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Industry News

PSEG Global Invests in Poland's Energy Privatization

LCG, Jan. 24, 2002--Negotiations between PSEG Global and Polish officials will result in the U.S. company's purchase of a 35 percent interest in the coal-fired Skawina CHP plant, in southern Poland.

The deal also includes provisions for PSEG Global to acquire additional shares at closing, which will give it a majority interest in the combined heat and power plant, rated at 590 megawatts for electricity and 618 megawatts for heat. Three distribution companies will utilize the electricity produced, while Krakow will purchase most of the heat.

PSEG is already constructing a CHP plant in Chorzow, Upper Silesia, west of Skawina, Upper Silesia is Poland's most industrialized region. (The Upper and Lower provinces of Silesia are so named based on the area's main river, the Oder.) The Chorzow facility will replace Poland's longest-lived heat and power generator, Elektrownia Chorzow.

Matthew McGrath, vice president and general counsel of PSEG Global, said, "by increasing staff in Poland and reducing staff in London and Italy, PSEG Global has realigned the organization to more effectively pursue opportunities the company is better able to compete for."
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