LAWSUITS NEWS & LEGAL INFORMATION
Company Sale
New York, NY: (Feb-25-08) Pepco Holdings Inc.'s Pepco unit has been embroiled in a legal battle with Mirant Corp., a company that purchased Pepco's power plants in 2000. The dispute stemmed from a 2001 incident, in which Pepco customers were credited with a share of the profits from the sale of its power plants. Sources stated that the parties had reached a settlement in which Pepco Holdings Inc.'s Pepco unit sought approval for $48 million in bill credits to its 750,000 customers as a result of a legal settlement with Mirant. Records show that in a bit to end costly litigation, Mirant had agreed to pay Pepco $320 million to settle a dispute over the power plant purchase contract.
The Washington energy company said if the proposal is approved by the District of Columbia and Maryland Public Service Commissions, typical residential customers in Washington and Maryland would get a one-time bill credit of $16 and $20, respectively. Apart from the financial payout, the company also asked for permission to fund a special account with money from the Mirant settlement to pay the above market cost of a power plant purchase agreement that runs till 2021. Pepco spokespersons commented on the deal, stating that the $48 million proposed credit is based on the previous divestiture-sharing formula. [CNN NEWS: COMPANY SALE]
Published on Feb-26-08
The Washington energy company said if the proposal is approved by the District of Columbia and Maryland Public Service Commissions, typical residential customers in Washington and Maryland would get a one-time bill credit of $16 and $20, respectively. Apart from the financial payout, the company also asked for permission to fund a special account with money from the Mirant settlement to pay the above market cost of a power plant purchase agreement that runs till 2021. Pepco spokespersons commented on the deal, stating that the $48 million proposed credit is based on the previous divestiture-sharing formula. [
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