AES Acquiring New Energy Ventures

AES Corp., the largest U.S. developer of power plants, is buying Los Angeles-based New Energy Ventures for $90 million in cash and stock to expand further into direct sales of electricity to large users. New Energy Ventures is owned by its senior managers and UniSource Energy Corp. of Tucson. New Energy Ventures, with revenue of $500 million a year, was formed in 1995 to buy power from producers and resell it in California and other deregulating U.S. markets; it was founded by Michael R. Peevey, a former president of Southern California Edison Co., who will remain New Energy Ventures’ president and chief executive. In California, the company supplies electricity to Ralphs and Robinsons-May stores and the manufacturing plants of AlliedSignal Inc. New Energy also has a four-year, $300-million contract with the Defense Department to serve 31 California military bases. Arlington, Va.-based AES, which owns or has stakes in 104 power plants worldwide, expects to complete the purchase within 60 days, pending federal regulatory approval. AES shares rose $1.50 to close at $55.25, and UniSource gained 38 cents to close at $11.81, both on the NYSE.