Power Markets Development Co. announced Friday (6/14) that it has entered a joint venture with an Austrian company, Hydrocontracting Ges.m.b.h. of Vienna, to develop and operate small hydroelectric plants in Portugal and Spain.

PMDC, a subsidiary of PP&L Resources, Inc., develops and invests in electricity generating and distribution facilities throughout the world.

Bob Fagan, PMDC president, said the venture involves five projects in Portugal and another five in Spain. "These projects represent a logical fit for PMDC and it is the intention of the joint venture to identify other similar, attractive opportunities in these two countries and elsewhere in Europe."

Fagan said PMDC, through its subsidiary, PMDC International, expects to invest up to $22 million in the joint venture over the next several years. "It is the objective of the joint venture to grow the portfolio of projects by two to three opportunities annually," Fagan said.

"This venture is consistent with PP&L Resources' plans to invest in foreign power projects and to grow shareowner value over the long term," said Fagan. "Also, we believe that this joint venture could lead to other attractive business opportunities in Europe."

Fagan indicated that, in the joint venture, PMDC and Hydrocontracting have chosen to focus on small hydro facilities, typically with capacity of 25 megawatts or less per facility. The 10 projects in which PMDC and Hydrocontracting expect to initially invest have a total capacity of about 51 megawatts.

Three of the plants in Portugal already are in operation and two more are under construction. The five projects in Spain are under development and construction and have projected in-service dates ranging from late this year through mid-1998.

PMDC, which has its corporate offices in Fairfax, Va., was formed by PP&L Resources in 1994. PMDC has investments in Peru, Bolivia and Argentina and is exploring additional ventures in Latin America, as well as elsewhere in the world.

In addition, PMDC announced recently that it is negotiating with a subsidiary of the Atlanta-based Southern Company to purchase a minority interest in South Western Electricity, a British utility.

PP&L Resources, based in Allentown, Pa., also is the parent company of Pennsylvania Power & Light Co., which provides electricity service to 1.2 million customers in eastern and central Pennsylvania.