Date: Fri 19-Feb-1999

Publication: Bee

Author: ANDYG

Quick Words:

Northeast-utulities-dams

Full Text:

NU Sale Of Generating Plants Expected This Year

The state Department of Public Utility Control (DPUC) has announced the

impending sale of Northeast Utilities' (NU) fossil fuel and hydroelectric

generating plants, including Shepaug Dam and Stevenson Dam.

The sale of NU's 15 fossil fuel powered facilities and 14 hydroelectric

stations is a key element in NU's divestiture plan which was filed with the

DPUC in compliance with state legislation adopted in 1998.

J.P. Morgan Securities of New York is managing the auction of properties for

the DPUC.

A winning bidder for the NU properties is expected to be chosen by mid-year,

with the sale expected to be completed by the end of the year.

Although it is selling many of its electrical generating facilities, NU will

continue to operate and maintain its electrical transmission and distribution

network.

NU has reached an agreement with the state to preserve some environmentally

important properties it owns near the hydroelectric plants, including the bald

eagle observation area on the east bank of the Housatonic near Shepaug Dam in

Southbury. When it seeks power plant relicensing for the Shepaug Dam

hydroelectric station from the Federal Energy Regulatory Commission (FERC)

this summer, NU is expected to include a provision in its application

requiring that an eagle observation area be located there. It is unlikely that

the new owner of the hydroelectric plant would seek to eliminate the eagle

observation provision from its FERC power-generating license, according to NU.

NU is planning to sell its Housatonic-based hydroelectric facilities under the

terms of Public Act 98-28. That law calls for the deregulation of the

electrical generating industry in Connecticut to create economic competition

among electric companies and decreased electric rates for consumers.