Exelon (NYSE: EXC) on August 9 said it has reached an agreement to sell its three Maryland coal-fired power plants to Raven Power Holdings LLC, a new portfolio company of Riverstone Holdings LLC, fulfilling its commitment to divest the plants as part of its merger with Constellation. Raven Power will pay approximately $400 million for the plants and related assets, subject to several closing adjustments.
The three plants, known collectively as Maryland Clean Coal, include the two-unit, 1,273 MW Brandon Shores plant in Pasadena, Md; the three-unit, 399 MW C.P. Crane plant in Middle River, Md., which fires on coal and oil; and the five-unit, 976 MW H.A. Wagner plant in Pasadena, Md., which uses coal, natural gas and oil.
The sale was required by the Federal Energy Regulatory Commission (FERC), U.S. Department of Justice (DOJ) and the Maryland Public Service Commission as part of Exelon’s merger agreement. The transaction, which is subject to approval by FERC and DOJ, is expected to close in the fourth quarter of 2012.
Since 2008, the three coal plants have undergone environmental upgrades, including investment in a new scrubber at Brandon Shores.
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