Constellation Energy completes $1.1B acquisition of Boston power plants

Source: Constellation Energy

Constellation Energy (NYSE:CEG) announced it has completed a $1.1 billion agreement to purchase the 2,950-megawatt Boston Generating fleet in New England. 

Under terms of the agreement, Constellation Energy acquired Boston Generating's five power plants located in the Boston area: four natural gas-fired plants, including Mystic 8 and 9 (1,580 megawatts), Fore River (787 megawatts), and Mystic 7 (574 megawatts) as well as a fuel oil plant, Mystic Jet (9 megawatts). 

“The addition of these well-managed, low-emissions plants greatly expands our generation portfolio and increases our capacity to sell electricity to retail and wholesale customers in competitive energy markets in New England and nationwide,” said Mayo A. Shattuck, III, chairman, president and chief executive officer of Constellation Energy. “These modern, reliable generation facilities have a strong operating team, an excellent environmental record and provide nearly half of the electricity demand for the Boston metropolitan area. Constellation Energy has been a leader in New England energy markets for more than a decade, and we’re proud to be building on that tradition with the addition of these premier assets.” 

Constellation Energy currently serves approximately 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 further improving the net load-to-generation ratio to approximately 55 percent. 

Constellation Energy expects this transaction to be accretive to earnings beginning in 2011. The acquisition will be 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.

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