Mirant looking for full payment for California electricity

ATLANTA, March 2, 2001 (PRNewswire) — Mirant Corp. (NYSE: MIR) reiterated today that it seeks timely payment for all electricity it has sold and continues to sell into the California market, and that payment of amounts owed to generators is critical to ending California’s energy crisis.

“We look to receive payment for all the electricity we’ve sold and continue to sell, and we want quick payment for the past due amounts. We consider additional delays unacceptable. Any talk of additional delay or of partial payment is counterproductive to finding a solution,” said Randy Harrison, chief executive officer of Mirant’s western U.S. operations.

Harrison’s comments came amid reports that resolution of the credit problems of the California utilities might not happen until August and that generators will be asked to agree to partial payments.

Harrison also noted that the basic solution to California’s problem – the construction of new power plants – will be far less likely to occur in a business climate where contractual buying and selling agreements are not honored.

“We entered the market well after the market rules were in place, and we played by the rules throughout,” Harrison said. “We didn’t ask that transactions be invalidated or modified when we were losing money, and we will do everything in our power to obtain payment on the profitable transactions we made.”

Formerly known as Southern Energy, Mirant is a global competitive energy company with leading energy marketing and risk-management expertise. With an integrated business model, Mirant develops, constructs, owns and operates power plants and sells wholesale electricity, gas and other energy-related commodity products. The company has extensive operations in North America, Europe and Asia. Mirant owns or controls more than 20,000 megawatts of electric generating capacity around the world, including more than 14,000 megawatts in the United States, with another 9,000 megawatts under development. Mirant is 80 percent owned by Southern Company (NYSE: SO – news).

SOURCE: Mirant Corp.