Consolidated Edison announced last week it plans to selltwo-thirds of its New York City dual fuel-fired electric generationplants (5,500 MW) in an auction starting this summer as part of itsongoing electric restructuring plan, which was signed lastSeptember. About 5,050 MW of its total generating capacity isnatural gas- and fuel oil-fired. The rest burns kerosene.

The vintage 1960s and early ’70s plants will be divided intothree equally sized bundles. Each bundle will include a majorgenerating facility-the Ravenswood Generating Station in LongIsland City, the Astoria Generating Station in Astoria, or theArthur Kill Station on Staten Island-and gas turbine generatingfacilities in Queens and Brooklyn. The company plans to sell two ofthe bundles through auction and spin down the remaining bundle,which has not yet been identified, to an unregulated subsidiary,ConEdison Energy.

Recent power plant auctions have drawn a large number of biddersand high market prices. For example New England Electric Systemsold 5,100 MW of fossil fuel and hydroelectric plants to PG&ampECorp. subsidiary US Generatring Co. for $1.6 billion late lastyear. The purchase price exceeded the book value of the plants byabout $500 million. The current book value of the ConEd units hasnot been released. However, the original book value of the plants(before depreciation) was $1.3 billion.

ConEd expects to receive authorization for the auction from theNew York State Public Service Commission (PSC) by July 1. Theauction process would begin later that month, with the winningbidders to be announced in January 1999.

Rocco Canonica

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