PSEG Global completes $227 million Peruvian purchase

PSEG Global, Parsippany, NJ, Wednesday reported completing the $227 million acquisition of ElectroAndes, Peru's sixth largest electric generating company. Robert Logan, president of PSEG Americas, said the acquisition is important to company efforts to build sustainable businesses in regions of strategic importance to PSEG Global.

By the OGJ Online Staff

HOUSTON, Dec. 12 -- PSEG Global, Parsippany, NJ, Wednesday reported completing the $227 million acquisition of ElectroAndes, Peru's sixth largest electric generating company.

Robert Logan, president of PSEG Americas, said the acquisition is important to company efforts to build sustainable businesses in regions of strategic importance to PSEG Global.

"Together, with our 44% ownership in Luz del Sur, this acquisition is a clear indication of PSEG Global's long-term commitment to Peru," he said. "ElectroAndes will be a key component in advancing PSEG Global's growth objectives."

PSEG Global, an indirect subsidiary of Public Service Enterprise Group Inc., submitted the winning bid for ElectroAndes July 20 following a public tender. ElectroAndes operates four hydroelectric generation facilities in central Peru with a total capacity of 183 Mw.

One of South America's major players, PSEG Global delivers electricity to more than 3 million customers in Argentina, Brazil, Chile, and Peru through its interests in twelve distribution companies. Last month the company began operations of the Central Eolica Alto Baguales wind turbine project in Coyhaique, Chile. The project is expected to provide 16 % of the electric needs of a rural area of southern Chile.

The three computerized units are Chile's first wind projects, displacing current diesel generation. The project, which can generate up to 2 Mw of electricity, is also expected to lower customer costs.

The wind project was developed by Empresa El�rica de Ais�SA (Edelaysen), part of the of Sociedad Austral de Electricidad SA (Saesa) group, which PSEG acquired from Compa��de Petr�leos de Chile SA in August for $460 million.

The Saesa group of companies consists of four distribution companies and one transmission company that provide service in southern Chile. Saesa also owns 50% of the Argentine distribution company Empresa El�rica del R�Negro SA.

PSEG Global has assets of $3.5 billion with over 5,800 MW of installed capacity and an additional 2,400 Mw of capacity under construction or development worldwide.

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