Within hours of the announcement that Duke Energy was to take over Cinergy Corp, Allegheny Energy has revealed that it has signed an agreement to sell its Wheatland generating facility to two affiliates of Cinergy.
Allegheny, through its subsidiary Allegheny Energy Supply Company, has put pen to paper on a deal with PSI Energy Inc and the Cincinnati Gas & Electric Company to sell the Wheatland power plant for approximately $100 million.
Wheatland, a 512-megawatt gas-fired peaking facility located in Knox County, Indiana, was acquired by Allegheny in May 2001. The Wheatland sale is subject to certain closing conditions and federal regulatory approvals. Allegheny believes the transaction will close in the fourth quarter of 2005.
The sale of Wheatland is another step in our plan to reduce debt and refocus on our core business, said Paul Evanson, chairman, president and CEO of Allegheny Energy.