PITTSBURGH, Sept. 1 /PRNewswire-FirstCall/ -- Duquesne Light Holdings today announced it has completed the purchase of a minority interest in two coal-fired power stations owned by a consortium of utility holding company subsidiaries.
Duquesne Light Holdings has purchased from Atlantic City Electric 65.6 megawatts, or 3.83 percent, of the Conemaugh Generating Station and 42.3 megawatts, or 2.47 percent, of the Keystone Generating Station. The purchase price for the generation is $173 million.
"This purchase represents a unique opportunity to acquire sound, low-cost, base-load generation sources in close proximity to the company's customer loads," said Morgan K. O'Brien, president and chief executive officer. "Ownership of coal-fired facilities also provides a hedge against volatile natural gas prices."
Holdings subsidiary Duquesne Light Company serves those residential and small commercial customers in the Pittsburgh region who have not selected an alternative energy supplier. Subsidiary Duquesne Light Energy, a licensed electric generation supplier, offers a competitive energy supply alternative to large commercial and industrial customers in the area.
An ownership consortium makes capital and operating decisions and oversees the operation of the plants, which are located near Indiana, Pa. Members of the group include subsidiary companies of Public Service Electric and Gas (PSEG), Exelon Corporation, Reliant Energy, Constellation Energy, PPL Corporation, UGI Corporation and NRG Energy.
A $200-million term loan facility was used to finance the generation purchase.
About Duquesne Light Holdings
Duquesne Light Holdings is comprised of an electric-utility company and several affiliate companies that complement the core business. Duquesne Light Company, its principal subsidiary, is a leader in the transmission and distribution of electric energy, offering superior customer service and reliability to more than half a million customers in southwestern Pennsylvania.
About Atlantic City Electric
Atlantic City Electric, a public utility owned by Pepco Holdings, Inc., provides safe, reliable and affordable regulated electric delivery services to more than 500,000 customers in southern New Jersey.
