Constellation Energy Commodities Group Announces Transaction with Dynegy
November 18 2004 - 4:41PM
PR Newswire (US)
Constellation Energy Commodities Group Announces Transaction with
Dynegy BALTIMORE, Nov. 18 /PRNewswire-FirstCall/ -- Constellation
Energy (NYSE:CEG) today announced that its wholesale origination
and risk management arm, Constellation Energy Commodities Group,
Inc., has signed a 570-megawatt, four-year power purchase agreement
with Dynegy Power Marketing, Inc., a subsidiary of Dynegy Inc.
(NYSE:DYN). Under the terms of the agreement, Constellation Energy
will receive from Dynegy $117.5 million in cash and effectively
assume Dynegy's rights, benefits and obligations under a
570-megawatt power purchase agreement with LSP-Kendall Energy, LLC
for a period of four years, commencing Dec. 1, 2004. The power
purchase agreement covers power generated by two combined cycle
units at the Kendall Plant, located just south of Chicago. In
exchange for the cash payment and benefits including energy,
capacity and ancillary product revenue, Constellation Energy will
pay Dynegy an amount equal to the payment obligations under the
Kendall power purchase agreement for the relevant four-year term.
Dynegy has retained the rights, benefits, and obligations under the
power purchase agreement as of Dec. 2008 running through the
remainder of the term. "The physical characteristics of the Kendall
plant are particularly good, and the energy products we expect to
receive will add an attractively priced new generation resource to
our competitive supply portfolio," said Thomas V. Brooks, president
of Constellation Energy Commodities Group. "This is beneficial
because our competitive supply business continues to grow. Thus far
during the fall 2004 utility procurement cycle, we have won about
25-30 percent of the total megawatts awarded, and all of this
year's awards have added more to next year's results than we were
able to add to 2004 through all of 2003. We're enthusiastic about
the opportunity to grow by helping customers such as Dynegy to
restructure contractual obligations in a way that results in new
power supply positions that fit well into our competitive supply
portfolio." Constellation Energy, a Fortune 500 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. The company delivers
electricity and natural gas through the Baltimore Gas and Electric
Company (BGE), its regulated utility in Central Maryland. In 2003,
the combined revenues of the integrated energy company totaled $9.7
billion. Forward-Looking Statements We make statements in this news
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 Form 10-K under the forward- looking
statements section. DATASOURCE: Constellation Energy CONTACT: Larry
McDonnell, Constellation Energy, +1-410-234-7433 or +1-410-230-9858
Web site: http://www.constellation.com/ Company News On-Call:
http://www.prnewswire.com/comp/084087.html
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