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RICHMOND, Va., June 3, 2002 -- Mirant has completed the sale of Mirant State Line Ventures to Dominion for approximately $182 million, the two companies announced recently. The two companies announced the sales agreement in February.
Through the sale, Dominion acquires 100 percent ownership of the assets from Mirant including the 515-megawatt, coal-fired State Line power plant near Hammond, Ind., and a power purchase contract with Exelon, the sole purchaser of the plant's output.
Under the terms of the power purchase agreement, which expires in 2012, Exelon will continue to provide 100 percent of the coal and its transportation to the power plant.
"We're pleased to welcome State Line and the committed, hard working, skilled men and women who have earned this power plant's well-deserved reputation for efficient and reliable operations," said Thos. E. Capps, chairman, president and chief executive officer of Dominion. "With completion of this acquisition, we're adding a top flight power plant to our fleet. This transaction increases Dominion's production capability significantly, provides additional fuel mix diversity, and enhances our overall operating presence in a key Midwest energy market."
"With the sale of State Line, we have announced or sold over $1.4 billion in assets this year and are currently ahead of schedule toward meeting our goal of $1.6 billion in asset sales," said Randy Harrison, senior vice president, Mirant. "These actions will improve our liquidity and strengthen our balance sheet."
The State Line plant consists of two coal-fired units (Units 3 and 4) totaling 515 megawatts. The two units burn low-sulfur coal from Wyoming's Powder River Basin. The plant's Units 1 and 2 were decommissioned in the late 1970s.
Dominion acquired State Line's sister facility, the 1,158-megawatt Kincaid power plant near Springfield, Ill., from Exelon in 1998. Dominion operates 11 other coal-fired power plants in Virginia and West Virginia.
Dominion is one of the nation's largest producers of energy, with a production capability of more than 3 trillion British thermal unit of energy per day. Dominion has a diversified and integrated energy portfolio consisting of nearly 24,000-megawatts of generation, 5.1 trillion cubic feet equivalent of proved natural gas reserves, 7,600 miles of natural gas transmission pipeline and the nation's largest underground natural gas storage system with more than 950 billion cubic feet of storage capacity. Dominion also serves 3.9 million franchise natural gas and electric customers in five states. In addition, Dominion owns a managing equity interest in Dominion Fiber Ventures LLC, owner of Dominion Telecom. For more information about Dominion, visit the company's web site at www.dom.com.
Mirant is a global competitive energy company. Mirant delivers value by integrating an extensive portfolio of power and natural gas assets with marketing and risk management expertise. The company has facilities in North America, Asia, Caribbean and Europe. Visit Mirant at www.mirant.com.
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