Constellation Energy Resumes Construction of 774-Megawatt Hillabee Energy Center

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Researched by Industrial Info Resources (Sugar Land, Texas)-- Constellation Energy Group Incorporated (NYSE:CEG) (Baltimore, Maryland) resumed construction of the Hillabee Energy Center this month near Alexander City, Alabama, after receiving the final permit in September. The plant, which Constellation acquired from Calpine Corporation (NYSE:CPN) (San Jose, California) in February 2008, had stopped construction in 2003 amid the Enron fallout, as Calpine decided to re-evaluate its generation portfolio to bolster investor confidence.

Zachry Construction Corporation (San Antonio, Texas) is serving as the general contractor. The company provides a variety of services, including construction, project development, construction management and industrial maintenance to domestic and international customers. Zachry builds and maintains power plants, steel mills, pulp and paper mills, chemical plants and refineries.

The Hillabee Energy Center will be a 774-megawatt natural gas-fired power plant that will operate in a combined-cycle configuration utilizing two Siemens (NYSE:SI) (Munich, Germany) Westinghouse 501G combustion turbine/generator sets, two heat recovery steam generators and one steam turbine. The plant is currently 80% complete and is expected to be operational in the fourth quarter of 2009. Constellation said that it will be operate the plant and that it already has hired some employees. About 26 employees are expected to run day-to-day operations.

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