1 March 2005 – US utility Aquila announced Monday that it had completed arrangements to exit its Batesville, Miss., power purchase and sale agreements. In closing the transaction, Aquila received $16.25m.
The exit involved the restructuring of a power purchase agreement between Aquila and LSP Energy Limited Partnership, which owns the Batesville power plant, and a power sales agreement between Aquila and South Mississippi Electric Power Association (SMEPA), which uses the power purchased by Aquila from the plant.
Specifically, Aquila assigned to SMEPA its LSP power purchase agreement and terminated its SMEPA power sales agreement. The power purchase and power sales agreements were a part of Aquila’s residual merchant operations, which are no longer part of the company’s ongoing businesses.
The transaction received approval from the Kansas Corporation Commission and the US Department of Agriculture’s Rural Utilities Service.