The Orlando [FL] Utilities Commission (OUC) approved the sale ofthe municipal utility’s 619-MW Indian River Steam Generation Plant(IRP) to Reliant Energy for $205 million.

The Indian River plant, near Titusville, FL, went into servicein 1964 and consists of three conventional steam generating unitsfueled by both oil and gas. Under Reliant’s ownership, the unitswill continue to provide electricity to OUC through a powerpurchase agreement. Excess power will be sold to other utilitiesand rural electric cooperatives in the state. Reliant plans toconstruct a 460-MW, gas-fired peaking plant near the town ofHolopaw in Osceola County, selling two-thirds of the output toSeminole Electric Cooperative.

“Indian River gives us an early entry into Florida’s high-growthmarket,” said Joe Bob Perkins, president and chief operatingofficer of Reliant Energy Wholesale Group. “This acquisitionprovides a platform in one of our target regions and will advanceour strategy of acquiring a portfolio of generating assets to backour wholesale energy trading and marketing business.”

OUC is an electric and water utility serving 156,000 customersin Orlando, unincorporated areas of Orange County and the city ofSt. Cloud, FL.

With the Indian River acquisition, Reliant will have about18,500 MW of generating capacity and more than 3,500 MW of projectsunder construction or development. Reliant’s Miami office servescustomers in the Florida Reliability Coordinating Council and theSoutheastern Electric Reliability Council power markets.

Joe Fisher, Houston

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