Exelon completes purchase of 720-MW Wolf Hollow combined-cycle natural gas-fired power plant in Texas for US$305M as part of its plans to invest nearly US$5B in energy projects over six years
August 25, 2011
– Successful transaction builds on Exelon’s $5 billion investment in affordable clean energy projects
Exelon Corporation today announced that it has completed its previously announced acquisition of Wolf Hollow, a combined-cycle natural gas-fired power plant, adding 720 megawatts of clean energy to Exelon Generation’s portfolio in the competitive Electric Reliability Council of Texas (ERCOT) power market.
The acquisition of Wolf Hollow builds on Exelon’s plans to invest nearly $5 billion in cost-effective, clean energy projects over six years, as part of the company’s Exelon 2020 strategy to eliminate the equivalent of its 2001 carbon footprint.
“The purchase of Wolf Hollow is another step in growing Exelon’s clean energy portfolio, an increasingly valuable asset as forthcoming EPA clean air rules spur a transition to a cleaner, lower-emission energy supply,” said John W. Rowe, Exelon chairman and CEO. “The addition of this natural gas-fired plant also expands our fleet in the flourishing Texas power market, demonstrating Exelon’s continued commitment to clean energy in competitive markets.”
The purchase price for Wolf Hollow is $305 million, as adjusted for working capital. Exelon expects the transaction will be accretive to free cash flow beginning in 2012 and will generate long-term value by adding an efficient combined-cycle natural gas-fired plant to Exelon’s ERCOT portfolio. The acquisition also eliminated an existing power purchase agreement between Exelon and Wolf Hollow to purchase 350 MW of output through 2023 at above current observable market power prices.
Wolf Hollow also enhances Exelon Generation’s strong and growing fleet in Texas, which now includes a total capacity of 3,132 megawatts at multiple plants. Barclays Capital acted as financial advisor to Exelon, and Jackson Walker acted as Exelon’s legal counsel.
Exelon Corporation is one of the nation’s largest electric utilities with more than $18 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 490,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.