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Boston Generating Commences Asset Sale with Court Approved Bidding Procedures

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^{Published in Business and Finance on Wednesday, October 13th 2010 at 5:37 GMT by Market Wire}  

NEW YORK--([ BUSINESS WIRE ])--Boston Generating, LLC (aBostonGena or the aCompanya) today announced that it received approval from the United States Bankruptcy Court for the Southern District of New York on October 9, 2010 for bidding procedures that will guide the process for the sale of the Companya™s assets.

"BostonGen is a solid operation and this auction process will allow us to remain on track to emerge from bankruptcy on schedule and to position the assets for long term success."

As part of its Chapter 11 sale process, BostonGen entered into an asset purchase agreement with "stalking horse" bidder Constellation Energy (NYSE: CEG) for the 2,950 MW fleet, the third largest power generating portfolio in the New England region. Under the terms of the asset purchase agreement, Constellation Energy agreed to purchase BostonGena™s assets for approximately $1.1 billion. The sale of the Companya™s assets is expected to be consummated through the bankruptcy proceedings and Constellation Energy's bid is considered the price to beat in an asset auction.

Parties now have an opportunity to compete with Constellation Energya™s bid. BostonGen has retained J.P. Morgan Securities Inc. (aJ.P. Morgana) to act as its financial advisor in connection with the auction process and will be broadly distributing sales materials as part of the process.

"We are pleased to have received the bankruptcy court's approval to move forward with the auction process in a timely and orderly fashion," said Mark Sudbey, Chief Executive Officer of US Power Generating Company, BostonGena™s parent company. aBostonGen is a solid operation and this auction process will allow us to remain on track to emerge from bankruptcy on schedule and to position the assets for long term success.a

About BostonGen

BostonGen is a subsidiary of US Power Generating Company, which, through its subsidiaries Astoria Generating Company Holdings, L.L.C. and EBG Holdings LLC (owner of BostonGen), owns and operates eight power generation facilities with a total capacity of over 5,000 Megawatts. These subsidiaries sell their energy and capacity into the NYISO and ISO-New England deregulated markets, representing generation sufficient to serve approximately 20% of the overall load in New York City as well as approximately 50% of the overall load in the Boston metropolitan area. More information regarding US Power Generating Company can also be found at [ www.uspowergen.com ].