Constellation ends agreement to sell gas-fired power plant

Constellation Energy (NYSE: CEG) announced on June 6 that it has terminated an agreement to sell the 550 MW Quail Run natural gas-fired power plant in west Texas to High Plains Diversified Energy Corp. (HPDEC). The agreement was first announced in December.

With the termination of the sale agreement, Constellation Energy will retain ownership of the plant, which provides power to the west zone of the Electricity Reliability Council of Texas (ERCOT).

A district court judge ruled the previous week that the West Texas Municipal Power Agency did not have the authority to create HPDEC in 2008. The judge also ruled that HPDEC does not have the authority to issue bonds to purchase two electricity generating plants in Odessa, according to the Wall Street Journal.

High Plains, based in Lubbock, Texas, also had a $335 million agreement to buy the 1,000 MW natural-gas fired Odessa natural gas-fired power plant from Public Service Enterprise Group Inc. canceled the previous week, according to Bloomberg.

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