Exelon Corp. has completed its previously announced acquisition of John Deere Renewables, an operator and developer of wind power, adding 735 MW of renewable energy to Exelon's generation portfolio.
The acquisition of John Deere Renewables marks Exelon's entry into owning and operating wind projects. The 36 wind projects in eight states will be called Exelon Wind, a division of Exelon Power. Exelon Power is a unit of Exelon Generation.
The acquisition provides incremental earnings starting in 2012 and cashflows starting in 2013 and is a key part of Exelon 2020, the company's business strategy to eliminate the equivalent of its 2001 carbon footprint by 2020.
Approximately 75% of the Exelon Wind operating portfolio is already sold under long-term power purchase arrangements. In addition, Exelon has the opportunity to pursue approximately 1,400 MW of new wind projects that are in various stages of development, including 230 MW in advanced stages of development.
The purchase price is $860 million with a provision for up to an additional $40 million upon commencement of construction on the advanced-stage projects.
The operational and development employees of John Deere Renewables are now employees of Exelon Wind, and their offices are in West Des Moines, Iowa.
SOURCE: Exelon Corp.