Subject: Allegheny Energy
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 16 Nov 2000 01:31:00 -0800 (PST)

More info on Allegheny.  Apparently, they're taking funds derived from the 
forced
divestiture of their utility based generating assets and using them to 
purchase
new IPP plants.  Allegheny (as reported recently) is looking at building a 
plant in the
Palo Verde area.  

Allegheny buys Enron plants
Allegheny Energy Supply, the unregulated
generation unit of Maryland-based Allegheny
Energy, showed further proof this week of its
aspirations to become a nationwide wholesale
power provider, buying gas-fired plants from
Enron that serve three regions.
Financial terms of the acquisition were not
disclosed, but Allegheny will take possession of
three peaking units developed by Enron North
America: the 546-MW Gleason plant in Gleason,
Tenn.; the 508-MW Wheatland plant in
Wheatland, Ind.; and the 656-MW Lincoln Energy
Center in Manhattan, Ill.
Allegheny has been building and buying
facilities in Pennsylvania but last month gave the
first signal of its broader aspirations, announcing
plans to build a 1,080-MW unit in Arizona.
The three plants being acquired from Enron
all were developed after the 1998 price spikes
in Midwest markets, which highlighted the lack
of flexible generation in the area. All three entered
commercial operation in June 2000.
Don Feenstra, vice president of new
projects at Allegheny Energy Supply, said the
acquisitions fit with the company,s broader goal
of doubling the original size of its generation fleet
(about 8,200 MW) in five years. The three Enron
plants total 1,710 MW, swelling Allegheny,s portfolio
to more than 12,000 MW. Once the first goal
is reached, Allegheny wants to increase its generation
holdings by another 50% in a second five-year
period.  Feenstra said the Enron plants all can be
converted to combined-cycle for use over ex-tended
periods.