Sithe Energies is to acquire 12 power plants from the US utility Boston Edison. The company, which is a subsidiary of the French concern Générale des Eaux, is to pay $675 million for the power stations.
The Massachusetts-based utility is divesting itself of the power plants as part of a state plan for deregulation of the power sector. Boston Edison will abandon power generation and focus on transmission and distribution.
Sithe Energies intends to invest around $1 billion to boost generating efficiency. The investments will include installation of new generating equipment and pollution control facilities. Sithe operates 22 plants in the USA, including six in New York state, six in California and four in Pennsylvania.
In a separate move, the New York utility Niagara Mohawk has announced plans to sell off its fossil fuel and hydropower generating plants. The power facilities have an estimated value of around $1 billion.
The company owns four fossil fuel plants, has a 25 per cent stake in a fifth and controls two groups of hydroelectric facilities. The plants have a generating capacity of 4200 MW. Niagara Mohawk will start accepting bids during the second quarter of 1998.
Like Boston Edison, the New York utility intends to concentrate on transmission and distribution in the deregulated market. It hopes its nuclear power assets will be taken over by a cooperative which has been proposed to take over all the nuclear power stations owned by New York utilities.
