DALLAS, Nov. 1, 2001 TXU Nordic Energy Oy today announced it has purchased 350 GWh of electricity produced by hydropower from six shareholders of the hydro generation company Kemijoki Oy in Northern Finland.
The six shareholding municipalities in Kemijoki Oy Rovakaira Oy, Rovaniemen Energia, Koillis-Lapin Sahko Oy, Tornionlaakson Sahko Oy, Muonion Sahkoosuuskunta, and Enontekion Sahko Oy all agreed to sell Kemijoki’s offtake to TXU Nordic Energy, starting November 1, 2001.
Managing Director of TXU Nordic Energy Evan Edwards said this short-term agreement would take almost eight per cent of Kemijoki’s generation and added that all parties would benefit from the deal.
“Our arrangement with the municipalities gives TXU Nordic Energy the rights to a proportion of the output of these stations. The benefit for us is that TXU doesn’t necessarily need to own the assets directly; our contracts give us access to the offtake.
“Additionally, our experience and presence in all parts of the energy chain and our demonstrated competencies in the Nordic market are the added benefits we offer when managing the energy generation of these assets,” said Edwards.
He said that TXU’s asset management model, which would be used to optimize the generation output, was beneficial for the six municipalities in Kemijoki Oy because it focused on maximizing the commercial profitability in an open market. “Our operations potentially provide the six municipalities with increased revenue for the hydro power plants, while still retaining full ownership of the plant.”
This offtake agreement was a key part of TXU’s strategy to build a pan- European energy portfolio. “It also demonstrates TXU’s commitment to the Nordic market and the value of the firm relationships that we have been developing throughout the region, Finland in particular.”
TXU has already formed similar successful joint-ventures and partnerships with a number of other Nordic companies and counterparties, including a shareholding in PVO, the largest private energy company in Finland. TXU uses LSY, a PVO subsidiary for all physical product services (including this latest deal) in Finland.
TXU is a global provider of electric and natural gas services, merchant trading, energy marketing, telecommunications, energy delivery and other energy-related services. TXU has over $28 billion of annual revenue and $43 billion of assets, and sells over 330 million megawatt hours of electricity and 2.8 trillion cubic feet of natural gas annually. TXU delivers or sells energy to 11 million customers primarily in the US, Europe and Australia. Visit www.txu.com for more information about TXU.