Allegheny Energy Supply, UGI to Market Power

Allegheny Energy Supply Co. LLC upped its total generating capacity to nearly 10,000 MW after setting up a joint venture with UGI Development to expand and market generation output from facilities at UGI's Hunlock Creek generating station near Wilkes-Barre, PA. Part of the deal gives Allegheny Energy Supply access to 46 MW to sell into the Pennsylvania-New Jersey-Maryland market.

Under the agreement, Allegheny Energy Supply, the unregulated generating subsidiary of Allegheny Energy Inc., and UGI Development, a subsidiary of UGI Corp. will share 48 MW of existing coal-fired generation at Hunlock Creek. Allegheny Energy also will install a 44 MW natural gas-fired combustion turbine (CT) on the property owned by UGI, and then the two companies will share jointly in the output of the units.

The CT is one of five General Electric LM6000 units bought recently by Allegheny Energy Supply. UGI will continue to operate the facility, and the unit is expected to begin commercial operations by the end of this year.

Earlier this year, Allegheny Energy Supply established its presence in the PJM, announcing it would purchase 50% of Potomac Electric Power Co.'s 166-MW share of the Conemaugh generating station located near Johnstown, PA in a partnership with PPL Global Inc. The sale is expected to close before the end of the year.

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