Fulton Cogeneration Associates, a limited partnership owned byCoastal Corp. subsidiaries, acquired the 79.6 MW Rensselaercogeneration plant near Albany, NY, and pertinent contracts fromLG&E Westmoreland Rensselaer, in which LG&E IndustrialSales Corp. and Westmoreland-Rensselaer LP are general partners.
The plant is mainly fueled by natural gas but is capable ofusing No. 2 fuel oil. Fulton will manage the plant, and CoastalTechnology Inc., a Coastal subsidiary, will operate thecombined-cycle plant on a site leased from the Albany Port DistrictCorp. The plant provides steam to an adjacent BASF Corp. facilityand power to Niagara Mohawk Power Corp. (NiMo).
Last June, NiMo executed a master restructuring agreement thatallowed the LWR partnership to consider new proposals. Shortlyafter NiMo’s restructuring plan, a request for proposal (RFP) wasissued, with Fulton providing the most attractive offer. Fulton,which also owns a power project in Fulton, NY, will own and operatethe plant, which will be operated by Coastal subsidiary CoastalTechnology Inc.
“We continually look for ways to maximize the value of ourassets to the benefit of our shareholders. In this instance, it wasmore beneficial for LG&E Energy to sell the Rensselaer plantthan to retain it,” said George Basinger, LG&E Energy seniorvice president for independent power operations.
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