Handley Generating Station. Source: ExelonHandley Generating Station. Source: Exelon

Blaming what it calls “historically low power prices within Texas,” a business unit of Exelon Corp. filed for reorganization protection under Chapter 11 of the U.S. bankruptcy code on November 7.

Exelon Generation says it negotiated an agreement with Exelon Generation Texas Power LLC (EGTP) lenders that would allow Exelon Generation to continue to own and operate the Handley Generating Station in exchange for a $60 million payment to the lenders. The lenders also agreed to exchange the debt they currently hold in EGTP’s other four plants for equity, effectively taking ownership of the power plants.

The Handley station is a three-unit, 1,265-megawatt fossil power plant located in Fort Worth, Texas. It provides electricity to customers in the Electric Reliability Council of Texas.

In 2011, Exelon paid $305 million for the 720-MW Wolf Hollow power plant. Wolf Hollow opened in August 2003 and is equipped with two Mitsubishi combined-cycle gas turbines. The plant serves the Dallas and Fort Worth areas.

The Exelon Generating website reports that other natural gas-fired generating assets in Texas include the six-unit, 498-MW Colorado Bend combined cycle plant; the 165-MW, four-unit combustion turbine ExTex LaPorte facility; and the three-unit, 825-MW Mountain Creek plant in Dallas.

In March, Reuters reported that Exelon had hired a debt restructuring adviser to help it evaluate options for its Texas merchant power plant.

Investment bank PJT Partners Inc. was retained to help Exelon address ExGen Texas Power’s cash liquidity worries and its $650 million in debt.

At the time, the business unit’s lenders reportedly had organized for a potential debt restructuring by hiring legal and financial counsel, the people added.