Reliant Buys & Builds Florida Generation
The Orlando [FL] Utilities Commission (OUC) approved the sale of
the municipal utility's 619-MW Indian River Steam Generation Plant
(IRP) to Reliant Energy for $205 million.
The Indian River plant, near Titusville, FL, went into service
in 1964 and consists of three conventional steam generating units
fueled by both oil and gas. Under Reliant's ownership, the units
will continue to provide electricity to OUC through a power
purchase agreement. Excess power will be sold to other utilities
and rural electric cooperatives in the state. Reliant plans to
construct a 460-MW, gas-fired peaking plant near the town of
Holopaw in Osceola County, selling two-thirds of the output to
Seminole Electric Cooperative.
"Indian River gives us an early entry into Florida's high-growth
market," said Joe Bob Perkins, president and chief operating
officer of Reliant Energy Wholesale Group. "This acquisition
provides a platform in one of our target regions and will advance
our strategy of acquiring a portfolio of generating assets to back
our wholesale energy trading and marketing business."
OUC is an electric and water utility serving 156,000 customers
in Orlando, unincorporated areas of Orange County and the city of
St. Cloud, FL.
With the Indian River acquisition, Reliant will have about
18,500 MW of generating capacity and more than 3,500 MW of projects
under construction or development. Reliant's Miami office serves
customers in the Florida Reliability Coordinating Council and the
Southeastern Electric Reliability Council power markets.
Joe Fisher, Houston
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