Unicom Corp, parent of US utility Commonwealth Edison Co, is sell its coal-fired power stations to raise cash to invest in its nuclear plants and distribution system, Dow Jones reports.
The company expects to raise over $1.1 billion. It has been suggested they may be worth at least $2-3 billion.
The sale will not be completed until mid-1999. When sold, the contracts would include an agreement to sell the power from the units to Unicom and its customers for as long as needed.
The coal-fired plants have a total generating capacity of 5576 MWe. All are located in northern Illinois, and if sold to a single buyer, could create competition for Unicom.
After the sale, the income will write down the value of Unicom’s nuclear units. Its costly nuclear capacity gives Unicom some of the highest tariffs in the USA.