Three Mile Island subject of first U.S. nuke sal

["Sandy Perle" <sandyfl@earthlink.net>]

Friday July 17, 7:25 pm Eastern Time

HARRISBURG, Pa., July 17 (Reuters) - Three Mile Island, the site 
of the worst U.S. nuclear accident, made history again on
Friday when its infamous nuclear power plant became the first in 
the country to be sold.

As part of the U.S. electricity industry's march toward deregulation, 
New Jersey-based GPU Inc.(GPU - news) announced an
agreement in principle to sell the TMI Unit 1 reactor to a joint 
venture of PECO Energy Co.(PE - news) and British Energy
Plc(quote from Yahoo! UK & Ireland: BGY.L) for $100 million.

TMI Unit 2, the inoperative facility that suffered a partial meltdown 
and forced the evacuation of 100,000 people in March
1979, would remain part of GPU. That facility, from which tons of 
radioactive rubble had to be removed, will never again
generate electricity.

The disaster at Three Mile Island, which lies in the middle of the 
Susquehanna River just southeast of Harrisburg, brought a
quick end to what had been a booming U.S. nuclear power 
industry. Regulators soon tightened operating standards and
ordered countless safety modifications at plants nationwide. No 
new plants have been ordered since.

Unit 1, which also shut down during the accident, was restarted in 
1984. It has maintained a good operating and safety record
since entering service 24 years ago.

Under the terms of the agreement, PECO and British Energy would 
buy Unit 1 through a joint venture called AmerGen, a
company set up specifically for the purpose of acquiring and 
operating nuclear facilities.

AmerGen agreed to pay $23 million for the reactor and $77 million 
for the plant's nuclear fuel. Ultimately, the sale price also
would depend on actual energy market clearing prices through 
2010.

A GPU regulated energy delivery subsidiary would purchase energy 
from TMI Unit 1 from Jan. 1, 2000, through Dec. 31,
2001, assuming the deal were to close Dec. 31, 1999.

``This should be an excellent business deal for everyone involved,'' 
said Michael Egan, who serves as chief financial officer of
PECO and as chairman of AmerGen.

``AmerGen's mission is to become a premier operator of nuclear 
power plants in the U.S.; Unit 1 has proven to be an excellent
nuclear unit, and GPU wants to divest it at a fair price. This is the 
kind of 'win-win' acquisition that was envisioned when
AmerGen was formed.''

Philadelphia-based PECO delivers retail utility service to 1.5 million 
electric and more than 405,000 natural gas customers in
southeastern Pennsylvania. British Energy, which was privatized 
by the British government in 1996, is the biggest electricity
generator in the United Kingdom.

With the signing of a letter of intent, AmerGen began a 90-day 
period of due diligence that would entail an in-depth review of
all aspects of TMI Unit 1.

The deal also required approval from the Nuclear Regulatory 
Commission, the Federal Energy Regulatory Commission, the
Securities and Exchange Commission, the Pennsylvania Public 
Utility Commission and New Jersey Board of Public Utilities. 
------------------
Sandy Perle
Technical Director
ICN Dosimetry Division
Costa Mesa, CA 92626
Office: (800) 548-5100 x2306 
Fax:    (714) 668-3149
  
sandyfl@earthlink.net
sperle@icnpharm.com

Personal Website: http://www.geocities.com/CapeCanaveral/1205
        
ICN Dosimetry Website: http://www.dosimetry.com

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