Pepco Receives $57.5 Million Owed by Mirant as Power Supplier Resumes Performance Under Contract
Wednesday, April 13, 2005
Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), today received $57.5 million from Mirant Corp. in response to a federal court order requiring Mirant to comply with a contract signed with Pepco in 2000.
Last month, U.S. District Court Judge John McBryde in Ft. Worth, Texas, ordered Mirant to resume contractual payments to Pepco that Mirant unilaterally halted in December 2004. Mirant was ordered to pay all past due amounts owed Pepco and to resume future payments underprovisions of an asset purchase and sale purchase agreement (APSA) that Mirant signed in 2000 to buy Pepco’s generating plants. Mirant sought a stay of Judge McBryde’s order, as well as other relief from the 5th U.S. Circuit Court of Appeals. The Appeals Court initially issued a stay, but in a brief opinion Monday lifted the stay and denied Mirant the other relief requested.
Since declaring bankruptcy in 2003, Mirant has attempted to avoid, and Pepco has sought to enforce the contract’s provisions that involve power purchases from Pepco.
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About PHI:
Pepco Holdings, Inc. is a diversified energy company with headquarters in Washington, D.C. Its principal operations consist of PHI Power Delivery, which delivers 50,000 gigawatt-hours of power to more than 1.8 million customers in Washington, D.C., Delaware, Maryland, New Jersey and Virginia. PHI engages in regulated utility operations by delivering electricity and natural gas, and provides competitive energy and energy products and services to residential and commercial customers.
