KANSAS CITY, Mo. (AP) -- Electric and gas company Aquila Inc. on Friday said it will pay Constellation Energy Group Inc. $218 million to assume ownership of its Elwood tolling contracts, which will cut its fixed financial obligations.

Shares of the company jumped on the news, adding 29 cents, or 7 percent, to $4.45 in premarket trading. Over the past 52 weeks, the stock has ranged between $2.90 and $4.50 on the New York Stock Exchange.

Contract obligations extend through August 2017 and called for Aquila to buy about 600 megawatts of the generating capacity from the 1400 megawatt plant. The deal eliminates about $405 million in fixed financial obligations.

The $218 million payment will be a pretax charge to Aquila's earnings.

Aquila supplies electricity and gas to about 1.2 million customers in 6 states.