Trigen Energy announced it is mounting a legal battle to forcePECO Energy to honor terms of a Gray’s Ferry power purchaseagreement. Trigen said the Grays Ferry Cogeneration Partnershipreceived a letter from PECO saying the Pennsylvania utility couldnot pay the full contract price for electricity from the 150 MWcogeneration plant. The plant sells electricity to PECO and steamto Trigen-Philadelphia Energy. It is located in Philadelphia andwent into commercial operation earlier this year. Ironically,Exelon, a wholly owned subsidiary of PECO Energy, is a one-thirdowner in the project with Trigen and NRG Generating.

PECO’s power purchase agreement was approved by the PennsylvaniaPublic Utilities Commission in March 1993. But the utilitymaintains electric restructuring legislation in Pennsylvania hasdenied it the ability to recover costs associated with the terms ofthe purchase agreement. Trigen said it regards PECO’s action as aviolation of the contract. It plans to join partner NRG Generatingin “pursuing vigorous legal remedy.”

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