Constellation buys Texas residential energy provider

Company continues to expand residential power business

May 27, 2011|By Hanah Cho, The Baltimore Sun

In its latest effort to grow its residential power business, Constellation Energy Group said Friday that it agreed to buy Houston-based StarTex Power for $142.5 million.

The purchase gives the Baltimore company a presence in Texas, considered the most active competitive residential market in the country, and comes two weeks after Constellation acquired a Connecticut gas and electricity provider.

StarTex Power has about 170,000 residential customers, while MXenergy gives Constellation more than 500,000 customers in 15 states and two provinces in Canada.

Constellation Energy provides power to households in Maryland, New Jersey and Illinois.

The company said the latest acquisition brings Constellation closer to its goal of having 1 million mass market customers by the end of this year.

In Texas, 5.4 million residential customers have shopped around for an electricity provider, which is the highest in the nation, Constellation said.

Meanwhile, Constellation has begun the regulatory process for its own sale to Chicago-based Exelon Corp. in an all-stock deal worth $7.9 billion. The deal was announced in late April.

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