Southern Energy Inc., a unit of Southern Co., will buy 1,776 MWof gas, oil, coal and hydropower generation from Orange andRockland Utilities Inc. and Consolidated Edison Inc. in New YorkState for about $480 million. Southern also plans to spend $390million to upgrade the plants and build up to 710 MW of newgas-fired generation. Southern Energy affiliate Southern CompanyEnergy Marketing will market output from the plants.
“With the close proximity of the generation to New York City,this acquisition is a big step forward in the expansion of ourasset base in the Northeast United States,” said Southern EnergyPresident Tom Boren. “We believe that ready access to generation inthe Northeast and other regions of the United States is key to oursuccess as an energy trader and marketer.”
In May, Southern Energy said it would buy 1,260 MW of generationfrom COM/Electric and Eastern Utilities Associates in New England.In July, Southern Company Energy Marketing said it reached a15-month agreement to market the output of 275 MW of Sithe Energiesgeneration, also in New York.
Orange and Rockland and Consolidated Edison Inc., which plan tomerge, are divesting their non-nuclear generation in anticipationof a deregulated market. Consolidated Edison of New York ownstwo-thirds of the Bowline power plant, part of the assets SouthernEnergy is buying.
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