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Southern Energy Inc. buying New York generation
Southern Energy Inc., a unit of Southern Company, will buy 1,776 megawatts of gas, oil, coal and hydropower generation from Orange and Rockland Utilities Inc. and Consolidated Edison Inc. in New York State for approximately $480 million.
Southern Energy also plans to spend $390 million to upgrade the plants and build up to 710 megawatts of new natural gas-fired generation. Southern Energy affiliate Southern Company Energy Marketing will market output from the plants. “With the close proximity of the generation to New York City, this acquisition is a big step forward in the expansion of our asset base in the Northeast United States,” said Southern Energy President Tom Boren. “We believe that ready access to generation in the Northeast and other regions of the United States is key to our success as an energy trader and marketer.” In May, Southern Energy announced it would buy 1,260 megawatts of generation from COM/Electric and Eastern Utilities Associates in New England. In July, Southern Company Energy Marketing announced it had reached a 15-month agreement to market the output of 275 megawatts of Sithe Energies generation, also in New York. Orange and Rockland and Consolidated Edison Inc., which plan to merge, are divesting their non-nuclear generation in anticipation of a deregulated market. Consolidated Edison Company of New York Inc. owns two-thirds of the Bowline power plant, part of the assets Southern Energy is buying. The Orange and Rockland plants being bought by Southern Energy are: Facility Location Size Fuel Bowline Units 1, 2 West Haverstraw, NY 610 MW 605 MW Gas/Oil Gas/Oil Grahamsville Hydro Grahamsville, NY 16.8 MW Water Hillburn Combustion Turbine Ramapo, NY 37.9 MW Gas/Jet fuel Lovett Units 3, 4, 5 Tomkins Cove, NY 69.3 MW 176.8 MW 197.3 MW Gas/Oil Coal/Gas Coal/Gas Mongaup Hydro Units 1, 2, 3, 4 Mongaup River 1 MW 1 MW 1 MW 1 MW Water Water Water Water Rio Hydro Units 1&2 Mongaup River 5.1 MW 5.1 MW Water Water Shoemaker Combustion Turbine Middletown, NY 36.3 MW Gas/Jet fuel Swinging Bridge Hydro Units 1 & 2 Mongaup River
4.7 MW 7.8 MW Water Water
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