April 16, 2008
PPL Enters into Tolling Agreement at 664MW Pennsylvania Plant
Pennsylvania-based utility PPL's subsidiary has entered into a purchase and sale agreement for the acquisition of rights to the capacity and energy of a 664MW natural gas-fired power plant in Lebanon, Pennsylvania.
PPL EnergyPlus, PPL's energy marketing subsidiary, has agreed to acquire a long-term tolling agreement from BE Ironwood, a subsidiary of The Bear Stearns Companies. The combined-cycle plant will continue to be owned and operated by a subsidiary of Virginia-based utility AES.
Joe Hopf, president of PPL EnergyPlus, said: "This tolling agreement will provide us with immediate additional capacity in the Pennsylvania-Jersey-Maryland region. While PPL continues to pursue opportunities to acquire or build new assets, we also are opportunistically taking advantage of cost-effective arrangements in which we can increase the megawatts we have at our disposal in the short term."