Constellation Energy completed a $1.1 billion agreement to buy the 2,950 MW Boston Generating fleet in New England.
Under the agreement, Constellation Energy acquired Boston Generating's five power plants in the Boston area: four natural gas fired plants, including Mystic 8 and 9 (1,580 MW), Fore River (787 MW) and Mystic 7 (574 MW) as well as a fuel oil plant, Mystic Jet (9 MW).
These facilities supply nearly half the electricity demand for the Boston metropolitan area. Constellation Energy currently serves around 13.3 TWh of customer load in the NEPOOL market where Boston Generating is located. Prior to this acquisition, Constellation Energy had no generation assets in the region. These assets expand the company’s physical generation fleet with a portion of the total output improving the net load-to-generation ratio to approximately 55 percent.
Constellation Energy said it expects this transaction to be accretive to earnings beginning in 2011. The acquisition was financed through a mix of available cash on hand and debt. The transaction received approval from the Federal Energy Regulatory Commission on Dec. 22, 2010.
Read more news and features on the business of power generation.