BETHESDA, Md., Nov. 6, 2002 — PG&E National Energy Group Inc. has signed an agreement to sell one-half of its 50 percent interest in the Hermiston Generating plant to Sumitomo Corp. and Sumitomo Corp. of America.
The plant will continue to be operated and managed by an affiliate of PG&E National Energy Group, and no employee changes are expected. PG&E National Energy Group is a wholly owned subsidiary of PG&E Corp.
The 474-megawatt Hermiston plant is a cogeneration facility fueled by natural gas. Employing more than 20, the plant entered commercial service in July 1996. Electricity capacity and output generated by the plant is provided to PacifiCorp under a long-term power sale agreement. The facility also sells steam to a nearby food processing facility owned by Lamb-Weston Inc.
PG&E National Energy Group and Sumitomo expect to complete the sale by Dec. 31, 2002, following necessary regulatory approvals.
The move is consistent with PG&E National Energy Group, Inc.’s previously announced strategy to explore options to raise cash and reduce its indebtedness, ongoing guarantee and working capital requirements. These options include, but are not limited to sales of assets and businesses, debt restructuring, and reorganization of existing operations.
Sumitomo Corporation (http://www.sumitomocorp.co.jp ) is a fully integrated trading and investment enterprise, and a major distributor of commodities, industrial goods, and consumer goods. Besides its role as international trader, Sumitomo Corporation is an active investor in a diverse range of businesses that integrate with existing operations, or that position the company in markets with long-term potential. Sumitomo Corporation is headquartered in Japan, and has offices in 87 other countries around the world.
Established in 1952 and headquartered in New York, Sumitomo Corporation of America (http://www.sumitomocorp.com ) is the largest wholly owned subsidiary of Sumitomo Corporation, with offices in 12 major U.S. cities. As an integrated global trading firm with diversified investments and trading businesses, Sumitomo Corporation of America works closely with its parent as an organizer of multinational projects and financier.
Headquartered in Bethesda, Md., PG&E National Energy Group, Inc. develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services.
Source: PG&E National Energy Group, Inc.