Utility Buys In
Following a model other utility holding companies have employed, a company with significant nuclear assets is now in the wind business.
Exelon bought the portfolio of Deere & Company this week for $900 million, Exelon immediately moving into the top ranks of investor-owned utilitieswith its own wind assets.
John Deere Renewables includes 36 completed projects in eight states with an operational capacity of 735 megawatts. The definitive agreement announced includes the completed projects plus numerous others in development.
Deere has been involved in the financing, development, and ownership of wind energy projects for the past five years, but earlier this year said it was starting a strategic review of its involvement in the sector.
"As Deere sharpens its own strategic focus, we have concluded that the company's resources are best invested in growing our core equipment businesses around the world," said Samuel R. Allen, Deere & Company chairman and chief executive officer. "We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry."
Subject to regulatory approvals, Deere anticipates the transaction to close within the 2010 calendar year.
Exelon is the parent of major utilities in Philadelphia and Chicago, both in states with aggressive renewable portfolio standards.
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