Summary
Exelon Corporation (Exelon) announced the completion of the sale of its indirect wholly owned subsidiary, Boston Generating, LLC (BG), on May 25, 2004. This transaction involved the transfer of ownership of BG, which owns generating projects including Mystic 4-7, Mystic 8 and 9, and Fore River, to a special purpose entity owned by BG's lenders. This move is part of an orderly transition strategy for Exelon and its subsidiary Exelon Generation Company, LLC (Generation) to exit ownership of these assets. The sale follows a settlement agreement with BG's lenders reached in February 2004 and received approval from the Federal Energy Regulatory Commission (FERC) on May 10, 2004. Exelon expects that operating losses from BG in 2004 will be offset against the anticipated gain from this sale. The transfer of plant operations and power marketing responsibilities to the new owners is expected to be completed in the third quarter of 2004, pending further FERC approval.
Key Highlights
- 1Completion of sale of Boston Generating, LLC (BG) on May 25, 2004.
- 2Ownership transferred to a special purpose entity owned by BG's lenders.
- 3Sale is part of an orderly transition out of ownership of specified generating projects.
- 4FERC approval for the sale obtained on May 10, 2004.
- 5Operating losses from BG in 2004 are expected to be offset against the sale gain.
- 6Transfer of plant operations and power marketing is anticipated in Q3 2004, subject to FERC approval.
- 7Exelon Generation affiliates will continue to operate plants temporarily until the operations transfer.