Mirant must honor Pepco contract, court rules

By Jeff Pines

Washington, Dec. 10 - Mirant Corp. must pay Pepco as required by contract, the U.S. Bankruptcy Court for the Northern District of Texas ruled, the Washington-based utility said.

The payments are required as part of an agreement in the asset purchase and sale agreement under which Mirant bought Pepco's generating assets in December 2000.

Under the agreement, Mirant must buy from Pepco, at the price Pepco is obligated to pay, the capacity and energy that Pepco must buy under power purchase agreements with FirstEnergy Corp. and Panda-Brandywine LP. Pepco is a subsidiary of Pepco Holdings Inc.

"Now that their legal obligation has been clarified by the Court, we presume Mirant will follow the law and continue to meet their obligations to pay Pepco," said Dennis Wraase, chairman, president and chief executive officer of Pepco Holdings, in a news release. "If not, we will take appropriate legal action."

Atlanta-based Mirant filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.