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GPU ends AltoonaCogen development

Issue 10 and Volume 100.

GPU ends AltoonaCogen development

GPU Energy has reached an agreement to end the development of the Altoona Cogeneration Partners project, an 80 MW coal-fired plant that was to have been built at Conrail`s Juniata Locomotive Repair Shop near Altoona, Pa. Subject to state Public Utility Commission approval, the GPU Inc. subsidiary announced it will pay the partners–American Power and CMS Energy Corp.–$5 million to terminate development of the coal-fired non-utility generation project, which had not yet started construction.

In a related transaction, AES Corp. acquired the development rights for the Altoona project and will negotiate with GPU Energy to sell power to the utility from a natural gas-fired generating project at an undetermined site.