Exelon Corp. reported Friday a 70 percent drop in quarterly profit because of warmer-than-normal winter weather, lower power prices and costs related to its acquisition of Constellation Energy Group.
The Chicago-based company earned $200 million, or 28 cents per share, for the three months ending March 31, compared with $668 million, or $1.01 per share, a year earlier.
Exelon's earnings include results from Constellation and its regulated utility, Baltimore Gas and Electric Co., from March 12, when the $7.9 billion merger closed, to March 31.
Exelon CEO Christopher M. Crane said in a statement that the "integration activities are progressing extremely well."
Exelon's first-quarter results were hurt by $113 million in costs related to the merger and $227 million associated with the company's financial commitments to Maryland as part of the deal. A one-time $100 rate credit to BGE's residential customers, expected this month, was among dozens of conditions that the companies agreed to provide as part of a settlement with state regulators and Gov. Martin O'Malley.
Exelon also incurred $172 million in costs related to Constellation's settlement with the Federal Energy Regulatory Commission to resolve allegations of market manipulation. The $245 million that Constellation agreed to pay was the largest settlement of its kind.
Excluding the acquisition costs and other one-time expenses, Exelon said adjusted net income was $603 million, or 85 cents per share.
"As expected, our lower operating earnings for the first quarter 2012 reflected unfavorable market factors and mild weather," Crane said.
BGE lost $66 million from March 12 to March 31. The loss included after-tax costs of $83 million as part of its commitments to Maryland and $1 million for merger and integration activities.
The merger between Exelon and Constellation created the largest nonutility energy provider in the United States.