LONDON, Jan. 2, 2001 (PRNewswire) — Powergen’s (NYSE: PWG; London) agreement to sell Cottam power station to London Electricity for $593.5 million cash, announced on October 16, was completed on schedule on December 31, 2000.

Completion of the deal follows merger clearance by the European Commission. Cottam is a 2,000 MW coal-fired power station in north Nottinghamshire.

In 1999, Cottam produced net operating profit before depreciation (depreciation charge of $3.7 million) of $122.4 million and, at the end of 1999, had a net book value of $39.2 million. The proceeds of the sale will be used to reduce Powergen’s bank borrowings and will generally be applied to the needs of the business.

Cottam generated 6.76 TWh of electricity in the calendar year 1999. Powergen website:

SOURCE: Powergen plc