Pepco Completes Sale of Four Power Plants to Southern Energy

WASHINGTON, DC-Power plants are changing hands in the metropolitan area. Potomac Electric Power Co. sold the bulk of its electric power plants and other generating assets to Southern Energy Inc. for $2.75 billion, including permitted capital expenditures. Pepco’s will also sell its 9.7% interest in the Conemaugh power plant near Johnstown, PA to a partnership of Allegheny Energy and Pennsylvania Power and Light in January 2001.

SEI purchased four power plants: the 837-megawatt Dickerson Station, fueled by coal, oil and natural gas in Montgomery County, MD; the 2,423-megawatt Chalk Point Station, fueled by coal, oil and natural gas in Prince George’s County, MD; the 1,412-megawatt Morgantown Station, fueled by coal and oil in Charles County, MD; and the 482-megawatt Potomac River Station, fueled by coal in Alexandria, VA. Also included in the sale is a 140,000-sf central generation maintenance and office facility in Forestville, MD.

Pepco also transferred ownership of two small plants in the District of Columbia to a new wholly owned unregulated subsidiary of Pepco Energy Services. SEI will operate these plants.