Acquisitions

6 Months Ended

Jun. 30, 2011

Acquisitions

Acquisitions

Acquisitions

MXenergy Holdings Inc.

In July 2011, we acquired all of the outstanding stock of MXenergy Holdings Inc. (MXenergy), a retail energy marketer of natural gas and electric power to residential and commercial customers, for approximately $175 million, subject to certain purchase price adjustments. MXenergy serves approximately 540,000 customers in several markets across the United States and Canada. We will account for this acquisition as a business combination within our NewEnergy business segment. We will include MXenergy's results of operations in our consolidated financial statements as of the date of acquisition.

Star Electricity, Inc.

In May 2011, we acquired all of the outstanding stock of Star Electricity, Inc. (StarTex), a retail electric provider, for $163.5 million in cash, all of which was paid at closing. StarTex serves approximately 170,000 customers in the Texas residential market.

        We recorded the acquisition as follows:

At May 27, 2011
	(In millions)
Cash and cash equivalents	$	17.9
Other current assets		42.2
Goodwill1		100.9
Acquired contracts and intangibles1 2		78.3
Other assets		1.2
Total assets acquired		240.5
Total liabilities		(77.0	)
Net assets acquired	$	163.5

1 None is deductible for tax purposes.
2 The weighted average amortization for these assets is approximately 3 years.

        The preliminary net assets acquired are based on estimates, the resolution of which could impact the final net assets acquired.

        We have included StarTex's results of operations in our consolidated financial statements as part of our NewEnergy business segment since the date of acquisition.

        The proforma impact of this acquisition would not have been material to our results of operations for the quarters and six months ended June 30, 2011 and 2010 and to our financial condition as of December 31, 2010.

Boston Generating

In January 2011, we acquired Boston Generating's 2,950 MW fleet of generating plants for cash of $1.1 billion. The fleet acquired includes the following four natural gas power plants and one fuel oil plant located in the Boston, Massachusetts area:

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  Mystic 7—574 MW,

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  Mystic 8 and 9—1,580 MW,

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  Fore River—787 MW, and

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  Mystic Jet, a fuel oil plant—9 MW.

        We recorded the acquisition as follows:

At January 3, 2011
	(In millions)
Current assets	$	92.2
Land		29.2
Property, plant and equipment		1,061.8
Noncurrent assets		0.1
Total assets acquired		1,183.3
Current liabilities		(77.5	)
Noncurrent liabilities		(21.8	)
Total liabilities		(99.3	)
Net assets acquired	$	1,084.0

        We have included the results of operations from these plants in our consolidated financial statements as part of our Generation business segment since the date of acquisition.

        The proforma impact of this acquisition would not have been material to our results of operations for the quarters and six months ended June 30, 2011 and 2010 and to our financial condition as of June 30, 2011 and December 31, 2010.