Constellation Energy Group Inc. will sell the 550 MW natural gas-fired Quail Run power plant in West Texas to a local municipal utility for $185.3 million, or $337 a kilowatt.
Constellation sold the Odessa, Texas plant to High Plains Diversified Energy Co., a municipal utility formed by the West Texas Municipal Power Agency. The deal is contingent on High Plains obtaining funding through the sale of municipal bonds.
Constellation bought Quail Run in May 2011, along with another 550 MW plant near Wharton, Texas. Constellation said Quail Run's location is far from its retail and wholesale customers. The Baltimore-based energy company said it would use money from the sale to buy other plants in Texas closer to its major customer centers, as well as other markets.