Sep 7 2010
Exelon Corporation, a large electric utility company, has declared the signing of an agreement to take over John Deere Renewables, a leading wind power generating and operating company.
The agreement will enable Exelon to improve its current renewable energy portfolio with 735 MW of clean energy and will help to acquire an additional 230 MW of wind energy from projects that are in the advanced stages of construction. Exelon is planning to close its deal with John Deere Renewables during the last quarter of the year 2010
The takeover estimated to be around $860 million excludes a proviso for an extra $40 million that is to be paid on starting the construction of those projects that are in the advanced stages. The signing of the agreement will help Exelon to meet its energy commitment for the year 2020 and make the company as the least carbon intensive energy utility in USA. The company is planning to pay off the amount by utilizing its Exelon Generation debt finance. The acquired company will merge with Exelon Power division that distributes around 1000 MW of its own generated and contracted clean energy power which includes hydro electricity, wind power, solar and landfill gas.
Before this acquisition Exelon was producing around 352 MW of wind energy from its five windmill projects located in West Virginia, Pennsylvania and Illinois. The company also owns and produces power from a 10 MW solar power plant located in Chicago.
Source: http://www.exeloncorp.com