Utility consolidation progresses

28 May 1999

The success of Entergy in obtaining NRC approval for Pilgrim follows that of AmerGen, co- owned by British Energy and PECO, which has also recently won NRC approval to take over the operating licence of the Three Mile Island 1 nuclear station (870 MWe PWR) in Pennsylvania.

Regulatory approval is also required from: public utility commissions in Pennsylvania, New Jersey and New York; the Federal Energy Regulatory Commission; and the Internal Revenue Service. If completed, the deal would mark the first time a US nuclear plant has been purchased in part by foreign interests. The NRC has required that the AmerGen’s ceo and chief nuclear officer, as well as the chairman of the AmerGen management committee, all be US citizens. Both AmerGen and GPU have a deadline of 31 December 1999 for closing the deal.

Conectiv Inc of Wilmington, Delaware, plans to auction off its minority interest in four nuclear stations, plus several coal-fired stations. The nuclear units are: Salem 1 and 2 (2 x 1106 MWe PWRs) and Hope Creek (1031 MWe BWR) in New Jersey; and Peach Bottom 2 and 3 (2 x 1065 MWe BWRs) in Pennsylvania.

The auction process, which is required by legislation deregulating Delaware’s electric power industry, is expected to be completed by the end of September. Salem and Hope Creek are operated by Public Service Electric and Gas Co. Peach Bottom is operated by PECO Energy.

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