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
"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.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.