FERC approved the divestiture-sale of most of the non-nucleargeneration assets of New England Power Co. (NEPCO) and NarragansettElectric Co. to USGen New England Inc., an unregulated subsidiaryof PG&E Corp.
Included in the sale was about 4,000 MW of fossil-fired andhydroelectric generating capacity owned by NEPCO; Narragansett’s10% interest in the Manchester Street generating station; and a 20%ownership interest of Narragansett Energy, a NEPCO affiliate, inOcean State Power, an independent power project. In addition to thegenerating assets, USGen will buy NEPCO’s entitlements in about1,100 MW of power procured under long-term contracts withindependent power producers and non-utility generators.
The divestiture-sale was part of a settlement brokered betweenthe companies, and the states of Massachusetts and Rhode Island toimplement retail-choice programs in their respective states,according to the FERC order [ER98-6]. This is an “example of thecooperation that needs to occur between the state commissions andstate governments and this agency if we continue looking atdivestiture,” said Commissioner Linda Breathitt.
NEPCO and Narragansett Electric are subsidiaries of the NewEngland Electric System (NEES), a registered public utility holdingcompany.
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