Rochester, NY - November 25, 2003 – RG&E (Rochester Gas and Electric Corporation) a utility subsidiary of Energy East Corporation [NYSE:EAS] 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. "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. Media Contact: Clyde Forbes 585-771-4802
Democrat and Chronicle ... Ginna generates. Ginna’s two steam generators were replaced in 1996, a $115 million project to refurbish the plant. But Judson ... B&W and ETARCO LTD. To Ship Two Steam Generators ... This shipment is part of a US$40 million contract between B&W and RG&E to replace two 23-year-old steam generators in their Ginna power plant. ... www.babcock.com/pgg/pr/ginna.html - 4k - Cached - Similar pages [ More results from www.babcock.com ]
I read this that they sold the plant for only 107.6 million ? That seems like a VERY good deal for Constellation but not for the EE/RGS/RG$E stockholders. The new steam generators were around 115 mil Ginna Station to Constellation Generation Group LLC for $422.6 million RG&E will transfer to Constellation $202 million $422.6 million - $202 million = $220.6 milliom - $115 million steam generator upgrade = $107.6 million = A very bad deal for stockholders !
Click For More on The Proposed Rate Increase !
Click For More on Voltage Problems.
Click For More on Demand Metering.
Who Killed Montana Power?
Feds Find Power Manipulation in Calif.
400,000 to Keep Russell Station on line - - -
$75 Million to close it down - - -