ATLANTA, July 16, 2002 — Mirant and Alliant Energy Corp. announced Tuesday that the companies have signed an agreement in which Alliant Energy Resources, Inc., the holding company for Alliant Energy’s non-regulated and international energy businesses, will acquire Mirant’s 309-megawatt natural gas-fired power plant in Neenah, Wis.
The purchase price for the acquisition is $109 million, which Alliant Energy expects to finance with a significant portion of non-recourse debt, and the remainder to be provided by Alliant Energy. Upon completion of the transaction, the Neenah facility will become part of Alliant Energy Generation’s portfolio of non-regulated assets. The transaction is expected to close in the fourth quarter of 2002.
“This acquisition is a positive step in Alliant Energy’s development of its unregulated generation business,” said Mike Maley, president, Alliant Energy Generation, the company’s non-regulated generation subsidiary. “We are fortunate to be acquiring a facility of this quality, and are especially pleased at the prospect of owning additional generation in Wisconsin,” he added.
“With this sale, Mirant’s net proceeds from asset sales will exceed $1.5 billion this year,” said Randy Harrison, senior vice president, Mirant. “In a difficult business environment, Mirant continues to improve liquidity, strengthen its balance sheet and execute its business plan.”
The two-turbine, simple-cycle Neenah power plant is located 75 miles north of Milwaukee and began commercial operation in May 2000. A simple-cycle power plant functions much like a jet engine in compressing hot gas through a turbine that spins a generator and creates electricity.
The entire power output of the Neenah facility is sold under contract to Milwaukee-based WE Energies through June 2008.
Mirant is a global competitive energy company. Mirant delivers value by integrating an extensive portfolio of power and natural gas assets with marketing and risk management expertise. The company has facilities in North America, Asia, the Caribbean and Europe. Visit Mirant at www.mirant.com .
Alliant Energy Corporation (www.alliantenergy.com; NYSE:LNT), headquartered in Madison, Wis., is a growing energy-services provider with operations both domestically and internationally.
Alliant Energy, through its subsidiaries and partners, provides electric, natural gas, water and steam services to more than three million customers worldwide. Alliant Energy Resources, Inc., home of the company’s non-utility businesses, has operations and investments throughout the United States as well as in Australia, Brazil, China and New Zealand. Alliant Energy Generation is focused on developing and acquiring generation assets in selected regional markets in North America and is located in Oakbrook Terrace, Illinois.