HOUSTONReliant Energy has reached an agreement to sell its interest in El Salvador Energy Holdings, which owns three electric distribution systems in El Salvador, to a subsidiary of AES Corp. Terms of the sale, which is expected to close by the end of the third quarter, were not disclosed.
Reliant Energy’s Latin American subsidiary acquired an interest in the El Salvador companies, Compania de Alumbrado Electrico de San Salvador, S.A. de C.V. (CAESS), Empresa Electrica de Oriente, S.A. de C.V. (EEO) and Distribuidora Electrica de Usulutan, S.A. de C.V. (DEUSEM), in July of 1998 for approximately $150 million. Together the companies serve 3.5 million people, approximately 60 percent of the population of El Salvador, in the country’s north and east regions including the capital city of San Salvador.
The sale represents Reliant Energy’s entire interest in El Salvador. It is part of the company’s plan, announced in December 1999, to divest its Latin American investments, which are primarily regulated energy delivery businesses, and focus on its competitive energy services businesses in the United States and Western Europe.
Reliant Energy continues to hold discussions with potential buyers for its interests in electric systems in Brazil, Colombia and Argentina and in a power generation/coke calcining plant on the east coast of India.
Reliant Energy, based in Houston, Texas, is an international energy services and energy delivery company with $20 billion in annual revenue and assets totaling $30 billion. Reliant Energy has a wholesale energy trading and marketing business that ranks among the top five in the U.S. in combined electricity and natural gas volumes and has a presence in most of the major power regions in the U.S. Reliant Energy also has power generation and wholesale trading and marketing operations in Western Europe.
The company has more than 27,000 MW of power generation in operation in the United States and Western Europe and has announced acquisitions and development projects that will add another 5,000 MW. Reliant Energy has marketing and distribution operations serving nearly 4 million electricity and natural gas customers in the United States, significant interests in power distribution operations serving more that 10 million customers in Latin America, and a telecommunications business serving the Houston area.