Houston Industries Power Generation (HIPG) completed its $237million acquisition of four gas-fired generating plants totaling2,276 MW from Southern California Edison. HIPG had submitted thewinning bids for SCE’s Ellwood, Mandalay, Etiwanda and Cool Waterplants, which have been renamed Oeste, Ocean Vista, Mountain Vistaand Alta Power, respectively.

Encouraged by the news, Morgan Stanley Dean Witter raised itsrating on Houston Industries from neutral to out-perform and saidthe company is on its way to becoming a “hyper-electric.”

“We are pleased to be among the pioneers participating in thenation’s first competitive electric power market,” said Joe BobPerkins, chief operating officer of HIPG. “Completing thisacquisition is an important first step in HI’s strategy of buildingor acquiring a portfolio of generating assets in key regions of theU.S. to support HI’s wholesale trading and marketing operation.”

To date, HIPG has announced acquisitions or power developmentprojects totaling more than 4,000 MW in the western United States.Last month, HIPG announced an agreement to purchase SCE’s 1,500 MWOrmond Beach plant and expects to close that acquisition in June.The company also has a 50% interest in the 480 MW El Dorado Energyplant currently under construction near Las Vegas, which is one ofthe first large-scale merchant electric generating facilities to bebuilt in the U.S.

Joe Fisher, Houston

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