BUSINESS
Western Massachusetts Electric Co will sell 290 MWe of generating capacity to Consolidated Edison Energy following an auction for $47 million, subject to regulatory approval. The sale is expected to be completed by the middle of this year.
The Massachusetts company is selling the units to comply with a 1997 Massachusetts law to open up the electricity ndustry to competition. The generating stations are in Western Massachusetts. They compose five hydroelectric plants, with a combined capacity of 18 MWe, and fossil-fired plants at West Springfield Station and sites at Doreen Street and Woodland Road. These will provide intermediate and peaking service.
Western Massachusetts Electric Co will use the proceeds to finance a 5 per cent tariff cut, also stipulated by the 1997 law, and lower the its stranded costs. The company retains its 19 per cent interest in the 1120 MWe Northfield Mountain pumped storage station and its stake in the Millstone nuclear power station in Connecticut.