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CALIFORNIA / News and Insight on Business in the
Golden State
| THE STATE: ENERGY

PG&E Sells 4 Power Plants for $1 Billion

November 25, 1998|Nancy Rivera Brooks

Pacific Gas & Electric Co., the second-largest U.S. utility, said it has sold four electricity-generating plants with a combined capacity of 4,289 megawatts for a total of $1.01 billion, about double their book value. Proceeds from the sale will be used to pay off costs associated with the plants, and any proceeds above book value will reduce the amount of "stranded costs" paid by San Francisco-based PG&E's customers. Atlanta-based Southern Energy Inc. will pay $801 million for three fossil-fuel generating facilities in the San Francisco Bay Area, and FPL Energy of Juno Beach, Fla., will pay $213 million for the Geysers, the largest complex of geothermal generating facilities in the country, which is located in Sonoma and Lake counties. PG&E shares fell 6 cents to close at $32.25 on the New York Stock Exchange.

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