Constellation Energy Corp. yesterday named future senior managers and department heads of the planned $15.1 billion utility, according to an internal employee memorandum.
Of the 18 top managers named to the entity that the Baltimore Gas and Electric Co. and the Potomac Electric Power Co. will create by merging, 10 are existing BGE executives, raising speculation that the Baltimore-based utility will dominate Constellation's leadership and operations.
A public announcement is expected later this week.
"This structure has been developed with an eye to positioning our new company to best serve customer needs and adapt rapidly as our industry continues to change," a joint BGE/Pepco transition management team wrote in an internal memorandum released to employees yesterday.
Most notably, BGE Chief Financial Officer Charles W. Shivery will retain that position and become a senior vice president at Constellation; Pepco general counsel William T. Torgerson will become senior vice president of external affairs; Pepco Senior Vice President of Finance Dennis R. Wraase will become a senior vice president and report to Constellation Vice Chairman Edward A. Crooke; and Vice President of Corporate Administration Anthony S. Macerollo will become vice president of human resources.
The heads of key operations such as generation, distribution, natural gas systems, marketing, general services, nuclear operations and fossil fuel systems within the new organization -- will all be filled by BGE veterans.
Constellation also told employees of plans to create a new District of Columbia unit to "maintain a focus on this unique component of Constellation's service area," the memo stated. The new unit will be led by Robert C. Grantley, currently Pepco's vice president of customer and community relations.
The naming of senior administration represents a major step that both sides have been working to complete by year-end. Earlier this month, BGE and Pepco filed a prospectus for their new company with the Securities and Exchange Commission, whose approval represents a key regulatory hurdle.
The memo went on to caution that the assignments are conditional upon completion of the merger, slated for March 1997.
"We felt it was important and best to inform our employees of this matter first," said BGE spokesman Arthur J. Slusark.
A Pepco spokeswoman late yesterday afternoon declined to comment because the appointments had not yet been made public.
The announcement to employees follows the appointment of top executives in September, when the $2.9 billion merger was announced. At that time, Pepco Chairman and Chief Executive Edward F. Mitchell was named as Constellation's chairman for one year; BGE Chairman and Chief Executive Christian H. Poindexter as chief executive officer and chairman, succeeding Mr. Mitchell; BGE President Crooke was tapped as vice chairman; while Pepco President John M. Derrick Jr. was named president and chief operating officer.
In the coming months, BGE and Pepco intend to appoint team leaders from each functional area to "jointly develop recommendations regarding the structure and functioning of their operations" to the transition team, the memo stated.