July 19 (Reuters) – Indian energy equipment maker Bharat Heavy Electricals (BHEL.BO) said on Monday it got an order worth 26.65 billion rupees ($567 million) for setting up a 1,200 megawatts thermal power plant from Dainik Bhaskar Power Ltd. ($1=47 rupees) (Reporting by Pratish Narayanan)
Vestas wins 64 MW turbine order from Sweden
July 15, 2010 By Leave a Comment
July 14 (Reuters) – Denmark’s Vestas (VWS.CO), the world’s biggest maker of wind turbines, said on Wednesday it had won an order for 21 turbines with total capacity of 64 megawatts in Sweden.
Vestas Wind Systems A/S said in a statement the deal with Nasudden Vast Invest, Slitevind AB and Stugyl AB includes a service agreement and the installation, on the island of Gotland in the Baltic Sea, is to be completed in late 2011.
The company did not disclose financial details.
(Reporting by Anna Ringstrom; editing by Elaine Hardcastle)
U.N. watchdog backs Egypt nuclear power plant plans
June 23, 2010 By Leave a Comment
CAIRO, June 22 (Reuters) – The U.N. nuclear watchdog is ready to cooperate with plans to build nuclear power plants in Egypt, which is now working on locations for construction, the head of the U.N. body said on Tuesday.
Egypt said in March it planned to build four plants by 2025 and inaugurate the first in 2019 in an effort to reduce the most populous Arab country’s reliance on oil and gas. Officials hope the programme would add capacity of up to 4,000 megawatts.
“The IAEA is very happy to cooperate with Egypt in its project of introducing nuclear power. Now Egypt is finalizing its plan of choosing the site for its nuclear plant,” said Yukiya Amano, head of the International Atomic Energy Agency.
Speaking after talks with Egyptian officials, he told reporters he had proposed sending a mission to Egypt. He did not give details.
The official state news agency MENA also quoted Electricity and Energy Minister Hassan Ahmed Younes saying the IAEA had voiced its full support of Egypt’s nuclear programme.
Egypt, with 78 million peopled, has signed a nuclear power consultancy deal with Australia’s WorleyParsons (WOR.AX).
The deal, reached last year, includes looking for potential locations and updating studies on the Dabaa site on the Mediterranean coast, where Egypt planned to build a power station in the 1980s.
Egypt has long pressed for making the Middle East a nuclear-weapons-free zone and backed plans for a U.N.-sponsored conference for Middle East states in 2012 on the issue.
Israel is widely believed to have the region’s only nuclear arsenal. Western powers suspect Iran of developing nuclear weapons under the cover of a civilian programme. Tehran denies such ambitions.
“In the upcoming conference in 2012 of the creation of a nuclear free zone, we have further discussed the aid that the agency could extend to Egypt,” Amano said. (Reporting by Marwa Awad, writing by Edmund Blair)
No impact from radiation leak at China nuclear plant, says CLP
June 16, 2010 By Leave a Comment
June 15 (Reuters) – CLP Holdings Ltd (0002.HK), Hong Kong’s largest power supplier, said it had recorded a small rise in radioactivity in reactor cooling water at a nuclear plant in the southern Chinese city of Shenzhen last month.
“The reactor cooling water is sealed in completely and isolated from the external environment, thus causing no impact to the public,” CLP said on Tuesday.
CLP’s statement followed a report by Washington-based Radio Free Asia that the Daya Bay nuclear plant had suffered a large radiation leak that was threatening public safety.
Preliminary assessments indicated there was a very small leakage at a fuel rod in Unit 2 of the power station, the company said in a statement obtained by Reuters on Tuesday.
The level of radioactivity had since remained stable over the last two weeks, it said.
Operations at the Daya Bay nuclear power plant had not been affected, said the company, adding that the situation did not fall within the International Nuclear Event Scale, which measures the significance of nuclear accidents.
Daya Bay nuclear power plant, 25 percent owned by CLP, is located about 50 km (30 miles) from densely-populated Hong Kong and supplies a quarter of the city’s power.
The power station, which comprises two nuclear reactors with a generating capacity of 984 megawatts each, has been controversial in Hong Kong, where activists have questioned the safety of the facility.
Activists have raised questions about the time it took for CLP to issue a statement about the leak.
“We are concerned about the plant’s slow reaction (to the incident) and the long duration it took them to act on the situation,” said Prentice Koo, a Greenpeace campaigner in Hong Kong.
Hong Kong’s Security Bureau said the Hong Kong Observatory’s radiation monitoring stations had not registered any unusual levels since May 23. The bureau said it would study the incident further and follow up with CLP. (Reporting by Alison Leung and Darren Chen; Editing by Don Durfee and Chris Lewis)
England World Cup final would be a power shock
June 12, 2010 By Leave a Comment
June 11 (Reuters) – An England football World Cup final, ending in celebration or heartbreak, is likely to create record power surges as millions of fans cheer with beer or share tea in sympathy, Britain’s National Grid said on Friday.
Utilities
Known in the industry as TV pick-ups, electricity surges occur during breaks in popular shows, when viewers all flip on kettles or open fridges at the same time.
In early-round England games, these surges are expected to reach up to 1,300 megawatts at half- and full-time, equivalent to the city of Newcastle turning on.
But if there is an England penalty shootout final, power could surge by more than double the levels of the earlier games to 3,000 megawatts, network operator National Grid (NG.L) estimated.
“It must be one of the few jobs where watching World Cup matches is essential to your work rather than a distraction, because we need to know to the second when half-time and full-time occur to be ready for the surges in demand,” said Jon Fenn, electricity operations manager, in a statement.
A poll by National Grid also showed that old football rivalries remain deep, with only 7 percent of Scots and 36 percent of Welsh people planning to support England, although it will not stop the network operator from using their power generators.
“While many Scottish and Welsh people will not be supporting the England team, hydroelectric power stations in Scotland and Wales will be playing a key role in meeting the power surges around England’s matches,” Fenn said.
A 3,000 megawatt surge would beat the previous record, which was when England were defeated by Germany in the 1990 World Cup semi-finals on a penalty shootout.
(Reporting by Kwok W. Wan; editing by Jane Baird)
Work on gas pipeline to start soon as Pak, Iran complete all formalities
June 4, 2010 By Leave a Comment
Islamabad, Jun.4 (ANI): Pakistan and Iran have finalised all formalities regarding the gas pipeline, and the ground work on the project would start soon following a survey, Pakistan Petroleum and Natural Resources Minister Syed Naveed Qamar Shah has said.
Responding to a question in the National Assembly regarding the progress made on the much publicised pipeline project, Shah said once completed, Pakistan would receive 750 million cubic feet of natural gas per day from Iran, The Daily Times reports.
Shah also informed the house that the project would be of great help to address the massive power shortage in the country, as 5,000 megawatts of electricity is likely to be produced utilising the gas from the pipeline, which has been termed the ‘peace pipeline.’
Out of the total 7.6 billion dollars which would be incurred on the project, Pakistan expects to spend 1.65 billion dollars.
Earlier, the said pipeline was to be extended to India also, but it backed out of the project, as Pakistan refused to forego its demand for a hefty gas transit fee.
The IPI project was conceived in 1995 and after almost 13 years India finally decided to quit the project in 2008. (ANI)
Uttarakhand Congress demands CM”s resignation over corruption charges
May 6, 2010 By Leave a Comment
Dehradun (Uttarakhand), May 6 (ANI): Uttarakhand leader of Opposition and Congress leader Harak Singh Rawat has demanded the resignation of Chief Minister Ramesh Pokhriyal Nishank over allegations of corruption in the allotment of a hydro-power project.
Rawat accused the ruling Bharatiya Janata Party (BJP) Government of being corrupt in the allotment of the power project to as many as 56 private companies.
Rawat demanded a probe into the matter and sought Nishank”s resignation.
“The State government has resorted to corruption in the hydro-power project. We have been demanding a CBI (Central Bureau of Investigation) probe into the matter. The Chief Minister was justifying himself on a national television. We have demanded that he should resign on moral grounds,” said Rawat.
He added that the Congress would not allow the State Government to sell the power project to private companies. The power station in question is capable of generating up to 800 Megawatts.
Meanwhile, Nishank said that the process of allotment would only take place after all clearances have been received and Memorandum of understanding (MoU) signed with the companies.
“The 56 companies got power projects on the basis of tender. Only those companies got the tender that were technically sound. After the clearance of objections, MoUs will be signed with the companies,” said Nishank.
“I want to repeat that till now, nobody has got even half a megawatt of power,” he added.
The Chief Minister further said that that a committee of secretary-level officials has been formed to look into the objections raised over the allotment process.
He added that a committee of Secretary-level officials has been formed to look into the objections raised over the allotment process. (ANI)
Centre, States must work together for providing affordable and quality power: Shinde
April 28, 2010 By Leave a Comment
New Delhi, Apr 28 (ANI): Union Minister for Power Sushil Kumar Shinde on Wednesday said both the Central and State governments must work together for providing adequate, affordable and quality power to all consumers.
Calling for renewed endeavour and commitment, Shinde said: “Our ability to deal with the most critical issues depends on how closely we work together”
Listing out the recent efforts by his ministry in this direction, Shinde said: “We have already added 22,302 megawatts new capacity in the first three years of the 11th Plan, which is more than entire capacity addition during the five years of the 10th Plan.”
“State Government”s support is crucial for addressing issues like, law and order, land acquisition, rehabilitation and resettlement, and Forest and Environment clearances. These clearances need to be expedited and given in a time bound manner to achieve the capacity addition targets,” he added.
Speaking at the Power Ministers Conference, Shinde expressed confidence that with the close cooperation and active support of State Governments, “We will definitely add the balance 40,000 megawatts capacity in the remaining period of two years. Although the capacity addition target for the 12th Plan is still to be finalized, Power Ministry is tentatively planning 1,00,000 megawatts.”
“Work on projects of about 58,000 megawatts capacity, which are likely to give benefits in the 12th Plan has already begun. During 2009-10, 9,585 megawatts of capacity has been added. This is the highest capacity addition achieved in a single year during the last six decades, the second highest being 9,263 MW during 2007-08,” he added.
Calling for Public Private Partnership model for resource mobilization and efficiency gains in the distribution sector, Shinde urged the State Governments to provide necessary legal and regulatory framework for smooth implementation of these partnerships.
Shinde informed the gathering that his ministry has recently launched a scheme for electrification of villages within 5 km periphery of generation plants of CPSUs for providing reliable and quality power to the project affected people and electricity connections to BPL households will be provided free
The minister also called for the need to maintain grid discipline.
“Observing that time and again some states are playing a dangerous game of overdrawing from the grid when frequencies are low,” said Shinde asserting that with the integrated grid for almost the entire country, such heavy overdrawal could lead to a disastrous situation.
Minister of State for Power Bharatsinh Solanki called upon the State Governments to consider providing incentives to Municipalities /Local Bodies for up – gradation of energy efficiency of Water Pumping and Sewage Treatment Plants as well as Municipal lighting.
“Energy efficiency measures in Water Pumping and Sewage Treatment Plants could help in solving the problem of payment of electricity dues to Utilities. Use of incandescent bulb should be banned in all public lighting and government buildings,” said and suggested energy efficiency measures for agricultural DSM for rural areas.
Delhi Chief Minister Sheila Dikshit, Himachal Pradesh Chief Minister Prem Kumar Dhumal, Deputy Chairman of Planning Commission B. K. Chaturvedi, and Power Ministers as well as Power Secretaries from various states and Union Territories attended the Power Ministers” Conference.
Shinde released a booklet on a new scheme for supply of electricity within 5 km. area around central generating power plants on the occasion.
The agenda of the conference is to discuss various issues related to power sector including generation capacity addition, open access and unbundling of State Electricity Boards, Rural Electrification through Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and strengthening of sub-transmission and distribution system through Restructured Accelerated Power Development and Reforms Programme (R-APDRP). (ANI)
Locals, environmentalists oppose dam construction in Himachal Pradesh
April 28, 2010 By Leave a Comment
Sirmaur (Himachal Pradesh), Apr 28 (ANI): Locals and environmentalists have objected to the construction of proposed Renuka Dam in Himachal Pradesh”s Sirmaur District, fearing severe ecological damage.
“The construction of Renuka Dam will result in the relocation of almost 1500 families, though government figures put the number to be somewhere around 850. 140,000 trees will be cut to build this dam. No objection certificate (NOC) for this has yet been obtained by the dam management,” said Deepak Joshi, an environmentalist.
The villagers are demanding a proper re-habilitation policy from the state government.
They said compensation being offered to them was insufficient.
“The villagers want good compensation for the land being acquired by the government. We should also get good land at the place where we will, be relocated. Residential colonies should be constructed for us, so that our children are safe in future,” said Mahesh Kumar, a representative of the villagers, who are likely to be dislocated.
Himachal Pradesh Chief Minister Prem Kumar Dhumal has assured the demands will be looked into.
“For the first time, a comprehensive policy has been made for the relocation of the displaced people. They are being given good compensation, for their relocation we have made elaborate arrangements, they will be given land in place of the land they are losing,” said Dhumal.
“They will be rehabilitated in a proper manner. We have also made sure that the displaced people get 100 units of free electricity every month,” he added.
The dam is coming up in the Giri River valley region, and will produce 40 megawatts of hydropower.
It is being built by the Himachal Pradesh Power Corporation. (ANI)
Pakistan war on power deficit
April 24, 2010 By Leave a Comment
Islamabad, April 22 — Shopping centres and bazaars will be shut by 8 pm and wedding halls will have three hours to host events, according to a new set of regulations imposed by the Pakistan government, which is battling its worse power crisis ever. On Thursday, Prime Minister Yousuf Raza Gilani announced measures to cut electricity consumption by half so that power outages can also be reduced in the country.
Measures include turning off lights and air-conditioners in government offices – to reduce a daily shortfall of 4,500-5,000 megawatts (MW) and encourage energy conservation in the private sector. Government employees will also get one additional day off.
The main reason for the shortage is that past governments “failure” to anticipate growth in demand and delay in implementing power and dam projects that would have boosted output. “We inherited this problem,” Gilani told a news conference.
“I assure you that the government will not leave a single stone unturned to sort it out.” The government has been under consistent attack over the power outages.
Effigies of the President and PM have been burnt in different protests all over the country. Pakistan has the capacity to generate about 14,500 MW from the current resources.
But it is producing only about 10,000 MW of the required 16,000 MW. A lack of investment in existing plants, outdated grids and rampant electricity theft mean that some grid companies experience line losses of 30-40 per cent. Lengthy power outages can last upto 12 hours which have triggered what the Pakistani media terms “power riots” with people pouring out into the streets and venting their anger on cars, buildings and passers by.
The recommendations come out of a three-day energy summit and will take effect over the next few days. Moments after the plan was announced, the Karachi Traders Action Committee announced its opposition to some measures.
“We will not abide by the government’s decision to close markets by 8 pm and will work our regular shift of 11 am to 10 pm,” said Siddique Memon, the committee”s chairman. He said the group would challenge the measure in the courts.
Mirant to take over RRI to create GenOn Energy
April 12, 2010 By Leave a Comment
(Reuters) – Mirant Corp (MIR.N) agreed to take over rival RRI Energy (RRI.N), creating one of the largest U.S. independent power producers and cutting costs as they deal with weak electricity prices that have challenged the entire industry.
Deals
The companies said on Sunday they will combine to create GenOn Energy, a new company with value of around $3 billion. After the all-stock, tax-free transaction, Mirant shareholders will own about 54 percent of GenOn’s equity, while RRI’s shareholders will own about 46 percent.
Independent power producers like Mirant and RRI, who sell electricity at competitive rates, have been hit hard in recent years as weak demand for electricity and low natural gas prices have taken their toll on power prices.
Still, the chief executives of the two companies said the catalyst behind the deal was the $150 million in annual cost savings they expect to pull in.
“There is no question our industry has been going through some challenging times,” RRI CEO Mark Jacobs said in an interview.
“But just as the value proposition (driving the deal) is here in difficult times, it’ll be here in good times as well.”
The companies expect to pull in the cost savings from reductions in corporate overhead in areas like accounting, IT and human resources. They believe the $150 million in yearly savings will fully kick in from January 2012.
Mirant shareholders will receive 2.835 RRI shares — worth about $11.20 as of Friday’s close — for each Mirant share they own.
While that represents a 4 percent premium over Mirant’s Friday closing price of $10.73, the companies said the value is in line with the average price of the stock over the previous 10 trading days.
RRI shares closed at $3.95 on the New York Stock Exchange on Friday.
LARGER SCALE, STRONGER FINANCES
GenOn will have around 24,700 megawatts of power generating capacity, making it slightly smaller than rival IPP Calpine (CPN.N) and slightly larger than NRG Energy Inc. (NRG.N) It will have a mixture of coal, natural gas and oil-fired plants in California, the Midwest and the East Coast
The companies said that GenOn will also have ample liquidity — the combined cash balance of the companies at the end of last year was $2.9 billion.
Though larger and stronger, the company will still face headwinds in the near-term.
The economic downturn forced down demand for electricity, meaning U.S. utilities did not need to buy as much power on the open market. Recent signs of economic recovery have not resulted in a commensurate recovery in power markets.
Current Mirant Chief Executive Edward Muller will be chairman and CEO of the combined company until 2013, when the company said he plans to retire. RRI’s Jacobs will be the president and COO of GenOn and will succeed Muller as CEO in 2013, the companies said.
The GenOn board will have five members of the current Mirant board and five from the RRI board. It will be headquartered in Houston, where RRI is based, instead of Mirant’s home base of Atlanta.
RRI was previously known as Reliant Energy — the company changed its name to RRI in May 2009, after selling its Texas retail power business to NRG.
The Texas sale was part of a wider evaluation of the company’s strategic alternatives, but Reliance did not at that time find a deal for the whole company.
(Additional reporting by Yinka Adegoke; editing by Gunna Dickson)
UPDATE 3-Mirant to take over RRI to create GenOn Energy
April 12, 2010 By Leave a Comment
NEW YORK, April 11 (Reuters) – Mirant Corp (MIR.N) agreed to take over rival RRI Energy (RRI.N), creating one of the largest U.S. independent power producers and cutting costs as they deal with weak electricity prices that have challenged the entire industry.
The companies said on Sunday they will combine to create GenOn Energy, a new company with value of around $3 billion. After the all-stock, tax-free transaction, Mirant shareholders will own about 54 percent of GenOn’s equity, while RRI’s shareholders will own about 46 percent.
Independent power producers like Mirant and RRI, who sell electricity at competitive rates, have been hit hard in recent years as weak demand for electricity and low natural gas prices have taken their toll on power prices.
Still, the chief executives of the two companies said the catalyst behind the deal was the $150 million in annual cost savings they expect to pull in.
“There is no question our industry has been going through some challenging times,” RRI CEO Mark Jacobs said in an interview.
“But just as the value proposition (driving the deal) is here in difficult times, it’ll be here in good times as well.”
The companies expect to pull in the cost savings from reductions in corporate overhead in areas like accounting, IT and human resources. They believe the $150 million in yearly savings will fully kick in from January 2012.
Mirant shareholders will receive 2.835 RRI shares — worth about $11.20 as of Friday’s close — for each Mirant share they own.
While that represents a 4 percent premium over Mirant’s Friday closing price of $10.73, the companies said the value is in line with the average price of the stock over the previous 10 trading days.
RRI shares closed at $3.95 on the New York Stock Exchange on Friday.
LARGER SCALE, STRONGER FINANCES
GenOn will have around 24,700 megawatts of power generating capacity, making it slightly smaller than rival IPP Calpine (CPN.N) and slightly larger than NRG Energy Inc. (NRG.N) It will have a mixture of coal, natural gas and oil-fired plants in California, the Midwest and the East Coast
The companies said that GenOn will also have ample liquidity — the combined cash balance of the companies at the end of last year was $2.9 billion.
Though larger and stronger, the company will still face headwinds in the near-term.
The economic downturn forced down demand for electricity, meaning U.S. utilities did not need to buy as much power on the open market. Recent signs of economic recovery have not resulted in a commensurate recovery in power markets.
Current Mirant Chief Executive Edward Muller will be chairman and CEO of the combined company until 2013, when the company said he plans to retire. RRI’s Jacobs will be the president and COO of GenOn and will succeed Muller as CEO in 2013, the companies said.
The GenOn board will have five members of the current Mirant board and five from the RRI board. It will be headquartered in Houston, where RRI is based, instead of Mirant’s home base of Atlanta.
RRI was previously known as Reliant Energy — the company changed its name to RRI in May 2009, after selling its Texas retail power business to NRG.
The Texas sale was part of a wider evaluation of the company’s strategic alternatives, but Reliance did not at that time find a deal for the whole company. (Additional reporting by Yinka Adegoke; editing by Gunna Dickson)
Mirant and RRI Energy to Merge to Create GenOn Energy, a Leading 24,700 Megawatt Independent Power Producer
April 12, 2010 By Leave a Comment
Merger of Complementary Electric Generating Assets Results in Increased Scale
and Geographic Diversity Across Key Regions
$150 Million in Annual Cost Savings
Increased Financial Strength and Flexibility
ATLANTA & HOUSTON–(Business Wire)–
Mirant Corporation (NYSE: MIR) and RRI Energy, Inc. (NYSE: RRI) announced today
that they have entered into a definitive agreement to create GenOn Energy, which
will be one of the largest independent power producers in the United States,
with approximately 24,700 megawatts (MW) of electric generating capacity and a
pro forma market capitalization of $3.1 billion. The transaction is structured
as an all-stock, tax-free merger.
Under the terms of the merger agreement, which has been approved unanimously by
the Boards of Directors of both companies, Mirant stockholders will receive a
fixed ratio of 2.835 shares of RRI Energy common stock for each share of Mirant
common stock they own. The ratio reflects an at-market transaction based on the
volume-weighted average price for the preceding 10 trading days. Upon closing,
which is expected before the end of 2010, Mirant stockholders will own
approximately 54% of the equity of the combined company and RRI Energy
stockholders will own approximately 46%.
Edward R. Muller, chairman and chief executive officer of Mirant, will be
chairman and chief executive officer of the combined company until 2013, when he
plans to retire. Mark M. Jacobs, president and chief executive officer of RRI
Energy, will be president and chief operating officer of GenOn and will serve on
its board. Jacobs is to succeed Muller as CEO in 2013. J. William Holden III,
currently chief financial officer of Mirant, will be chief financial officer of
GenOn. The GenOn Board of Directors will be comprised of 10 directors, with five
members of the current Mirant Board and the five members of the current RRI
Energy Board. GenOn`s corporate headquarters will be located in Houston.
The merger brings together two organizations with complementary electric
generating assets and proven operational excellence, enabling GenOn to derive
substantial near- and long-term benefits from significant cost savings, greater
scale, geographic diversity, and increased financial strength and flexibility.
GenOn will have a strategically balanced presence across key regions, including
the Mid-Atlantic, California, the Northeast, the Southeast and the Midwest.
Compelling Strategic Rationale
* Significant Consolidation Savings. Stockholders of both companies will benefit
from significant value creation driven by expected annual cost savings of $150
million. These costs savings will come from reductions in corporate overhead and
will be realized fully starting in January 2012.
* Increased Financial Strength and Flexibility. The combined cash balance of the
companies as of December 31, 2009 was $2.9 billion, and the merged company will
have ample liquidity. GenOn`s strong balance sheet and enhanced financial
flexibility will provide it with added stability through industry cycles and
position it to benefit from an improvement in market fundamentals.
* Enhanced Diversity Across Generation Fleets. GenOn will be strategically
well-positioned to serve key geographic markets. RRI Energy owns and leases a
total of 14,581 MW of generation assets in Southern California (3,392 MW), the
Midwest (MISO) (1,696 MW), the Mid Atlantic (PJM) (6,952 MW) and the Southeast
(1,911 MW). Mirant owns and leases a total of 10,076 MW of generation assets in
Northern California (2,347 MW), the Mid Atlantic (5,194 MW) and the Northeast
(2,535 MW). Both companies generate electricity utilizing coal, natural gas and
oil.
“Bringing together RRI Energy and Mirant is a true merger of equals, combining
two companies with complementary strengths, a shared strategic vision and a
commitment to value creation,” said Mr. Muller. “This compelling combination
will create tremendous value for stockholders of both companies as our business
benefits from cost savings, greater scale, and enhanced financial strength and
flexibility.”
“We are committed to delivering the cost savings benefits and successfully
integrating Mirant and RRI Energy,” said Mr. Jacobs. “We will bring together the
best operating practices from both organizations, building on our excellent
track records.”
The combined fleets are largely complementary, with limited overlap in their
respective operating regions. The transaction is subject to customary closing
conditions, including approval by the stockholders of RRI Energy and Mirant,
U.S. antitrust approval and approval by the Federal Energy Regulatory Commission
(FERC). The closing is also subject to the refinancing of a portion of each
company`s existing debt.
Mirant`s financial advisor was J.P. Morgan and its legal advisor was Wachtell,
Lipton, Rosen & Katz. Goldman, Sachs & Co. and Morgan Stanley acted as RRI
Energy`s financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP acted
as RRI Energy`s legal counsel.
Additional information on the transaction can be found at
www.mirantrrimerger.com.
Conference Call and Webcast Details
The management of both companies will host a joint conference call and live
webcast on Monday, April 12, 2010 at 8:30 a.m. ET/7:30 a.m. CT to discuss this
announcement. The companies welcome all members of the investment community to
listen to the call live by dialing into (877) 218-1796 in the U.S. or (574)
941-1407 outside the U.S. and providing the passcode: 67940730. The live webcast
of the call can be accessed at www.mirantrrimerger.com, www.mirant.com and
www.rrienergy.com. An audio replay of the call will be available approximately
three hours after the call`s conclusion and can be accessed by calling (800)
642-1687 in the U.S. or (706) 645-9291 outside the U.S. and entering the
passcode: 67940730.
Investor Luncheon Webcast
The management of both companies will host a live webcast of an investor
luncheon on Monday, April 12, 2010 at 12:00 p.m. ET/11:00 a.m. CT to discuss
this announcement. The live webcast can be accessed at www.mirantrrienergy.com,
www.mirant.com and www.rrienergy.com.
About Mirant Corporation
Mirant is a competitive energy company that produces and sells electricity in
the United States. Mirant owns or leases more than 10,000 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.
About RRI Energy, Inc.
RRI Energy, Inc., based in Houston, provides electricity to wholesale customers
in the United States. The company is one of the largest independent power
producers in the nation with more than 14,000 megawatts of power generation
capacity across the United States. These strategically located generating assets
use natural gas, fuel oil and coal. RRI routinely posts all important
information on its Web site at http://www.rrienergy.com/.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
typically identified by words or phrases such as “will,” “anticipate,”
“estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,”
“forecast,” and other words and terms of similar meaning. These forward-looking
statements involve a number of risks and uncertainties. RRI Energy and Mirant
caution readers that any forward-looking statement is not a guarantee of future
performance and that actual results could differ materially from those contained
in the forward-looking statement. Such forward-looking statements include, but
are not limited to, statements about the benefits of the proposed merger
involving RRI Energy and Mirant, including future financial and operating
results, RRI Energy`s and Mirant`s plans, objectives, expectations and
intentions, the expected timing of completion of the transaction, and other
statements that are not historical facts. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements are set forth in RRI Energy`s and Mirant`s filings with the
Securities and Exchange Commission. These include risks and uncertainties
relating to: the ability to obtain the requisite RRI Energy and Mirant
shareholder approvals; the risk that Mirant or RRI Energy may be unable to
obtain governmental and regulatory approvals required for the merger, or
required governmental and regulatory approvals may delay the merger or result in
the imposition of conditions that could cause the parties to abandon the merger;
the risk that a condition to closing of the merger may not be satisfied; the
timing to consummate the proposed merger; the risk that the businesses will not
be integrated successfully; the risk that the cost savings and any other
synergies from the transaction may not be fully realized or may take longer to
realize than expected; disruption from the transaction making it more difficult
to maintain relationships with customers, employees or suppliers; the diversion
of management time on merger-related issues; general worldwide economic
conditions and related uncertainties; and the effect of changes in governmental
regulations; and other factors discussed or referred to in the “Risk Factors”
section of each of RRI Energy`s and Mirant`s most recent Annual Report on Form
10-K filed with the Securities and Exchange Commission. Each forward-looking
statement speaks only as of the date of the particular statement and neither RRI
Energy nor Mirant undertake any obligation to publicly update any
forward-looking statement, whether as a result of new information, future events
or otherwise.
Additional Information and Where To Find It
This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. In connection with the
proposed merger between RRI Energy and Mirant, RRI Energy will file with the SEC
a Registration Statement on Form S-4 that will include a joint proxy statement
of RRI Energy and Mirant that also constitutes a prospectus of RRI Energy. RRI
Energy and Mirant will mail the joint proxy statement/prospectus to their
respective shareholders. RRI Energy and Mirant urge investors and shareholders
to read the joint proxy statement/prospectus regarding the proposed merger when
it becomes available, as well as other documents filed with the SEC, because
they will contain important information. You may obtain copies of all documents
filed with the SEC regarding this transaction, free of charge, at the SEC`s
website (www.sec.gov). You may also obtain these documents, free of charge, from
RRI Energy`s website (www.rrienergy.com) under the tab “Investor Relations” and
then under the heading “Company Filings.” You may also obtain these documents,
free of charge, from Mirant`s website (www.mirant.com) under the tab “Investor
Relations” and then under the heading “SEC Filings.”
Participants in The Merger Solicitation
RRI Energy, Mirant, and their respective directors, executive officers and
certain other members of management and employees may be soliciting proxies from
RRI Energy and Mirant shareholders in favor of the merger and related matters.
Information regarding the persons who may, under the rules of the SEC, be deemed
participants in the solicitation of RRI Energy and Mirant shareholders in
connection with the proposed merger will be set forth in the joint proxy
statement/prospectus when it is filed with the SEC. You can find information
about RRI Energy`s executive officers and directors in its definitive proxy
statement filed with the SEC on April 1, 2010. You can find information about
Mirant`s executive officers and directors in its definitive proxy statement
filed with the SEC on March 26, 2010. Additional information about RRI Energy`s
executive officers and directors and Mirant`s executive officers and directors
can be found in the above-referenced Registration Statement on Form S-4 when it
becomes available. You can obtain free copies of these documents from RRI Energy
and Mirant using the contact information above.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6244850〈=en
Media Inquiries:
Sard Verbinnen & Co
Brandy Bergman/David Reno/Robin Weinberg, 212-687-8080
or
Mirant Investor Inquiries:
Mirant Corporation
Steve Himes 678-579-3655
steve.himes@mirant.com
or
RRI Energy Investor Inquiries:
RRI Energy, Inc.
Dennis Barber, 832-357-3042
dbarber@rrienergy.com
Copyright Business Wire 2010
Philippines says Mindanao will have power for vote
April 8, 2010 By Leave a Comment
The Philippines will ask malls and industries on southern Mindanao island to operate on reduced power for three days around next month’s national polls to ensure a successful vote, officials said on Wednesday.
A drought caused by the El Nino weather phenomenon has dried up dams in Mindanao, cutting hydropower output on the island and resulting in blackouts of as much as eight hours daily.
This has raised fears power problems may hamper the country’s first automated vote on May 10 and lead to a disputed outcome, a particular concern in Mindanao where 57 people were killed last November in the country’s worst incident of election violence.
Stable power supply is key for smooth elections, during which 80,000 vote counting machines are due to calculate results for local positions within two hours of the close of voting and about 48 hours for the national contest.
The island, which has a power supply shortfall of about 400-500 megawatts, makes up nearly a quarter of the country’s total voting population of around 50.7 million.
“We want to make sure that all the election sites, places will have power to conduct the elections peacefully and correctly,” Jose Ibazeta, acting energy secretary, told reporters.
He said industry, factories and shopping malls, would be asked to cut operations so they would use less power.
“At this point, we are very confident that on the period of three days, (May) 9, 10 and 11, we will have power in Mindanao,” Ibazeta said.
He said the government would also use generators owned by big sugar millers and other industries in Mindanao to deliver power to key voting and ballot-counting areas.
(Reporting by Rosemarie Francisco; Editing by Sugita Katyal)
Sharp starts operations at Japan solar cell plant
March 29, 2010 By Leave a Comment
TOKYO, March 29 (Reuters) – Sharp Corp (6753.T) said it started operations at its thin-film solar cell plant in Japan on Monday, with an initial output capacity of 160 megawatts a year.
Cyclical Consumer Goods
(Reporting by Kiyoshi Takenaka)
Fire damages power station
March 27, 2010 By Leave a Comment
An investigation has begun into a fire at Aurora Energy’s Tamar Valley Power Station in northern Tasmania.
A $50 million back-up generator commissioned last April caught fire during a test procedure yesterday afternoon.
Aurora says no-one was hurt and it was extinguished by automatic sprinklers and the George Town Fire Brigade.
The station’s chief executive Mike Brewster says damage was confined to a turbine and electricity supplies are not affected.
“Our full capacity is 380 megawatts so while this station is out we’re down to about 320 megawatts.”
“The daily load situation only requires a maximum of 200 megawatts at this point in time.”
A team from the company and independent experts are investigating the cause.
It may be several weeks before the full cost of the damage is known.
The State Government-owned facility has been supplying power to the state grid since last October.
Pak, Iran ink deal on gas pipeline project
March 17, 2010 By Leave a Comment
Lahore, Mar.17 (ANI): Pakistan and Iran have inked a deal on the gas pipeline project in Istanbul, Turkey.
According to a private television channel, Pakistan Petroleum Secretary Kamran Lashari has signed the agreement on the project, which is expected to be completed by 2013.
The two countries signed the Heads of Agreement and certain condition precedents to make the Gas Sales Purchase Agreement (GSPA) effective, The Daily Times reports.
Under the GSPA, Iran will provide 750 million cubic feet of gas to Pakistan per day for the next 25 years, which will be used to generate 4,000 megawatts of electricity in the country. (ANI)