San Francisco-based PG&E Corp. leap-frogged the continent tocomplete the $1.59 billion acquisition of New England ElectricSystem’s generating business, including hydro and gas-fired plantswith 5,100 MW of capacity. The acquisition was made by PG&Esubsidiary U.S. Generating Co.
Along with the power plant purchase, which has been in the worksfor more than a year, another unregulated affiliate, PG&EEnergy Services, has signed a major new supply and servicesagreement worth an estimated $350 million with the MassachusettsHigh Technology Council, an amalgamation of 200 technologycompanies. The agreement launches one of the largest electriccustomer aggregation programs in the nation-representing more than1.2 million MWh of electricity use annually. The Council played amajor role in the passage of legislation last November torestructure the Massachusetts electric utility industry and openthe markets to competition. Both announcements came at an eventheld at Boston’s historic Old State House with representatives ofPG&E Corp., NEES and state officials.
“The generating assets just purchased represent the backbone ofPG&E Corp.’s competitive energy business in the Northeast,”said Robert D. Glynn, Jr., the company’s chairman and CEO. “Thelow-cost electricity these plants produce, combined with thecapabilities of PG&E Energy Services and PG&E EnergyTrading, will continue to create new opportunities for savings-justlike those that will be realized by the Massachusetts HighTechnology Council.
Glynn also pointed to “significant value for our corporateshareholders,” in the deal. USGen’s recent financing of the NEESacquisition was many times oversubscribed, signaling the financialcommunity’s confidence in PG&E Corp.’s future success in themarket, he added.
©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.
© 2023 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |