Constellation Energy Announces Agreement for Sale of Oleander Power Plant
April 11 2005 - 9:45AM
PR Newswire (US)
Constellation Energy Announces Agreement for Sale of Oleander Power
Plant BALTIMORE, April 11 /PRNewswire-FirstCall/ -- Constellation
Energy (NYSE:CEG) today announced that it has executed an agreement
to sell the Oleander Power Plant in Cocoa, Fla. to subsidiaries of
Southern Company (NYSE:SO). Under the terms of the agreement,
subsidiaries of Southern Power, a wholly owned subsidiary of
Southern Company, will purchase the Plant, which is a 680-megawatt
dual-fueled combustion turbine plant, for $206 million, subject to
closing adjustments. The plant will continue to sell power under
its existing contracts with both Seminole Electric Cooperative and
Florida Power and Light. The transaction is expected to close
during the second quarter of 2005 subject to regulatory approvals
and other standard closing conditions. "During the past three
years, Constellation Energy has evolved into North America's No. 1
power supplier in both the retail and wholesale competitive energy
markets," said Michael J. Wallace, president of Constellation
Energy's Generation Group. "Oleander is a tremendous generating
asset with a superior operating history. Selling this asset at an
attractive price now allows Constellation Energy to redeploy its
capital in a fashion more aligned with its competitive business
strategy, and is yet another sign of the discipline with which
Constellation Energy approaches its business as it looks to develop
or acquire assets in the competitive energy marketplace." "From our
experience, Oleander has been an excellent facility - from
engineering to the team that operates the plant," said John Long,
senior vice president of Constellation Energy's Power Generation
unit. "The employees of Oleander are true professionals and without
question have been the key driver behind the plant's terrific
performance." Constellation Energy (http://www.constellation.com/),
a Fortune 200 company based in Baltimore, is the nation's leading
competitive supplier of electricity to large commercial and
industrial customers and one of the nation's largest wholesale
power sellers. Constellation Energy also manages fuels and energy
services on behalf of energy intensive industries and utilities. It
owns or co-owns 107 generating units at 35 locations in 11 states,
totaling approximately 12,500 megawatts of generating capacity. The
company delivers electricity and natural gas through the Baltimore
Gas and Electric Company (BGE), its regulated utility in Central
Maryland. In 2004, the combined revenues of the integrated energy
company totaled $12.5 billion DATASOURCE: Constellation Energy
CONTACT: Media Contact: Robert L. Gould or Keith Cunningham,
+1-410-234-7433 or Investor Contact: Kevin Hadlock,
+1-410-783-3647, all of Constellation Energy Web site:
http://www.constellation.com/ Company News On-Call:
http://www.prnewswire.com/comp/084087.html
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