MAGMA POWER CO. ANNOUNCES ACQUISITION OF PEAK POWER CORP.
SAN DIEGO, May 11 /PRNewswire/ -- Magma Power Co. (NASDAQ: MGMA) today announced that it has acquired Peak Power Corp., a San Francisco-based independent power company, for a total investment of approximately $1 million. Peak Power will operate as a wholly owned subsidiary of the company. Peak Power Corp. is a developer of Modular Pumped Storage(TM), a proprietary technology in which groundwater or municipal wastewater is pumped to an elevated storage reservoir during periods of low energy demand for use in generating electricity during periods of peak demand. Peak Power's pumped storage design is a closed system that has low environmental impact since it does not require the damming of rivers or streams. Through the acquisition, Magma Power Co. will be acquiring Peak Power's projects, all of which are in various proposal stages. Among these is a proposed Nevada Power project which would supply 200 MW of non-thermal peaking capacity for the Las Vegas region. Peak Power personnel, including David B. Olsen, president of Peak Power, will remain with the company and join Magma Power in San Diego. Commenting on the acquisition, Magma Power Co. President Ralph W. Boeker stated, "Peak Power fits nicely with Magma's strategy of developing new technologies and revenue sources related to our core geothermal power business. Modular Pumped Storage can transform geothermal into a fully dispatchable resource, and provides a cost- effective use of geothermal energy produced during off-peak periods. Pumped storage offers a clean alternative to burning fossil fuels for peaking purposes, and complements the environmental advantages of our geothermal business." Magma Power Co. holds geothermal leaseholds in California and Nevada, and manages the operation of geothermal power plants in which it owns a significant interest. Magma also receives royalties, management service fees, interest and rental income from the plants and properties, and earns significant investment income. -0- 5/11/93 /CONTACT: Magma Power Investor Relations, 619-622-7800/ (MGMA)
CO: Magma Power Co.; Peak Power Corp. ST: California IN: OIL UTI SU: TNM
JL-BP -- SD005 -- 6831 05/11/93 08:01 EDT
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|Date:||May 11, 1993|
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