Reliant Energy completes acquisition of 21 power plants

Reliant Energy added a strategic asset presence in the key mid-Atlantic region with completion of its $ 2.1 bn acquisition of 21 power plants in Pennsylvania, New Jersey and Maryland (PJM), totalling 4,276 MW of net generating capacity. The company announced an agreement to purchase the plants from Sithe Energies on February 21.
"This acquisition significantly advances our strategy of owning power generation assets in key regions of the country and using our commercial skills in energy trading and marketing to optimise the value of the assets," said Steve Letbetter, Reliant Energy chairman, president and CEO.
"Acquisition of the PJM assets brings our domestic generating portfolio to 23,000 MW. More importantly, it will have a positive impact on our earnings and was a key component in allowing us to raise our earnings growth expectations for the year to 10 to 12 %."

Reliant Energy acquired 16 plants in Pennsylvania, four in New Jersey and one in Maryland. The plants are fuelled by coal (50 %), oil/natural gas (46 %) and hydro (4 %), and represent a combination of base-load, peaking and intermediate generation. The assets are well complemented by Reliant Energy's commercial skills and capabilities because of their scale, fuel diversity, spectrum of unit capability and geographic location on both sides of the east- west transmission constraint.
"The PJM market is a high-priority commercial region for us, and we are pleased to achieve a very substantial power generation presence," said Joe Bob Perkins, president and COO of Reliant Energy Wholesale Group. "This acquisition is a key addition to our strategic portfolio of assets and market positions."
"Since closing on our first acquisition just over two years ago, we have grown our unregulated power generation business to approximately 9,000 MW operating across seven states," Perkins continued. "With another 14,000 MW in Texas that will be deregulated January 1, 2002, we are well on our way to becoming one of the nation's largest power generators. We also are one of only five companies in the US to rank in the top ten in both electricity and natural gas trading volumes."

Reliant Energy, based in Houston, Texas, is an international energy services and energy delivery company with $ 15.3 bn in annual revenue and assets totalling more than $ 26 bn. The company has a wholesale energy trading and marketing business that ranks among the top five in the US in combined electricity and natural gas volumes and has a presence in most of the major power regions of the US.
It also has power generation and wholesale trading and marketing operations in Western Europe. The company has more than 26,000 MW of power generation in operation in the US and western Europe and has announced acquisitions and development projects that will add nearly 6,000 MW.
Reliant Energy also has marketing and distribution operations serving nearly 4 mm electricity and natural gas customers in the US, has significant interests in power distribution operations serving nearly 10 mm customers in Latin America and has a telecommunications business in the Houston area.