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El Paso Buying Share of Newark Bay Cogen

El Paso Buying Share of Newark Bay Cogen

El Paso Power Services Co., a subsidiary of Houston-based El Paso Energy, agreed to buy the interests of PSEG Global and ENPEX Corp. in the Newark Bay Cogeneration Partnership in a deal worth more than $100 million and expected to close as early as July this month.

PSEG Global and ENPEX each own 50% of the 137-MW gas-fired cogeneration plant, which sells power to Public Service Electric & Gas and steam to various industrials.

A subsidiary of PSEG Global has operated the plant since its startup in September 1993. It is anticipated that El Paso will contract with PSEG Newark Bay Services to continue operations and maintenance (O&M) services at the site for a transition period through the end of September. Thereafter, El Paso will assume responsibility for plant O&M.

"The Newark Bay Cogeneration facility is located in a high-value, transmission-limited market, making it an attractive addition to our growing power generation portfolio," said Greg Jenkins, president of El Paso Services Holding Co. "We look forward to working with PSE&G under the terms of the existing power purchase agreements and exploring ways to enhance the value to both our companies."

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