Dominion Resources to Buy Out Exelon's Contract
KENNETT SQUARE, PA., October 15 /CNW/ - Exelon Generation has entered
into an agreement to terminate its Power Purchase Agreement (PPA) and other
related agreements with State Line Energy, L.L.C. (State Line). State Line is
an indirect, wholly-owned subsidiary of Dominion. The agreement is subject to
a number of conditions, including approval by the Federal Energy Regulatory
Commission and others.
Exelon Generation assumed the PPA and the other related contracts on
January 1, 2001 from Commonwealth Edison Company (ComEd). ComEd had contracted
to purchase the output from the 515 MW coal generating facility in Hammond,
Indiana since 1996. The contract was due to run through 2012.
Exelon Power Team President Ian McLean said, "We believe that we received
excellent value for the contract. Terminating this contract generates
immediate cash flow and allows us to focus on more strategic assets and
minimize risk associated with a plant that we do not own or operate. Risk
associated with the cost structure and operational performance of this plant
will now appropriately be in the hands of the owner."
Exelon Generation is a unit of Exelon Corporation, one of the nation's
largest electric utilities with more than $15 billion in annual revenues.
Exelon Generation has one of the industry's largest portfolios of electricity
generation capacity, with a nationwide reach and strong positions in the
Midwest and Mid-Atlantic. Exelon is headquartered in Chicago and trades on the
NYSE under the ticker EXC.
For further information:
For further information: Exelon Generation Media Contact: Tim Brown
610-765-6925 or Exelon Investor Contact: JaCee Burnes 312-394-2948