Baltimore-based Orion Power Holdings Inc., a joint venture of Baltimore Gas and Electric Co. and a New York investment firm, said yesterday that it is purchasing three electric generating plants in New York City for $550 million.

Orion's purchase of the facilities from Consolidated Edison Co. of New York is subject to approval by the New York Public Service Commission and various federal agencies, the companies said.

The parties expect to complete the transaction by midyear. Orion agreed to offer employment to the facilities' 220 employees.

The three power plants represent about 25 percent of the generating capacity in New York City, the companies said.

BGE and Goldman, Sachs & Co. formed Orion last March to buy power plants as the electric industry undergoes vast changes as part of deregulation, said Lori Scheiner, an Orion spokeswoman.

Orion bid on the Con Edison bundle because "it was a good opportunity to develop Orion's portfolio of generating assets," she said. "We're capitalizing on an opportunity in the New York area, which is currently in the midst of restructuring its electric industry."

"That restructuring includes proposals for asset divestitures," she said. "New York is a logical move for us."

In December, Orion announced its acquisition of 72 hydroelectric generating plants in Syracuse, N.Y., for $425 million. Earlier, the company acquired Carr Street Generating Station in Syracuse for an undisclosed sum.

States with high energy costs, such as New York and California, are requiring utility companies to divest themselves of plants in the name of competition. Meanwhile, many energy companies are getting rid of their generating assets and focusing on distribution and transmission.

With the acquisition of the Con Edison plants, Orion said, it will have invested more than $1 billion in power generation assets in the region.

Pub Date: 3/04/99