PG&E Corp.’s National Energy Group (NEG) has announced an810 MW long-term tolling agreement with Southaven Power, LLC inMississippi, an affiliate of Cogentrix Energy.

The arrangement gives the PG&E group marketing control ofits third power generation asset in the Southern U.S. power market.The agreement comes on the heels of the company’s purchase lastmonth of the 500 MW Attala Energy Facility in central Mississippi.

NEG also operates a total of 550 MW in Florida and will toll asignificant portion of the capacity from the SRW Cogenerationfacility in Orange County, TX, beginning in 2001 under a long-termcontract.

The terms of the tolling agreement announced Monday providePG&E National Energy Group’s subsidiary, PG&E EnergyTrading, with rights to the total generation capacity produced atthe 810 MW natural gas fueled, combined-cycle facility, located inSouthaven, MS, just south of the Tennessee border near Memphis. The40-acre project is located adjacent to existing TVA and Entergyelectric substations that will deliver the plant’s electricity intothe region’s transmission grid.

“We believe arrangements such as this allow us to deploy ourcapital resources in an efficient manner by obtaining control overpower generation facilities owned by third parties,” stated ThomasG. Boren, NEG president.

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