Central Maine Power Co. has sent requests for proposals to all parties expressing an interest in purchasing the utility's generation assets, as provided for by recently enacted state legislation.
Also, Boston Edison Co. has unveiled its proposal for divesting its gas- and oil-fueled generating plants, and has submitted its divestiture plan to the Massachusetts Department of Public Utilities. The plan reflects a settlement among the utility, Massachusetts Attorney General Scott Harshbarger and the Massachusetts Division of Energy Resources.
Interest in Hydro. Central Maine Power announced the possible sale of its plants on April 28. "There is substantial interest in our power plants especially our hydro system," said Gerald C. Poulin, COO of CMP Co.
The utility's hydro system is the second largest in New England, with an installed capacity of 373 megawatts. The mailing of the RFP follows up on an information packet and confidentiality agreement sent June 5 to 153 parties. The RFP requests initial bids by August 15, and expects the selection process to be completed by November 24. Generation assets are offered for sale in distinct packages: hydro, fossil, biomass, nuclear interests and purchased-power contract entitlements.
Maine's electric restructuring law, signed on May 29, 1997, requires divestiture of plants and power entitlements by March 1, 2000.
Mitigating Risk. Through its sale, Boston Edison would aim to reduce its exposure to stranded costs. "We anticipate that the new owners of our generating station could be among the world's major power generating companies," said Boston Edison's Chair, President, and CEO Thomas J. May. The utility will retain the Pilgrim Station nuclear plant, and has committed to file a plan with the DPU by January 1999 to determine its market value.
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