Constellation Energy sells Texas NG plant
Constellation Energy acquired Quail Run, located near Odessa, Texas, in May 2010 as part of a two-plant agreement, which included the 550-megawatt Colorado Bend natural gas plant near Wharton, Texas, in ERCOT's Electricity Reliability Council of Texas Houston zone. HPDEC is a municipal utility formed by the West Texas Municipal Power Agency. HPDEC has as its development partner Republic Power Partners.
“Quail Run is a modern, efficient, well-managed asset however, its location in ERCOT's west zone is far from our retail and wholesale customers and growth opportunities,” said Kathleen W. Hyle, senior vice president, Constellation Energy, and chief operating officer, Constellation Energy Resources. “The strategic value in this transaction is that it presents the potential to redeploy capital to be used for the acquisition of generation closer to our major customer centers in ERCOT and competitive markets nationwide.”
Under terms of the definitive sales agreement, HPDEC will pursue financing to complete the transaction through the issuance of municipal bonds. Should HPDEC successfully secure financing, the sale would also be subject to standard terms and closing conditions.
Related News
Planning for Toronto?s Growing Electricity Needs
TORONTO - As Toronto's population and economy continue to expand, the demand for electricity in the city is also increasing rapidly. In response, the Ontario government, in partnership with the City of Toronto and various stakeholders, has launched an initiative to enhance the electricity infrastructure to meet future needs.
The Ontario Ministry of Energy and the City of Toronto are focusing on a multi-faceted approach that includes upgrades to existing power systems and the integration of renewable energy sources. This initiative is critical as Toronto looks towards a sustainable future, with projections indicating significant growth in both residential and commercial…
