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AmerGen buys two reactors

Issue 6 and Volume 7.

AmerGen buys two reactors

AmerGen, a joint venture between British Energy and Peco Energy, is to purchase two more nuclear reactors in the USA. The company announced in June that it had reached an agreement with Niagara Mohawk Power Corp. and New York State Electric & Gas Corp. (NTSEG) to buy Nine Mile Point one and two nuclear power plants.

The deal is worth $163.2m. Niagara Mohawk will receive $71.7m for Nine Mile One and $63.55m for its 41 per cent ownership share in Nine Mile two. NYSEG will receive $27.9m for its share in Nine Mile Two.

The sale furthers NYSEG`s and Niagara Mohawk`s strategies to exit the generation business and furthers AmerGen`s efforts to become a major operator of nuclear plants.