Cinergy Corp. yesterday reported that its non-regulatedaffiliate, Cinergy Capital & Trading, is in the process ofadding almost 1,000 MW of electricity to its generating portfolioin the southeastern United States through an acquisition of two ofEnron North America’s power plants.

Included in the acquisition is Enron’s 494 MW natural gas-firedBrownsville generation facility located in Haywood County, TN, anda 504 MW gas-fired Caledonia generation facility located in LowndesCounty, MS. Both facilities began operation in June 1999 and arelocated in the Southeastern Electric Reliability Council (SERC)region with interconnection to the Tennessee Valley Authority’stransmission system.

“This acquisition in combination with our recently deregulatedOhio generation and the peaking capacity added early this yearcreates for Cinergy a significant and balanced generation portfolioof baseload and peaking capacity,” said James E. Rogers, CEO ofCinergy Corp. “Importantly, these facilities can serve our largelong-term customers in the Southeast, which is among the fastestgrowing areas in the country, as well as our Midwest customers.”

This latest transaction marks the fourth and fifth plant thatEnron has unloaded in a month’s time. In November, Allegheny EnergySupply LLC entered into an agreement to purchase three of EnronNorth America’s power plants with a total of 1,710 MW in theMidwest (see

Cinergy expects the transaction will be accretive to itsearnings in 2001. The transaction will also boost Cinergy’sgeneration portfolio to about 21,000 MW of owned, operated or underdevelopment power, with approximately a 15,000 MW portion of theportfolio being non-regulated.

“Cinergy has created a regional leadership position in theMidwest power market and is focused on strategic opportunities toexpand our footprint,” said Michael J. Cyrus, president of CinergyCapital & Trading. “With this transaction we will have addedapproximately 1,700 MW in the eastern interconnect and increasedour non-regulated generating capacity in excess of 30% in just overa year. It is indicative of our continued commitment to the growthand value of a balanced energy merchant business.”

The transaction must receive regulatory approvals from theFederal Energy Regulatory Commission, among other governing bodies.Cinergy expects to close the deal during spring 2001.

Cinergy expects the transaction will be accretive to itsearnings in 2001. The transaction will also boost Cinergy’sgeneration portfolio to about 21,000 MW of owned, operated or underdevelopment power, with approximately a 15,000 MW portion of theportfolio being non-regulated.

“Cinergy has created a regional leadership position in theMidwest power market and is focused on strategic opportunities toexpand our footprint,” said Michael J. Cyrus, president of CinergyCapital & Trading. “With this transaction we will have addedapproximately 1,700 MW in the eastern interconnect and increasedour non-regulated generating capacity in excess of 30% in just overa year. It is indicative of our continued commitment to the growthand value of a balanced energy merchant business.”

The transaction must receive regulatory approvals from theFederal Energy Regulatory Commission, among other governing bodies.Cinergy expects to close the deal during spring 2001.

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