Constellation Expands Into CNG Market With Acquisition Of Seven Fueling Stations In Midwest
January 20, 2015
BALTIMORE (Jan. 20, 2015) — 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.
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 approximately 2 million residential, public sector and business customers, including three-fourths of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (Nasdaq: EXC), the nation's leading competitive energy provider, with 2019 revenues of approximately $34 billion, and more than 31,000 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.