Wednesday, October 11, 2006

Constellation Sells Six Natural Gas-Fired Power Plants

Constellation Energy Group Inc. agreed to sell six power plants to Tenaska Power Fund LP for $1.64 billion in cash. Constellation, the parent of Baltimore Gas & Electric estimates it will net $1.5 billion and record a one-time gain of $245 million. The gas-fired plants to be sold generate 3,145 megawatts of power. The plants include:
1) High Desert plant in Victorville, Calif.;
2) Rio Nogales plant in Seguin, Texas;
3) Holland Energy in Shelby Co., Ill.;
4) Big Sandy in Neal, W.Va.;
5) University Park in Chicago, Ill.;
6) Wolf Hills in Bristol, Va.

The plants helps Constellation improve its balance sheet. The gas-fired plants did not help the competitive supply portfolio or efficiencies of the baseload coal and nuclear plants. (AP, Examiner)

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