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TMI 1 - from CNN
Due Diligence Completed on Tmi Unit One; Gpu, Amergen Energy Reach
Definitive Agreement
PRNewswire
19-OCT-98
MIDDLETOWN, Pa., Oct. 19 /PRNewswire/-- In a major step forward toward
completion of the sale of its Three Mile Island (TMI) Unit 1 Nuclear
Generating Facility, GPU, Inc. (NYSE: GPU) (GPU) announced today it has
signed a definitive asset purchase agreement with AmerGen Energy
Company, owned jointly by PECO Energy Company (NYSE: PE) and British
Energy.
The definitive agreement marks the successful completion of three months
of on-site due diligence by a team of PECO Energy and British Energy
personnel. The asset purchase agreement replaces the letter of intent
signed when the process for the sale of the plant was begun on July 17.
While there still are several significant regulatory approvals necessary
before the sale can be completed, the transaction would mark the first
ever sale of a nuclear power plant in the United States.
Agencies which must approve the sale include the Nuclear Regulatory
Commission, Federal Energy Regulatory Commission, Securities and
Exchange Commission, Pennsylvania Public Utility Commission and New
Jersey Board of Public Utilities. Target date for final regulatory
approvals is mid-year 1999.
Until the sale is completed, GPU will continue to be fully responsible
for the operation of Unit 1. The sale does not include the shut down TMI
Unit 2, which will continue to be owned by GPU.
"This agreement advances GPU's strategy of growing in the infrastructure
business and exiting the merchant generation business," said Fred D.
Hafer, chairman, president and CEO of GPU. "It is also good for TMI Unit
1 to become part of an organization that is going to become a major
nuclear operating company."
"We are very pleased at the positive results of due diligence," said
Dickinson Smith, AmerGen CEO. "We look forward to working with GPU
Nuclear and its employees during the transition. I see a bright future
for TMI Unit 1 and for AmerGen."
Dr. Robin Jeffrey, president of AmerGen and British Energy's executive
director, North America, said, "We promised our shareholders a well
thought out deal which would add value. I believe due diligence has
confirmed we have it. I'm confident that British Energy, working with
our U.S. partners, can play a significant role in the developing
competitive electric market."
AmerGen was formed last year as a joint venture by PECO Energy, of
Philadelphia, Pa., and British Energy, of Edinburgh, UK, to purchase and
operate nuclear plants in the US. Both have a strong commitment to the
future of nuclear power and share similar operational cultures involving
people, processes, safety and reliability.
The definitive agreement affirms the sale price of $100 million-- $23
million for the reactor and $77 million, payable over five years, for
the plant's nuclear fuel. The ultimate sale price will be partly
determined by possible additional payments depending on the actual
energy market clearing prices through 2010.
AmerGen will assume full responsibility for the decommissioning of TMI
Unit 1, which will be prefunded by GPU.
The agreement includes a power purchase agreement in which GPU Energy,
GPU, Inc.'s regulated energy delivery subsidiary, will purchase the
energy and capacity from TMI Unit 1 from closing through December 31,
2001.
TMI Unit 1 has one of the highest capacity factors of any nuclear plant
in the world and twice set world records for continuous days of
operation. Earlier this year, GPU Nuclear received the Utility
Achievement Award from the American Nuclear Society for its achievements
at TMI.
PECO Energy is an electric and gas utility serving 1.5 million electric
customers in the five-county Philadelphia area and 400,000 natural gas
customers in four suburban counties. It is one of the nation's largest
nuclear utilities, producing more than 34 billion kwh of electricity in
1997 at its Limerick and Peach Bottom generating stations. PECO Energy
has set new nuclear performance standards in safety, availability and
capacity factors, efficient refueling outages and low operating and
maintenance costs.
The company also owns and operates coal, natural gas, oil, landfill gas
and hydro power plants. PECO Energy's Power Team operates a 24-hour
energy trading floor with transactions in 47 states and Canada.
British Energy provides over 20 percent of Britain's electricity and it
is the U.K.'s largest generator. It is the owner and operator of 15
nuclear power reactors in the United Kingdom, with 9,600 megawatts of
generation, including seven advanced gas-cooled nuclear stations and one
pressurized water reactor station. In July, 1996, British Energy was
successfully privatized through a public offering of stock. The company
has distinguished itself in nuclear operations through its outstanding
safety record and by reducing costs and increasing output and profit
following privatization.
Headquartered in Edinburgh, Scotland, it has market capitalization of
4bn pounds and 5,300 employees. Its shares were the top performers in
the U.K. FTSE 100 Share Index in 1997-98, a year during which its
profits trebled.
GPU, Inc., an electric utility holding company, recorded operating
revenues of $4.1 billion in 1997. GPU Energy is the trade name for three
operating utility subsidiaries-- Metropolitan Edison, Pennsylvania
Electric and Jersey Central Power & Light-- which provide customer
service, transmission and distribution services to nearly 2 million
customers in Pennsylvania and New Jersey.
The GPU International Group has ownership and interests in electricity
distribution and supply business in England and Australia and generating
facilities in six foreign countries. The company's generation operations
are conducted by GPU Generation, Inc., and GPU Nuclear.
Corporate functions are performed by GPU Services.
© 1998 Cable News Network, Inc. A Time Warner Company
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______________________________
Miroslav Lieskovský
Health Physicist
NB POWER - PLGS - HP Dep't
PO BOX 10, Lepreau, NB, Canada, E0G 2H0
tel. (506) 659 7421, fax. (506) 659 6507
mlieskovsky@nbpower.com
> -----Original Message-----
> From: Sandy Perle [mailto:sandyfl@earthlink.net]
> Sent: Monday, October 19, 1998 2:46 PM
> To: Multiple recipients of list
> Subject: Citizens Vote On Nuclear Plant - TOTAL article
>
>
> I have been informed that part of the article was cut-off.
> Here is the
> entire article. As more details become available, I will post them.
>
> Citizens Vote On Nuclear Plant - (OCONEE) -- Residents in
> Oconee County will get to vote today on the fate of one the
> oldest nuclear sites in the Southeast. The Nuclear Regulatory
> Commission is deciding whether to renew the license of the
> Oconee nuclear plant in Seneca. Duke Energy submitted the
> renewal application this past summer.
>
> ------------------
> Sandy Perle
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