Large numbers of acquisitions are in various stages of development throughout the power industry. The following is a brief summary:

  • AmerGen, a joint venture between British Energy and Peco Energy of Pennsylvania, is buying the Clinton nuclear reactor south of Chicago for $20 million in cash. The deal is AmerGen’s third acquisition since it was set up 2 years ago to buy US nuclear assets. Clinton, a 930 MWe boiling water reactor, is currently shut down, but Peco is recommissioning it, with probable operation starting by the end of the year. Peco and British Energy will share the operating and capital costs, estimated at $18 million a month, and the station revenues.

  • Southern California Gas (Socalgas) will invest $7.5 million in the fuel cell developer Plug Power.

  • PowerGen of the UK has agreed to dispose of Fiddlers Ferry and Ferrybridge C power stations for £1.3 billion to Edison Mission Energy. Each station has a capacity of 2000 MWe. The transaction arises out of the understanding given by PowerGen following its acquisition of East Midlands Electricity. The disposal will consist of 199 year leases. PowerGen will supply coal to the power stations for a 4 year period consistent with PowerGen’s overall coal commitments.

  • Unión Fenosa ACEX of Spain bought two Guatemalan electric power distributors, DEOCSA and DEORSA, in a $101 million deal. Unión Fenosa ACEX will manage both companies, which presently distribute electric power to around 600 000 customers throughout the country. Unión Fenosa ACEX also agreed to undertake an electrification programme to reach 2600 rural communities and 280 000 new customers within the next 5 years.

  • National Power of the UK avoided referral of its acquisition of the electricity supply business of Midlands Electricity to the Competition Commission. Stephen Byers, the trade and industry secretary, said he would not refer the deal if National Power agreed to sell its 4000 MWe Drax power station and to modify its ‘earn out’ arrangements with Eastern Group.

  • The São Paulo state government will merge its two power distribution utilities. Cesp will acquire 49 per cent of the common stocks of EPTE, a transmission utility formed as a result of the split of Eletropaulo.

  • Cinergy of the US has been active in buying energy plants in the Czech Republic. Cinergy has already bought Zeplárna Zlín; the heating plant of Skoda Plzeñ; and the plant of food-oil maker Setuza; and it is also building a 30 MWe plant in Zlín. Vladimir Prerad, vice president of Cinergy, said: “Now we have three and we are looking around for more.”

  • Sempra Energy and Public Service Enterprise Group, both of the US, will jointly buy 90 per cent of Chilquinta Energia, Chile’s third largest electricity company, for $830 million ($510 million in equity and $320 million in debt). The first stage of the deal is due to close in June.

  • Significant progress has been made towards the merger of American Electric Power (AEP) and Central and South West Corporation (CSW). The merger has received conditional approval in the states of Arkansas, Oklahoma and Texas. The final state which is required to give its approval is Louisiana. The merger also requires approval to be given by the Federal Energy Regulatory Commission (FERC), the Securities and Exchange Commission, and the Department of Justice. The Nuclear Regulatory Commission approved a license transfer application. The two companies have agreed to increase rate cuts in Texas by $41 million to $221 million over a 6-year period to help speed state approval.

  • PacifiCorp said that its merger with ScottishPower is still on track, despite the opposition of the Oregon Public Utility Commission. The industrial customers of Northwest Utilities are also opposing the merger, fearing higher rates.

  • PacifiCorp and Nor-Cal Electric Authority have signed a letter of intent to sell PacifiCorp’s electric service area in California to Nor-Cal for $178 million.