SEI purchased four power plants: the 837-megawatt DickersonStation, fueled by coal, oil and natural gas in Montgomery County,MD; the 2,423-megawatt Chalk Point Station, fueled by coal, oil andnatural gas in Prince George's County, MD; the 1,412-megawattMorgantown Station, fueled by coal and oil in Charles County, MD;and the 482-megawatt Potomac River Station, fueled by coal inAlexandria, VA. Also included in the sale is a 140,000-sf centralgeneration maintenance and office facility in Forestville, MD.

Pepco also transferred ownership of two small plants in theDistrict of Columbia to a new wholly owned unregulated subsidiaryof Pepco Energy Services. SEI will operate these plants.

SEI will sell power from the plants back to Pepco for up to fouryears. It also acquired the Piney PointOil Pipeline, a 51.5-milepipeline serving the Chalk Point and Morgantown power plants,Pepco's rights and obligations to the 84-megawatt Southern MarylandElectric Cooperative combustion turbine, and an engineeringmaintenance service facility.