Duke Acquired WTE Leader Last Year:
Monday October 13 9:03 AM EDT
Company Press Release
Duke Energy, United American Energy Sign Agreement To Acquire Ownership
Interest In American Ref-Fuel
HOUSTON, Oct. 13 /PRNewswire/ -- Duke Energy Power Services (DEPS) and
United American Energy Corp. (UAE) today announced the signing of a letter
of intent to acquire a 50 percent ownership interest in American Ref-Fuel
Company (Ref-Fuel) from Air Products and Chemicals, Inc. (NYSE:APD).
Ref-Fuel, a 50/50 joint venture between Air Products and Browning-Ferris
Industries, Inc. (BFI) (NYSE:BFI), is the top-ranked waste-to-energy (WTE)
firm in New York and New Jersey, and the third largest in the United
States. Ref-Fuel had revenues of approximately $350 million for fiscal year
ending Sept. 30, 1997.
''Ref-Fuel continues to set high standards for the waste-to-energy business
while also generating reliable, low-cost energy,'' said Paula G. Rosput,
president of DEPS. ''The Northeast is an important market for Duke Energy.
This acquisition is one of several steps that will strengthen our presence
and expand our generation capabilities there.''
Under the agreement, DEPS and UAE will acquire Air Products' ownership
interest in five waste-to-energy (WTE) facilities in New York, New Jersey,
Massachusetts and Connecticut. The facilities process approximately four
million tons of municipal solid waste per year and have a generating
capacity of 286 megawatts.
''We look forward to a long-term relationship with American Ref-Fuel and
Browning-Ferris Industries,'' said David Goodman, president of UAE.
''Together, our companies bring a multitude of power plant expertise and
energy services to the marketplace. Our combined resources provide a strong
base for the continued growth of American Ref-Fuel.''
Terms of the agreement were not disclosed. The sale is subject to the
completion of a definitive agreement, and approvals by each company's board
of directors and relevant regulatory agencies. The transaction is expected
to close in December 1997.
BFI president and CEO Bruce Ranck commented, ''This is an impressive
partnership: Duke Energy brings universally recognized capabilities in
managing large projects, in engineering and energy marketing, as well as
financial strength. United American Energy offers unsurpassed ability in
owning and operating successful independent power facilities. And BFI
provides acknowledged leadership in environmentally responsible,
cost-efficient waste disposal.''
DEPS engages in electric power asset and project development in the United
States. It is a subsidiary of Duke Energy Corporation (NYSE:DUK), a global
energy company headquartered in Charlotte, N.C., with more than $20 billion
in assets.
UAE, based in Woodcliff Lake, N.J., is a privately held national energy
firm that focuses on adding value to energy assets through ownership and
management. Founded in 1980 as one of the first independent power producers
(IPP) in the nation, UAE concentrated until 1990 on development of
greenfield hydroelectric projects. Since then, UAE has become a market
leader in acquiring and managing IPP projects that require specialized
project management for complex market situations. As of September 1997, UAE
owned and/or operated 14 projects representing 390 megawatts of installed
capacity with an original capitalization in excess of $500 million. UAE
also owns and operates the largest underground anthracite mine in
Pennsylvania, including a coal processing plant, and sells coal to the
metallurgical industry and nearby power plants.
Upon completion of the definitive agreement, DEPS and UAE will form a
limited liability company (LLC) to own their 50 percent interest in
Ref-Fuel. DEPS' interest in the LLC will be 65 percent; UAE's will be 35
percent. UAE will serve as asset manager for the proposed LLC.
SOURCE Duke Energy Power Services |
