PSEG Global of the United States announced it is exploring potential sale of Empresa de Electricidad de los Andes S.A. (Electroandes), the sixth largest generator in Peru and owner of four hydroelectric plants totaling 183 MW.
PSEG Global, a unit of U.S. utility Public Service Enterprise Group, said it engaged JP Morgan to determine interest in the asset and to act as an adviser if PSEG determined that sale of Electroandes is prudent.
�Since we have received significant unsolicited interest in the asset, we have decided to start a formal process to explore a possible sale of the company,� PSEG Global President Matthew McGrath said March 22. �If we are offered a strong price, we will evaluate the offer and decide if proceeds from a sale might be better used for other opportunities.�
McGrath said the company is strong with good operating results, positive returns, and a talented and dedicated workforce.
Electroandes includes four hydroelectric projects, 12-MW Pachachaca, 9-MW La Oroya, 54-MW Malpaso, and 108-MW Yaupi, located in Junin and Cerro de Pasco departments. It also has rights to develop a 100-MW expansion of Yaupi and a 150-MW greenfield hydro plant.
Electroandes’ system also includes 750 kilometers of transmission lines, substations, a control center, and telecommunications facilities.
PSEG acquired Electroandes in a 2001 privatization auction for US$227.1 million. The previously state-owned hydro generating company was created to facilitate the privatization of the electricity system of mining company Centromin Peru S.A.