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Constellation to Acquire Project – Analyst Blog

Zacks Market Commentaries — Thu, 03 Dec 2009 20:47:25 +0000

Constellation Energy Group Inc. (CEG) signed an agreement with Clipper Windpower Inc. to acquire the Criterion wind project in Garrett County, Maryland. The $140 million, 70 MW wind energy project would be developed, constructed, owned and operated by Constellation Energy. This new renewable energy resource would provide enough sustainable electricity to meet the annual equivalent usage of an estimated 23,000 households.

Under the terms of the agreement, Constellation Energy will purchase from the Criterion project Clipper Windpower and 28 of Clipper’s 2.5 MW Liberty wind turbines. The Criterion project has already bagged the regulatory approvals. The Constellation Energy−Clipper Windpower agreement is expected to close in the first quarter of 2010. Commercial operation of the wind energy facility is anticipated in the fall of 2010.

The Criterion project has entered a 20-year power purchase agreement with the Old Dominion Electric Cooperative for energy and renewable energy credits produced by the wind facility. Old Dominion is a not-for-profit wholesale power provider serving public electric cooperatives in Maryland, Delaware and Virginia.

The proposed Western Maryland wind project is one of several renewable energy initiatives Constellation Energy has developed or is pursuing in the state of Maryland. Constellation recently completed one of the largest photovoltaic systems in Maryland – a nearly 1 MW solar project for McCormick & Company – and constructed a 300-kilowatt solar system for the Maryland Environmental Service, the first of its kind for a Maryland state agency.

Based in Baltimore, Maryland, Constellation Energy supplies energy products and services to wholesale customers as well as retail commercial, industrial and governmental customers in North America. It is a North American energy company that includes a merchant energy business and the Baltimore Gas and Electric Company, a regulated electric and gas public utility in central Maryland. Its merchant energy business is a provider of energy solutions.

Constellation Energy also has other non-regulated businesses that design, construct and operate heating, cooling and cogeneration facilities for commercial, industrial and governmental customers throughout North America. Moreover, it provides home improvements, service heating, air conditioning, plumbing, electrical and indoor air-quality systems, besides providing natural gas to the residential customers in central Maryland.

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Ameren’s Solar Initiatives – Analyst Blog

Zacks Market Commentaries — Wed, 02 Dec 2009 22:00:00 +0000

Ameren Corporation (AEE) launched its solar initiative in the states of Illinois and Missouri. As a first step, the utility is installing solar energy systems at its downtown St. Louis headquarters campus, while its subsidiary -- Ameren Illinois Utilities -- will install solar systems at one of its facilities in Illinois.

These projects will be developed in stages, beginning with solar installations on the roof and grounds of two Ameren campuses. The generating capacities for Ameren's solar installations will range between 25 and 550 kilowatts. Project designs are expected to be completed by mid-April of fiscal 2010, with the first-phase installation projects to be completed by the fall of 2010.

Ameren is taking a number of steps to encourage not only the development of renewable energy resources but also more efficient use of energy. The company purchased renewable energy credits (RECs) through a bidding process managed by a state purchasing authority -- the most recent bidding resulted in the purchase of 720,000 RECs for the 12-month period beginning June 1, 2009.

For customers considering solar energy, Ameren is offering a rebate of $2 per watt up to 25 kilowatts or a maximum of $50,000 for qualified new solar electric system installations installed after Jan. 1, 2010. Only solar systems on residential and commercial properties are eligible for this rebate. The company has also agreed to buy 102 MW of wind power for its Missouri customers, enough to power 26,000 households.

St Louis, Missouri-based Ameren is a regulated public utility holding company with subsidiaries operating rate regulated electric generation, transmission and distribution businesses, rate regulated natural gas distribution businesses and non-rate-regulated electric generation businesses in Missouri and Illinois.

Ameren serves over 2.4 million electric consumers and over 1 million natural gas customers in Missouri and Illinois through its principal subsidiaries -- Union Electric Company, Central Illinois Public Service Company, Ameren Energy Generating Company and Central Illinois Light Company. It has a generation capacity of 16,200 MW. Ameren’s unregulated generation portfolio consists of nearly 7,000 MW of primarily coal-fired power plants, of which a significant portion is contracted to serve Ameren’s utilities. We maintain our market Neutral recommendation on the stock.
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Duke Expanding Renewable Energy – Analyst Blog

Zacks Market Commentaries — Fri, 25 Sep 2009 20:58:57 +0000

North Carolina-based Duke Energy (DUK) continues to expand its renewable energy portfolio. Earlier this month, the company had declared its plan for building its second-largest renewable energy facility near Casper, Wyoming. The 200 MW Top of the World project, the company's fourth wind farm in Wyoming and ninth in the U.S., will generate enough electricity to power approximately 50-60 thousand households annually.

Duke expects to start the construction work of the project in late 2009 or early 2010, after receiving requisite approvals, and to commence commercial production by end of 2010. The company has signed a 20-year contract with PacifiCorp, which operates as Rocky Mountain Power in Wyoming, for selling the entire output and associated renewable energy credits of the plant.

Year to date, Duke has announced four new wind power projects, with a capacity totaling above 360 MW. Presently, Duke has over 500 MW of wind-powered energy facility under operation, which will exceed 700 MW by the end of this year. Additionally, it has nearly 5,000 MW in pipeline.

Longer-term, Duke will be able to record moderate earnings growth, while offering an attractive dividend yield. However, lower load usage will continue to be a challenge in FY10. Hence, we maintain our Neutral recommendation for the company.
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