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NY PUC Approves Generating Unit Sales

NY PUC Approves Generating Unit Sales

Consolidated Edison Co. of New York will collect $1.1 billion and Niagara Mohawk Power Corp. will pick up $355 million on sales of several fossil-fueled generating plants, approved Thursday by the New York State Public Service Commission.

The plants were auctioned by the companies as part of the Commission's plan to introduce competition into the electric generating industry in New York State,

Con Edison's sale involved two steam-electric plants and one gas turbine unit at Arthur Kill in Staten Island and a portion of its facilities at Astoria Generating Station consisting of 20 gas turbine units, all totaling 1,456 MW of power to NRG Energy Inc. for $505 million. It also sold three steam-electric plants and a block of 16 gas turbine plants totaling 2,168 MW at Ravenswood in Queens to a subsidiary of Keyspan Energy for $596.8 million.

Niagara Mohawk sold its Huntley plant consisting of six coal-fired units totaling 760 MW and its Dunkirk plant comprised of four coal-fired units totaling 600 MW to NRG Energy Inc. for $355 million.

NRG Energy Inc. is one of the world's largest independent power producers, having about 14,000 MW in generating projects worldwide. It is a wholly-owned subsidiary of Northern States Power, a utility holding company with a subsidiary providing retail electric service in Minnesota, North and South Dakota, Wisconsin and Michigan.

Keyspan Energy is a holding company whose affiliates are engaged in electric generation, natural gas distribution and exploration, transmission and distribution, energy services and appliance service and repair. It operates facilities with approximately 4,000 MW of installed generation capacity. KeySpan affiliates include Brooklyn Union Gas Company and KeySpan Generation LLC, which owns the electric generation capacity formerly owned by the Long Island Lighting Company.

In a related action, the commission decided to establish new, separate proceedings to consider how the net proceeds from the Con Edison and Niagara Mohawk auctions of generating plants should be used to benefit each of the companies' customers. The new proceedings will be initiated once each company's sales of other nonnuclear generating plants have been completed.

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