Aquila Energy, a subsidiary of UtiliCorp United, said yesterdayit has reached a definitive agreement to buy GPU Inc.’s subsidiaryGPU International Inc., including its interests in six U.S.-basedgenerating plants and a development generating project, for $225million.

GPU’s interests in the generating plants represent about 500 MWof capacity, plus it owns a half interest in the 715 MW developmentproject. The deal is expected to close by the end of this year, atwhich time corporate employees of GPU International will beconsidered for transfer to Aquila, according to Kansas City,MO-based Aquila.

Upon completion of the transaction, Aquila will control morethan 3,500 MW of generation in operation, construction or underactive development, the company said.

The purchase will be accretive to UtiliCorp’s earnings. GPUreported it expects to realize an after-tax gain on the sales of$60 to $80 million to be reflected upon the closing of thetransaction. The net process will be used by GPU to reduceoutstanding debt.

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