Allegheny Energy Supply Co. LLC upped its total generatingcapacity to nearly 10,000 MW after setting up a joint venture withUGI Development to expand and market generation output fromfacilities at UGI’s Hunlock Creek generating station nearWilkes-Barre, PA. Part of the deal gives Allegheny Energy Supplyaccess to 46 MW to sell into the Pennsylvania-New Jersey-Marylandmarket.

Under the agreement, Allegheny Energy Supply, the unregulatedgenerating subsidiary of Allegheny Energy Inc., and UGIDevelopment, a subsidiary of UGI Corp. will share 48 MW of existingcoal-fired generation at Hunlock Creek. Allegheny Energy also willinstall a 44 MW natural gas-fired combustion turbine (CT) on theproperty owned by UGI, and then the two companies will sharejointly in the output of the units.

The CT is one of five General Electric LM6000 units boughtrecently by Allegheny Energy Supply. UGI will continue to operatethe facility, and the unit is expected to begin commercialoperations by the end of this year.

Earlier this year, Allegheny Energy Supply established itspresence in the PJM, announcing it would purchase 50% of PotomacElectric Power Co.’s 166-MW share of the Conemaugh generatingstation located near Johnstown, PA in a partnership with PPL GlobalInc. The sale is expected to close before the end of the year.

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