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Shortly after selling its half-interest in a California geothermal generating plant, Constellation Energy of Baltimore has signed a $1.1 billion agreement with Boston Generating to acquire its 2,950-megawatt group.

The deal would cover five power plants in the Boston area: four natural gas-fired plants and a fuel oil plant with a much smaller capacity. The group is the third-largest power-generating portfolio in New England, according to a Constellation press release.

Constellation operates large retail and wholesale competitive supply businesses within the New England Power Pool — the regional power grid — and company officials have expressed interest in acquiring physical generation assets in the region.

"This agreement is consistent with Constellation Energy's previously stated intention to purchase physical generation assets in regions where we have significant load obligations," Constellation CEO Mayo A. Shattuck III said in a statement.

Constellation pursued a similar course when it purchased 1,100 megawatts of power through two natural gas combined-cycle generation facilities in Texas this May for $365 million.

"We've built over the past decade a large, successful business in New England," said Constellation spokesman Lawrence McDonnell. "Introducing a large generating fleet into that equation is very complementary."

Having a physical presence helps hedge load costs for Constellation, McDonnell said, as meeting the power demands of the large retail institutions that Constellation handles in that region often means incurring collateral costs.

"This fulfills our strategic objective," he said.

The Boston Generating transaction is not a done deal.

Constellation's "stalking horse" bid would be considered the price to beat in an asset auction this year once the agreement is consummated through a court-approved bankruptcy proceeding for Boston Generating, a wholly owned subsidiary of US Power Generating of New York.

Boston Generating has not yet filed for bankruptcy protection, but the company plans to do so soon, according to a US Power statement.

"This is the first step of a process aimed at restoring the financial strength of the Boston Generating assets," Mark Sudbey, CEO of US Power, said in the statement.

Constellation recently sold its half-interest in the 29-megawatt Mammoth Geothermal Plant near Mammoth Lakes, Calif., to a subsidiary of Ormat Technologies, its former co-owner, for $72.5 million.

The company's subsidiary, Constellation NewEnergy, also has announced a two-year wind energy purchase agreement with Goodwill Industries International in Rockville. NewEnergy will supply renewable energy certificates sourced from wind renewable resources to Goodwill's headquarters, offsetting all of Goodwill's electricity use.

All of the electricity used by Goodwill's headquarters will create an equivalent amount of wind power-generated electricity.