Contsellation To Build Solar Plant In Holyoke, Mass.

Contsellation To Build Solar Plant In Holyoke, Mass.



Apr 13, 2011

Constellation Energy (NYSE:CEG) and the Holyoke Gas & Electric Department announced today the development of a new 4.5-megawatt solar installation that will generate electricity for 18,000 customers in Holyoke, Massachusetts.

The system is scheduled for completion this summer, and will be among the largest solar installations in New England.

Constellation will build, own, and maintain the system while HG&E will purchase all of the electricity generated from the plant under a 20-year power purchase agreement at a fixed cost that is less than projected market electricity rates.

Michael D. Smith, senior vice president of green initiatives for Constellation Energy's retail business said, "Large-scale solar generation is an attractive option for municipal utilities to manage volatile energy costs for their customers and meet renewable energy goals. In states like Massachusetts with strong market-based incentive programs, Constellation can provide solar power to municipal utilities at a rate that is significantly less than electricity from other generation sources, which benefits both the environment and power customers' bottom lines."

Constellation Energy has a potential upside of 5.1% based on a current price of $33.18 and an average consensus analyst price target of $34.86.