US energy giant NRG Energy is to quit Australia in a multi-billion dollar sale, joining the list of foreign utilities deserting the local electricity sector with an estimated $10 billion in assets on the market.
The Minneapolis-based group is selling up to $2 billion worth of power stations in three states after struggling to make profits and labouring
under heavy debt and balance sheet pressure after the collapse of US energy group Enron.
NRG owns the largest collection of privatised power stations in Australia with a total generating capacity of more than 5,000 megawatts that supplies large parts of Victoria, South Australia and Queensland.
Other foreign utilities, such as Entergy, Texas Utilities, and Scottish Power, have struggled to make adequate profits from the massive
privatisation program of the late 1990s, with several having already sold out at a loss.
NRG`s move has been instigated by its parent Xcel Energy, while the owner of another 50 per cent of Loy Yang A, CMS Energy, is also selling out.
American Electric Power is seeking to quit its $1.5 billion investment in Melbourne`s Citipower, Victorian retailer Pulse Energy is beginning a review that could result in the business being unravelled, while Mirant Corp has indicated it plans to sell its energy and coal interests. NRG sale mandate does not include the 35 per cent stake owned by NRG in listed renewable energy group Energy Developments.
(Source: Australian Financial Review , 12 April 2002)...maybe they heard about Lutec1000 ;-)
