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Reliant Buys & Builds Florida Generation

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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