Bethesda, Md. - PG&E Corporation's
(NYSE: PCG) National Energy Group today announced an 810-megawatt
long-term tolling agreement with Southaven Power, LLC, an affiliate
of Cogentrix Energy, Inc. The arrangement gives PG&E National Energy
Group marketing control of its third power generation asset in the
Southern U.S. power market. The agreement comes on the heels of
the Company's purchase last month of the 500-megawatt merchant generation
Attala Energy Facility in central Mississippi. The National Energy
Group also operates a total of 550 megawatts in Florida and will
toll a significant portion of the capacity from the SRW Cogeneration
facility in Orange County, Texas, beginning in 2001 under a long-term
contract.
The terms of the tolling
agreement announced today provide PG&E National Energy Group's subsidiary,
PG&E Energy Trading, with rights to the total generation capacity
produced at the 810-megawatt natural gas fueled, combined-cycle
facility, located in Southaven, Miss., just south of the Tennessee
border near Memphis.
"These 810 megawatts are
in addition to our acquisition of the Attala plant last month and
strengthen our position in the region's power market," said Greg
Kelly, vice president of marketing and business development of the
National Energy Group's Eastern Region. The 40-acre project is located
adjacent to existing TVA and Entergy electric substations that will
deliver the plant's electricity into the region's transmission grid.
"We believe arrangements
such as this allow us to deploy our capital resources in an efficient
manner by obtaining control over power generation facilities owned
by third parties," stated Thomas G. Boren, president and chief executive
officer of PG&E National Energy Group.
PG&E Corporation with 1999
revenues of nearly $21 billion and operations in 21 states, markets
energy services and products throughout North America through its
National Energy Group. The Corporation has ownership and arrangement
interests in more than 30 power plants and has one of the largest
energy trading and risk management programs in North America.