Exelon Corporation's wholly-owned Texas power subsidiary Exelon Generation Texas Power (EGTP) has filed voluntary petitions under Chapter 11 of the US Bankruptcy Code. EGTP has been experiencing difficulties because of the historically low power prices, which have created challenging market conditions.
EGTP currently owns five gas-fired power generating facilities and the company intends to move forward with a two-part plan agreed by its lenders. The affiliate will continue to own and operate the Handley facility in exchange for a US$60m payment to its lenders. Then, they will exchange the debt they own in EGTP's four other plants for equity in the plants, effectively taking over ownership of these power plants.
The Handley power plant is a 3-unit, 1,265 MW facility located in Fort Worth (Texas), which provides power to customers in the Electric Reliability Council of Texas (ERCOT).
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