May 24, 2007
Alliance Energy Renewables Buys Three New York Hydro Projects
NEW YORK, N.Y., U.S. 5/24/07 (HCI) - Alliance Energy Renewables LLC announced May 23 it acquired Mirant NY-Gen LLC, including its three hydroelectric projects, for $5.1 million.
The acquisition followed Mirant's reorganization under bankruptcy protection. Plants include the 11.75-MW Swinging Bridge (No. 10482), 4-MW Mongaup (No. 10481), and 10-MW Rio (No. 9690) hydro projects and natural gas-fired plants totaling 95 MW.
The announcement made no mention of restoring hydropower generation at Swinging Bridge, where discovery of a sinkhole in the crest of a dam in May 2005 led to an emergency shutdown of the project and a 45-foot drawdown of its reservoir. (HNN 5/31/06) Mirant proposed repairing the dam, filling the project's penstocks with concrete, and refilling the reservoir for hundreds of lakefront homes and for recreational users.
"We are very excited about this acquisition and operation of these facilities, as well as restoration of water levels in the Swinging Bridge Reservoir," Alliance Renewables Chairman Sam Nappi said. "Our work is just beginning as we work diligently to expedite the restoration process initiated by the former owner. The original work schedule, which called for a September 2007 completion, has been accelerated by Alliance for some time in July."
Alliance Energy Renewables LLC, a subsidiary of Alliance Energy Inc., acquired Mirant N.Y.-Gen LLC and all its properties from Mirant New York Inc. As the licenses for the hydropower facilities will remain with Mirant N.Y.-Gen, applications to transfer licenses to operate the projects are not required. Mirant NY-Gen plans to change its name to AER NY-Gen LLC.