United Illuminating’s Seabrook interest to be sold as part of electric restructuring in Conn.

NEW HAVEN, Conn., Jan. 10, 2002 – The New Hampshire Public Utilities Commission, in coordination with the Connecticut Department of Public Utility Control (CTDPUC), has announced the auction sale of 88.2% of the ownership shares in the Seabrook nuclear generating plant located in Seabrook, New Hampshire.
JPMorgan has been retained as exclusive financial advisor to conduct the auction process. The United Illuminating Company (UI) holds ownership and leasehold interests totaling 17.5% (203.18 megawatts) in the Seabrook power plant.
In April 1998, Connecticut enacted Public Act 98-28 (the Restructuring Act), which has required UI to sell its fossil-fueled generating plants and to attempt to divest its ownership interests in its nuclear-fueled power plants prior to 2004 in order to recover any stranded costs associated with its power plants. On October 1, 1998, in its “unbundling plan” filing with CTDPUC under the Restructuring Act, and in other regulatory dockets, UI stated that it planned to divest its two nuclear generation ownership interests by the end of 2003, in accordance with the Restructuring Act. On April 19, 2000, the CTDPUC approved UI’s divestiture plan for its 3.685% ownership interest in Millstone Station Unit 3, located in Waterford, Connecticut, by participation in an auction sale process that resulted in a sale consummated on March 31, 2001. On December 15, 2000, UI and The Connecticut Light and Power Company filed with the CTDPUC their plan to divest their respective interests in Seabrook Station by an auction sale process and, on October 10, 2001, the CTDPUC approved this plan with certain modifications. On December 3, 2001, the New Hampshire Commission, in coordination with the CTDPUC, announced the commencement of the Seabrook Station auction sale process, which is expected to be completed by the end of 2002.
In 1990, UI sold to and leased back from Meridian Trust Company, as original owner trustee under a trust agreement with an institutional investor and as lessor, an undivided portion of UI’s ownership interest in the Seabrook plant. First Union Trust Company, National Association, is successor owner trustee and lessor. The undivided interest leased to UI will be included in the auction sale and UI’s lease will terminate at the time of the sale.
In November 1997, the owner trustee issued its Seabrook 1 Secured Lease Obligation Bonds, 7.83% Series Due January 2, 2019. In accordance with the indenture under which such bonds were issued, all such bonds will be redeemed on the date of the termination of the lease at the principal amount thereof plus accrued interest, if any, to the redemption date. Prior to such redemption, notice specifying the redemption date will be given to holders of the bonds in accordance with the indenture.


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