Pennsylvania Enterprises, Inc. Acquires Archbald Power Corporation

Pennsylvania Enterprises, Inc. (PEI) last week signed an agreement to acquire the Archbald Power Corporation and its 25 Megawatt cogeneration facility. The facility, constructed in 1987 on a 300 acre site in Lackawanna County, Pa., employed 30 full time workers. It closed in July 1997 when contracts to supply electricity to a local utility were repurchased.

PEI plans to convert the facility to burn natural gas instead of anthracite culm. The conversion should decrease the emissions of nitrogen oxide and sulfur dioxide inherent in the burning of any fossil fuel.

According to PEI officials, the company intends to sell power generated in Northeast Pennsylvania, rather than power produced in other areas, as much as possible. The company has also announced a joint marketing alliance with CNG Energy Services and the creation of PG Energy PowerPlus. The alliance adds electricity to the company's range of energy products and services.

PEI is a holding company with regulated and nonregulated subsidiaries. The regulated group consists of PG Energy and its subsidiary, Honesdale Gas Company. The nonregulated group consists of Theta Land Corporation and PG Energy Services and its subsidiary, Keystone Pipeline Services, Inc.