Exelon to Acquire 720 MW Wolf Hollow Plant in ERCOT

May 12, 2011
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Exelon Corporation has inked an agreement to acquire Wolf Hollow, a combined-cycle natural gas-fired power plant in north Texas, from Sequent Wolf Hollow, LLC, for $305 million, as adjusted for working capital.

The transaction adds 720 megawatts to Exelon's fleet in the ERCOT market, where the company already owns and operates three other natural gas-fired power plants.

Exelon currently has a power purchase agreement with Wolf Hollow, through 2023, to purchase 350 MW of its output at above current observable market power prices. In addition to eliminating the existing power purchase agreement, Exelon expects the transaction will be accretive to free cash flow beginning in 2012.

Exelon Generation's current natural gas-fired plants in ERCOT at Handley, Mountain Creek and ExTex LaPorte have a total capacity of 2,222 MW.

The acquisition of Wolf Hollow will reinforce one of the key benefits of the pending merger with Constellation -- matching Exelon's physical capacity with Constellation's large customer demand in key competitive markets.

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