Niagara Mohawk Sets Divestiture Plan in Motion
The New York State Public Service Commission has approved Niagara Mohawk Power Corp.`s plan to divest its fossil and hydroelectric generating plants, a key component in the company`s PowerChoice plan to lower average electricity prices and provide customer choice.
Niagara Mohawk plans to begin receiving bids this month with final bids slated for September. Transactions closings are expected in mid-1999. The divestiture plan was submitted Dec. 1, 1997.
Niagara Mohawk`s fossil and hydroelectric generating portfolio includes 4,217 MW of capacity. The company operates four fossil-fueled plants with a combined capacity of 3,256 MW. (See Table) The portfolio also includes 72 hydroelectric plants with a combined capacity of 661 MW. In addition, a currently dormant site near Rotterdam, which previously contained eight combustion turbines is included in the auction. Niagara Mohawk is also selling its 300 MW ownership share in the Roseton Station, operated by Central Hudson Gas and Electric Corp.
The company is also seeking authorization for the divestiture plan from the Federal Energy Regulatory Commission while making filings with the Federal Trade Commission, the Department of Justice and other government agencies. p