Constellation Closes $1.1B Deal For Boston Power Plants

By Baltimore Business Journal

Constellation Energy Group Inc. has closed a $1.1 billion deal to buy a fleet of power plants in Boston.

Baltimore-based Constellation (NYSE: CEG) has gained five plants with nearly 3,000 megawatts of generating capacity.

Meanwhile, Constellation also sold a west Texas natural gas plant for $185 million. Both transactions are part of a Constellation strategy to add more power plants in areas where it serves a large number of retail energy customers.

Constellation moved to buy the Boston plants in August in a stalking-horse bid. That meant the company had the first chance to buy the plants out of bankruptcy but other bidders could come in to top the bid. The former owner, Boston Generating, filed Chapter 11 bankruptcy Aug. 19.

⿿The addition of these well-managed, low-emissions plants greatly expands our generation portfolio and increases our capacity to sell electricity to retail and wholesale customers in competitive energy markets in New England and nationwide,⿝ Constellation CEO Mayo A. Shattuck III said in a statement.

The company announced a deal to sell the 550-megawatt Quail Run natural gas plant near Odessa, Texas, on Dec. 30. The sale, to High Plains Diversified Energy Corp., is contingent on sale of municipal bonds.

Constellation bought the plant in May along with another for a combined $365 million. Officials said they are seeking to sell the Quail Run plant because it is too far from the core of Constellationâ¿¿s Texas customers.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/baltimore/news/2011/01/03/constellation-closes-11b-deal-for.html?ana=thestreet

Copyright bizjournals.com 2010

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