1 EXHIBIT 5.1 STROOCK & STROOCK & LAVAN LLP 180 Maiden Lane New York, New York 10038 September 28, 2000 Orion Power Holdings, Inc. 7 East Redwood Street, 10th Floor Baltimore, Maryland 21202 Ladies and Gentlemen: We have acted as counsel to Orion Power Holdings, Inc., a Delaware corporation (the "Company"), in connection with the preparation and filing with the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Act"), of a Registration Statement on Form S-1 (Registration No. 333-44118), as amended (the "Registration Statement"), relating to the proposed public offering (the "Offering") by the Company of up to 21,779,032 shares of its common stock, par value $.01 per share (the "Common Stock"), and by the selling stockholders named in the Registration Statement (the "Selling Stockholders") of up to 3,220,968 shares of Common Stock (all such shares of Common Stock being hereinafter collectively referred to as the "Shares"). As such counsel, we have examined copies of the Certificate of Incorporation and By-Laws of the Company, each as amended to the date hereof, the Registration Statement, the Prospectus which forms a part of the Registration Statement and originals or copies of such corporate minutes, records, agreements and other instruments of the Company, certificates of public officials and other documents, and have made such examinations of law, as we have deemed necessary to form the basis for the opinion hereinafter expressed. In our examination of such materials, we are assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity to original documents of all copies submitted to us. As to various questions of fact material to such opinion, we have relied, to the extent we deemed appropriate, upon representations, statements and certificates of officers and representatives of the Company and others. Attorneys involved in the preparation of this opinion are admitted to practice law in the State of New York and we do not purport to express any opinion herein concerning any law other than the laws of the State of New York, the federal laws of the United States of 2 September 28, 2000 Page 2 America and the General Corporation Law of the State of Delaware. Based upon and subject to the foregoing, we are of the opinion that (i) the Shares being offered by the Company, when and if issued and sold under the circumstances contemplated by the Registration Statement, will be legally issued, fully paid and non-assessable and (ii) the Shares being offered by the Selling Stockholders, when and if sold under the circumstances contemplated by the Registration Statement, will be legally issued, fully paid and non-assessable. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to this firm under the caption "Legal Matters" in the Prospectus which forms a part of the Registration Statement. In giving such consent, we do not admit hereby that we come within the category of persons whose consent is required under Section 7 of the Act or the Rules and Regulations of the Commission thereunder. Very truly yours, /s/ STROOCK & STROOCK & LAVAN LLP STROOCK & STROOCK & LAVAN LLP