Wednesday, May 19, 2010

Constellation Energy Buys Natural Gas Power Plants

BALTIMORE, May 18, 2010 (BUSINESS WIRE) -- Constellation Energy (CEG 34.95-0.39-1.10%) today announced it has completed its purchase of two natural gas combined-cycle generation facilities in Texas from Houston-based Navasota Holdings. The $365 million transaction includes the Colorado Bend Energy Center, a 550-megawatt facility near Wharton, Texas, and Quail Run Energy Center, a 550-megawatt facility near Odessa, Texas.
The purchase adds 1,100 megawatts of capacity to Constellation Energy's generation portfolio and provides a physical presence of material scale in ERCOT (Electric Reliability Council of Texas), where the company's large wholesale and retail supply businesses sell a significant amount of power. With the addition of these two plants, Constellation Energy's generating portfolio now includes nearly 8,200 megawatts of diverse generating capacity in the U.S. and Canada.
"Strategically the acquisition of the Colorado Bend and Quail Run facilities will help us meet our load-serving commitments in ERCOT, and this purchase is in line with our strategy to acquire assets in markets where our obligations exceed our generation capacity," said John Long, president of Constellation Power Generation, the fossil fuel and renewable generation business of Constellation Energy. "These plants are an excellent fit for our expanding generation portfolio and we continue to be well positioned to pursue opportunistic asset acquisitions in key markets."
While Constellation Energy will have 100 percent ownership, the two plants will initially be operated under an operations and maintenance agreement with North American Energy Services Company (NAES). The two plants employ a total of 45 workers.
About Constellation Energy
Constellation Energy ( is a leading supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located in the United States and Canada, totaling approximately 8,200 megawatts of generating capacity, and is among the leaders pursuing the development of new nuclear plants in the United States. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation Energy had revenues of $15.6 billion in 2009.
SOURCE: Constellation Energy

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