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29 September 2004 - ScottishPower announced Tuesday the purchase of the remaining 50 per cent of Brighton Power Station, a modern 400 MW CCGT plant, and associated contracts, including the benefit of a long-term gas supply agreement, from American Electric Power (AEP) for around £26m ($47m) in cash.
ScottishPower, which already owns 50 per cent of the East Sussex station, estimates the effective price of the acquisition to be £199/kW of installed capacity when taking into account 50 per cent of the total net project debt of £90 million and other assets and contracts inherited with the purchase.
This price is significantly below the cost of a new build CCGT, providing an excellent return on invested capital and delivering earnings enhancement in the current year.
The acquisition of this highly efficient natural gas-fired plant allows ScottishPower, as sole owner and operator, to grow its integrated energy business in line with the significant growth in its UK customers.
It also further strengthens ScottishPower's diverse generation portfolio, taking capacity in England and Wales to around 2 00 MW.
Charles Berry, Executive Director UK, said: "We are delighted with this purchase which helps meet the needs of our fast-growing customer base. Buying generation capacity at around half the cost of building a new plant underlines our commitment to shareholder value and capital discipline."
ScottishPower part-owned the plant, which was fully commissioned in 2001, through its share in South Coast Power Limited, a joint venture with AEP.
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