Pacificcorp Seeks Deal With Utilities

PacifiCorp said Friday it is negotiating with a Kentucky utility to manage its power plants.

Under a proposed 25-year agreement with Big Rivers Electric Corp. of Henderson, Ky., a new subsidiary of PacifiCorp would operate 1,740 megawatt generators, manage the fuel supply and market the excess output to utilities in the East.

Big Rivers would continue to own the plants, according to a statement released by both utilities.

PacifiCorp is the third-largest investor-owned electric utility in the Western United States, with $11.8 billion in assets. It serves 1.3 million retail electric customers in seven Western states and conducts wholesale power business with more than 50 utilities in 11 Western states.

The first meeting between the utilities was Tuesday, and a letter of agreement could be ready within the next few weeks.

“This transaction marks PacifiCorp’s entry into national power markets,” said Dennis Steinberg, PacifiCorp senior vice president.

Sandra Wood, president of the Big Rivers Board of Directors, said the PacifiCorp proposal “brings to the table financial strength and a well-established reputation as an innovator in the industry.”