Constellation closes demand-response acquisition

Constellation Energy Group said Monday that it had completed a deal to buy CPower, an energy management and demand-response company.

Demand-response programs encourage electricity customers to reduce consumption during times of peak use. With the addition of CPower, Constellation now manages 1,500 megawatts of demand-response capacity. The terms of the deal were not disclosed.

Separately, Constellation is one step closer to purchasing five power plants in the Boston area after a bankruptcy judge on Saturday approved the Baltimore company's starting bid of $1.1 billion in the auction of those assets.

Competing bids for the plants owned by Boston Generating, a part of U.S. Power Generating Co., which filed for bankruptcy protection in August, are due in late November. The plants generate a combined 2,950 megawatts of electricity, boosting Constellation's energy-producing capacity by a third.

Under the terms of the auction, Constellation would receive $35 million in "break-up" fees and expense reimbursement if a competing bid were to be accepted, according to court documents.

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