Constellation buys Connecticut power supplier

Acquisition helps expand company's competitive residential business

May 12, 2011|By Hanah Cho, The Baltimore Sun

Constellation Energy Group, which is being acquired by Chicago-based Exelon Corp., said Thursday that it has agreed to buy Connecticut power supplier MXenergy for $175 million, a move that would expand the Baltimore company's competitive residential energy business.

MXenergy supplies gas and electricity to more than 540,000 residential and small commercial customers in 15 states and two Canadian provinces.

Constellation said the acquisition would position the company to serve more than 1 million residential customers by the end of this year. Constellation has been growing its business of providing power to residential customers in markets where they can choose their electric suppliers, which include Maryland, Washington D.C. and parts of New Jersey and Illinois.

"MXenergy provides us with a broad platform that supplements our growing retail business, particularly in the residential market, at a time when customers are choosing energy suppliers in significant numbers," Mark Huston, head of Constellation Energy's retail business, said in a statement.

MXenergy has more than 200 workers in Stamford, Conn., Houston, Texas, and Annapolis Junction.

The deal is expected to close in the third quarter.

Constellation agreed last month to sell itself to Exelon in a $7.9 billion stock deal.

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