Mirant Enters Ten-Year Power Purchase Agreement with PG&E for New 760 MW Marsh Landing Generating Station
September 03 2009 - 4:30PM
PR Newswire (US)
ATLANTA, Sept. 3 /PRNewswire-FirstCall/ -- Mirant Corporation
(NYSE:MIR) announced today that its subsidiary, Mirant Marsh
Landing, LLC, entered into a ten-year power purchase agreement with
Pacific Gas and Electric Company (PG&E) for 760 MW of natural
gas-fired peaking generation to be constructed at Mirant's existing
Contra Costa facility near Antioch, Calif. "We are very pleased to
be adding new generating capacity in California," said Edward R.
Muller, Mirant's chairman and chief executive officer. "The Marsh
Landing facility will provide clean, flexible capacity that will
support increasing amounts of intermittent renewable resources such
as wind and solar." Construction of the Marsh Landing facility is
scheduled to begin in late 2010 and to be completed by May 2013. At
its peak, the project will create over 350 union construction jobs.
During the ten-year term of the power purchase agreement, Mirant
Marsh Landing will receive fixed monthly capacity payments and
variable operating payments. The contract provides PG&E with
the entire output of the 760 MW facility which will be capable of
producing 719 MW during peak July conditions. Separately, Mirant
Delta, LLC, another Mirant subsidiary, has entered into an
extension of its existing power purchase agreement with PG&E
for Contra Costa Units 6 and 7 from November 2011 through April
2013. At the end of the extension, and subject to regulatory
approval, Mirant Delta has agreed to retire Contra Costa Units 6
and 7, which began operations in 1964, in furtherance of state and
federal policies to retire aging power plants that utilize
once-through cooling technology. Both of the Mirant Marsh Landing
and Mirant Delta power purchase agreements are subject to
California Public Utilities Commission approval. Mirant is a
competitive energy company that produces and sells electricity in
the United States. Mirant owns or leases approximately 10,112
megawatts of electric generating capacity. The company operates an
asset management and energy marketing organization from its
headquarters in Atlanta. For more information, please visit
http://www.mirant.com/. Cautionary Language Regarding
Forward-Looking Statements Some of the statements included herein
involve forward-looking information. Mirant cautions that these
statements involve known and unknown risks and that there can be no
assurance that such results will occur. There are various important
factors that could cause actual results to differ materially from
those indicated in the forward-looking statements, such as, but not
limited to, the transaction not closing on schedule, if at all, and
not proving to be financially advantageous to Mirant as a result of
unknown market conditions, contract terms, costs of construction
and future environmental regulation; the inability to secure, the
timing of, and any conditions imposed in connection with, the
California Energy Commission approval of the Mirant Marsh Landing
facility; the California Public Utilities Commission withholding or
delaying its approval of the Mirant Marsh Landing and Mirant Delta
power purchase agreements; the inability to complete construction
of the Mirant Marsh Landing facility within the expected timeframe
or within the expected budget; and the risks and uncertainties
described in Mirant's Form 10-K for the year ended December 31,
2008 and Mirant's Forms 10-Q for the quarters ended March 31 and
June 30, 2009, under the caption "Cautionary Statement Regarding
Forward-Looking Information." Mirant undertakes no obligation to
update publicly or revise any forward-looking statements to reflect
events or circumstances that may arise. The foregoing review of
factors that could cause Mirant's actual results to differ
materially from those contemplated in the forward-looking
statements included in this news release should be considered in
connection with information regarding risks and uncertainties that
may affect Mirant's future results included in Mirant's filings
with the Securities and Exchange Commission at http://www.sec.gov/.
Stockholder inquiries: 678 579 7777 DATASOURCE: Mirant CONTACT:
Media contact: Chip Little, +1-678-579-6592, , or Investor
Relations contacts: Steve Himes, +1-678-579-3655, , or Audrey
Emerson, +1-678-579-3231, , all for Mirant Web Site:
http://www.mirant.com/
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