Constellation Energy has signed an agreement to sell the 550MW Quail Run natural gas-fired plant in West Texas to municipal utility High Plains Diversified Energy (HPDEC) for $185.3m.

Constellation purchased the power plant located near Odessa in May 2010, as part of a two-plant agreement, which included the 550MW Colorado Bend natural gas plant in the Houston zone of Electricity Reliability Council of Texas.

As per the terms of the definitive sales agreement, HPDEC will pursue financing to complete the transaction through the issuance of municipal bonds.

Should HPDEC successfully secure financing, the sale would also be subject to standard terms and closing conditions, according to the company.