Mirant finalizes Birchwood sale: Mirant finalized the sale of its 50 percent stake in the Birchwood power plant (242 MW) in Fredricksburg, Va. to General Electric Co.’s finance unit for $71 million. Mirant will retain 0.5 percent ownership in the plant; Cogentrix owns the remaining 50 percent of the plant. The sale will allow Mirant to close a $19 million letter of credit related to financial obligations of the plant. The sale was first announced in May, but was delayed by Mirant’s Chapter 11 filing in July. The bankruptcy court has approved the deal.
Edison may sell its New Zealand stake: According to the Australian Financial Review, talk is brewing that Edison Mission Energy may sell its 51 percent stake in New Zealand power generator and retailer, Contact Energy Ltd. Edison faces $911 million debt maturity this December 11 and is now S&P rated B with negative implications.
Dynegy to sell Illinois Power to Exelon: The sale of IP for $425 million in cash will leave Dynegy with unregulated power generation and natural gas liquids businesses. It will also relieve Dynegy of $1.8 billion in debt (Dynegy’s total debt is $7.4 billion). IP was Dynegy’s smallest and only regulated business segment. The deal is contingent upon passage of legislation that is expected to be introduced in the Illinois General Assembly during its November season. The legislation would give the Illinois Commerce Commission authority to review the deal within nine months and to set rates for four years after a state-mandated transition period ends at the end of 2006.