Deere & Co. announced this morning it will sell its renewable-energy arm, John Deere Renewables LLC, to Exelon Corp., a Chicago-based electric generation company, in a deal valued at $900 million.

 Under the terms of the agreement, Exelon will acquire John Deere Renewables’ 735 megawatts (MW) of installed, operating wind capacity — enough to power 160,000 to 220,000 households — spread across 36 projects in eight states.

“As Deere sharpens its own strategic focus, we have concluded that the company’s resources are best invested in growing our core equipment businesses around the world,” said Samuel Allen, Deere & Co.’s chairman and CEO. “We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry.”

In addition to the 735 MW of present generating capacity, Exelon is also purchasing 230 MW in advanced stages of development. Prior to the acquisition, Exelon was already the largest wholesale marketer of wind energy east of the Mississippi River.

 “Not only does this acquisition add value for Exelon shareholders, providing incremental earnings in 2012 and cash flows in 2013, but it also is one more way to implement a clean energy future,” said John Rowe, Exelon chairman and CEO, in a press release.

 “We expect to see increasing demand for clean, efficient wind power at a national level and in the 29 states that already have a renewable energy standard,” Rowe said. “This acquisition gives Exelon a strong position in the wind generation business that adds diversity to our generation fleet and provides more options for future growth.”

Deere said the $900 million sale, including earn-out provisions, will result in an after-tax charge of approximately $25 million in its fourth-quarter results. The charge was not reflected in Deere’s fourth-quarter earnings forecast of approximately $375 million that was announced August 18th.

Acquisitions in the U.S. power industry surged more than 20-fold by value in the first eight months of the year, Bloomberg reported this morning. Advisers say to expect more deals as potential buyers bet that electricity prices will rise with economic recovery. Prior to Exelon’s announcement, $27.5 billion in power deals had been announced this year, according to Bloomberg data.