Constellation is winner in bankruptcy auction of Boston area plants

November 15, 2010|By Hanah Cho, The Baltimore Sun

Constellation Energy Group was the successful bidder Monday to purchase five power plants in the Boston area that would boost its energy-producing capacity by a third, according to court documents.

In August, the Baltimore company agreed to buy the plants owned by Boston Generating in bankruptcy proceedings that would make the company's $1.1 billion offer the price to beat in an auction. Boston Generating, a part of U.S. Power Generating Co., filed for bankruptcy protection that month.

Boston Generating said in a news release that a special committee found that no bid qualified for the sale and determined that the company should proceed with its deal with Constellation.

The Boston area plants generate a total of 2,950 megawatts, adding to Constellation's current 9,000 megawatts of electricity from its fleet. The deal requires approval from the bankruptcy court. A few of Boston Generating's second-lien holders had objected to the sale to Constellation. A hearing is scheduled for Wednesday.

"We're very pleased to have been named the winner in the auction for these well-managed natural gas assets, which will significantly expand our generation presence in a key competitive market," Constellation said in a statement. "We look forward to a favorable outcome in the sale order hearing process and an expeditious closing."

The purchase of the Boston plants aligns with Constellation's strategy to buy plants in regions where it sells electricity to large commercial, industrial and municipal customers.

Constellation currently serves 13.3 terawatt hours of customer load in the New England market, but does not have any power-generating facilities there.

Hanah.cho@baltsun.com

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