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Edison hits a $1.8B Homer
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August 3, 1998: 12:58 p.m. ET
NGE, GPU will power stock buyback with Homer City generator sale proceeds
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NEW YORK (CNNfn) - GPU Inc. and NGE Generation Inc. said Monday they will sell their Homer City generating station to Edison Mission Energy, a subsidiary of Edison International, for $1.8 billion.
The 1,884-megawat Homer City station, located in Johnstown, Pa., is the only power station with direct connection to both the New York and the Middle Atlantic power markets.
"We are pleased that a company of Edison Mission Energy's stature and capabilities has purchased this strategic asset," said Fred D. Hafer, chairman, president and CEO of GPU. "We are also pleased for employees that the station is being sold to a company that plans to grow in the emerging competitive generation market."
Edison, one of the world's leading power production companies, currently has interests in more than 10,000 megawatts of generating capacity.
GPU and NGE will use proceeds from the sale to repurchase common stock and expand its energy distribution network, said Wes von Schack, chairman, president and CEO of NGE parent company Energy East.
Edison will assume the current collective bargaining agreement covering the station's employees, the companies said.
The sale is expected to be completed in the first quarter of 1999, subject to regulatory approval.
GPU announced in October that it was exiting the generation business and is in the process of divesting its fossil-fueled and hydroelectric generating facilities.
Stock in all three companies rose slightly in early Monday trading, with GPU (GPU) up 1/8 at 35-7/8, Energy East (NEG) up 3/4 at 40-3/4, and Edison (EIX) gaining 1/8 to 27-7/8. 
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