Summary
Exelon Corporation (EXC) has received Federal Energy Regulatory Commission (FERC) authorization for the initial stage of its exit from Boston Generating, LLC (BG). This authorization permits the transfer of BG's ownership to a special purpose entity controlled by its lenders, a process expected to be completed by May 31, 2004. This move is part of an orderly transition out of the ownership of generating projects including Mystic 4-7, Mystic 8 and 9, and Fore River. While Exelon's affiliates will continue to operate and market power from these plants on behalf of the new owners in the interim, the second stage of the transaction, involving the full transfer of operational and marketing responsibilities, is anticipated in the third quarter of 2004. Upon completion of the ownership transfer, any operating losses incurred by Exelon and its subsidiary Generation in 2004 related to BG will be offset against the anticipated gain from the sale, providing a clearer financial picture for the company going forward.
Key Highlights
- 1FERC has authorized the initial transfer of ownership of Boston Generating, LLC (BG) to a special purpose entity owned by lenders.
- 2The ownership transfer is expected to be completed by May 31, 2004.
- 3Exelon's affiliates will continue plant operations and power marketing for BG on an interim basis.
- 4The second stage, transferring operational and marketing responsibilities, is targeted for the third quarter of 2004.
- 5Operating losses from BG in 2004 will be offset against the anticipated gain from the sale upon ownership transfer.
- 6This filing relates to the orderly transition out of ownership of specific generating projects: Mystic 4-7, Mystic 8 and 9, and Fore River.