotheCompany,Exelonand theirrespectiveaffiliatesforwhichourInvestmentBankingDivisionmayreceivecompensation.Inconnectionwiththisopinion,wehavereviewed,amongotherthings,theAgreement;annualreportstostockholdersandAnnualReportsonForm10-KoftheCompanyandExelonforthefiveyearsended December31,2010;certaininterimreportstostockholdersandQuarterlyReportsonForm10-QoftheCompany andExelon;certainothercommunicationsfromtheCompanyandExelontotheirrespectivestockholders;certain publiclyavailableresearchanalystreportsfortheCompanyandExelon;certaininternalfinancialanalysesand forecastsforExelonpreparedbyitsmanagement;certaininternalfinancialanalysesandforecastsforthe F-1 Companypreparedbyitsmanagement,includingtheGrowthCaseForecasts(theGrowthCaseForecasts),andcertainfinancialanalysesandforecastsforExelonpreparedbythemanagementoftheCompany(theExelon ForecastsandtogetherwiththeGrowthCaseForecasts,theForecasts),ineachcase,asapprovedforouruse bytheCompany;andcertaincostsavingsandoperatingsynergiesprojectedbyExelontoresultfromthe Transaction,asreviewedandapprovedforourusebytheCompany(theSynergies).Wehavealsoheld discussionswithmembersoftheseniormanagementoftheCompanyregardingtheirassessmentofthepastand currentbusinessoperations,financialconditionandfutureprospectsoftheCompanyandExelon,andthe strategicrationalefor,andthepotentialbenefitsof,theTransaction;reviewedthereportedpriceandtrading activityfortheSharesandthesharesofExelonCommonStock;comparedcertainfinancialandstockmarket informationfortheCompanyandExelonwithsimilarinformationforcertainothercompaniesthesecuritiesof whicharepubliclytraded;reviewedthefinancialtermsofcertainrecentbusinesscombinationsinthepowerand utilityindustry;andperformedsuchotherstudiesandanalyses,andconsideredsuchotherfactors,aswedeemed

appropriate.Forpurposesofrenderingthisopinion,wehaverelieduponandassumed,withoutassuminganyresponsibilityforindependentverification,theaccuracyandcompletenessofallofthefinancial,legal,regulatory,tax, accountingandotherinformationprovidedto,discussedwithorreviewedby,us;andwedonotassumeany responsibilityforanysuchinformation.Inthatregard,wehaveassumedwithyourconsentthattheForecastsand theSynergieshavebeenreasonablypreparedonabasisreflectingthebestcurrentlyavailableestimatesand judgmentsofthemanagementoftheCompany.Wehavenotmadeanindependentevaluationorappraisalofthe assetsandliabilities(includinganycontingent,derivativeorotheroff-balance-sheetassetsandliabilities)ofthe CompanyorExelonoranyoftheirrespectivesubsidiariesandwehavenotbeenfurnishedwithanysuch evaluationorappraisal.Wehaveassumedthatallgovernmental,regulatoryorotherconsentsandapprovals necessaryfortheconsummationoftheTransactionwillbeobtainedwithoutanyadverseeffectontheCompany orExelonorontheexpectedbenefitsoftheTransactioninanywaymeaningfultoouranalysis.Wealsohave assumedthattheTransactionwillbeconsummatedonthetermssetforthintheAgreement,withoutthewaiveror modificationofanytermorconditiontheeffectofwhichwouldbeinanywaymeaningfultoouranalysis.OuropiniondoesnotaddresstheunderlyingbusinessdecisionoftheCompanytoengageintheTransaction,ortherelativemeritsoftheTransactionascomparedtoanystrategicalternativesthatmaybeavailabletothe Company;nordoesitaddressanylegal,regulatory,taxoraccountingmatters.Wewerenotauthorizedto,and didnot,solicitanyexpressionsofinterestfromanyotherpartieswithrespecttoanacquisitionof,orother businesscombinationwith,theCompanyoranyotheralternativetransaction.Thisopinionaddressesonlythe fairnessfromafinancialpointofviewtotheholdersofShares,asofthedatehereof,oftheExchangeRatio pursuanttotheAgreement.Wedonotexpressanyviewon,andouropiniondoesnotaddress,anyothertermor aspectoftheAgreementorTransactionoranytermoraspectofanyotheragreementorinstrumentcontemplated bytheAgreementorenteredintooramendedinconnectionwiththeTransaction,including,withoutlimitation, thefairnessoftheTransactionto,oranyconsiderationreceivedinconnectiontherewithby,theholdersofany otherclassofsecurities,creditors,orotherconstituenciesoftheCompany;norastothefairnessoftheamountor natureofanycompensationtobepaidorpayabletoanyoftheofficers,directorsoremployeesofthe.Company, orclassofsuchpersons,inconnectionwiththeTransaction,whetherrelativetotheExchangeRatiopursuantto theAgreementorotherwise.WearenotexpressinganyopinionastothepricesatwhichsharesofExelon CommonStockwilltradeatanytimeorastotheimpactoftheTransactiononthesolvencyorviabilityofthe CompanyorExelonortheabilityoftheCompanyorExelontopaytheirrespectiveobligationswhentheycome due.Ouropinionisnecessarilybasedoneconomic,monetary,marketandotherconditionsasineffecton,and theinformationmadeavailabletousasof,thedatehereofandweassumenoresponsibilityforupdating,revising orreaffirmingthisopinionbasedoncircumstances,developmentsoreventsoccurringafterthedatehereof.Our advisoryservicesandtheopinionexpressedhereinareprovidedfortheinformationandassistanceoftheBoard ofDirectorsoftheCompanyinconnectionwithitsconsiderationoftheTransactionandsuchopiniondoesnot constitutearecommendationastohowanyholderofSharesshouldvotewithrespecttosuchTransactionorany othermatter.ThisopinionhasbeenapprovedbyafairnesscommitteeofGoldman,Sachs&Co.

F-2 Baseduponandsubjecttotheforegoing,itisouropinionthat,asofthedatehereof,theExchangeRatiopursuanttotheAgreementisfairfromafinancialpointofviewtotheholdersofShares.Verytrulyyours,/s/Goldman,Sachs&Co.(GOLDMAN,SACHS&CO.)April27,2011 F-3

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