RG&E to Sell Ginna Nuclear Generating Station To Constellation Generation Group LLC
November 25 2003 - 5:55AM
PR Newswire (US)
RG&E to Sell Ginna Nuclear Generating Station To Constellation
Generation Group LLC ROCHESTER, N.Y., Nov. 25
/PRNewswire-FirstCall/ -- RG&E (Rochester Gas and Electric
Corporation) a utility subsidiary of Energy East Corporation
announced today that it has signed an agreement to sell the R. E.
Ginna Nuclear Generating Station to Constellation Generation Group
LLC for $422.6 million (including nuclear fuel). The closing of the
sale is targeted for June 30, 2004 and is contingent on the company
securing a 20-year license extension from the Nuclear Regulatory
Commission (NRC). Cash proceeds from the sale will be used to pay
down debt. (Logo:
http://www.newscom.com/cgi-bin/prnh/20021030/RGELOGO ) "Clearly,
Constellation sees the value in Ginna, and its outstanding
employees," said Jim Laurito, RG&E's president. "The agreement
between RG&E and Constellation marks the end of a successful
competitive auction conducted in consultation with the staff of the
New York State Department of Public Service. Constellation is an
experienced nuclear operator with an excellent reputation for safe
and reliable operations. In addition, the sale is consistent with
the New York State policy for electric utilities to divest
generation assets and transform into energy delivery companies."
RG&E will transfer to Constellation approximately $202 million
in decommissioning funds, an amount expected to fully meet the
NRC's decommissioning funding requirements for the plant. The sale
agreement also includes a 10-year purchase power agreement to
ensure that RG&E's customers continue to receive the benefit of
power from Ginna. The sale of Ginna is subject to approvals by
several regulatory agencies including the New York State Public
Service Commission, the NRC and the Federal Energy Regulatory
Commission. Ginna, powered by a pressurized, light water nuclear
reactor, is located on Lake Ontario, in the Town of Ontario, in
Wayne County. Westinghouse designed the plant and Bechtel
constructed it. Ginna's current NRC operating license expires in
2009. The process to extend the license to 2029 is well under way.
A decision on the license extension is expected by June 2004. J.P.
Morgan Securities Inc. and Concentric Energy Advisors, Inc. acted
as advisors to RG&E for this transaction. Huber Lawrence &
Abell and LeBoeuf, Lamb, Greene, & MacRae, LLP acted as legal
counsel. About RG&E: RG&E serves approximately 355,000
electricity customers and 291,000 natural gas customers in the
areas in and around Rochester, New York. RG&E is a wholly owned
subsidiary of RGS Energy, which merged with Energy East Corporation
[NYSE:EAS] in 2002. About Energy East: Energy East is a respected
super-regional energy services and delivery company that our
customers can depend on every day. We are a motivated and skilled
team of professionals dedicated to creating shareholder value
through our focus on profitable growth, operational excellence and
strong customer partnerships. We serve 3 million customers (1.8
million electricity, 900,000 natural gas and 300,000 other retail
energy customers) throughout upstate New York and New England.
Contact: Clyde Forbes 585.771.4802
http://www.newscom.com/cgi-bin/prnh/20021030/RGELOGODATASOURCE:
Rochester Gas and Electric Corporation CONTACT: Clyde Forbes,
Rochester Gas and Electric Corporation, +1-585-771-4802
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