Constellation Energy

Company: Constellation Energy
Company Description: Constellation Energy, a Fortune 500 company based in Baltimore, is the nation's leading competitive supplier of electricity to large commercial and industrial customers and one of the nation's largest wholesale power sellers.
Nomination Category: Individual Awards Categories
Nomination Sub Category: Best Executive

Nomination Title: Mayo A. Shattuck III, chairman, president and CEO

   1. Tell the story about what this nominee achieved in 2004 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

Under President, Chairman and CEO Mayo Shattuck’s leadership, Baltimore-based Constellation Energy is thriving. Constellation Energy is the nation's leading competitive supplier of electricity to large commercial and industrial customers and one of the nation's largest wholesale power sellers. It owns or co-owns 107 generating units at 35 locations in 11 states.

In response to the tumult in the industry, many of the leading energy companies that participated in competitive energy markets retreated back into the regulated regime, where growth was slow but predictable. However, Shattuck led Constellation Energy against this trend, embracing a contrarian’s business strategy that embraced competitive markets.

Shattuck’s vision is for Constellation Energy to be the first-choice provider for commercial and industrial customers seeking energy solutions in the complex and changing energy marketplace. 

Fulfillment of that vision has paid handsome dividends for the company. During the past year, for example, Constellation Energy has:
• Seen revenues jump to $11.9 billion (third quarter 2004) from $3.7 billion in 2000
• Rocketed to No. 203 (from 352) on the 2004 Fortune 500 list, the greatest advance by any company this year
• Expanded its national leadership in competitive energy markets in North America, controlling 18 percent of the market in states and provinces where commercial and industrial customers can choose their energy provider
• Increase stock value by 27 percent (as of 12/17/04) 
• Continued to deliver strong financial and operational results, having met or exceeded earnings projections for each of the past 12 quarters
• Grown at a rate that is twice the industry average
• Expanded its key, national customer base to include 60 of Fortune’s
leading 100 companies

Since Shattuck assumed control of the company in 2001, Constellation Energy has evolved from a Baltimore-based utility into an international integrated energy company with operations in 22 states, 3 Canadian provinces and 4 countries.  Constellation Energy’s results have been recognized by some of the leading business publications and televised business shows. These include:   

The Economist, “Regaining Energy—CE Chairman Mayo Shattuck is leading the revival of America’s energy trading business,” Aug. 28, 2004
Barron’s, “Juiced Up – Undaunted by Enron, Constellation is proving that energy-trading can work,” June 7, 2004
Platts Insight. “Energy Company of the Year – Constellation Energy,” December 2004
BusinessWeek, “Constellation Energy: Lots of Spark,” June 23, 2004
The Baltimore Sun, “Power Surge—A re-energized Constellation jumps 149 places on the Fortune 500 list,” April 29, 2004
The Energy Daily, “CEO: Constellation Shining in Trading Business,” June 22, 2004
Washington Times, “An Energy Company Surging,” Nov. 2, 2004
Energy Risk, “Thomas Brooks, president of Constellation Power Source, outlines his contribution to the Constellation Group’s Success,” May, 2004

Additionally, Shattuck was featured twice on “Bloomberg's Business Report,”  appeared on Oct. 15 on “Wall $treet Week With Fortune” on public television stations throughout the nation and WBAL-Radio Station's. 

   2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made in the section above. IMPORTANT: List each link on a separate line, begin each link with http://, and enclose each link in square brackets; for example, [http://www.website.com]:

The Results:
The Economist, “Regaining Energy—CE Chairman Mayo Shattuck is leading the revival of America’s energy trading business,” Aug. 28, 2004. This article focused on Mayo Shattuck’s role in leading the revival of America’s energy trading business. The lead of this journal article, widely considered the preeminent business publication in the world, succinctly summed what followed. It said: “Having spent the 1990s reinventing themselves as whizzy energy traders, American’s power utilities have been just as busy recently convincing the world
they want nothing to do with the suddenly-sinful business. Yet even as former trading giants such as Dynegy, American Electric Power and Reliant make humble journeys back to their basics as slow-growing, regulated utilities, a few courageous souls have dared to persevere with trading. One is Constellation Energy, the modern incarnation of Baltimore Gas and Electric, the descendant of America’s first gas utility. Led by Mayo Shattuck, Constellation has, almost unnoticed, grown to become the biggest power trader in America.”

Barron’s “Juiced Up – Undaunted by Enron, Constellation is proving that energy-trading can work,” June 7, 2004. This article also featured Shattuck’s leadership in energy trading, detailing how Constellation Energy split away from its peers and built-up its energy trading business alongside its regulated utility. The article lauded the company’s bold strategy of buying up large blocks of power from other utilities and reselling it to commercial customers in deregulated markets around the country, along with the energy it produces itself. The strategy has resulted in
Constellation Energy becoming the largest suppliers of electricity to commercial and industrial customers in North America.

Platts, a subsidiary of The Mcgraw Hill Companies, publishes several journals that focus on international energy issues. Platts selected Constellation Energy on Dec. 10, 2004, as “Energy Company of the Year.”  The December Insight magazine headlined “Energy Company of the Year – Constellation Energy USA” described Constellation Energy as “a star that has rise.” “It has gone in three years from a Baltimore-based regionally focused gas and electric utility to the largest competitive supplier of electricity to large commercial and industrial companies in
the U.S. Its revenues have almost rippled in the process, and earnings are growing at a compound 10% plus.”  

BusinessWeek’s three-page article “Constellation Energy: Lots of Spark” on June 23, 2004, was devoted Constellation Energy’s sound balance sheet, impressive growth potential and expanding competitive market operations. 

The Baltimore Sun, “Power Surge—A re-energized Constellation jumps 149 places on the Fortune 500 list,” April 29, 2004. This Page 1 Business Section article chronicled the business turnaround of Constellation Energy under Mayo Shattuck, detailing how the company had far-outpaced its peers as the energy sector was slowly emerging from a prolonged downturn. It cited, among other things the rapid growth of revenue and earnings, growing workforce and Constellation Energy’s leadership in competitive markets.

The Energy Daily, “CEO: Constellation Shining in Trading Business,” June 22, 2004. This trade magazine featured an in-depth interview with Shattuck, detailing the steps the chairman took to restructure the company and improve its balance sheet. It also highlighted the company’s industry-leading trading operations, a line of business that was vacated by Enron, Williams, El Paso and CMS Energy. Constellation Energy, the article said, has sucked up a huge portion of the nation’s large retail customers and tripled revenues from its unregulated operations. 

Washington Times, “An Energy Company Surging,” Nov. 2, 2004. This article was based on third quarter earnings, the 12 consecutive quarter in which Constellation had met or exceeded projections. The article stated that Constellation Energy’s 9 percent rise in third-quarter profits and increasing market share show that its gamble with the nation’s deregulated energy industry is paying off. 

Shattuck was featured twice on “Bloomberg’s Business Report,” one of two guests Oct. 15 on “Wall $treet Week With Fortune” on public television stations throughout the nation and WBAL’s radio’s “Legg Mason’s Financial Hour.”  

   3. Provide a brief (up to 100 words) biography about this nominee:

Mayo A. Shattuck III was appointed president and chief executive officer of Constellation Energy effective Nov. 1, 2001, and was elected chairman of the board in July 2002.

Prior to his arrival at Constellation Energy he served as chairman of the board of Deutsche Banc Alex. Brown. 

Under his guidance, Constellation Energy is now an industry leader in competitive energy markets.

He was born in 1954 in Massachusetts, and received his BA from Williams College and his MBA from Stanford University. 

He is married to Molly George Shattuck and has five children, Mayo IV, Katie, Spencer, Wyatt and Lillian.