Constellation to sell Texas natural gas plant

December 30, 2010|By Hanah Cho, The Baltimore Sun

Baltimore's Constellation Energy Group has agreed to sell a natural gas plant in west Texas to a municipal utility company in the state, contingent on the purchaser obtaining financing through the sale of municipal bonds, the company announced late Thursday.

High Plains Diversified Energy Corporation, the utility of the West Texas Municipal Power Agency, would pay $185.3 million for the 550-megawatt Quail Run plant near Odessa if the sale goes through.

The Quail Run plant was one of two Texas plants acquired by Constellation in May but the facility's location is far from the company's retail and wholesale customers and growth opportunities, said Kathleen W. Hyle, the company's senior vice president.

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