Mergers and Acquisitions

Issue 3 and Volume 105.

FERC has approved the sale of the Millstone nuclear plant to Dominion Resources. The three-unit Millstone plant, located on Long Island Sound in Waterford, Conn., has been jointly owned by a dozen utilities. Connecticut Light & Power Co., a subsidiary of Northeast Utilities, has been the majority owner. The transfer, worth $1.298 billion, is expected to be completed April 1.

Sierra Pacific and Nevada Power must sell most of their generation in order for their merger to be approved, but the sale of their Nevada plants could be delayed due to the recently passed California law that places a five-year ban on selling generation assets owned by companies that serve California customers. The majority of Sierra Pacific’s customers are in Nevada. Expected income from the sales was to provide a significant amount of financing for Sierra Pacific’s $3.1 billion acquisition of Portland General Electric from Enron. Reliant Energy, which made a $106 million offer to buy the 150 MW Sunrise plant from Sierra, confirmed that completion of that transaction could be delayed because of the new California law. Sierra Pacific says its acquisition of Portland General Electric will not be called off. Enron Chairman Ken Lay said the sale “could be delayed somewhat by the California mess.”

Potomac Electric Power Company (Pepco) and Conectiv have agreed to merge with both companies becoming subsidiaries of a new holding company yet to be named. The merger would create the largest electricity delivery company in the Mid-Atlantic region.

Merchant power producer Calpine has acquired the development rights from independent power generator Cogentrix for the 500 MW Washington Parish Energy Center, located near Bogalusa, Louisiana. Calpine will manage construction and will operate the $300 million facility when it enters commercial operation in mid-2002.

Dynegy has completed acquisition of the 500 MW Danskammer and 1,200 MW Roseton power plants in Newburgh, N.Y., located 50 miles north of New York City.

CCI, the world’s leading manufacturer of severe service control valves and hydraulic and pneumatic actuators for fossil and nuclear power plant, has acquired BTG Valves of Sweden.

NRG Energy has acquired 5,633 MW comprised of operating projects and projects under construction from LS Power, LLC. The projects are located in Illinois, Mississippi, Florida and Texas. NRG owns 63 power projects totaling just more than 15,000 MW.