UPDATE:Constellation To Buy 70-MW Maryland Wind Farm From Clipper
November 30 2009 - 5:14PM
Dow Jones News
U.S. utility and power plant operator Constellation Energy Group
Inc. (CEG) said Monday it will buy a 70-megawatt Maryland wind farm
and associated wind turbines from Clipper Windpower PLC (CWP.LN) as
part of a strategy to invest in renewable energy.
The companies said the Criterion wind farm, being developed in
Garrett County, Md., near the West Virginia state line, will cost
about $140 million, although terms of the deal weren't
disclosed.
The deal represents the first direct investment in wind power
for Constellation, which is in the process of selling half its
nuclear business to Electricite de France SA (EDF.FR) in a $4.5
billion deal. A Constellation executive said earlier this month the
company plans to use some of the proceeds of the sale to purchase
power plants.
Constellation, of Baltimore, plans to invest more in renewable
energy, although it hasn't set any specific targets or goals, said
Larry McDonnell, a Constellation spokesman.
"We're looking at renewable energy projects opportunistically,"
McDonnell said. "When it's economically viable and there's market
demand, it is something the company considers to be a
priority."
Shares of Constellation closed down 26 cents at $31.82 Monday,
while shares of Clipper closed in London 0.5 pence higher at 142.50
pence apiece.
Constellation plans to build, own and operate the wind facility,
and sell the output to Old Dominion Electric Cooperative under a
20-year contract. Constellation plans to start construction in the
spring, with commercial operation slated for the fall.
The wind deal, expected to close in the first quarter of 2010
also includes 28 of Clipper's 2.5-megawatt Liberty wind
turbines.
Maryland and 34 other U.S. states have renewable energy
requirements or goals for utilities in those states that have been
driving growth in the U.S. renewable energy markets.
Constellation owns Baltimore Gas & Electric, a competitive
energy marketing unit and more than 7,000 megawatts of mostly
nuclear and fossil-fuel generation. The company also installs
rooftop solar-panel systems, including a 525-kilowatt project it is
developing at the Patriot Place mall near Gillette Stadium in
Foxborough, Mass.
Maryland regulators approved Constellation's nuclear deal wtih
EDF in late October, and EDF officials said earlier this month they
are working to close the deal.
Constellation Chief Financial Officer Jonathan Thayer said this
month the company will use money from its deal with EDF to finance
power plant acquisitions, rather than mergers or company
acquisitions.
Constellation agreed last December to the proposed nuclear joint
venture with EDF in a move to remain independent, scuttling an
earlier buyout agreement with Warren Buffett's MidAmerican Energy
Holdings Co.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@dowjones.com
(Mark Peters in New York contributed to this article)
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