Australian Court Validates PacifiCorp Subsidiary's Contracts.MELBOURNE, Victoria--(BUSINESS WIRE)--Nov. 17, 1999-- The Supreme Court of Victoria today upheld the validity of eleven electricity supply hedging contracts between Powercor Australia, the Victorian electricity retail and distribution subsidiary of U.S.-based PacifiCorp (NYSE NYSE See: New York Stock Exchange :PPW PPW Partnership for Public Warning PPW Professional Photographers of Washington PPW Plebe Parent Weekend (United States Military Academy) PPW Parallel Plate Waveguide PPW Points Per Wavelength PPW Plasma Powder Welding ), and Pacific Power, the government-owned New South Wales New South Wales, state (1991 pop. 5,164,549), 309,443 sq mi (801,457 sq km), SE Australia. It is bounded on the E by the Pacific Ocean. Sydney is the capital. The other principal urban centers are Newcastle, Wagga Wagga, Lismore, Wollongong, and Broken Hill. generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. . The case involves the refusal of Pacific Power to honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. the 11 hedging contracts subject to the court action. The contracts relate to electricity for delivery between July 1998 and 2008. In its ruling, the court upheld all of the disputed contracts. A further hearing next month will determine the monetary value of the judgement to Powercor Australia, as well as the nature of the specific performance which will be required. Between July 1998 and September 30, 1999, had Pacific Power performed on the contracts, payments to Powercor Australia would have been approximately $29million ($A44 million). Powercor also has legal fees and as yet unquantified business losses, which will be the subject of further claims to the court. The eventual total cost will depend on the date of the final court order. The impact on Powercor relates largely to the retail contracts into which it entered, relying on the validity of the Pacific Power hedges. The company has been forced to purchase electricity on the open market at pool prices, or to enter into alternative hedge contracts, to meet the requirements of its own retail supply contracts. Powercor Australia is owned by PacifiCorp, based in Portland, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , and retails electricity in all markets that are open for competition in Australia, as well as holding the franchise for the distribution of electricity to western Victoria. Pacific Power is a generation company owned by the New South Wales Government, which operates the major Eraring Power station near Newcastle NSW NSW New South Wales Noun 1. NSW - the agency that provides units to conduct unconventional and counter-guerilla warfare Naval Special Warfare . http://www.businesswire.com/cnn/ppw.htm NewsOnDemand phone number: 888/291-7804 |
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