Constellation Energy Group Inc. (CEG) Friday said its second-quarter profit fell 95% on a loss from divestitures and falling revenue, the day after Maryland regulators delayed a decision on the company's proposed nuclear joint venture with Electricite de France SA (EDF.FR).

The Baltimore-based electricity company boosted its full-year earnings outlook as the latest quarter's adjusted results smashed expectations, thanks largely to higher margins and few outages at its power-generation business. Constellation now expects 2009 earnings of $3.10 to $3.30 a share, up from its earlier estimate of $2.90 to $3.20.

Like other electricity providers, the company has been slammed by volatile commodities prices. Constellation has been selling assets and looking for buyers for others at it continues to cut back its commodities business, which nearly ran aground last year.

The woes led to a planned acquisition by MidAmerican Energy Holdings Co., owned by Berkshire Hathaway Inc. (BRKA). But that deal was scrapped in December, as Constellation instead agreed to sell half of its nuclear business to Electricite de France SA (EDF.FR) for $4.5 billion. Late Thursday, Constellation said regulators granted Maryland's request to delay to Oct. 16 a decision on the deal, which has been held up by legal and regulatory wrangling.

"The three-week delay in the [Public Service Commission] process that was announced yesterday was disappointing, but doesn't really alter the substance of the expectation that we expect to get a ruling now sometime in mid-October," Chairman and Chief Executive Mayo Shattuck said on a conference call Friday.

In June, the Maryland Public Service Commission decided the joint venture required review. Even though EDF wouldn't get any direct control of Constellation unit Baltimore Gas & Electric Co., the PSC ruled that the deal would still give EDF "substantial influence" over the regulated utility. In particular, the commission concluded EDF's power to control the flow of dividends from the nuclear business could affect decisions Constellation makes in regards to the utility.

Shattuck said Friday that the company remains open to the possibility of settlement talks with the state to allow it to seal the EDF deal ahead of the delayed ruling. He added that Constellation is "preserving its legal rights" to challenge the state regulator's review of the deal.

Constellation posted income of $8.1 million, or 4 cents a share, compared with $171.5 million, or 95 cents a share, a year earlier. Excluding impacts from divestitures, merger termination and write-downs, earnings fell to $1.08 from $1.82. Revenue decreased 19% to $3.86 billion.

Analysts polled by Thomson Reuters expected earnings of 76 cents and revenue of $3.57 billion.

Baltimore Gas & Electric swung to a profit despite lower demand as revenue decoupling insulated the business. The merchant-energy division, which operates power plants, reported a 99% earnings plunge on asset sales and the company's reduction of trading activities. The unit did see strong performance from its generation operations.

After paring back its energy trading business after facing liquidity concerns last fall, Constellation's net available liquidity at the end of June stood at $5 billion, up from $2.4 billion at the end of 2008.

"We have strengthened our balance sheet and significantly improved our liquidity position, allowing us the flexibility to consider acquisition opportunities," at what could be the bottom of the market, Shattuck said.

Shares of Constellation were recently down 51 cents, or 1.76%, at $28.52.

-Mark Long and Kerry Grace Benn, Dow Jones Newswires; 212-416-2145; mark.long@dowjones.com