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Constellation Energy Completes Acquisition of 2,950 MW Boston Generating Gas Fleet in New England

^{Published on 2011-01-03 13:35:22 - Market Wire}
 

BALTIMORE--([ BUSINESS WIRE ])--Constellation Energy (NYSE: CEG) today announced it has completed a $1.1 billion agreement to purchase the 2,950-megawatt Boston Generating fleet in New England.

"The addition of these well-managed, low-emissions plants greatly expands our generation portfolio and increases our capacity to sell electricity to retail and wholesale customers in competitive energy markets in New England and nationwide"

Under terms of the agreement, Constellation Energy acquired Boston Generating's five power plants located in the Boston area: four natural gas fired plants, including Mystic 8 and 9 (1,580 megawatts), Fore River (787 megawatts), and Mystic 7 (574 megawatts) as well as a fuel oil plant, Mystic Jet (9 megawatts).

aThe addition of these well-managed, low-emissions plants greatly expands our generation portfolio and increases our capacity to sell electricity to retail and wholesale customers in competitive energy markets in New England and nationwide,a said Mayo A. Shattuck, III, chairman, president and chief executive officer of Constellation Energy. aThese modern, reliable generation facilities have a strong operating team, an excellent environmental record and provide nearly half of the electricity demand for the Boston metropolitan area. Constellation Energy has been a leader in New England energy markets for more than a decade, and wea™re proud to be building on that tradition with the addition of these premier assets.a

Constellation Energy currently serves approximately 13.3 TWh of customer load in the NEPOOL market where Boston Generating is located. Prior to this acquisition, Constellation Energy had no generation assets in the region. These assets expand the companya™s physical generation fleet with a portion of the total output further improving the net load-to-generation ratio to approximately 55 percent.

Constellation Energy expects this transaction to be accretive to earnings beginning in 2011. The acquisition will be financed through a mix of available cash on hand and debt. The transaction received approval from the Federal Energy Regulatory Commission on Dec. 22, 2010.

About Constellation Energy

Constellation Energy ([ www.constellation.com ]) is a leading supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located in the United States and Canada, totaling approximately 12,000 megawatts of generating capacity, and is among the leading advocates for new nuclear development in the United States. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation Energy had revenues of $15.6 billion in 2009.

Forward-Looking Statements

We make statements in this press release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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