Exelon (EXC) to Sell Three Coal-Fired Plants in MD for $400M + Tax Benefits

Exelon (NYSE: EXC) has reached an agreement to sell its three Maryland coal-fired power plants to Raven Power Holdings LLC (“Raven Power”), a new portfolio company of Riverstone Holdings LLC, fulfilling its commitment to divest the plants as part of its merger with Constellation. Under the agreement, Raven Power will maintain jobs with comparable pay and benefits for employees at the plants.

The three plants, known collectively as Maryland Clean Coal, include:

• Brandon Shores, Pasadena, Md.: 1,273 MW of installed capacity, two units (coal)
  
• C.P. Crane, Middle River, Md.: 399 MW installed capacity, three units (coal and oil)
  
• H.A. Wagner, Pasadena, Md.: 976 MW installed capacity, five units (coal, natural gas and oil)

Raven Power will pay approximately $400 million for the plants and related assets, subject to several closing adjustments. In addition, the sale will generate approximately $205 million in cash tax benefits, with the majority of that amount realized in 2012 and 2013. Exelon will record a pre-tax loss estimated to be approximately $275 million in the third quarter to reflect the difference between the estimated sale price and the carrying value of the plants. Exelon will determine the optimal use of the sale proceeds through its normal planning process.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Holcim to acquire Fermacell from James Hardie for EUR 840M
• Treasure Global sells shares in two deals worth $6.6M total
• Veeva Systems names Dan Rizzo EVP of sales amid leadership change