Midwest Generation Formed to Run ComEd Plants
Edison Mission Energy, an Edison International company
established Midwest Generation EME LLC to own and operate Illinois
fossil-fuel electric generating plants to be acquired from
Commonwealth Edison later this year. Midwest Generation EME also
will operate a coal-fired power plant in Homer City, PA, which was
acquired earlier this year.
Georgia Ricci Nelson, formerly senior vice president, worldwide
operations for Edison Mission Energy, has been named president of
Midwest Generation EME. The new company will locate its
headquarters in Chicago later this year. Nelson also has served as
senior vice president of Southern California Edison, Edison
International's electric utility subsidiary.
Midwest Generation EME plans to acquire seven coal- and
gas-fired plants plus peaking units at an additional five sites
from Commonwealth Edison for about $5 billion, pending approval by
state and federal regulators. The acquisition includes Fisk and
Crawford Stations in Chicago, Collins Station in Morris, Powerton
Station in Pekin, Will County Station in Romeoville, Joliet Station
and Waukegan Station. The 12 facilities have a combined capacity of
"The size of our investment in Illinois made it clear that
establishing a new company here to oversee our expanding Midwest
operations is the right move at this time," Nelson said.
Midwest Generation EME is in business exclusively to generate
power for the wholesale market. Under the terms of the plant
acquisitions, Commonwealth Edison will retain rights to buy power
generated by the Illinois plants over the next five years to help
the utility provide a dependable flow of power to its customers.
Midwest Generation EME anticipates acquiring the Illinois plants in
the fall. The sale must first be approved by the Illinois Commerce
Commission and the Federal Energy Regulatory Commission.
In March Edison Mission announced it would buy the fossil-fueled
generating assets of Commonwealth Edison for about $5 billion (see Daily GPI March 24, 1999). Edison Mission
Energy has also committed to build 500 MW of gas-fired generating
capacity in Chicago.
ComEd parent Unicom got about $1.76 billion over book value for
the plants combined. The sale enables Unicom to improve its
financial structure and redirect investments, said Unicom and
Commonwealth Edison CEO John W. Rowe. The gain of about $1.7
billion after taxes and satisfaction of sales-related obligations
is to be used to reduce the cost of ComEd's nuclear-related assets,
currently valued at more than $9 billion.
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