NewsCompany Press Release
Source: Con Edison, Inc.
CON EDISON BEGINS AUCTION OF NEW YORK CITY POWER PLANTS
Consolidated Edison Company of New York, Inc. (Con Edison) announced today the beginning of the auction process by which the company will sell its fossil-fuel electric generating stations located in New York City. The generation assets offered for sale total approximately 5,500 megawatts of capacity and have been divided into three groups, or bundles. Each bundle will be sold to separate third parties to foster the development of a competitive electric generation market in the area.
The three bundles are Ravenswood, Astoria and Arthur Kill. The Ravenswood bundle includes the Ravenswood Generating Station and Ravenswood gas turbine facility in Queens. The Astoria bundle includes the Astoria Generating Station in Queens and the Gowanus and Narrows gas turbine facilities in Brooklyn. The Arthur Kill bundle includes the Arthur Kill Generating Station on Staten Island and the Astoria gas turbine facility in Queens.
"Ownership of these plants represents an opportunity to establish a significant presence in the developing New York City electricity market. We anticipate a high level of interest in the sale of these plants because they are located essentially at the city's electric load," said Andrew Jacob, who is heading Con Edison's team to sell the plants. "We are encouraged by recent power plant sales, which indicate strong interest in owning electric generation in the region."
The buyers of the plants will be able to sell directly into New York City without using the limited transmission capacity that could constrain sales into the area from out- of-city plants. The plants to be sold are located on prime waterfront property and offer room for expansion and opportunities for repowering. Most of the plants can burn either oil or natural gas, and are connected directly to the city's natural gas delivery infrastructure.
The auction will include several phases and is expected to take approximately five months, with the winning bidders announced early in 1999. Con Edison affiliates will not participate in the auction.
Con Edison has retained Morgan Stanley Dean Witter as its financial advisor in connection with the power plant sales.
Con Edison is one of the nation's largest utility companies, with more than $7 billion in annual revenues and approximately $15 billion in assets. The company, a subsidiary of Consolidated Edison, Inc., provides electric, gas and steam service to more than three million customers in New York City and Westchester County, New York.
More information about Con Edison's generating asset divestiture is available in the Document Center.