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Constellation Said to be Near to Acquiring StarTex
May 23, 2011
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Constellation Energy is said to be in talks to acquire StarTex Power, according to a source with knowledge of the discussions.
The source could not speak publicly on the talks given their confidential nature.
A formal announcement could come as early as this morning. This story will be updated later this morning should an announcement be forthcoming.
As with any type of acquisition discussions, the transaction could not materialize depending on how negotiations proceed.
StarTex Power declined to comment on the matter.
StarTex, a fixture in the ERCOT market since 2004, currently serves more than 170,000 residential and commercial customers.
Acquiring StarTex would give Constellation a visible and well-known brand in one of the few active mass markets where it has yet to enter, or confirmed plans to enter, through organic marketing. Constellation is, however, also in the process of acquiring MXenergy, which has an ERCOT mass market book.
Presumably, Constellation would maintain the StarTex brand given its recognition and reputation in the market, though Constellation may choose to supplement it with additional brands for market segmentation purposes.
Constellation itself is in the process of merging with Exelon. The combined company would control 4,731 MW in ERCOT (when including Exelon's separate acquisition of Wolf Hollow), which equals 5.58% of installed capacity.
Constellation and Exelon have said that the merger will not have an adverse impact on retail competition (see related story today)
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