FERC Approves Constellation Acquisition of Boston Generating Assets

FERC has approved Constellation Energy's acquisition of the portfolio of Boston Generating, dismissing conditions sought by Nstar and finding that the acquisition will have no adverse effect on competition (EC10-85).

Nstar had been seeking to impose a franchised utility-like code of conduct on Constellation as a result of the acquisition, as well as a condition that the, "Constellation generation business should be operated separately from the Constellation retail marketing business" (see 9/9).

The Commission found that transaction does not raise any horizontal or vertical market power concerns.

"While the Proposed Transaction involves the combination of generation beyond what the Commission would view as de minimis, the post-transaction markets remain unconcentrated in all periods except the summer off-peak period of the Connecticut submarket analysis (HHI of 1,071) and the HHI changes resulting from the Proposed Transaction are all well below the Commission's thresholds," FERC said.

"Lastly, we find that absent a showing of harm arising from the Proposed Transaction, the necessity of any imposition of conditions on the Proposed Transaction is unnecessary. While NSTAR is correct that the Proposed Transaction will eliminate a seller in the wholesale market, the Applicants' analysis has shown that the markets are unconcentrated in all periods except the summer off-peak period of the Connecticut submarket analysis. Therefore, the Proposed Transaction will have no adverse effect on horizontal competition," FERC said.