Acquisitions

9 Months Ended

Sep. 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 electricity to residential and commercial customers, for approximately $214.5 million, subject to certain purchase price adjustments. MXenergy serves approximately 540,000 customers in numerous markets across the United States and Canada.

        We recorded the acquisition as follows:

At July 1, 2011
	(In millions)
Cash and cash equivalents	$	0.9
Accounts receivable		50.7
Restricted cash1		63.8
Other current assets		45.4
Goodwill2		101.1
Acquired contracts and intangibles2 3		84.5
Other assets		12.8
Total assets acquired		359.2
Bond payable1		(82.9	)
Other current liabilities		(60.2	)
Noncurrent liabilities		(1.6	)
Total liabilities		(144.7	)
Net assets acquired	$	214.5

1 The bond payable was fully repaid during August 2011 primarily with the restricted cash.
2 None is deductible for tax purposes.
3 The weighted average amortization period for these assets is approximately 4 years.

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

        We have included MXenergy'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 nine months ended September 30, 2011 and 2010 and to our financial condition as of December 31, 2010.

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		43.8
Goodwill1		100.9
Acquired contracts and intangibles1 2		78.3
Other assets		1.0
Total assets acquired		241.9
Total liabilities		(78.4	)
Net assets acquired	$	163.5

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

        The net assets acquired are preliminary pending final purchase price adjustments.

        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 nine months ended September 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 nine months ended September 30, 2011 and 2010 and to our financial condition as of December 31, 2010.