Peabody Group, the world’s largest coal company, on Friday soldits Citizens Power unit to a subsidiary of Edison International, aswell as selling its third-party power contracts. Peabody, owned byLehman Merchant Banking Partners, is expected to net about $100million from the two transactions, using the money to pay downdebt.

Citizens Power, one of the top 10 power marketers in the UnitedStates, traded 92.3 MM MW hours in 1999. It will be merged into anEdison Mission Energy subsidiary, Edison Mission Marketing &Trading (EMMT). Edison Mission Energy (EME), a merchant powerplant, has more than 13,200 MW, and the merger is consideredpivotal to improving EME’s marketing capabilities in U.S. powermarkets.

“Edison Mission Energy has developed a strong generationpresence in several of the most attractive U.S. power markets,”said CEO Alan J. Fohrer. He said the merger should give EMMT acompetitive advantage. EMMT will be based in Boston, and willoperate in the former Citizens Power headquarters there. CitizensPower President Mark Maisto will continue run the company.

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