E.ON announces details of planned grid and capacity sales

German power giant E.ON issued further details of its planned power network and generation capacity sales, following approval by the company's supervisory board.
In a statement E.ON said it was prepared to sell its ultrahigh-voltage transmission system in Germany to an operator not active in power generation or power supply. This system has a total length of 10,000 km and extends from the Danish border to the Austrian border.

The 4,800 MW of power generation that E.ON proposes divesting is equal to slightly less than one fifth of its generating capacity in Germany. It will consist of the following power plants, ownership interests in power plants, and procurement rights, E.ON said:
-- 1,500 MW of procurement rights for nuclear capacity from its minority stakes in the Gundremmingen and Krummel nuclear power stations and, to a smaller extent, from Unterweser nuclear power station. E.ON would retain ownership of the minority stakes and of Unterweser nuclear power station.
-- 600 MW of lignite-fired generating capacity by disposing its stake in Lippendorf power station and a portion of its procurement rights from Buschhaus power station.
-- 1,700 MW of hard-coal-fired generating capacity consisting of its stakes in Rostock, Mehrum, Veltheim, and Bexbach power stations and of Farge and Zolling power stations, which are wholly owned by E.ON.
-- E.ON does not intend to divest gas-fired generating capacity beyond what is included in its agreement with Statkraft.
-- E.ON's proposal also includes hydroelectric capacity that is part of its agreement with Statkraft: E.ON's run-of-river plants on the Weser plus Erzhausen pumped-storage hydro plant. To this will be added E.ON's stake in the run-of-river plants on the Inn River that it owns jointly with Austria's Verbund; Nussdorf, Egglfing, and Ering hydroelectric stations, which are also on the Inn; and the run-of-river plants in the Jansen power plant group.

Altogether, E.ON is prepared to sell 330 MW of run-of-river capacity. Along with Erzhausen, E.ON also proposes selling the two pumped-storage hydro plants that are part of the Jansen power plant group. E.ON's proposal thus includes a total of about 350 MW of hydro capacity.
E.ON said that the European Commission would study E.ON's undertakings and then decide whether to end its antitrust proceedings against E.ON. This could take until late 2008. E.ON would then get six months to divest the capacity, plus six more months if needed. It would sell the transmission within two years.