Economic Regulation & Competition Committee “So you are thinking about a rate case…”

1. Economic Regulation & Competition Committee“So you are thinking about a rate case…” Wayne Harbaugh& Andre Chon

2. CaseWorks Baltimore Gas & Electric Gas Base Rate Case

3. Constellation Energy (CEG) • Roots back to oldest gas utility in US - Founded 1816 • Gas and electric energy delivery company – BGE • 1.2M electric and 625k gas customers • 2,300 sq. mile electric and 800 sq. mile gas service territories • Top quartile in JD Powers Customer Satisfaction Survey; top decile in O&M/customer for combo utilities • Merchant energy business • Constellation Generation Group – Over 12,500MW of owned generation from 107 units • Constellation Energy Commodities Group – 19,100 MW of peak load served in N. American wholesale market; new international coal procurement business • Retail supply • Constellation New Energy - serves 10,000+ C&I customers in nearly 3 dozen states and 3 Canadian Provinces with over 12,300 MW of peak load; No. 1 market position for competitively supplied electricity to C&I customers in N. America • Awards • 2005 “Edison Award” for leadership in the competitive energy marketplace • “2004 Energy Company of the Year” from Platts • “2004 Most Admired Energy Company” from Fortune Magazine • Financials (US$) for 2004 • Net income of $562M on revenues of $12.5B - Assets of $17.3B

4. Background • In mid 2004 we confirmed we would be needing a gas rate case • Only a few folk at BGE had ever been involved in a rate case (last full gas and electric cases were in 1999 and 1992, respectively) and we had had two early outs in between • We had smaller staffs in Legal, Accounting and Pricing to manage the case and answer the data requests. The team was spread across multiple physical locations. • I was assigned as Project Manager for the case

5. “As is” State • Testimony done in MSWord; version control challenges • Data requests e-mailed out to designated responder; manual tracking of replies; Challenges - tracking changes; requests may get handed off two or three times; managing turn-around; tracking similar requests; spreadsheet and odd document management • Testimony and data request responses from prior cases stored in the great, often unknown depository. The history of “why” may have retired. • Testimony from intervenors come in multiple formats; Challenge – query capability • Physical meetings required by a host of individuals to sign off on data requests and testimony; Challenge - unproductive travel time • Live cross; Challenge - trying to find one data request or one quote from testimony out of a stack of binders 6 feet high to make your point

6. Desired “To Be” State • Testimony - stored with full version control and easy access by whole rate case team • Data requests - storage, tracking of responses, tracking of reviews, full change tracking, full search capability by word or key topic • All material should be available to allow for on-line collaboration; Live Meeting twice a week

7. CaseWorks • Case 9036 Gas Distribution Base Rates • Filed April 29, 2005 • Requested $52.7 million • 8 months Actual, 4 months estimated • ROR 8.93% and ROE 11.9% • $45.5 million based on 12 months actual • Responded to over 1,000 data requests • Order expected December 21, 2005

8. Why have CaseWorks? • Reduces time spent on research, review, response, and approval processes • Reduces “reinventing the wheel” by providing access to all information, best practices, and history from past cases • Facilitates timeliness, accuracy, and consistency of information • Improves the ability to manage Maryland Public Service Commission and FERC regulatory activities simultaneously

9. Why have CaseWorks? • Improves the ability to quickly retrieve critical information during hearings • Reduces the risk of non-compliance • Decreases the time needed to train new team members • Facilitates the ability to coordinate regulatory activities with various groups such as legislative and legal for managing public policy • Automates the handling of data requests via intelligent email notification • Provides a common collaborative platform for all team members

10. Why have CaseWorks? • Reduces time spent in meetings getting everyone synchronized and up-to-date • Facilitates knowledge sharing, teamwork, and communication • Reduces paper costs • Reduces mailing costs • Reduces the amount of travel needed to collaborate with remote locations • Improves the ability to track compliance with regulatory directives

11. CaseWorksProject Timeline • Determine needs and Select Vendor Oct-Dec 2004 • Interviews of User for Requirements 2/07/05 – 2 days • Project Charter and Plan 2/14/05 - 2 days • User Roles Defined 2/16/05 - 1 week • SharePoint Configuration 02/15/05 to 03/07/05 • Information Architecture/Layout 02/24/05 - 2days • Install Prototype & Validate at BGE 03/08/05 - 3 days • Install CaseWorks 3/30/2005 • Further Onsite Testing and Training 4/01- 5/13/2005

12. CaseWorks Functions • Convert Word to Web pages • Data Request distribution and notification via Outlook email • Storing Testimony from all parties • Legal receives notice that a Data Request’s status has changed • For example, “Assigned” to “Point Person Drafted” • Searches in CaseWorks • Reporting via spreadsheet • Combined with Live Meeting for Reviewer evaluation and changes during review meetings

13. CaseWorksInformation Layout

14. CaseWorksData Requests Flow

15. Wayne Harbaugh Andre Chon This Case Works Questions?