Constellation agrees to sell 680 MW Oleander

12 April 2005 – Constellation Energy has agreed to sell its Oleander power plant in Cocoa, Florida to subsidiaries of Southern Company, for just over $200m.

Subsidiaries of Southern Power, the wholly owned subsidiary of Southern Company, will purchase the 680 MW dual fuelled combustion turbine plant for $206m.

The plant will continue to sell power under its existing contracts with both Seminole Electric Cooperative and Florida Power and Light. The transaction will be completed in the second quarter of 2005 subject to regulatory approvals and other standard closing conditions.

Michael J Wallace, president of Constellation Energy’s generation group, said: “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.”