El Paso Power Services Co., a subsidiary of Houston-based ElPaso Energy, agreed to buy the interests of PSEG Global and ENPEXCorp. in the Newark Bay Cogeneration Partnership in a deal worthmore than $100 million and expected to close as early as July thismonth.

PSEG Global and ENPEX each own 50% of the 137-MW gas-firedcogeneration plant, which sells power to Public Service Electric& Gas and steam to various industrials.

A subsidiary of PSEG Global has operated the plant since itsstartup in September 1993. It is anticipated that El Paso willcontract with PSEG Newark Bay Services to continue operations andmaintenance (O&M) services at the site for a transition periodthrough the end of September. Thereafter, El Paso will assumeresponsibility for plant O&M.

“The Newark Bay Cogeneration facility is located in ahigh-value, transmission-limited market, making it an attractiveaddition to our growing power generation portfolio,” said GregJenkins, president of El Paso Services Holding Co. “We look forwardto working with PSE&G under the terms of the existing powerpurchase agreements and exploring ways to enhance the value to bothour companies.”

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