Constellation Expands Into CNG Market with Acquisition of Seven Fueling Stations in Midwest
January 20 2015 - 9:00AM
Business Wire
Company leverages scale and expertise in the
natural gas market to provide clean energy options, fuel savings
for customers
Constellation, a subsidiary of Exelon Corporation (NYSE: EXC),
today announced an agreement with CNG Fuel, Inc. to acquire seven
compressed natural gas (CNG) fueling stations in Indiana and Ohio.
Constellation will own and operate the stations as
public/private-access fueling sites for regional and interstate
transportation fleets.
The purchase leverages the company’s scale and core expertise as
a leading natural gas supplier and marks Constellation’s expansion
into the CNG market, supporting the continued growth of its
distributed energy business.
“Our customers and business partners see CNG and electric
vehicle charging as key opportunities to address their long-term
sustainability and cost management objectives,” said Gary Fromer,
senior vice president of Distributed Energy for Constellation. “The
addition of CNG to Constellation’s retail offerings will help our
customers accelerate fleet conversions while allowing Constellation
to address their CNG infrastructure and gas supply management
requirements.”
Through its distributed energy business, Constellation is
working with a number of its customers to develop, build, own and
operate CNG fueling stations in locations to serve customer-owned
and third-party contracted fleets.
There are an estimated 150,000 natural gas vehicles on the road
today and that number is expected to grow.* The economics for fleet
conversion are compelling, according to global management
consulting, technology and outsourcing company Accenture, which is
working with Constellation on alternative fueling markets. Vehicle
conversion and infrastructure development is underway throughout
the United States, driven by expectations of long-term low price
volatility in natural gas, corporate sustainability initiatives and
potential additional incentives via developing carbon markets.
One of the 10 largest natural gas marketers in the United
States, Constellation delivers more than 2 trillion cubic feet of
gas annually to homes, businesses, regulated utilities and
municipal co-ops. In 2014, Constellation deepened its retail
natural gas supply footprint in Indiana and Ohio through the
acquisitions of ETC ProLiance Energy and Integrys Energy
Services.
Constellation’s six CNG fueling stations are located in
Indianapolis, Lafayette, Greensburg and Seymour, Ind., and Dayton
and Findlay, Ohio, with an additional fueling station currently
under development in Fort Wayne, Ind. The stations are regularly
used by CNG vehicles from a variety of transportation fleets, with
capacity available for future growth.
The acquisition was in cash and is financially immaterial to
Constellation and Exelon’s business.
*Data source: NGVAmerica.org.
About Constellation
Constellation is a leading competitive retail supplier of power,
natural gas and energy products and services for homes and
businesses across the continental United States. Constellation's
family of retail businesses serves more than 2.5 million
residential, public sector and business customers, including more
than two-thirds of the Fortune 100. Baltimore-based Constellation
is a subsidiary of Exelon Corporation (NYSE: EXC), the nation's
leading competitive energy provider, with 2013 revenues of
approximately $24.9 billion, and more than 35,000 megawatts of
owned capacity comprising one of the nation's cleanest and
lowest-cost power generation fleets. Learn more at
www.constellation.com or on Twitter at @ConstellationEG.
ConstellationKelly Biemer,
410-470-9700kelly.biemer@constellation.com
Exelon (NYSE:EXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Exelon (NYSE:EXC)
Historical Stock Chart
From Apr 2023 to Apr 2024