Exelon Corp. (NYSE: EXC) completed its previously announced purchase of the 720 MW Wolf Hollow combined-cycle natural gas-fired power plant for $305 million or $423/kW. The plant is located within the Electric Reliability Council of Texas (ERCOT) power market.
The acquisition builds on Exelon's plans to invest nearly $5 billion in projects over six years as part of its strategy to eliminate the equivalent of its 2001 carbon footprint by 2020.
Exelon expects the transaction will be accretive to free cash flow beginning in 2012 and will generate long-term value by adding an efficient combined-cycle natural gas-fired plant to Exelon's ERCOT portfolio. The acquisition also ended an existing power purchase agreement between Exelon and Wolf Hollow for 350 MW of output through 2023 at above current market prices
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