Constellation Energy Group Inc. (CEG) said Monday it has sold its stake in a California geothermal power facility to Ormat Technologies Inc. (ORA) for $72.5 million.

After buying Constellation's 50% share, Ormat now owns the entire 29-megawatt geothermal complex near Mammoth Lakes, Calif. Ormat, one of the largest U.S. geothermal power developers, plans to expand the Mammoth facility to double its generation capacity, said Ormat Chief Executive Officer Dita Bronicki.

"We...expect to dramatically increase the capacity of the existing plant through modernization of the equipment and the addition of new equipment with very little resource risk," Bronicki said in a statement.

Constellation said it plans to use the proceeds from the sale, which closed Monday, for other parts of its business.

Last week, Constellation reported its quarterly earnings soared after prior-year divestiture losses, but revenue was down 14% and adjusted profit missed analysts' expectations. The company had previously warned of falling power prices.

Neither Constellation nor Ormat shares were active after hours, having closed the day up 0.1%, at $31.63, and up 3.6%, at $28.81, respectively. Both have seen their stock values decline in 2010, underperforming the wider market.

-By Joan E. Solsman and Cassandra Sweet, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
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