Document:

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                                                                    Exhibit 4(e)

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                                     FORM OF
                          SECOND SUPPLEMENTAL INDENTURE

                             Dated as of __________

                                     between

                       BALTIMORE GAS AND ELECTRIC COMPANY

                                    AS ISSUER

                                       and

                              THE BANK OF NEW YORK

                                   AS TRUSTEE

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                                TABLE OF CONTENTS

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                                                                               Page
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I        DEFINITIONS..............................................................3
         1.1.     Definition of Terms.............................................3

II       GENERAL TERMS AND CONDITIONS OF THE DEBENTURES...........................4
         2.1.     Designation and Principal Amount................................5
         2.2.     Maturity........................................................5
         2.3.     Form and Payment................................................5
         2.4.     Global Debenture................................................5
         2.5.     Interest........................................................7
         2.6.     Redemption......................................................8
         2.7      No Sinking Fund.................................................8
         2.8      Depository......................................................8
         2.9      Appointment of Agents...........................................9

III      REDEMPTION OF THE DEBENTURES.............................................9
         3.1.     Special Event Redemption........................................9
         3.2.     Optional Redemption by Company.................................10

IV       EXTENSION OF INTEREST PAYMENT PERIOD....................................11
         4.1.     Extension of Interest Payment Period...........................11
         4.2.     Notice of Extension............................................11
         4.3.     Limitation of Transactions.....................................12

V        EXPENSES................................................................13
         5.1.     Payment of Expenses............................................13
         5.2.     Payment Upon Resignation or Removal............................14

VI       SUBORDINATION...........................................................14
         6.1.     Subordination..................................................14

VII      COVENANT TO LIST ON EXCHANGE............................................14
         7.1.     Listing on an Exchange.........................................14

VIII     FORM OF DEBENTURE.......................................................15
         8.1.     Form of Debenture..............................................15

IX       ORIGINAL ISSUE OF DEBENTURES............................................23
         9.1.     Original Issue of Debentures...................................23

X        MISCELLANEOUS...........................................................24
         10.1. Ratification of Indenture.........................................24
         10.2. Trustee Not Responsible for Recitals..............................24
         10.3. Governing Law.....................................................24
         10.4. Separability......................................................24
         10.5. Counterparts......................................................24
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                                        i
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          SECOND SUPPLEMENTAL INDENTURE, dated as of               , 2003 (the
"Second Supplemental Indenture"), between Baltimore Gas and Electric Company, a
corporation duly organized and existing under the laws of the State of Maryland,
having its principal office at 39 W. Lexington Street, Baltimore, Maryland 21201
(the "Company"), and The Bank of New York, a New York banking corporation,
having its principal place of business at 101 Barclay Street, Floor 21 West, New
York, New York 10286, as trustee (the "Trustee") under the Indenture dated as of
June 15, 1998 (the "Indenture"), between the Company and the Trustee.

          WHEREAS, the Company executed and delivered the Indenture to the
Trustee to provide for the future issuance of the Company's unsecured
debentures, notes or other evidence of indebtedness (the "Securities"), to be
issued from time to time in one or more series as might be determined by the
Company under the Indenture;

          WHEREAS, pursuant to the terms of the Indenture, the Company desires
to provide for the establishment of a new series of its Securities to be known
as its % Deferrable Interest Subordinated Debentures due [2043] (the
"Debentures"), the form and substance of such Debentures and the terms,
provisions and conditions thereof to be set forth as provided in the Indenture
and this Second Supplemental Indenture;

          WHEREAS, BGE Capital Trust II, a Delaware statutory trust (the
"Trust"), intends to offer to the public $250 million aggregate liquidation
amount of its % Trust Preferred Securities (the "Preferred Securities"),
representing preferred undivided beneficial interests in the assets of the
Trust, and proposes to invest the proceeds from such offering, together with the
proceeds of the issuance and sale by the Trust to the Company of $7,731,975
million aggregate liquidation amount of its % Common Securities, in $257,731,975
million aggregate principal amount of the Debentures; and

          WHEREAS, the Company has requested that the Trustee execute and
deliver this Second Supplemental Indenture, and all requirements necessary to
make this Second Supplemental Indenture a valid instrument in accordance with
its terms, and to make the Debentures, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations of the
Company, have been performed, and the execution and delivery of this Second
Supplemental Indenture has been duly authorized in all respects.

          NOW THEREFORE, in consideration of the purchase and acceptance of the
Debentures by the Holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form

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and substance of the Debentures and the terms, provisions and conditions
thereof, the Company covenants and agrees with the Trustee as follows:

                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.1.   DEFINITION OF TERMS

          Unless the context otherwise requires:

          (a)  a term defined in the Indenture has the same meaning when used in
this Second Supplemental Indenture;

          (b)  a term defined anywhere in this Second Supplemental Indenture has
the same meaning throughout;

          (c)  the singular includes the plural and vice versa;

          (d)  headings are for convenience of reference only and do not affect
interpretation;

          (e)  the following terms have the meanings given to them in the
Declaration: (i) Administrative Trustee; (ii) Business Day; (iii) Clearing
Agency; (iv) Delaware Trustee; (v) Guarantee; (vi) Preferred Securities
Certificate; (vii) Purchase Agreement; (viii) Property Trustee; and (ix) Trust
Securities; and

          (f)  the following terms have the meanings given to them in this
Section 1.1(f):

          "Additional Interest" shall have the meaning set forth in Section
2.5(c).

          "Change in 1940 Act Law" shall have the meaning set forth in Section
3.1.

          "Compounded Interest" shall have the meaning set forth in Section 4.1.

          "Coupon Rate" shall have the meaning set forth in Section 2.5(a).

          "Declaration" means the Amended and Restated Declaration of Trust of
BGE Capital Trust II, a Delaware statutory trust, dated as of , 2003.

          "Deferred Interest" shall have the meaning set forth in Section 4.1.

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          "Dissolution Event" means that the Trust is to be dissolved in
accordance with the Declaration, and the Debentures held by the Property Trustee
are to be distributed to the holders of the Trust Securities issued by the Trust
pro rata in accordance with the Declaration.

          "Extended Interest Payment Period" shall have the meaning set forth in
Section 4.1.

          "Global Debenture" shall have the meaning set forth in Section 2.4(a).

          "Interest Payment Date" shall have the meaning set forth in Section
2.5(a).

          "Investment Company Event" shall have the meaning set forth in Section
3.1.

          "Maturity Date" means the date on which the Debentures mature and on
which the principal shall be due and payable together with all accrued and
unpaid interest thereon including Compounded Interest and Additional Interest,
if any.

          "90 Day Period" shall have the meaning set forth in Section 3.1.

          "Non Book-Entry Preferred Securities" shall have the meaning set forth
in Section 2.4(a).

          "Optional Redemption Price" shall have the meaning set forth in
Section 3.2(a).

          "Redemption Price" shall have the meaning set forth in Section 3.1.

          "Special Event" shall have the meaning set forth in Section 3.1.

          "Tax Event" shall have the meaning set forth in Section 3.1.

                                   ARTICLE II
                 GENERAL TERMS AND CONDITIONS OF THE DEBENTURES

SECTION 2.1.   DESIGNATION AND PRINCIPAL AMOUNT.

          There is hereby authorized a series of Securities designated the " %
Deferrable Interest Subordinated Debentures due         , [2043]", limited in
aggregate principal amount to $257,731,975 million, to be substantially in the
form set forth

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in Article VIII hereof, subject to changes in the form thereof made by the
Company and acceptable to the Trustee.

SECTION 2.2.   MATURITY.

          The Maturity Date of the Debentures is , [2043].

SECTION 2.3.   FORM AND PAYMENT.

          Except as provided in Section 2.4, the Debentures shall be issued in
fully registered certificated form without interest coupons in denominations of
$25 or integral multiples of $25. The Place of Payment for the Debentures issued
in certificated form where the transfer of such Debentures will be registrable
and where such Debentures will be exchangeable for Debentures bearing identical
terms and provisions shall be the Corporate Trust Office of the Trustee;
provided, however, that payment of interest may be made at the option of the
Company by check mailed to the Holder at such address as shall appear in the
Security Register. Notwithstanding the foregoing, so long as the Holder of any
Debentures is the Property Trustee, the payment of the principal of and interest
(including Compounded Interest and Additional Interest, if any) on such
Debentures held by the Property Trustee will be made at such place and to such
account as may be designated to the Company in writing by the Property Trustee.

SECTION 2.4.   GLOBAL DEBENTURE.

          (a)  In connection with a Dissolution Event,

               (i)     the Debentures in certificated form may be presented to
     the Trustee by the Property Trustee in exchange for a global Debenture in
     an aggregate principal amount equal to the aggregate principal amount of
     all outstanding Debentures (a "Global Debenture"), to be registered in the
     name of the Depository, or its nominee, and delivered by the Trustee to the
     Depository for crediting to the accounts of its participants pursuant to
     the instructions of the Administrative Trustee. The Company upon any such
     presentation shall execute a Global Debenture in such aggregate principal
     amount and deliver the same to the Trustee for authentication and delivery
     in accordance with the Indenture and this Second Supplemental Indenture.
     Payments on the Debentures issued as a Global Debenture will be made to the
     Depository; and

               (ii)    if any Preferred Securities are held in non book-entry
     certificated form, the Debentures in certificated form may be presented to
     the Trustee by the Property Trustee

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     and any Preferred Security Certificate which represents Preferred
     Securities other than Preferred Securities held by the Clearing Agency or
     its nominee ("Non Book-Entry Preferred Securities") will be deemed to
     represent beneficial interests in Debentures presented to the Trustee by
     the Property Trustee having an aggregate principal amount equal to the
     aggregate liquidation amount of the Non Book-Entry Preferred Securities
     until such Preferred Security Certificates are presented to the Security
     Registrar for transfer or reissuance at which time such Preferred Security
     Certificates will be cancelled and a Debenture, registered in the name of
     the holder of the Preferred Security Certificate or the transferee of the
     holder of such Preferred Security Certificate, as the case may be, with an
     aggregate principal amount equal to the aggregate liquidation amount of the
     Preferred Security Certificate cancelled, will be executed by the Company
     and delivered to the Trustee for authentication and delivery in accordance
     with the Indenture and this Second Supplemental Indenture. On issue of such
     Debentures, Debentures with an equivalent aggregate principal amount that
     were presented by the Property Trustee to the Trustee will be deemed to
     have been cancelled.

          (b)  Unless and until it is exchanged for the Debentures in registered
form, a Global Debenture may be transferred, in whole but not in part, only to
another nominee of the Depository, or to a successor Depository selected or
approved by the Company or to a nominee of such successor Depository.

          (c)  If at any time the Depository notifies the Company that it is
unwilling or unable to continue as Depository or if at any time the Depository
shall no longer be a clearing agency registered or in good standing under the
Securities Exchange Act of 1934, as amended, or other applicable statute or
regulation, and a successor Depository is not appointed by the Company within 90
days after the Company receives such notice or becomes aware of such condition,
as the case may be, the Company will execute, and, subject to Article Three of
the Indenture, the Trustee, upon written notice from the Company, will
authenticate and deliver the Debentures in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal
to the principal amount of the Global Debenture in exchange for such Global
Debenture. In addition, the Company may at any time determine that the
Debentures shall no longer be represented by the Global Debenture. In such event
the Company will execute, and subject to Section 303 of the Indenture, the
Trustee, upon receipt of an Officers' Certificate evidencing such determination
by the Company, will authenticate and deliver the Debentures in definitive
registered form without coupons, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Debenture
in exchange for such Global Debenture. Upon the exchange of the Global Debenture
for such Debentures in definitive registered form without coupons, in authorized

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denominations, the Global Debenture shall be cancelled by the Trustee. Such
Debentures in definitive registered form issued in exchange for the Global
Debenture shall be registered in such names and in such authorized denominations
as the Depository, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Debentures to the Depository for delivery to the Persons in whose names
such Debentures are so registered.

SECTION 2.5.   INTEREST.

          (a)  Each Debenture will bear interest at the rate of % per annum (the
"Coupon Rate") from the original date of issuance until the principal thereof
becomes due and payable, and on any overdue principal and (to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest at the Coupon Rate, compounded quarterly, payable
(subject to the provisions of Article IV) quarterly in arrears on March 31, June
30, September 30 and December 31 of each year (each, an "Interest Payment Date")
commencing on , 2003, to the Person in whose name such Debenture or any
predecessor Debenture is registered, at the close of business on the regular
record date for such interest installment, which, in respect of (i) Debentures
of which the Property Trustee is the Holder and the Preferred Securities are in
book-entry only form or (ii) a Global Debenture, shall be the close of business
on the Business Day next preceding that Interest Payment Date. Notwithstanding
the foregoing sentence, if (i) the Debentures are held by the Property Trustee
and the Preferred Securities are no longer in book-entry only form or (ii) the
Debentures are not held by the Property Trustee and not represented by a Global
Debenture, the regular record date for such interest installment which shall be
the fifteenth calendar day prior to such Interest Payment Date.

          (b)  The amount of interest payable for any period will be computed on
the basis of a 360-day year of twelve 30-day months. Except as provided in the
following sentence, the amount of interest payable for any period shorter than a
full quarterly period for which interest is computed, will be computed on the
basis of the actual number of days elapsed in such a 90-day period. In the event
that any date on which interest is payable on the Debentures is not a Business
Day, then payment of interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other

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payment in respect of any such delay), except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date.

(c)  If, at any time while the Property Trustee is the Holder of any Debentures,
the Trust or the Property Trustee is required to pay any taxes, duties,
assessments or governmental charges of whatever nature (other than United States
federal income taxes) imposed by the United States, or any other taxing
authority, then, in any case, the Company will pay as additional interest
("Additional Interest") on the Debentures held by the Property Trustee, such
additional amounts as shall be required so that the net amounts received and
retained by the Trust and the Property Trustee after paying such taxes, duties,
assessments or other governmental charges will be equal to the amounts the Trust
and the Property Trustee would have received had no such taxes, duties,
assessments or other government charges been imposed. Whenever in the Indenture,
this Second Supplemental Indenture, or the Securities there is a reference in
any context to the payment of principal of or interest on the Securities, such
mention shall be deemed to include mention of the payments of the Additional
Interest provided for in this clause (c) of Section 2.5 to the extent that, in
such context, Additional Interest is, was or would be payable in respect thereof
pursuant to the provisions of this clause (c) of Section 2.5 and express mention
of the payment of Additional Interest (if applicable) in any provisions hereof
shall not be construed as excluding Additional Interest in those provisions
hereof where such express mention is not made; PROVIDED, HOWEVER, that the
deferral of the payment of interest pursuant to Section 4.1 or the Securities
shall not defer the payment of any Additional Interest that may be due and
payable.

SECTION 2.6.   REDEMPTION.

          The Debentures are not subject to redemption at the option of the
Holder and are subject to redemption solely at the option of the Company or
otherwise as provided in Article III hereof.

SECTION 2.7    NO SINKING FUND.

          The Debentures shall not be entitled to the benefit of any sinking
fund or analogous provision.

SECTION 2.8    DEPOSITORY.

          The Depository Trust Company shall act as the initial

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Depository for any Global Debenture which may be issued pursuant to this Second
Supplemental Indenture.

SECTION 2.9    APPOINTMENT OF AGENTS.

          The Company hereby appoints, or confirms the appointment of, The Bank
of New York as the initial Trustee, Securities Registrar and Paying Agent with
respect to the Debentures, subject to the provisions of the Indenture with
respect to resignation, removal and succession, and subject, further, to the
right of the Company to appoint additional agents (including Paying Agents).

                                   ARTICLE III
                          REDEMPTION OF THE DEBENTURES

SECTION 3.1.   SPECIAL EVENT REDEMPTION.

          If a Special Event (as defined below) has occurred and is continuing
then, notwithstanding Section 3.2(a) but subject to Section 3.2(b), the Company
shall have the right upon not less than 30 days nor more than 60 days notice to
the Holders of the Debentures to redeem the Debentures, in whole but not in
part, for cash within 90 days following the occurrence of such Special Event
(the "90 Day Period") at a redemption price equal to 100% of the principal
amount to be redeemed plus any accrued and unpaid interest thereon, including
Compounded Interest and Additional Interest, if any, to the date of such
redemption (the "Redemption Price"). The Redemption Price shall be paid prior to
12:00 noon, New York time, on the date of such redemption or at such earlier
time as the Company determines, provided that the Company shall deposit with the
Trustee an amount sufficient to pay the Redemption Price by 10:00 a.m., New York
time, on the date such Redemption Price is to be paid.

          A "Special Event" shall mean either a Tax Event or an Investment
Company Event. "Tax Event" shall mean that the Company shall have received an
opinion of counsel (which may be regular counsel to the Company or an Affiliate,
but not an employee thereof, which must be reasonably acceptable to the Property
Trustee of the Trust) experienced in such matters to the effect that, as a
result of (a) any amendment to, or change (including any announced prospective
change) in, the laws (or any regulations thereunder) of the United States or any
political subdivision or taxing authority thereof or therein affecting taxation,
or (b) any interpretation or application of such laws or regulations by any
court, governmental agency or regulatory authority, in each case which amendment
or

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change is enacted, promulgated, issued or announced or which interpretation or
application is issued or announced on or after the date of original issuance of
Preferred Securities, there is more than an insubstantial risk that (i) the
Trust is or will be within 90 days of the date of the opinion of counsel subject
to United States Federal income tax with respect to interest received on the
Debentures, (ii) interest payable by the Company to the Trust on the Debentures
is not or will not be within 90 days of the date of the opinion of counsel
deductible in whole or in part for United States Federal income tax purposes, or
(iii) the Trust is or will be within 90 days of the date of the opinion of
counsel subject to more than a de minimis amount of other taxes, duties,
assessments or other governmental charges. "Investment Company Event" shall mean
the occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority (a "Change in 1940 Act Law") to the effect that
the Trust is or will be considered an "Investment Company" that is required to
be registered under the Investment Company Act of 1940, as amended, which Change
in 1940 Act Law becomes effective on or after the date of original issuance of
the Preferred Securities.

SECTION 3.2.   OPTIONAL REDEMPTION BY COMPANY

          (a)  Subject to the provisions of Section 3.2(b) and to the provisions
of Article Eleven of the Indenture, subject to Section 3.2(c), the Company shall
have the right to redeem the Debentures, in whole or in part, from time to time,
on or after , [2008], upon not less than 30 days nor more than 60 days notice to
the Holder of the Debentures at a redemption price equal to 100% of the
principal amount to be redeemed plus any accrued and unpaid interest thereon,
including Compounded Interest and Additional Interest, if any, to the date of
such redemption (the "Optional Redemption Price").

          If the Debentures are only partially redeemed pursuant to this Section
3.2, the Debentures will be redeemed pro rata or by lot or by any other method
utilized by the Trustee. The Optional Redemption Price shall be paid prior to
12:00 noon, New York time, on the date of such redemption or at such earlier
time as the Company determines, provided that the Company shall deposit with the
Trustee an amount sufficient to pay the Optional Redemption Price by 10:00 a.m.,
New York time, on the date such Optional Redemption Price is to be paid.

          (b)  If a partial redemption of the Debentures would result in the
delisting of the Preferred Securities issued by the Trust from any national
securities exchange or other organization on which the Preferred Securities are
then listed, the Company shall not be permitted to effect such partial
redemption and may

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only redeem the Debentures in whole.

                                   ARTICLE IV
                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 4.1.   EXTENSION OF INTEREST PAYMENT PERIOD.

          The Company shall have the right, at any time and from time to time
during the term of the Debentures, so long as no Event of Default with respect
to the Debentures has occurred and is continuing, to defer payments of interest
by extending the interest payment period of such Debentures for a period not
exceeding 20 consecutive quarters (the "Extended Interest Payment Period"),
during which Extended Interest Payment Period no interest shall be due and
payable; provided that no Extended Interest Payment Period may extend beyond the
Maturity Date. To the extent permitted by applicable law, interest, the payment
of which has been deferred because of the extension of the interest payment
period pursuant to this Section 4.1, will bear interest thereon at the Coupon
Rate compounded quarterly for each quarter of the Extended Interest Payment
Period ("Compounded Interest"). At the end of the Extended Interest Payment
Period, the Company shall pay all interest accrued and unpaid on the Debentures,
including any Additional Interest and Compounded Interest (together, "Deferred
Interest") that shall be payable to the Holders of the Debentures in whose names
the Debentures are registered in the Security Register on the first record date
after the end of the Extended Interest Payment Period. Before the termination of
any Extended Interest Payment Period, the Company may further extend such
period, provided that such period together with all such further extensions
thereof shall not exceed 20 consecutive quarters or extend beyond the Maturity
Date. Upon the termination of any Extended Interest Payment Period and upon the
payment of all Deferred Interest then due, the Company may commence a new
Extended Interest Payment Period, subject to the foregoing requirements. No
interest shall be due and payable during an Extended Interest Payment Period,
except (i) at the end thereof and (ii) upon a redemption of the Debentures
during an Extended Interest Payment Period, but the Company may prepay at any
time all or any portion of the interest accrued during an Extended Interest
Payment Period.

SECTION 4.2.   NOTICE OF EXTENSION.

          (a)  If the Property Trustee is the only registered Holder of the
Debentures at the time the Company selects an Extended Interest Payment Period,
the Company shall give written

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notice to the Administrative Trustee, the Property Trustee and the Trustee of
its selection of such Extended Interest Payment Period one Business Day before
the earlier of (i) the next succeeding date on which Distributions on the
Preferred Securities issued by the Trust would be payable but for such deferral,
or (ii) the date the Trust is required to give notice of the record date, or the
date such Distributions are payable, to the New York Stock Exchange or other
applicable self-regulatory organization or to holders of the Preferred
Securities issued by the Trust, but in any event at least one Business Day
before such record date.

          (b)  If the Property Trustee is not the only Holder of the Debentures
at the time the Company selects an Extended Interest Payment Period, the Company
shall give the Holders of the Debentures and the Trustee written notice of its
selection of such Extended Interest Payment Period at least one Business Day
before the earlier of (i) the next succeeding regular record date, or (ii) the
date the Company is required to give notice of the record or payment date of
such interest payment to the New York Stock Exchange or other applicable
self-regulatory organization.

          (c)  The quarter in which any notice is given pursuant to paragraphs
(a) or (b) of this Section 4.2 shall be counted as one of the 20 quarters
permitted in the maximum Extended Interest Payment Period permitted under
Section 4.1.

SECTION 4.3.   LIMITATION OF TRANSACTIONS.

          If (i) the Company shall exercise its right to defer payment of
interest as provided in Section 4.1, (ii) there shall have occurred any Event of
Default, as defined in the Indenture, or (iii) the Company shall be in default
with respect to its payment obligations under the Guarantee, then (a) the
Company shall not declare or pay any dividend on, make any distributions with
respect to, or redeem, purchase, acquire or make a liquidation payment with
respect to, any of its capital stock (other than (i) as a result of a
reclassification of its capital stock or the exchange or conversion of one class
or series of its capital stock for another class or series of its capital stock,
(ii) any declaration of a dividend in connection with the implementation of a
shareholder rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto,
(iii) purchases of its common stock related to the issuance of such stock under
any of the Company's benefit plans for its directors, officers or employees,
(iv) obligations under any dividend reinvestment plan or stock purchase plan of
the Company, or (v) the purchase of

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fractional interests in shares of its capital stock pursuant to the conversion
or exchange provisions of such capital stock or security being converted or
exchanged) or make any guarantee payment with respect thereto, (b) the Company
shall not make any payment of interest, principal or premium, if any, on or
repay, repurchase or redeem any debt securities issued by the Company which rank
PARI PASSU with or junior to the Debentures and (c) the Company shall not make
any guarantee payments with respect to the foregoing (other than pursuant to the
Guarantee and any similar guarantee issued by the Company on behalf of holders
of preferred securities issued by an issuer holding Securities issued under the
Indenture).

                                    ARTICLE V
                                    EXPENSES

SECTION 5.1.   PAYMENT OF EXPENSES.

          In connection with the offering, sale and issuance of the Debentures
to the Property Trustee and in connection with the sale of the Trust Securities
by the Trust, the Company, in its capacity as borrower with respect to the
Debentures, shall:

          (a)  pay all costs and expenses relating to the offering, sale and
issuance of the Debentures, including commissions to the underwriters payable
pursuant to the Purchase Agreement and compensation of the Trustee under the
Indenture in accordance with the provisions of Section 607 of the Indenture;

          (b)  pay all costs, expenses and other obligations (other than with
respect to the Trust Securities) of the Trust (including, but not limited to,
costs and expenses relating to the organization of the Trust, the offering, sale
and issuance of the Trust Securities (including commissions to the underwriters
in connection therewith), the fees and expenses of the Property Trustee and the
Delaware Trustee, the costs and expenses relating to the operation of the Trust,
including without limitation, costs and expenses of accountants, attorneys,
statistical or bookkeeping services, expenses for printing and engraving and
computing or accounting equipment, paying agent(s), registrar(s), transfer
agent(s), duplicating, travel and telephone and other telecommunications
expenses and costs and expenses incurred in connection with the acquisition,
financing, and disposition of Trust assets);

          (c)  be primarily liable for any indemnification obligations arising
with respect to the Declaration; and

          (d)  pay any and all taxes (other than United States

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Federal income taxes attributable to the Trust or its assets) and all
liabilities, costs and expenses with respect to such taxes of the Trust except
for taxes that give rise to Additional Interest payments for which the Company
is obligated to pay Additional Interest to the Property Trustee.

SECTION 5.2.   PAYMENT UPON RESIGNATION OR REMOVAL

          Upon termination of this Second Supplemental Indenture or the
Indenture or the removal or resignation of the Trustee pursuant to this Section
5.2, the Company shall pay to the Trustee all amounts accrued to the date of
such termination, removal or resignation.

                                   ARTICLE VI
                                  SUBORDINATION

SECTION 6.1.   SUBORDINATION.

          The indebtedness evidenced by the Debentures shall be, to the extent
and in the manner set forth in the Indenture, subordinate and junior in right of
payment to the prior payment in full of all Senior Indebtedness (as defined in
the Indenture) with respect to the Debentures, and the Debentures shall rank
PARI PASSU in right of payment with each other series of Securities issued under
the Indenture, with the exception of any series of Securities which by its terms
provides otherwise.

                                   ARTICLE VII
                          COVENANT TO LIST ON EXCHANGE

SECTION 7.1.   LISTING ON AN EXCHANGE

          If the Debentures are to be distributed to the holders of Preferred
Securities as described in Section 2.4(a), the Company will, if the Debentures
are not already so listed, use its best efforts to list such Debentures on the
New York Stock Exchange, Inc. or on such other exchange as the Preferred
Securities are then listed.

                                  ARTICLE VIII
                                FORM OF DEBENTURE

SECTION 8.1.   FORM OF DEBENTURE

          The Debentures and the Trustee's Certificate of Authentication to be
endorsed thereon are to be substantially in the following forms:

                                      -14-
<Page>

                           (FORM OF FACE OF DEBENTURE)

          [IF THE DEBENTURE IS TO BE A GLOBAL DEBENTURE, INSERT -- THIS
DEBENTURE IS A GLOBAL DEBENTURE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A
DEPOSITORY. THIS DEBENTURE IS EXCHANGEABLE FOR DEBENTURES REGISTERED IN THE NAME
OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY.

          UNLESS THIS DEBENTURE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
DEBENTURE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

No. ____________________
$ ______________________
CUSIP No. ______________

                       BALTIMORE GAS AND ELECTRIC COMPANY

             ___% DEFERRABLE INTEREST JUNIOR SUBORDINATED DEBENTURE
                                   DUE _______

          BALTIMORE GAS AND ELECTRIC COMPANY, a Maryland, a Colorado corporation
(the "Company", which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to ______________ or registered assigns, the principal sum of _____________
Dollars ($___________) on _________, ____, and to pay interest on said principal
sum from ____________, or from the most recent interest payment date (each such
date, an "Interest Payment Date") to which interest has been paid or duly
provided for, quarterly (subject to deferral as set forth herein) in arrears on
March 31, June 30, September 30 and December 31 of each year
commencing_________, at the rate of ___% per annum (together with Additional
Interest, if any, as provided in Section 2.5(c) of the Second Supplemental
Indenture referred to below) until the

                                      -15-
<Page>

principal hereof is paid or duly provided for or made available for payment,
provided that any overdue principal, premium or Additional Interest and (without
duplication and to the extent that payment of such interest is enforceable under
applicable law) any overdue installment of interest shall bear interest at the
same rate per annum compounded quarterly from the dates such amounts are due
until they are paid or made available for payment, and such interest shall be
payable on demand. The amount of interest payable on any Interest Payment Date
shall be computed on the basis of a 360-day year of twelve 30-day months. Except
as provided in the following sentence, the amount of interest payable for any
period shorter than a full quarterly period for which interest is computed, will
be computed on the basis of the actual number of days elapsed in such a 90-day
period. In the event that any date on which interest is payable on this
Debenture is not a Business Day, then payment of interest payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), except that, if such
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case with the same force and
effect as if made on such date. The interest installment so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the person in whose name this Debenture
(or one or more Predecessor Securities, as defined in said Indenture) is
registered at the close of business on the regular record date for such interest
installment, [which shall be the close of business on the Business Day next
preceding such Interest Payment Date.] [IF PURSUANT TO THE PROVISIONS OF THE
INDENTURE THE DEBENTURES ARE NOT HELD BY THE PROPERTY TRUSTEE AND NOT
REPRESENTED BY A GLOBAL DEBENTURE -- which shall be the close of business on the
fifteenth calendar day next preceding such Interest Payment Date.] Any such
interest installment not punctually paid or duly provided for shall forthwith
cease to be payable to the registered Holders on such regular record date and
may be paid to the Person in whose name this Debenture (or one or more
Predecessor Securities) is registered at the close of business on a special
record date to be fixed by the Trustee for the payment of such defaulted
interest, notice whereof shall be given to the registered Holders of this series
of Debentures not less than 10 days prior to such special record date, or may be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Debentures may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. The principal of (and premium, if any) and the
interest on this Debenture shall be payable at the office or agency of the
Company maintained for that purpose in any coin or currency of the United States
of America that at the time of payment is legal tender for

                                      -16-
<Page>

payment of public and private debts; provided, however, that payment of interest
may be made at the option of the Company by check mailed to the registered
Holder at such address as shall appear in the Security Register. Notwithstanding
the foregoing, so long as the Holder of this Debenture is the Property Trustee,
the payment of the principal of (and premium, if any) and interest on this
Debenture will be made at such place and to such account as may be designated by
the Property Trustee.

          The indebtedness evidenced by this Debenture is, to the extent
provided in the Indenture, subordinate and junior in right of payment to the
prior payment in full of all Senior Indebtedness, and this Debenture is issued
subject to the provisions of the Indenture with respect thereto. Each Holder of
this Debenture, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee his or her
attorney-in-fact for any and all such purposes. Each Holder hereof, by his or
her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of
Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.

          Reference is hereby made to the further provisions of this Debenture
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth in this place.

          This Debenture shall not be entitled to any benefit under the
Indenture hereinafter referred to, be valid or become obligatory for any purpose
until the Certificate of Authentication hereon shall have been signed by or on
behalf of the Trustee.

          Unless the certificate of authentication has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Debenture
shall not be entitled to the benefit of the Indenture or be valid or obligatory
for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be
executed.

Dated
     -----------------------

                                          BALTIMORE GAS AND ELECTRIC COMPANY

                                      -17-
<Page>

                                          By:
                                             -----------------------------------
                                               Name:
                                               Title: Vice President

Attest:

By:
   -------------------------
     Name:
     Title:

                     (FORM OF CERTIFICATE OF AUTHENTICATION)

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Debentures of the series of Debentures described in
the within-mentioned Indenture.

Dated
     -----------------------
                                          THE BANK OF NEW YORK, as Trustee

                                          By:
                                             -----------------------------------
                                                Authorized Signatory

                         [FORM OF REVERSE OF DEBENTURE]

          This Debenture is one of a duly authorized series of Securities of the
Company (herein sometimes referred to as the "Securities"), issued or to be
issued in one or more series under and pursuant to an Indenture (as supplemented
by the Second Supplemental Indenture dated as of __________, 2003, between the
Company and the Trustee, the "Indenture") dated as of June 15, 1998 duly
executed and delivered between the Company and The Bank of New York, as Trustee
(the "Trustee", which term includes any successor trustee under the Indenture),
to which Indenture reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Debentures and the terms upon which
the Debentures are, and are to be, authenticated and delivered. By the terms of
the Indenture, the Securities are issuable in series that may vary as to amount,
date of maturity, rate of interest and in other respects as provided in the
Indenture. This Debenture is one of

                                      -18-
<Page>

the series of Securities designated on the face hereof, limited in aggregate
principal amount to $257,731,975.

          Except as provided in the next paragraph, and subject to the terms and
conditions of Article Eleven of the Indenture, the Debentures may not be
redeemed by the Company prior to ______________, [2008]. The Company shall have
the right to redeem this Debenture at the option of the Company, without premium
or penalty, in whole or in part at any time and from time to time on or after
___________, [2008] (an "Optional Redemption"), at the Optional Redemption Price
(as defined in the Indenture). Any redemption pursuant to this paragraph will be
made upon not less than 30 nor more than 60 days' notice, at the Optional
Redemption Price.

          If a Special Event (as defined below) has occurred and is continuing
then the Company shall have the right upon not less than 30 days nor more than
60 days notice to the Holders of the Debentures to redeem the Debentures, in
whole but not in part, for cash within 90 days following the occurrence of such
Special Event (the "90 Day Period") at a redemption price equal to 100% of the
principal amount to be redeemed plus any accrued and unpaid interest thereon,
including Compounded Interest and Additional Interest, if any, to the date of
such redemption (the "Redemption Price"). The Redemption Price shall be paid
prior to 12:00 noon, New York time, on the date of such redemption or such
earlier time as the Company determines, provided that the Company shall deposit
with the Trustee an amount sufficient to pay the Redemption Price by 10:00 a.m.,
New York time, on the date such Redemption Price is to be paid.

          A "Special Event" shall mean either a Tax Event or an Investment
Company Event. "Tax Event" shall mean that the Company shall have received an
opinion of counsel (which may be regular counsel to the Company or an Affiliate,
but not an employee thereof, which must be reasonably acceptable to the Property
Trustee of the Trust) experienced in such matters to the effect that, as a
result of (a) any amendment to, or change (including any announced prospective
change) in, the laws (or any regulations thereunder) of the United States or any
political subdivision or taxing authority thereof or therein affecting taxation,
or (b) any interpretation or application of such laws or regulations by any
court, governmental agency or regulatory authority, in each case which amendment
or change is enacted, promulgated, issued or announced or which interpretation
or application is issued or announced on or after the date of original issuance
of Preferred Securities, there is more than an insubstantial risk that (i) the
Trust is or will be within 90 days of the date of the opinion of counsel subject
to United States Federal income tax with respect to interest received on

                                      -19-
<Page>

the Debentures, (ii) interest payable by the Company to the Trust on the
Debentures is not or will not be within 90 days of the date of the opinion of
counsel deductible in whole or in part for United States Federal income tax
purposes, or (iii) the Trust is subject or will be within 90 days of the date of
the opinion of counsel to more than a de minimis amount of other taxes, duties,
assessments or other governmental charges. "Investment Company Event" shall mean
the occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority (a "Change in 1940 Act Law") to the effect that
the Trust is or will be considered an "Investment Company" that is required to
be registered under the Investment Company Act of 1940, as amended, which Change
in 1940 Act Law becomes effective on or after the date of original issuance of
the Preferred Securities.

          Any redemption pursuant to the occurrence of a Special Event will be
made upon not less than 30 days nor more than 60 days notice, at the Redemption
Price. If the Debentures are only partially redeemed by the Company pursuant to
an Optional Redemption, the Debentures will be redeemed pro rata or by lot or by
any other method utilized by the Trustee; provided that if, at the time of
redemption, the Debentures are registered as a Global Debenture, the Depository
shall determine the principal amount of such Debentures held by each Debenture
Holder to be redeemed in accordance with its procedures.

          In the event of redemption of this Debenture in part only, a new
Debenture or Debentures for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the cancellation hereof.

          The Indenture contains provisions for the satisfaction and discharge
of the entire indebtedness of this Debenture upon compliance by the Company with
certain conditions set forth in the Indenture.

          In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Debentures may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

               The Indenture permits, with certain exceptions as therein
provided, the Company and the Trustee at any time to enter into a supplemental
indenture or indentures for the purpose of modifying in any manner the rights
and obligations of the Company and of the Holders, with the consent of the

                                      -20-
<Page>

Holders of not less than a majority in aggregate principal amount of the
outstanding Securities of each series to be affected by such supplemental
indenture. The Indenture also contains provisions permitting Holders of
specified percentages in aggregate principal amount of the Securities of each
series at the time outstanding, on behalf of the Holders of all Securities of
such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Debenture shall be conclusive
and binding upon such Holder and upon all future Holders of this Debenture and
of any Debenture issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon the Debenture.

          No reference herein to the Indenture and no provision of this
Debenture or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
premium, if any, and interest (including Compound Interest) on this Debenture at
the time and place and at the rate and in the money herein prescribed.

          So long as no Event of Default with respect to the Debentures has
occurred and is continuing, the Company shall have the right at any time during
the term of the Debentures from time to time to extend the interest payment
period of such Debentures for up to 20 consecutive quarters (an "Extended
Interest Payment Period"), at the end of which period the Company shall pay all
interest then accrued and unpaid (together with the interest thereon at the rate
specified for the Debentures to the extent that payment of such interest is
enforceable under applicable law). In the event that the Company exercises this
right during the Extended Interest Payment Period, then (a) the Company shall
not declare or pay any dividend on, make any distributions with respect to, or
redeem, purchase or acquire, or make a liquidation payment with respect to, any
of its capital stock (other than (i) as a result of a reclassification of the
Company's capital stock or the exchange or conversion of one class or series of
the Company's capital stock for another class or series of the Company's capital
stock, (ii) any declaration of a dividend in connection with the implementation
of a shareholder rights plan, or the issuance of stock under any such plan in
the future, or the redemption or repurchase of any such rights pursuant thereto,
(iii) purchases of its common stock related to the issuance of such stock under
any of the Company's benefit plans for its directors, officers or employees,
(iv) obligations under any dividend reinvestment plan or stock purchase plan of
the Company, or (v) the purchase of fractional interests in shares of the
Company's capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted

                                      -21-
<Page>

or exchanged) or make any guarantee payments with respect to the foregoing), (b)
the Company shall not make any payment of interest, principal or premium, if
any, on or repay, repurchase or redeem any debt securities (including
guarantees) issued by the Company that rank PARI PASSU with or junior to such
Debentures, and (c) the Company shall not make any guarantee payments with
respect to the foregoing (other than pursuant to the Guarantee and any similar
guarantee issued by the Company on behalf of holders of preferred securities
issued by an issuer holding Securities issued under the Indenture). Prior to the
termination of any such Extended Interest Payment Period, the Company may
further extend the interest payment period; provided, that such Extended
Interest Payment Period, together with all such previous and further extensions
thereof, may not exceed 20 consecutive quarters or extend beyond the maturity
date of the Debenture. At the termination of any such Extended Interest Payment
Period and upon the payment of all Deferred Interest then due, the Company may
commence a new Extended Interest Payment Period, subject to the above
requirements.

          The Company shall [IF PROPERTY TRUSTEE IS NOT THE ONLY HOLDER OF THE
DEBENTURES INSERT -- give the Holder of this Security and the Trustee notice of
its election to begin any Extended Interest Payment Period at least one Business
Day before the earlier of (i) the next succeeding regular record date or (ii)
the date the Company is required to give notice of the record or payment date of
such interest payment to the New York Stock Exchange or other applicable
self-regulatory organization.] OR - IF THE PROPERTY TRUSTEE IS THE ONLY
REGISTERED HOLDER OF THE DEBENTURES INSERT - or so long as such Debentures are
held by the Trust, at least one Business Day prior to the earlier of (i) the
next succeeding date on which Distributions on the Preferred Securities issued
by the Trust would be payable but for such deferral or (ii) the date the Trust
is required to give notice of the record date, or the date such Distributions
are payable, to the New York Stock Exchange or such other applicable
self-regulatory organization or to holders of the Preferred Securities issued by
the Trust, but in any event at least one Business Day before such record date.

          As provided in the Indenture and subject to certain limitations
therein set forth, this Debenture is transferable by the registered Holder
hereof on the Security Register of the Company, upon surrender of this Debenture
for registration of transfer at the office or agency of the Trustee in the City
of New York and State of New York, duly endorsed or accompanied by a written
instrument or instruments of transfer in form satisfactory to the Company or the
Trustee duly executed by the registered Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Debentures of authorized

                                      -22-
<Page>

denominations and for the same aggregate principal amount and series will be
issued to the designated transferee or transferees. No service charge will be
made for any such transfer, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation
thereto.

          Prior to due presentment for registration of transfer of this
Debenture, the Company, the Trustee, any paying agent and the Security Registrar
may deem and treat the registered holder hereof as the absolute owner hereof
(whether or not this Debenture shall be overdue and notwithstanding any notice
of ownership or writing hereon made by anyone other than the Security Registrar)
for the purpose of receiving payment of or on account of the principal hereof
and premium, if any, and interest (including Compound Interest) due hereon and
for all other purposes, and neither the Company nor the Trustee nor any paying
agent nor any Security Registrar shall be affected by any notice to the
contrary.

          No recourse shall be had for the payment of the principal of or the
interest on this Debenture, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

          [This Global Debenture is exchangeable for Debentures in definitive
form only under certain limited circumstances set forth in the Indenture. The
Debentures so issued are issuable only in registered form without coupons in
denominations of $25 and any integral multiple thereof.] As provided in the
Indenture and subject to certain limitations herein and therein set forth,
Debentures so issued are exchangeable for a like aggregate principal amount of
Debentures of a different authorized denomination, as requested by the Holder
surrendering the same.

          The Company and, by its acceptance of this Debenture or a beneficial
interest herein, the Holder or any Person that acquires a beneficial interest in
this Debenture agree that for United States Federal, State and local tax
purposes it is intended that this Debenture constitute indebtedness.

          All terms used in this Debenture that are defined in the Indenture
shall have the meanings assigned to them in the

                                      -23-
<Page>

Indenture.

                                   ARTICLE IX
                          ORIGINAL ISSUE OF DEBENTURES

SECTION 9.1.   ORIGINAL ISSUE OF DEBENTURES.

          Debentures in the aggregate principal amount of $257,731,950 may, upon
execution of this Second Supplemental Indenture, be executed by the Company and
delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Debentures to or upon the written order of the
Company, signed by its Chairman, its Vice Chairman, its President, or any Vice
President and its Treasurer or an Assistant Treasurer, without any further
action by the Company.

                                    ARTICLE X
                                  MISCELLANEOUS

SECTION 10.1.  RATIFICATION OF INDENTURE.

          The Indenture, as supplemented by this Second Supplemental Indenture,
is in all respects ratified and confirmed, and this Second Supplemental
Indenture shall be deemed part of the Indenture in the manner and to the extent
herein and therein provided.

SECTION 10.2.  TRUSTEE NOT RESPONSIBLE FOR RECITALS.

          The recitals herein and each Debenture, except the Trustee's
certificate of authentication, shall be taken as statements of the Company, and
the Trustee assumes no responsibility for the correctness thereof. The Trustee
makes no representation as to the validity or sufficiency of this Second
Supplemental Indenture or of the Debentures. The Trustee shall not be
accountable for the use or application by the Company of Debentures or the
proceeds thereof.

SECTION 10.3.  GOVERNING LAW.

          This Second Supplemental Indenture and each Debenture shall be
governed by and construed in accordance with the laws (other than the choice of
law provisions) of the State of New York, (except to the extent that the Trust
Indenture Act shall be applicable).

SECTION 10.4.  SEPARABILITY.

                                      -24-
<Page>

          In case any one or more of the provisions contained in this Second
Supplemental Indenture or in the Debentures or the application of any such
provision to any Person or circumstance, shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Second
Supplemental Indenture or of the Debentures, or the application of such
provision to Persons or circumstances other than those as to whom or which it is
invalid, illegal or unenforceable, but this Second Supplemental Indenture and
the Debentures shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

                                      -25-
<Page>

SECTION 10.5.  COUNTERPARTS.

          This Second Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

             [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                      -26-
<Page>

          IN WITNESS WHEREOF, the parties hereto have caused this Second
Supplemental Indenture to be duly executed, on the date or dates indicated in
the acknowledgments and as of the day and year first above written.

                                          BALTIMORE GAS AND ELECTRIC COMPANY

                                          By:
                                               -------------------------------
                                               Name:
                                               Title: Vice President

                                          THE BANK OF NEW YORK
                                          as Trustee

                                          By:
                                               -------------------------------
                                               Name:
                                               Title:

                                      -27-<Page>

                                                                    Exhibit 4(f)

                                     Form of

                               Guarantee Agreement

                                     between

                       BALTIMORE GAS AND ELECTRIC COMPANY
                                 (as Guarantor)

                                       and

                              The Bank of New York
                        (as Preferred Guarantee Trustee)

                                   Dated as of

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I     DEFINITIONS
    SECTION 1.01.  Definitions....................................................................................2

ARTICLE II    TRUST INDENTURE ACT
    SECTION 2.01.  Trust Indenture Act; Application...............................................................4
    SECTION 2.02.  List of Holders................................................................................5
    SECTION 2.03.  Reports by the Preferred Guarantee Trustee.....................................................5
    SECTION 2.04.  Periodic Reports to Preferred Guarantee Trustee................................................5
    SECTION 2.05.  Evidence of Compliance with Conditions Precedent...............................................5
    SECTION 2.06.  Events of Default; Waiver......................................................................6
    SECTION 2.07.  Event of Default; Notice.......................................................................6
    SECTION 2.08.  Conflicting Interests..........................................................................7

ARTICLE III   POWERS, DUTIES AND RIGHTS OF THE PREFERRED GUARANTEE TRUSTEE
    SECTION 3.01.  Powers and Duties of the Preferred Guarantee Trustee...........................................7
    SECTION 3.02.  Certain Rights of Preferred Guarantee Trustee..................................................9

ARTICLE IV    PREFERRED GUARANTEE TRUSTEE
    SECTION 4.01.  Preferred Guarantee Trustee; Eligibility......................................................11
    SECTION 4.02.  Appointment, Removal and Resignation of the Preferred Guarantee Trustee.......................12

ARTICLE V     GUARANTEE
    SECTION 5.01.  Guarantee.....................................................................................12
    SECTION 5.02.  Waiver of Notice and Demand...................................................................13
    SECTION 5.03.  Obligations Not Affected......................................................................13
    SECTION 5.04.  Rights of Holders.............................................................................14
    SECTION 5.05.  Guarantee of Payment..........................................................................14
    SECTION 5.06.  Subrogation...................................................................................14
    SECTION 5.07.  Independent Obligations.......................................................................14

ARTICLE VI    SUBORDINATION
    SECTION 6.01.  Ranking.......................................................................................15
    SECTION 6.02.  PARI PASSU Guarantees.........................................................................15

ARTICLE VII   TERMINATION
    SECTION 7.01.  Termination...................................................................................16
</Table>

                                       -i-
<Page>

<Table>
<S>                                                                                                              <C>
ARTICLE VIII  INDEMNIFICATION
    SECTION 8.01.  Exculpation...................................................................................16
    SECTION 8.02.  Indemnification...............................................................................16

ARTICLE IX    MISCELLANEOUS
    SECTION 9.01.  Successors and Assigns........................................................................17
    SECTION 9.02.  Amendments....................................................................................18
    SECTION 9.03.  Notices.......................................................................................18
    SECTION 9.04.  Benefit.......................................................................................19
    SECTION 9.05.  Interpretation................................................................................19
    SECTION 9.06.  Governing Law.................................................................................19
    SECTION 9.07.  Counterparts..................................................................................19
</Table>

                                      -ii-
<Page>

                              CROSS-REFERENCE TABLE

<Table>
<Caption>
Section of                                                                                    Section of
Trust Indenture Act                                                                         Guarantee of
1939, as Amended                                                                               Agreement
-------------------                                                                         ------------
<S>                                                                                       <C>
310(a)....................................................................................       4.01(a)
310(b).................................................................................... 4.01(c), 2.08
310(c)....................................................................................  Inapplicable
311(a)....................................................................................       2.02(b)
311(b)....................................................................................       2.02(b)
311(c)....................................................................................  Inapplicable
312(a)....................................................................................       2.02(a)
312(b)....................................................................................       2.02(b)
313.......................................................................................          2.03
314(a)....................................................................................          2.04
314(b)....................................................................................  Inapplicable
314(c)....................................................................................          2.05
314(d)....................................................................................  Inapplicable
314(e)....................................................................................1.01,2.05,3.02
314(f)....................................................................................    2.01, 3.02
315(a)....................................................................................       3.01(d)
315(b)....................................................................................          2.07
315(c)....................................................................................          3.01
315(d)....................................................................................       3.01(d)
316(a)....................................................................................1.01,2.06,5.04
316(b)....................................................................................          5.03
316(c)....................................................................................          8.02
317(a)....................................................................................  Inapplicable
317(b)....................................................................................  Inapplicable
318(a)....................................................................................       2.01(b)
318(b)....................................................................................          2.01
318(c)....................................................................................       2.01(a)
</Table>

----------
*    This Cross-Reference Table does not constitute part of the Guarantee
     Agreement and shall not affect the interpretation of any of its terms or
     provisions.

                                      -iii-
<Page>

                               GUARANTEE AGREEMENT

     This GUARANTEE AGREEMENT (the "Preferred Securities Guarantee"), dated as
of________, 2003 is executed and delivered by Baltimore Gas and Electric
Company, a Maryland corporation (the "Guarantor"), to The Bank of New York, as
trustee (the "Preferred Guarantee Trustee"), for the benefit of the Holders (as
defined herein) from time to time of the Preferred Securities (as defined
herein) of BGE Capital Trust II, a Delaware statutory trust (the "Issuer").

     WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of among the Trustees named therein, the Guarantor, as
Depositor, and the Holders from time to time of undivided beneficial interests
in the assets of the Issuer, the Issuer is issuing $250,000,000aggregate
liquidation amount of its Trust Preferred Securities (liquidation amount of
$25.00 per preferred security) (the "Preferred Securities") representing
undivided beneficial interests in the assets of the Issuer and having the terms
set forth in the Declaration;

     WHEREAS, the Preferred Securities will be issued by the Issuer and the
proceeds thereof, together with the proceeds from the sale by the Issuer of its
Common Securities, will be used to purchase the Debentures (as defined in the
Declaration) of the Guarantor which will be deposited with The Bank of New York,
as Property Trustee under the Declaration, as Trust Property (as defined in the
Declaration);

     WHEREAS, as incentive for the Holders to purchase Preferred Securities, the
Guarantor desires irrevocably and unconditionally to agree, to the extent set
forth herein, to pay to the Holders of the Preferred Securities the Guarantee
Payments (as defined herein) and to make certain other payments on the terms and
conditions set forth herein; and

     WHEREAS, the Guarantor is also executing and delivering a guarantee
agreement (the "Common Securities Guarantee") in substantially identical terms
to this Preferred Securities Guarantee for the benefit of the holders of the
Common Securities (as defined herein), except that if an event of default (as
defined in the Indenture) has occurred and is continuing, the Guarantee Payments
under the Common Securities Guarantee are subordinated to the rights of Holders
of Preferred Securities to receive Guarantee Payments under this Preferred
Securities Guarantee.

     NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor

                                       -1-
<Page>

hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers
this Preferred Securities Guarantee for the benefit of the Holders from time to
time of the Preferred Securities.

                                    ARTICLE I

                                   DEFINITIONS

     SECTION  1.01. Definitions. As used in this Preferred Securities Guarantee,
each of the terms set forth below shall, unless the context otherwise requires,
have the following meaning. Each capitalized or otherwise defined term used but
not otherwise defined herein shall have the meaning assigned to such terms in
the Declaration as in effect on the date hereof.

     "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

     "Common Securities" means the common securities representing undivided
beneficial interests in the assets of the Issuer and having the rights provided
therefor in the Declaration.

     "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

     "Event of Default" shall have the meaning specified in Section 2.06 (a).

     "Guarantee Payments" means the following payments or distributions, without
duplication, with respect to the Preferred Securities, to the extent not paid or
made by or on behalf of the Issuer pursuant to the Declaration or by the
Guarantor pursuant to the Indenture: (i) any accumulated and unpaid
Distributions required to be paid on the Preferred Securities, to the extent the
Issuer shall have funds available therefor, (ii) the Redemption Price with
respect to any Preferred Securities called for redemption by the Issuer to the
extent the Issuer shall have funds available therefor, and (iii) upon a
voluntary or involuntary dissolution and liquidation of the Issuer (other than
in connection with a Distribution of Debentures to Holders of such Preferred
Securities or the redemption of all such Preferred Securities), the lesser of
(a) the aggregate of the liquidation

                                       -2-
<Page>

amount of $25.00 per Preferred Security plus all accrued and unpaid
Distributions on the Preferred Securities to the date of payment, to the extent
the Issuer shall have funds available therefor and (b) the amount of assets of
the Issuer remaining available for Distribution to Holders of Preferred
Securities upon a dissolution and liquidation of the Issuer (in either case, the
"Liquidation Distribution").

     "Holder" means a Person in whose name a Preferred Security is registered in
the Securities Register; provided, however, that in determining whether the
holders of the requisite percentage of Preferred Securities have given any
request, notice, consent or waiver hereunder, "Holder" shall not include the
Guarantor, the Preferred Guarantee Trustee or any Affiliate of the Guarantor or
the Preferred Guarantee Trustee.

     "Indemnified Person" means the Preferred Guarantee Trustee, any Affiliate
of the Preferred Guarantee Trustee, or any officers, directors, shareholders,
members, partners, employees, representatives, nominees, custodians or agents of
the Preferred Guarantee Trustee.

     "Indenture" means the Indenture dated as of June 15, 1998, as amended or
supplemented from time to time, between Baltimore Gas and Electric Company and
The Bank of New York, as trustee thereunder.

     "List of Holders" has the meaning specified in Section 2.02(a).

     "Majority in liquidation amount of the Preferred Securities" means, except
as provided by the Trust Indenture Act, a vote by the Holders of more than 50%
of the aggregate liquidation amount of all then outstanding Preferred Securities
issued by the Issuer.

     "Officers' Certificate" means a certificate signed by the Chairman, the
Vice Chairman, the President, or any Vice President and the Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary of the Guarantor.

     "Person" means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
other entity.

     "Preferred Guarantee Trustee" means The Bank of New York, soley as
Preferred Guarantee Trustee and not in its individual capacity,until a Successor
Preferred Guarantee Trustee (as defined below) has been appointed and has
accepted such appointment pursuant to the terms of this Preferred Securities
Guarantee and thereafter means each such Successor Preferred

                                       -3-
<Page>

Guarantee Trustee.

     "Responsible Officer" means, with respect to the Preferred Guarantee
Trustee, any Vice President, any Assistant Vice President, any Secretary, any
Assistant Secretary, any Trust Officer or Assistant Trust Officer or any other
officer of the Corporate Trust Department of the Guarantee Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of that officer's
knowledge of and familiarity with the particular subject.

     "Senior Indebtedness" means Senior Indebtedness as defined in the
Indenture.

     "Successor Preferred Guarantee Trustee" means a successor Preferred
Guarantee Trustee possessing the qualifications to act as Preferred Guarantee
Trustee under Section 4.02.

     "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939, as so amended.

                                   ARTICLE II

                               TRUST INDENTURE ACT

     SECTION  2.01.  Trust Indenture Act; Application.

     (a) This Preferred Securities Guarantee is subject to the provisions of the
Trust Indenture Act that are required to be part of this Preferred Securities
Guarantee and shall, to the extent applicable, be governed by such provisions.

     (b) If, and to the extent that any provision of this Preferred Securities
Guarantee limits, qualifies or conflicts with the duties imposed by Sections 310
to 317, inclusive, of the Trust Indenture Act, through operation of Section
318(c) thereof, such imposed duties shall control. If any provision of this
Preferred Securities Guarantee modifies or excludes any provision of the Trust
Indenture Act which may be so modified or excluded, the latter provision shall
be deemed to apply to this Preferred Securities Guarantee as so modified or to
be excluded, as the case may be.

                                       -4-
<Page>

     SECTION  2.02.  List of Holders.

     (a) The Guarantor shall furnish or cause to be furnished to the Preferred
Guarantee Trustee (i) semiannually, on or before January 15 and July 15 of each
year, a list, in such form as the Preferred Guarantee Trustee may reasonably
require, of the names and addresses of the Holders ("List of Holders") as of a
date not more than 15 days prior to the delivery thereof, and (ii) at such other
times as the Preferred Guarantee Trustee may request in writing, within 30 days
after the receipt by the Guarantor of any such request, a List of Holders as of
a date not more than 15 days prior to the time such list is furnished, in each
case to the extent such information is in the possession or control of the
Guarantor and is not identical to a previously supplied List of Holders or has
not otherwise been received by the Preferred Guarantee Trustee in its capacity
as such. The Preferred Guarantee Trustee may destroy any List of Holders
previously given to it on receipt of a new List of Holders.

     (b) The Preferred Guarantee Trustee shall comply with its obligations under
Sections 311(a), Section 311(b) and Section 312(b) of the Trust Indenture Act.

     SECTION  2.03. Reports by the Preferred Guarantee Trustee. Within 60 days
after May 15 of each year, the Preferred Guarantee Trustee shall provide to the
Holders such reports as are required by Section 313 of the Trust Indenture Act,
if any, in the form and in the manner provided by Section 313 of the Trust
Indenture Act. The Preferred Guarantee Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

     SECTION  2.04. Periodic Reports to Preferred Guarantee Trustee. The
Guarantor shall provide to the Preferred Guarantee Trustee, the Securities and
Exchange Commission and the Holders such documents, reports and information, if
any, as required by Section 314 of the Trust Indenture Act and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form and
manner and at the times required by Section 314 of the Trust Indenture Act.

     SECTION  2.05. Evidence of Compliance with Conditions Precedent. The
Guarantor shall provide to the Preferred Guarantee Trustee such evidence of
compliance with such conditions precedent, if any, provided for in this
Preferred Securities Guarantee that relate to any of the matters set forth in
Section 314(c) of the Trust Indenture Act. Each Officers' Certificate and
Opinion of Counsel delivered with respect to compliance with a condition or
covenant provided for in this Preferred Securities Guarantee shall include:

                                       -5-
<Page>

          (a)  a statement that each person signing the Officers' Certificate or
     Opinion of Counsel has read the covenant or condition and the definition
     relating thereto;

          (b)  a brief statement of the nature and scope of the examination or
     investigation undertaken and upon which the statements contained therein
     are based;

          (c)  a statement that each such person has made such examination or
     investigation as, in such person's opinion, is necessary to enable such
     person to express an informed opinion as to whether or not such covenant or
     condition has been complied with; and

          (d)  a statement as to whether, in the opinion of each such person,
     such condition or covenant has been complied with.

     SECTION  2.06.  Events of Default; Waiver.

     (a) An Event of Default means a default by the Guarantor on any of its
payment or other obligations under this Preferred Securities Guarantee;
provided, that except with respect to a default resulting from a failure to pay
any Guarantee Payment, the Guarantor shall have received notice of such default
and shall not have cured such default within 60 days after receipt of such
notice.

     (b) The Holders of a Majority in liquidation amount of the Preferred
Securities may, by vote, on behalf of the Holders, waive any past Event of
Default and its consequences. Upon such waiver, any such Event of Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured, for every purpose of this Preferred Securities Guarantee, but
no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

     SECTION  2.07.  Event of Default; Notice.

     (a) The Preferred Guarantee Trustee shall, within 90 days after the
occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders, notices of all Events of Default known to the Preferred
Guarantee Trustee, unless such defaults have been cured before the giving of
such notice; provided that, except in the case of a default in the payment of a
Guarantee Payment, the Preferred Guarantee Trustee shall be protected in
withholding such notice if and so long as the Board of Directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the
Preferred Guarantee Trustee in good faith determines that the withholding of
such notice is in the interests of the Holders.

                                       -6-
<Page>

     (b) The Preferred Guarantee Trustee shall not be deemed to have knowledge
of any Event of Default unless the Preferred Guarantee Trustee shall have
received written notice, or a Responsible Officer charged with the
administration of the Preferred Securities Guarantee shall have obtained written
notice, of such Event of Default.

     SECTION  2.08. Conflicting Interests. The Declaration and the Indenture
shall be deemed to be specifically described in this Preferred Securities
Guarantee for the purposes of clause (i) of the first proviso contained in
Section 310(b) of the Trust Indenture Act.

                                   ARTICLE III

                        POWERS, DUTIES AND RIGHTS OF THE
                           PREFERRED GUARANTEE TRUSTEE

     SECTION  3.01.  Powers and Duties of the Preferred Guarantee Trustee.

     (a) This Preferred Securities Guarantee shall be held by the Preferred
Guarantee Trustee for the benefit of the Holders, and the Preferred Guarantee
Trustee shall not transfer this Preferred Securities Guarantee to any Person
except a Holder exercising his or her rights pursuant to Section 5.04(iv) or to
a Successor Preferred Guarantee Trustee on acceptance by such Successor
Preferred Guarantee Trustee of its appointment to act as Successor Preferred
Guarantee Trustee. The right, title and interest of the Preferred Guarantee
Trustee shall automatically vest in any Successor Preferred Guarantee Trustee
upon acceptance by such Successor Preferred Guarantee Trustee of its appointment
hereunder and such vesting and cessation of title shall be effective whether or
not conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Preferred Guarantee Trustee.

     (b) If an Event of Default has occurred and is continuing, the Preferred
Guarantee Trustee shall enforce this Preferred Securities Guarantee for the
benefit of the Holders. If an event of default under the Indenture has occurred
and is continuing, the rights of holders of the Common Securities to receive
payments under the Common Securities Guarantee are subordinated to the rights of
Holders of Preferred Securities to receive Guarantee Payments.

     (c) The Preferred Guarantee Trustee, before the occurrence of any Event of
Default and after the curing of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Preferred

                                       -7-
<Page>

Securities Guarantee, and no implied covenants shall be read into this Preferred
Securities Guarantee against the Preferred Guarantee Trustee. In case an Event
of Default has occurred and is continuing (and has not been cured or waived
pursuant to Section 2.06), the Preferred Guarantee Trustee shall exercise such
of the rights and powers vested in it by this Preferred Securities Guarantee,
and use the same degree of care and skill in its exercise thereof, as a prudent
person would exercise or use in the conduct of his or her own affairs.

     (d) No provision of this Preferred Securities Guarantee shall be construed
to relieve the Preferred Guarantee Trustee from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

          (i)  prior to the occurrence of any Event of Default and after the
     curing or waiving of all such Events of Default that may have occurred:

               (A) the duties and obligations of the Preferred Guarantee Trustee
          shall be determined solely by the express provisions of this Preferred
          Securities Guarantee, and the Preferred Guarantee Trustee shall not be
          liable except for the performance of such duties and obligations as
          are specifically set forth in this Preferred Securities Guarantee, and
          no implied covenants or obligations shall be read into this Preferred
          Securities Guarantee against the Preferred Guarantee Trustee; and

               (B) in the absence of bad faith on the part of the Preferred
          Guarantee Trustee, the Preferred Guarantee Trustee may conclusively
          rely, as to the truth of the statements and the correctness of the
          opinions expressed therein, upon any certificates or opinions
          furnished to the Preferred Guarantee Trustee and conforming to the
          requirements of this Preferred Securities Guarantee; but in the case
          of any such certificates or opinions that by any provision hereof or
          of the Trust Indenture Act are specifically required to be furnished
          to the Preferred Guarantee Trustee, the Preferred Guarantee Trustee
          shall be under a duty to examine the same to determine whether or not
          they conform to the requirements of this Preferred Securities
          Guarantee;

          (ii)  the Preferred Guarantee Trustee shall not be liable for any
     error of judgment made in good faith by a Responsible Officer of the
     Preferred Guarantee Trustee, unless it shall be proved that the Preferred
     Guarantee Trustee was negligent in ascertaining the pertinent facts upon
     which such judgment was made;

                                       -8-
<Page>

          (iii) the Preferred Guarantee Trustee shall not be liable with respect
     to any action taken or omitted to be taken by it in good faith in
     accordance with the direction of the Holders of a Majority in liquidation
     amount of the Preferred Securities relating to the time, method and place
     of conducting any proceeding for any remedy available to the Preferred
     Guarantee Trustee, or exercising any trust or power conferred upon the
     Preferred Guarantee Trustee under this Preferred Securities Guarantee; and

          (iv) no provision of this Preferred Securities Guarantee shall require
     the Preferred Guarantee Trustee to expend or risk its own funds or
     otherwise incur personal financial liability in the performance of any of
     its duties or in the exercise of any of its rights or powers, if the
     Preferred Guarantee Trustee shall have reasonable grounds for believing
     that the repayment of such funds or liability is not reasonably assured to
     it under the terms of this Preferred Securities Guarantee or reasonable
     indemnity against such risk or liability is not reasonably assured to it.

     SECTION  3.02.  Certain Rights of Preferred Guarantee Trustee.

     (a) Subject to the provisions of Section 3.01:

          (i)   The Preferred Guarantee Trustee may rely and shall be fully
     protected in acting or refraining from acting upon any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document believed by it to be genuine and to
     have been signed, sent or presented by the proper party or parties.

          (ii)  Any direction or act of the Guarantor contemplated by this
     Preferred Securities Guarantee shall be sufficiently evidenced by an
     Officers' Certificate unless otherwise prescribed herein.

          (iii) Whenever, in the administration of this Preferred Securities
     Guarantee, the Preferred Guarantee Trustee shall deem it desirable that a
     matter be proved or established before taking, suffering or omitting to
     take any action hereunder, the Preferred Guarantee Trustee (unless other
     evidence is herein specifically prescribed) may, in the absence of bad
     faith on its part, request and rely upon an Officers' Certificate which,
     upon receipt of such request from the Preferred Guarantee Trustee, shall be
     promptly delivered by the Guarantor.

                                       -9-
<Page>

          (iv)  The Preferred Guarantee Trustee may consult with legal counsel,
     and the written advice or opinion of such legal counsel with respect to
     legal matters shall be full and complete authorization and protection in
     respect of any action taken, suffered or omitted to be taken by it
     hereunder in good faith and in accordance with such advice or opinion. Such
     legal counsel may be legal counsel to the Guarantor or any of its
     Affiliates and may be one of its employees. The Preferred Guarantee Trustee
     shall have the right at any time to seek instructions concerning the
     administration of this Preferred Securities Guarantee from any court of
     competent jurisdiction.

          (v)   The Preferred Guarantee Trustee shall be under no obligation to
     exercise any of the rights or powers vested in it by this Preferred
     Securities Guarantee at the request or direction of any Holder, unless such
     Holder shall have provided to the Preferred Guarantee Trustee such
     reasonable indemnity as would satisfy a reasonable person in the position
     of the Preferred Guarantee Trustee, against the costs, expenses (including
     attorneys' fees and expenses) and liabilities that might be incurred by it
     in complying with such request or direction; provided that nothing
     contained in this Section 3.02(a)(v) shall be taken to relieve the
     Preferred Guarantee Trustee, upon the occurrence of an Event of Default, of
     its obligation to exercise the rights and powers vested in it by this
     Preferred Securities Guarantee.

          (vi)  The Preferred Guarantee Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Preferred Guarantee
     Trustee, in its discretion, may make such further inquiry or investigation
     into such facts or matters as it may see fit.

          (vii)  The Preferred Guarantee Trustee may execute any of the trusts
     or powers hereunder or perform any duties hereunder either directly or by
     or through its agents or attorneys, and the Preferred Guarantee Trustee
     shall not be responsible for any misconduct or negligence on the part of
     any such agent or attorney appointed with due care by it hereunder.

          (viii) Whenever in the administration of this Preferred Securities
     Guarantee the Preferred Guarantee Trustee shall deem it desirable to
     receive instructions with

                                      -10-
<Page>

     respect to enforcing any remedy or right or taking any other action
     hereunder, the Preferred Guarantee Trustee (A) may request instructions
     from the Holders, (B) may refrain from enforcing such remedy or right or
     taking such other action until such instructions are received, and (C)
     shall be protected in acting in accordance with such instructions.

     (b) No provision of this Preferred Securities Guarantee shall be deemed to
impose any duty or obligation on the Preferred Guarantee Trustee to perform any
act or acts or exercise any right, power, duty or obligation conferred or
imposed on it in any jurisdiction in which it shall be illegal, or in which the
Preferred Guarantee Trustee shall be unqualified or incompetent in accordance
with applicable law, to perform any such act or acts or to exercise any such
right, power, duty or obligation. No permissive power or authority available to
the Preferred Guarantee Trustee shall be construed to be a duty to act in
accordance with such power and authority.

                                   ARTICLE IV

                           PREFERRED GUARANTEE TRUSTEE

     SECTION  4.01.  Preferred Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Preferred Guarantee Trustee which shall:

          (i)    not be an Affiliate of the Guarantor; and

          (ii)   be a Person that is eligible pursuant to the Trust Indenture
     Act to act as such and has a combined capital and surplus of at least fifty
     million U.S. dollars ($50,000,000), and shall be a corporation meeting the
     requirements of Section 310(a) of the Trust Indenture Act. If such
     corporation publishes reports of condition at least annually, pursuant to
     law or to the requirements of the supervising or examining authority, then,
     for the purposes of this Section and to the extent permitted by the Trust
     Indenture Act, the combined capital and surplus of such corporation shall
     be deemed to be its combined capital and surplus as set forth in its most
     recent report of condition so published.

     (b) If at any time the Preferred Guarantee Trustee shall cease to be
eligible to so act under Section 4.01(a), the Preferred Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 4.02(c).

     (c) If the Preferred Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Preferred Guarantee Trustee and

                                      -11-
<Page>

Guarantor shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act. In determining whether the Preferred Guarantee Trustee
has a "conflicting interest" within the meaning of Section 310(b)(1) of the
Trust Indenture Act, the provisions contained in the proviso to Section
310(b)(1) of the Trust Indenture Act and the Preferred Guarantee Trustee's
Statement of Eligibility on Form T-1 shall be deemed incorporated herein.

     SECTION  4.02.  Appointment, Removal and Resignation of the Preferred
Guarantee Trustee.

     (a) Subject to Section 4.02(b), the Preferred Guarantee Trustee may be
appointed or removed without cause at any time by the Guarantor.

     (b) The Preferred Guarantee Trustee shall not be removed until a new,
eligible Preferred Guarantee Trustee has been appointed (a "Successor Preferred
Guarantee Trustee") and has accepted such appointment and assumed the applicable
obligations hereunder by written instrument executed by such Successor Preferred
Guarantee Trustee and delivered to the Guarantor.

     (c) The Preferred Guarantee Trustee may resign from office (without need
for prior or subsequent accounting) by an instrument in writing executed by the
Preferred Guarantee Trustee and delivered to the Guarantor, which resignation
shall not take effect until a Successor Preferred Guarantee Trustee has been
appointed and has accepted such appointment by instrument in writing executed by
such Successor Preferred Guarantee Trustee and delivered to the Guarantor and
the resigning Preferred Guarantee Trustee.

     (d) If no Successor Preferred Guarantee Trustee shall have been appointed
and accepted appointment as provided in this Section 4.02 within 60 days after
delivery to the Guarantor of an instrument of resignation, the resigning
Preferred Guarantee Trustee may petition, at the expense of the Guarantor, any
court of competent jurisdiction for appointment of a Successor Preferred
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Preferred Guarantee Trustee.

                                    ARTICLE V

                                    GUARANTEE

     SECTION  5.01. Guarantee. The Guarantor irrevocably and unconditionally
agrees to pay in full to the Holders the Guarantee Payments (without duplication
of amounts theretofore paid by or on behalf of the Issuer pursuant to the
Declaration or by the Guarantor pursuant to the Indenture), as and when due,

                                      -12-
<Page>

regardless of any defense, right of set-off or counterclaim which the Issuer may
have or assert. The Guarantor's obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the
Holders, at the Guarantor's option or by causing the Issuer to pay such amounts
to the Holders.

     SECTION  5.02. Waiver of Notice and Demand. The Guarantor hereby waives
notice of acceptance of the Preferred Securities Guarantee and of any liability
to which it applies or may apply, presentment, demand for payment, any right to
require a proceeding first against the Preferred Guarantee Trustee, the Issuer
or any other Person before proceeding against the Guarantor, protest, notice of
nonpayment, notice of dishonor, notice of redemption and all other notices and
demands.

     SECTION  5.03. Obligations Not Affected. The obligations, covenants,
agreements and duties of the Guarantor under this Preferred Securities Guarantee
shall in no way be affected or impaired by reason of the happening from time to
time of any of the following:

     (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Issuer;

     (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions (other than an extension of time for payment of
Distributions that results from an Extension Period on the Debentures as so
provided in the Indenture), Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities;

     (c) any failure, omission, delay or lack of diligence on the part of the
Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Preferred Securities, or
any action on the part of the Issuer granting indulgence or extension of any
kind;

     (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

     (e) any invalidity of, or defect or deficiency in, the

                                      -13-
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Preferred Securities;

     (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

     (g) to the extent permitted by law, any other circumstance whatsoever that
might otherwise constitute a legal or equitable discharge or defense of a
guarantor (other than payments of the underlying obligation), it being the
intent of this Section 5.03 that the obligations of the Guarantor hereunder
shall be absolute and unconditional under any and all circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain
the consent of, the Guarantor with respect to the happening of any of the
foregoing.

     SECTION  5.04. Rights of Holders. The Guarantor expressly acknowledges
that: (i) this Preferred Securities Guarantee will be deposited with the
Preferred Guarantee Trustee to be held for the benefit of the Holders; (ii) the
Preferred Guarantee Trustee has the right to enforce this Preferred Securities
Guarantee on behalf of the Holders; (iii) the Holders of a Majority in
liquidation amount of the Preferred Securities have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Preferred Guarantee Trustee in respect of this Preferred Securities
Guarantee or exercise or direct the exercise of any trust or power conferred
upon the Preferred Guarantee Trustee under this Preferred Securities Guarantee;
and (iv) any Holder may institute a legal proceeding directly against the
Guarantor to enforce its rights under this Preferred Securities Guarantee,
without first instituting a legal proceeding against the Preferred Guarantee
Trustee, the Issuer or any other Person.

     SECTION  5.05. Guarantee of Payment. This Preferred Securities Guarantee
creates a guarantee of payment and not of collection (i.e., the guaranteed party
may institute a legal proceeding directly against the Guarantor to enforce its
rights under the Preferred Securities Guarantee without first instituting a
legal proceeding against any other person or entity). This Preferred Securities
Guarantee will not be discharged except by payment of the Guarantee Payments in
full to the extent not previously paid or upon Distribution to the Holders of
the Preferred Securities of the Debentures as provided in the Declaration.

     SECTION  5.06. Subrogation. The Guarantor shall be subrogated to all (if
any) rights of the Holders against the Issuer in respect of any amounts paid to
the Holders by the Guarantor under this Preferred Securities Guarantee and shall
have the right to waive payment by the Issuer pursuant to Section 5.01;
provided, however, that the Guarantor shall not (except to

                                      -14-
<Page>

the extent required by mandatory provisions of law) be entitled to enforce or
exercise any rights which it may acquire by way of subrogation or any indemnity,
reimbursement or other agreement, in all cases as a result of payment under this
Preferred Securities Guarantee, if, at the time of any such payment, any amounts
are due and unpaid under this Preferred Securities Guarantee. If any amount
shall be paid to the Guarantor in violation of the preceding sentence, the
Guarantor agrees to hold such amount in trust for the Holders and to pay over
such amount to the Holders.

     SECTION  5.07. Independent Obligations. The Guarantor acknowledges that its
obligations hereunder are independent of the obligations of the Issuer with
respect to the Preferred Securities and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Preferred Securities Guarantee notwithstanding the occurrence of
any event referred to in subsections (a) through (g), inclusive, of Section 5.03
hereof.

                                   ARTICLE VI

                                  SUBORDINATION

     SECTION  6.01. Ranking. This Preferred Securities Guarantee shall
constitute an unsecured obligation of the Guarantor and shall rank (a)
subordinate and junior in right of payment to all Senior Indebtedness of the
Guarantor to the extent and in the manner set forth in the Indenture with
respect to the Debentures, and the provisions of Article VIII of the Indenture
will apply, MUTATIS MUTANDIS, to the obligations of the Guarantor hereunder. The
obligations of the Guarantor hereunder do not constitute Senior Indebtedness (as
defined in the Indenture) of the GUARANTOR; (b) PARI PASSU with the senior most
preferred stock now or hereafter issued by the Guarantor and with any guarantee
now or hereafter issued by the Guarantor in respect of preferred stock of any
affiliate of the Guarantor;(c) senior to any preferred or preference stock of
the Guarantor ranking junior to the senior most preferrred or preference stock
of the Guarantor now or hereafter issued and (d) senior to the Guarantor's
common stock.

     SECTION  6.02. PARI PASSU Guarantees. The obligations of the Guarantor
under this Preferred Securities Guarantee shall rank PARI PASSU with the
obligations of the Guarantor under (i) any similar guarantee agreements issued
by the Guarantor on behalf of the holders of preferred or capital securities
issued by any BGE Trust (as defined in the Indenture), (ii) the Indenture and
the Securities (as defined therein) issued thereunder, (iii) any expense
agreements entered into by the Guarantor in connection with the offering of
Trust Securities (as defined in the

                                      -15-
<Page>

Indenture) by any BGE Trust (as defined in the Indenture), and (iv) any other
security, guarantee or other agreement or obligation that is expressly stated to
rank PARI PASSU with the obligations of the Guarantor under this Preferred
Securities Guarantee or with any obligation that ranks PARI PASSU with the
obligations of the Guarantor under this Preferred Securities Guarantee.

                                   ARTICLE VII

                                   TERMINATION

     SECTION  7.01. Termination. This Preferred Securities Guarantee shall
terminate and be of no further force and effect upon full payment of the
Redemption Price or Liquidation Distribution for the Preferred Securities or
upon Distribution of the Debentures to the Holders of the Preferred Securities.
This Preferred Securities Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder of the Preferred
Securities must restore payment of any sums paid under the Preferred Securities
or this Preferred Securities Guarantee.

                                  ARTICLE VIII

                                 INDEMNIFICATION

     SECTION  8.01. Exculpation.

     (a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Guarantor or any Covered Person for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Preferred Securities
Guarantee and in a manner that such Indemnified Person reasonably believed to be
within the scope of the authority conferred on such Indemnified Person by this
Preferred Securities Guarantee or by law, except that an Indemnified Person
shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's negligence or willful misconduct with respect to such acts
or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith
upon the records of the Guarantor and upon such information, opinions, reports
or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts

                                      -16-
<Page>

pertinent to the existence and amount of assets from which Distributions to
Holders of Preferred Securities might properly be paid.

     SECTION  8.02. Indemnification.

     (a) To the fullest extent permitted by applicable law, the Guarantor shall
indemnify and hold harmless each Indemnified Person from and against any loss,
damage or claim incurred by such Indemnified Person by reason of any act or
omission performed or omitted by such Indemnified Person in good faith in
accordance with this Preferred Securities Guarantee and in a manner such
Indemnified Person reasonably believed to be within the scope of authority
conferred on such Indemnified Person by this Preferred Securities Guarantee,
except that no Indemnified Person shall be entitled to be indemnified in respect
of any loss, damage or claim incurred by such Indemnified Person by reason of
negligence or willful misconduct with respect to such acts or omissions.

     (b) To the fullest extent permitted by applicable law, reasonable expenses
(including legal fees) incurred by an Indemnified Person in defending any claim,
demand, action, suit or proceeding shall, from time to time, be advanced by the
Guarantor prior to the final disposition of such claim, demand, action, suit or
proceeding upon receipt by the Guarantor of an undertaking by or on behalf of
the Indemnified Person to repay such amount if it shall be determined that the
Indemnified Person is not entitled to be indemnified as authorized in Section
8.02(a).

     (c) The obligation to indemnify as set forth in this Section 8.02 shall
survive the termination of the Preferred Securities Guarantee.

                                   ARTICLE IX

                                  MISCELLANEOUS

     SECTION  9.01. Successors and Assigns. All guarantees and agreements
contained in this Preferred Securities Guarantee shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall
inure to the benefit of the Holders of the Preferred Securities then
outstanding. The Guarantor may not consolidate with or merge with or into, or
sell, convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety (either in one transaction or a series of
transactions) to, any Person unless permitted under Article Eight of the
Indenture. In connection with a consolidation, merger or sale involving the
Guarantor that is permitted under Article Eight of the Indenture the Person
formed by or surviving such consolidation or merger or to which

                                      -17-
<Page>

such sale, conveyance, transfer or lease shall have been made, if other than the
Guarantor, shall expressly assume all of the obligations of the Guarantor
hereunder.

     SECTION  9.02. Amendments. Except with respect to any changes which do not
materially adversely affect the rights of the Holders in any material respect
(in which case no consent of the Holders will be required), this Preferred
Securities Guarantee may only be amended with the prior approval of the Holders
of a Majority in liquidation amount of the Preferred Securities (excluding any
Preferred Securities held by the Guarantor or an Affiliate thereof). The
provisions of Article VI of the Declaration concerning meetings of the Holders
shall apply to the giving of such approval.

     SECTION  9.03. Notices. Any notice, request or other communication required
or permitted to be given hereunder shall be in writing and delivered, telecopied
or mailed by first class mail, postage prepaid, as follows:

          (a)  if given to the Guarantor, to the address set forth below or such
     other address as the Guarantor may give notice of to the Holders:

          Baltimore Gas and Electric Company
          750 East Pratt Street 16th floor
          Baltimore, Maryland 21202
          Facsimile No: (410) 783-3619
          Attention:  Treasurer

          (b)  if given to the Issuer, in care of the Preferred Guarantee
     Trustee, at the Issuer's (and the Preferred Guarantee Trustee's) address
     set forth below or such other address as the Preferred Guarantee Trustee on
     behalf of the Issuer may give notice to the Holders:

          BGE Capital Trust II
          c/o Baltimore Gas and Electric Company
          750 East Pratt Street 16th floor
          Baltimore, Maryland 21202
          Facsimile No:  (410) 783-3619
          Attention:  Treasurer

     with a copy to:

          The Bank of New York
          101 Barclay Street, 21st Floor
          New York, NY 10286
          Facsimile No:
          Attention:

          (c) if given to any Holder, at the address set forth

                                      -18-
<Page>

in the Securities Register.

     All notices hereunder shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by certified mail, postage
prepaid except that if a notice or other document is refused delivery or cannot
be delivered because of a changed address of which no notice was given, such
notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver.

     SECTION  9.04. Benefit. This Preferred Securities Guarantee is solely for
the benefit of the Holders and is not separately transferable from the Preferred
Securities.

     SECTION  9.05. Interpretation. In this Preferred Securities Guarantee,
unless the context otherwise requires:

          (a)  all references to "the Preferred Securities Guarantee" or "this
     Preferred Securities Guarantee" are to this Preferred Securities Guarantee
     as modified, supplemented or amended from time to time;

          (b)  all references in this Preferred Securities Guarantee to Articles
     and Sections are to Articles and Sections of this Preferred Securities
     Guarantee unless otherwise specified;

          (c)  a term defined in the Trust Indenture Act has the same meaning
     when used in this Preferred Securities Guarantee unless otherwise defined
     in this Preferred Securities Guarantee or unless the context otherwise
     requires;

          (d)  a reference to the singular includes the plural and vice versa;
     and

          (e)  the masculine, feminine or neuter genders used herein shall
     include the masculine, feminine and neuter genders.

     SECTION  9.06. Governing Law. THIS PREFERRED SECURITIES GUARANTEE SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

     SECTION  9.07 Counterparts. This instrument may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

                                      -19-
<Page>

     THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year
first above written.

                                          BALTIMORE GAS AND ELECTRIC COMPANY,
                                             as Guarantor

                                          By:
                                             ---------------------------------
                                             Name:
                                             Title:Vice President

                                          THE BANK OF NEW YORK,
                                             as Preferred Guarantee Trustee

                                          By:
                                             ---------------------------------
                                             Name:
                                             Title:

                                      -20-

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