Hadson Venture Awarded $58 Million in Contracts

Article excerpt

Contracts for more than $58 million dealing with operations and maintenance of two electricity generating plants, one in eastern Pennsylvania and the other in eastern Montana have been awarded to a Hadson Corp. joint venture, it was announced Tuesday.

The announcement concerning UC Operating Services was released Tuesday by Oklahoma City-based Hadson's subsidiary Ultrasystems Power and Environmental Systems Inc. and Constellation Holdings Inc., a Maryland-based subsidiary of Baltimore Gas and Electric Co.

The contracts are the first to operate facilities that are not owned by the joint venture partners, said James P. Kelly, chief executive officer of Ultrasystems Power Systems Group, a subsidiary of Hadson.

The power systems group realized it could provide operations for other companies while creating income for its parent, Kelly said.

The joint venture company currently operates six electricity generating plants and will operate four more that are coming on-line, Kelly said.

The joint venture was created Nov. 1, 1987, Kelly said. Baltimore Gas & Electric was already a co-owner in one of the plants currently operating and in the four planned prior to the joint venture, he said.

By being connected to the utility through the joint venture, the company could increase and improve its opportunities on the East Coast, Kelly said. Most of operations of Ultrasystems operations were on the West Coast, but the company could see lots of opportunities on the East Coast, he said.

The Pennsylvania plant would burn culm, an industry term for waste anthracite coal, while the Montana plant would burn waste bituminous coal. The waste coal is produced during the mining and washing process, when some coal is rinsed away with the dirt.

"It has a Btu (British thermal unit) value and can burn," Kelly said.

The Pennsylvania facility is a 20-megawatt waste coal-fired power plant currently under construction scheduled for start-up later in 1988. …