Summary
Exelon Corporation's subsidiary, Exelon Generation Company, LLC, has entered into a Termination Agreement with State Line Energy, L.L.C. (a Dominion Resources Inc. subsidiary) to end a Power Purchase Agreement (PPA) related to the State Line generating facility in Indiana. This agreement, effective upon satisfaction of certain conditions including regulatory approval, will result in State Line paying Exelon Generation approximately $233 million. This payment covers the termination of the PPA, the purchase of existing coal inventories as of October 1, 2007, and other associated assets.
Key Highlights
- 1Exelon Generation Company, LLC (Generation) entered into a Termination Agreement with State Line Energy, L.L.C. (an indirect subsidiary of Dominion Resources Inc.).
- 2The agreement aims to terminate a Power Purchase Agreement (PPA) dated April 17, 1996, concerning the State Line generating facility in Hammond, Indiana.
- 3Under the agreement, Generation controls 515 MW of electric energy and capacity from the State Line facility.
- 4State Line will pay Generation approximately $233 million upon satisfaction of certain conditions, including regulatory approval from FERC and third-party consents.
- 5The payment from State Line covers PPA termination, purchase of coal inventories (as of October 1, 2007), and other assets.
- 6Exelon Generation will assign related contracts (coal purchase, rail leases, transportation) to Dominion's subsidiary, Virginia Power Energy Marketing, Inc., with Dominion providing an indemnity guarantee.
- 7The termination agreement will be void if conditions are not met by December 31, 2007.