Exelon Corporation has entered into an agreement to acquire a 720MW combined-cycle natural gas-fired power plant in the US state of Texas from Sequent Wolf Hollow for $305m.

Located near Granbury in north Texas, the Wolf Hollow power plant is equipped with two Mitsubishi combined-cycle gas turbines and started operation in August 2003.

The company plans to finance the acquisition with existing cash flow and liquidity resources, and the transaction is expected to be closed in the third quarter of this year.

The acquisition is subject to approval by the Public Utility Commission of Texas and the notification and reporting requirements under the Hart-Scott-Rodino Act.

The move follows Exelon’s plan, which was unveiled last month, to acquire US-based Constellation Energy for $7.8bn.