Constellation Energy on Monday said it had signed an asset purchase agreement to acquire Boston Generating’s 2,950-MW fleet, consisting of mainly natural gas–fired plants, for about $1.1 billion, or roughly $372/kW.

Boston Generating has the third-largest power generation portfolio in the New England region. The proposed transaction will be consummated through a court-approved bankruptcy proceeding. If approved, Constellation Energy’s bid would then be considered the price to be beat in an asset auction to be held later this year.

If Constellation Energy wins the bid and buys Boston Generating, the Baltimore-based company would acquire five power plants located in the Boston area: four natural gas–fired plants, including Mystic 8 and 9 (1,580 MW), Fore River (787 MW), Mystic 7 (574 MW); and a fuel oil plant, Mystic Jet (9 MW).

The acquisition would also expand the company’s total net load to generation ratio to approximately 55%.

Constellation Energy has previously stated its interest in acquiring physical generation assets in the New England Power Pool (NEPOOL), where the company operates large retail and wholesale competitive supply businesses. The company currently has no generation assets in the region.

Source: Constellation Energy, POWERnews