Washington, D.C., June 30, 2010 — Pepco Holdings, Inc. completed the sale of its Conectiv Energy power generation business to Calpine Corp. for $1.63 billion after adjustment.
“The sale re-positions PHI as fundamentally a regulated transmission and distribution company and provides a number of significant benefits including an improved business risk profile, reduced volatility of future earnings, significantly reduced exposure to the energy commodity markets, lower capital and collateral requirements, and a strengthened credit profile,” said Joseph M. Rigby, PHI Chairman, president and CEO.
PHI will use the proceeds from the Calpine sale and the liquidation of the remaining contracts and assets of the Conectiv Energy business segment, combined with the return of collateral posted under the contracts, net of estimated taxes, to reduce PHI debt.
Conectiv Energy is a competitive wholesale generation energy company headquartered in Newark, Del. The 3,860 MW generation fleet sold to Calpine consists primarily of combined cycle power plants located in the eastern PJM region.
The sale also includes Conectiv Energy’s 565 MW gas fired combined cycle power plant located near Delta, Pa., that currently is under construction.