THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Tuesday, September 27, 1994 TAG: 9409270335
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
LENGTH: Short : 35 lines
LG&E Power Inc. and DuPont Co. have ended talks on a plan to form a partnership that would have owned and operated power-generation facilities at nine DuPont fiber manufacturing sites on the East Coast, including three in Virginia.
The two companies signed a letter of intent in February but weren't able to reach mutually acceptable contract terms.
Although talks ended without agreement, the strategy of forming partnerships with industrial companies to manage their energy needs on-site ``will still eventually develop in the industry,'' said Mike McInnis, senior vice president for development and marketing for LG&E Power.
Fairfax-based LG&E Power is a unit of LG&E Energy Corp. of Louisville, Ky., the holding company for Louisville Gas & Electric Co. It is a power project developer and a wholesale power marketer with coal- or natural gas-fired plants in Virginia, North Carolina, New York and Maine.
It operates 12 plants for others in Pennsylvania, Montana and California.
Its planned deal with DuPont angered Virginia Power. The Richmond-based utility filed a petition with the State Corporation Commission in February asking the commission to block the agreement.
DuPont's plants in Martinsville, Waynesboro and Chesterfield County near Richmond would have been part of the LG&E agreement.
DuPont already operates its own power facilities at those plants, but wanted LG&E as a partner in financing and operating the generators. by CNB