PG&E Corporation’s National Energy Group (NEG) based in Bethesda, Maryland, US, plans to acquire an interest in two hydroelectric power projects under development by Austrian company, V.A Tech Voest MCE, on the Ohio river in Kentucky.

The equity interest, to be acquired by the end of the year, will be held by Kentucky Hydro Holdings, a new company set up by NEG. The two merchant hydro projects – Smithland Locks and dam at Smithland and Cannelton Locks and dam at Hawesville – are being developed at existing dams.

Each power site will have a generating capacity of 80 MW, with Smithland expected to come on line first in the spring of 2004.