20 October 2003 – International Power announced Thursday that it plans to reinstate the mothballed 250 MW unit at its 500 MW CCGT Deeside plant in the UK with effect from 20 October 2003 through at least to the end of March 2004.
International Power said in a statement that although wholesale electricity prices in England and Wales have recently shown some improvement, they remain well below a level which provides an adequate return to power generators.
“We do not believe the UK faces a shortage of supply this winter,” said David Crane, Chief Executive Officer of International Power, “however, in the current environment, with our limited portfolio of generating assets in the UK market, it is prudent for us to have additional available capacity to support our existing contractual obligations.”
In addition to Deeside, International Power owns the 1000 MW coal-fired Rugeley power station in England.
Separately, International Power plc announced Friday that it has signed a new three-year unsecured $450m (£271m) Corporate Revolver facility with its core relationship banks.
The new facility will be available for general corporate purposes and replaces the existing $540m ((£325m) facility, which expires in October 2004. International Power has renewed this facility one year ahead of expiry in order to provide more certainty to the Company’s medium term capital structure.
“We are very pleased with this level of support from our core bank group. Together with our current liquidity, it reaffirms our balance sheet capacity for growth,” said Philip Cox, Chief Financial Officer.
The Lead Arrangers for this facility were ABN AMRO Bank N.V., Credit Lyonnais, ING Bank N.V. and The Royal Bank of Scotland plc.