Constellation acquires NY nuke for $401 million

Constellation Energy Group today announced that it is to acquire Rochester Gas & Electric Corporation’s RE Ginna Nuclear Power Plant, located North of Rochester, NY, for $401 million.

Constellation Energy Group announced today it is acquiring the RE Ginna Nuclear Power Plant located north of Rochester, NY, from the Rochester Gas & Electric Corporation (RG&E), a subsidiary of Albany, NY-based Energy East Corporation.

Once the acquisition has closed, Constellation Energy will own and operate three nuclear power stations with five units, as well as a diversified fleet of coal, natural gas, hydro and geothermal powered power plants, together totalling approximately 12,600 megawatts.

The purchase price for the Ginna plant is $401 million, excluding $21.6 million for purchased nuclear fuel.

‘The Ginna nuclear station is one of the jewels of the US nuclear industry,’ said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy.

Shattuck added: ‘It is exactly the type of plant we have been waiting for. Ginna is a high performing base load plant, with an average capacity factor of 95 percent over the last three years.

‘Financially, Ginna’s exceptional operating profile and a 10-year Power Purchase Agreement (PPA) with RG&E are expected to provide stable cash flows for many years to come.’

Terms of the transaction, which is contingent upon license extension, include a long-term power purchase agreement whereby Constellation Energy will sell 90 percent of the plant’s output and capacity to RG&E for 10 years at an average price of $44.00 per MWh.