Rochester Gas & Electric Files Modified Divestiture Plan

Responding to a New York PSC order (see 7/15), Rochester Gas & Electric has submitted a modified auction plan to split the divestiture of its (and its affiliate Cayuga Energy's) gas-fired generation into separate auctions (07-M-0906).

As previously reported, the PSC required the original grouping of the assets into one bundle to be modified after no qualifying bids were received for the bundle, likely due to the inclusion of unattractive assets into the single bundle.

RG&E will now conduct simultaneous, but separate, auctions for the two combined cycle facilities covered by the divestiture plan: the 62 MW Allegany Station and the 63 MW Carthage Station. Bidders will be asked to bid separately on each asset

RG&E will separately offer as a package the two less attractive simple cycle peaking plants, CT 2 at Station 9 and CT 13 at Station 3 (each 18 MW), which must be removed from their current sites by the winning bidder.

Assuming that approval of the modified divestiture plan occurs by the first quarter of 2012, RG&E would commence the auctions in the second quarter of 2012.

RG&E said that it is not expected that the net effect of the sale of the fossil generation facilities will have a material effect on the net costs and credits that make up the Non-Bypassable Charge.