— Exelon Corporation (NYSE: EXC) today issued the following statement on Exelon Generation Texas Power LLC (EGTP), a wholly owned indirect subsidiary of Exelon Generation:
“Historically low power prices within Texas have created challenging market conditions for all power generators, including the five natural gas-fired EGTP plants.
“EGTP’s Board of Directors determined, after evaluating a range of opportunities, to move forward with a two-part plan. First, Exelon Generation has negotiated an agreement with EGTP’s lenders that, pending a competitive bidding process and receipt of all necessary approvals, would allow Exelon Generation to continue to own and operate the Handley Generating Station in exchange for a $60 million payment to the lenders. Second, the lenders have agreed to exchange the debt they currently hold in EGTP’s other four plants for equity in the plants, effectively taking ownership of these facilities.
“To help us achieve our objectives as efficiently as possible, EGTP today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code for ExGen Texas Power Holdings LLC, ExGen Texas Power LLC. The filings help to facilitate the planned transactions and provide additional tools to reduce the amount of debt the plants would otherwise take forward, thereby maximizing their opportunities for long-term success.
“Exelon Generation remains committed to working with all stakeholders to ensure the best outcome for our employees, customers, communities and shareholders.”