FirstEnergy, which offers generation, transmission and distribution of electricity, as well as energy management and other energy-related services through its subsidiaries and affiliates, announced that one of its subsidiaries sold a significant stake to Wolverine Power Supply Cooperative, Inc.
In a press release, this Akron, Ohio-based company said that its FirstEnergy Generation Corp. subsidiary sold a 6.65 percent participation interest in the output of the Ohio Valley Electric Corporation (OVEC) to Peninsula Generation Cooperative, a subsidiary of Wolverine Power Supply Cooperative, Inc. The terms of the deal was not disclosed.
The sale will be effective from Dec. 31, 2010 and involves approximately 150 megawatts (MW) of capacity from OVEC's generating facilities in southern Ohio and southern Indiana. FirstEnergy's remaining interest in OVEC is 4.85 percent.
It will be relevant to mention here that FirstEnergy’s seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.5 million customers served, within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control approximately 14,000 megawatts of capacity.
OVEC owns and operates five 217-MW units at Kyger Creek in Gallia County, Ohio, and six 217-MW units at Clifty Creek near Madison, Indiana. OVEC, which was formed by a group of utilities, built the plants in the mid-1950s to serve the Atomic Energy Commission's uranium-enrichment facilities in Portsmouth, Ohio. When those facilities were decommissioned, the OVEC-sponsoring companies began receiving the full output from the plants.
The transaction was reviewed and approved by the Federal Energy Regulatory Commission on Dec. 15, 2010.
Michigan’s Wolverine Power Supply Cooperative, Inc. is a generation and transmission cooperative. It provides wholesale electricity to six members in that state. FirstEnrgy and Wolverine has a long standing relationship. OVEC’s Sumpter plant was bought by Wolverine last year.
“We are pleased to reach this agreement with Wolverine, which purchased our Sumpter plant in Michigan last year. This transaction is consistent with our strategy to continue building our competitive generation business around the plants we own, operate or control,” said Executive Vice President and President of FirstEnergy Generation in a statement.
A few weeks back, FERC issued orders to FirstEnergy Generation Corp. on order authorizing disposition of Jurisdictional Facilities.
Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.Edited by
Jaclyn Allard
