Southern Company has completed the purchase from Constellation Energy of a 680 megawatt dual-fueled simple-cycle generating plant in Cocoa, Florida, for $206 million.
The Cocoa located power facility, the Oleander Power Plant, was purchased by Southern Company’s subsidiary Southern Power, which signed a Purchase and Sale Agreement with Constellation Energy in April. The sale has now closed as the result of completion of regulatory processes.
Commenting on the purchase Ronnie Bates, president and CEO of Southern Power, said: The purchase of Oleander Power Plant is a good strategic fit for Southern Company in several respects.
The acquisition of Plant Oleander expands our wholesale competitive generation business in the growing Florida market. Also, the purchase fits our risk profile, with the plant’s output covered in the near term by wholesale power contracts with creditworthy customers.
Plant Oleander supplies electricity through long-term wholesale contracts to Florida Power and Light (FPL) and Seminole Electric Cooperative, Inc. With the purchase of the facility completed, Southern Power assumes responsibility for these contracts.