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Constellation terminates sale of Texas plant

Constellation Energy Group said Monday that it had terminated a deal to sell its Quail Run natural gas plant in West Texas to a municipal utility in that state.

The deal was contingent on the High Plains Diversified Energy Corp. obtaining financing through the sale of municipal bonds. The deal had been worth $185.3 million.

With the sale termination, Constellation will retain ownership of the plant.

Separately, Maryland energy regulators have scheduled a hearing on June 28 to determine a schedule to review Constellation's deal to sell itself to Chicago-based Exelon Corp. The $7.9 billion merger agreement, announced in late April, would create the largest competitive power provider in the United States.

The Maryland Public Service Commission's approval is required because that body oversees Constellation's regulated utility, Baltimore Gas & Electric Co.

Hanah.cho@baltsun.com

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