GPU Sells Power Plants for $1.72 Billion

New Jersey utility GPU Inc. sold power plants and other generating businesses for $1.72 billion in a bid to better compete in deregulated markets by focusing on distribution. The Morristown-based company, which serves 2 million customers, will buy some of its power from New York-based Sithe Energies, a privately held company that became North America’s largest power supplier with Monday’s purchases. Sithe will buy 23 GPU plants in Pennsylvania, New Jersey and Maryland, 18 development sites and three support businesses for $1.68 billion. Akron, Ohio-based FirstEnergy Corp. will purchase GPU’s 20% interest in the Seneca hydroelectric generating station in Warren, Pa., for $43 million. GPU shares fell 56 cents to close at $44.19 on the NYSE.