BALTIMORE, Aug. 31, 2001 – Constellation Energy Group has signed two contracts to supply capacity and energy from its Oleander Power Project to Florida Power & Light (FPL), beginning in the summer of 2002.
The contracts call for the firm delivery to FPL of the output from two of Oleander’s four 150 megawatt generating units beginning next summer through mid-2003 for one unit, and mid-2005 for the other.
Located in Brevard County near Cocoa, Florida, the Oleander Power Project is currently under construction and scheduled to begin commercial operation next summer.
With the FPL agreements, and a previously announced contract signed with Seminole Electric Cooperative, nearly all of the generating capacity of the Oleander plant has now been forward-sold with much of it sold until 2010.
According to Constellation Energy President of Development, Engineering & Construction, Ron Lowman, the FPL contracts are another example of the realization of Constellation Energy’s business strategy, and make good sense for both the company and the state of Florida.
“We chose to build this plant in Florida because it’s a growing market where added generating capacity is valued,” said Lowman. “Constellation is seeking opportunities to maximize the value of our generating assets, and Florida electric customers are seeking competitively priced, reliable energy. To that end, these contracts benefit us both.”
Oleander Power Project is a gas-fired peaking plant with an oil back up system. It will use the latest proven environmental control technologies to consume less fuel with lower environmental impact compared to older peak power plants now operating in Florida.
Oleander is one of eight independent power plants Constellation Energy Group has in operation or is currently building to help meet demand for added power in strategic markets across the country. The contracts for power from Oleander reflect Constellation Energy’s strategy of managing customers’ exposure to volatile energy prices by designing wholesale products and services for the emerging competitive marketplace.
Constellation Energy Group currently owns or controls more than 11,400 megawatts of independent and merchant energy capacity. In addition to the Oleander plant, Constellation is building new generating plants in California, Illinois, and Texas. In the summer of 2001, Constellation brought on-line four new peaking power facilities located in Illinois, Pennsylvania, Virginia, and West Virginia.
Constellation Energy Group is a holding company that has energy-related businesses focused mostly on power marketing, generation and portfolio management, plus Baltimore Gas and Electric Company, which provides service to more than 1.1 million electric customers and nearly 600,000 natural gas customers in Central Maryland. Constellation Energy Group reported combined revenues of $3.9 billion and assets of $12.4 billion in 2000.
Constellation Energy Group recently announced that it intends to separate its wholesale merchant energy and retail energy businesses into two stand-alone, publicly traded companies as soon as all required approvals have been obtained. The separation is expected to occur late this year.