Boston Edison issued a request for proposals (RFP) seeking bidsfor about 2,000 MW of electricity to replace power now supplied bySithe Energies from plants Sithe recently bought from BostonEdison. The short-term power purchase agreement with Sithe expiresNov. 30. The power purchased through this competitive biddingprocess, combined with power from the Pilgrim nuclear plant andother power supply contracts, will be used to meet Edison’s needsDec. 1 through May 31, 1999. Proposals must be submitted by Aug. 3.

In December, Sithe Energies won the bidding to purchase Edison’soil and gas-fired generating assets. The purchase price of Edison’salmost 2,000 MW of generating capacity was $536 million. Sithe alsopaid $121 million for the six-month transitional power salesagreement under which Boston Edison will continue to buy power fromthe plants. At the time of the sale, Boston Edison said it wouldhelp put the utility on track to achieve a 15% rate reduction forall customers by Sept.1, 1999, called for under legislation passedand signed into law last year.

Sithe said it planned to build 2,800 MW of new generatingcapacity on the Edison sites at a cost of more than $1 billion.Boston Edison’s largest plants are in Boston and Everett, MA, withtotal capacity of 1,768 MW. Smaller units are in Framingham (33MW), Medway (126 MW) and Weymouth, MA (24 MW). A share of a powerplant in Yarmouth, ME (36 MW) was also included in the sale toSithe. The book value of the plants is $450 million.

Sithe Energies, a privately held company, is the third largestprivate sector electric power generation company in the UnitedStates. It also is operating or building power plants in Canada,Australia, China and Thailand.

In April Boston Edison solicited offers for the Pilgrim Stationnuclear plant and associated assets in Plymouth, MA. The companyviews the sale of Pilgrim Station as a continuation of its strategyof exiting the generation business to become a wires-based deliverycompany. Pilgrim is a 670 MW boiling water reactor located on 1,675acres of land bordering Cape Cod Bay. Boston Edison is the soleowner of the plant. Approximately 25% of its capacity is underlong-term power purchase contracts to various New Englandutilities. The plant is connected to the New England transmissiongrid, which provides electricity to the six-state region andinterconnects with New York and Canada.

Joe Fisher, Houston

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