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Fulton Acquires NY Power Plant

Fulton Acquires NY Power Plant

Fulton Cogeneration Associates, a limited partnership owned by Coastal Corp. subsidiaries, acquired the 79.6 MW Rensselaer cogeneration plant near Albany, NY, and pertinent contracts from LG&E Westmoreland Rensselaer, in which LG&E Industrial Sales Corp. and Westmoreland-Rensselaer LP are general partners.

The plant is mainly fueled by natural gas but is capable of using No. 2 fuel oil. Fulton will manage the plant, and Coastal Technology Inc., a Coastal subsidiary, will operate the combined-cycle plant on a site leased from the Albany Port District Corp. The plant provides steam to an adjacent BASF Corp. facility and power to Niagara Mohawk Power Corp. (NiMo).

Last June, NiMo executed a master restructuring agreement that allowed the LWR partnership to consider new proposals. Shortly after NiMo's restructuring plan, a request for proposal (RFP) was issued, with Fulton providing the most attractive offer. Fulton, which also owns a power project in Fulton, NY, will own and operate the plant, which will be operated by Coastal subsidiary Coastal Technology Inc.

"We continually look for ways to maximize the value of our assets to the benefit of our shareholders. In this instance, it was more beneficial for LG&E Energy to sell the Rensselaer plant than to retain it," said George Basinger, LG&E Energy senior vice president for independent power operations.

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