Peco, British Energy to Buy U.S. Nuclear Plants

Peco Energy Co. and British Energy said they formed a joint venture to buy and operate nuclear plants in the United States. Each company will hold a 50% stake in the venture, AmGen Energy Co. AmGen is in talks with “a number of organizations” in the U.S. and intends to build “a national portfolio of nuclear generation assets,” Smith said. Power markets in the U.S. and Britain are headed toward greater competition. Nuclear plants, with their high fixed costs and regulatory headaches, are likely to be unprofitable for many companies, analysts say. As a result, many companies are looking to sell their nuclear assets. “Sometimes the best time to buy something is when nobody wants it,” said Thomas Hamlin, an analyst at Wheat First Butcher Singer. Philadelphia-based Peco, under Chairman Corbin McNeill, has turned its nuclear plants from some of the worst run in the country to some of the best, and is looking to buy more plants at bargain prices. Edinburgh, Scotland-based British Energy has eight nuclear plants in England and Scotland. Peco’s shares rose 6 cents to close at $23.75 on the New York Stock Exchange.