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
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
©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.