Peoples Energy Completes Sale of Interest In Elwood Energy
January 17 2007 - 1:00PM
Business Wire
Peoples Energy Corporation (NYSE:PGL) today announced that it has
completed the sale of substantially all of its fifty percent
interest in Elwood Energy, LLC to J-Power USA Development Co.
(J-Power). The Company expects to close on the sale of its
remaining power asset, a development site in Oregon, to J-Power
within the near future. As a result of these transactions, the
Company expects to record a net gain of approximately $20 million
on a pre-tax basis in the quarterly period ended March 31, 2007.
Cash proceeds of approximately $110 million, which include
approximately $6 million of cash distributions received by the
Company from the Elwood partnership since agreement was reached
with J-Power on the sales in 2006, will be used to reduce
short-term borrowing at Peoples Energy Corporation. The Company
will temporarily retain a 0.1% interest in the Elwood partnership,
but expects to transfer the remaining Elwood interest to J-Power
within 18 months. The sale of Elwood follows an announcement by
Peoples Energy in February, 2006, of its intent to divest its power
assets and exit the power generation business. The Company�s
interest in the Southeast Chicago Energy Project (SCEP) was sold to
Exelon Generation in May, 2006, for approximately $50 million. The
Company recognized a $4.1 million pre-tax gain as a result of that
sale. Peoples Energy, a member of the S&P 500, is a diversified
energy company comprised of three primary business segments: Gas
Delivery, Oil and Gas Production and Energy Marketing. The Gas
Delivery business serves about one million retail customers in
Chicago and northeastern Illinois. Visit the Peoples Energy web
site at www.PeoplesEnergy.com. Forward-Looking Information This
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, such as the expected
gain on the company's sale of its interest in Southeast Chicago
Energy Project. Generally, the words "may", "could", "project",
"believe", "anticipate", "estimate", "plan", "forecast", "will be",
and similar words identify forward-looking statements. Actual
results could differ materially from such expectations because of
many uncertainties, including, but not limited to, the timing of
the closing of the COB Energy sale and approval of the transaction
by governmental agencies. All forward-looking statements included
in this press release are based upon information presently
available, and Peoples Energy assumes no obligation to update any
forward-looking statements.
Peoples Energy (NYSE:PGL)
Historical Stock Chart
From Nov 2024 to Dec 2024
Peoples Energy (NYSE:PGL)
Historical Stock Chart
From Dec 2023 to Dec 2024
Real-Time news about Peoples Energy Corp (New York Stock Exchange): 0 recent articles
More Peoples Energy Corporation News Articles