SYRACUSE, N.Y., Oct. 2, 2001 — Niagara Mohawk Holdings Inc. today announced it has reached an agreement to sell Niagara Mohawk Energy Marketing Inc., the largest division of its unregulated subsidiary Niagara Mohawk Energy, to Select Energy Inc., the competitive energy marketing and services subsidiary of Northeast Utilities.
Financial terms of the sale were not disclosed.
Based in Syracuse, Niagara Mohawk Energy Marketing is engaged in the wholesale and retail sales of natural gas and electricity in the Northeastern U.S. and Canada. Select Energy provides electricity, natural gas, and energy services to business and institutional customers throughout the 11 northeastern states from Maine to Maryland. Headquartered in Berlin, Ct., the company currently has revenues exceeding $2.5 billion annually. Niagara Mohawk Energy Marketing had revenues of $635 million in 2000.
“Through this transaction, Niagara Mohawk Energy Marketing will be part of an organization with a similar strategic mission and the resources and commitment necessary to continue to grow and succeed,” said Albert J. Budney, president of Niagara Mohawk Holdings. “In addition, Niagara Mohawk Energy Marketing’s customers will benefit from the combined resources and expertise of the two companies.”
Budney noted that the divestiture of Niagara Mohawk Energy Marketing is in keeping with Niagara Mohawk Holdings’ plan to merge with National Grid USA and remain focused on the regulated energy transmission and distribution business. He said Niagara Mohawk Holdings is continuing to pursue the sale of Niagara Mohawk Energy’s other operating divisions: Niagara Mohawk Energy Services and Niagara Mohawk Distributed Power.
The sale of Niagara Mohawk Energy Marketing is subject to approval of the Federal Energy Regulatory Commission and is expected to close in late November. Select Energy intends to maintain the Syracuse office upon consummation of the transaction.
Niagara Mohawk Holdings also is the parent company of Niagara Mohawk Power Corp., a regulated electricity and natural gas delivery company with the largest service territory in New York state. Niagara Mohawk Power Corp. serves more than 1.5 million electricity customers and more than 540,000 natural gas customers across 24,000 square miles.
Select Energy, founded in 1997 at the start of electric utility restructuring, provides retail and wholesale energy supply, energy-related services, and facilities management and operation. Parent company Northeast Utilities operates New England’s largest energy delivery system, serving more than 1.7 million electricity customers in Connecticut, Massachusetts and New Hampshire and 187,000 natural gas customers in Connecticut. NU is one of the largest competitive energy suppliers in New England and is a major energy trader in the Northeast.
Navigant Consulting, Inc.’s (NYSE: NCI – news) Energy & Water business unit managed the sale of Niagara Mohawk Energy Marketing and is also managing the sales of Niagara Mohawk Energy Services and Niagara Mohawk Distributed Power.