Eastern Utilities Announces Sale of its Seabrook Nuclear Plant Share.BOSTON--(BUSINESS WIRE)--June 25, 1998--Eastern Utilities Associates (NYSE NYSESee: New York Stock Exchange :EUA EUA Examination under anesthesia, see there ) today announced that its Montaup Electric Co. generation subsidiary has agreed to sell its 2.9 percent (33.7-megawatt) share of the Seabrook Station nuclear power plant in Seabrook, N. H., to the Great Bay Power Corp. subsidiary of BayCorp Holdings, Ltd. (Amex:MWH See watt-hour. ). BayCorp Holdings, which already owns 12.1 percent of the Seabrook plant, will pay EUA $3.2 million and assume responsibility for EUA's share of the plant's future operating and post-closing costs. Under the agreement, Montaup will pre-fund the decommissioning Decommissioning is a general term for a formal process to remove something from operational status. Some specific instances include:
Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. who do not choose an alternative supplier. In announcing the sale agreement, Donald G. Pardus, Chairman and Chief Executive Officer of EUA, said: "This sale of nuclear generation ownership is a milestone in achieving our goal of full divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of Montaup's generation assets." EUA is divesting all its generation assets as part of negotiated settlement agreements to restructure the electric utility industry in Massachusetts and Rhode Island. Frank W. Getman, Jr., BayCorp's President and Chief Executive Officer, said his company was pleased to be able to acquire Montaup's Seabrook capacity, adding he believes Seabrook "will be a low cost supplier of electricity in the emerging competitive generation market in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . We believe nuclear power will remain an important part of the energy mix in New England and throughout the country." EUA has previously announced agreements to sell its share of the Canal Generating Station in Sandwich, Mass., diesel-powered generating units in Rhode Island and its power purchase contract with the Ocean State Power station in northern Rhode Island. Its remaining assets are being sold in a continuing auction process. The Seabrook sale is subject to federal and state regulatory approvals, including that of the Nuclear Regulatory Commission Nuclear Regulatory Commission (NRC), an independent U.S. government commission, created by the Energy Reorganization Act of 1974 and charged with licensing and regulating civilian use of nuclear energy to protect the public and the environment. . BayCorp Holdings' Great Bay Power subsidiary is an exempt wholesale generator of power in New England, whose principal asset is its share of the Seabrook Power Plant. This ownership interest entitles the company to approximately 140 megawatts of Seabrook's output. EUA is a Boston-based diversified energy services company whose shares are traded on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Pacific Stock Exchanges. Subsidiaries include Blackstone Valley Electric Co.; Eastern Edison Co.; Newport Electric Corp.; EUA Cogenex Corp.; EUA Energy Investment Corp.; EUA Ocean State Corp.; EUA Service Corp.; EUA Energy Services, Inc.; and Montaup Electric Co. Together, the companies are known as the EUA System. Information about EUA is available on the World Wide Web at http://www.eua.com
CONTACT: Eastern Utilities Associates
Michael J. Hirsh, 508/559-2000 ext. 3101
or
Clifford J. Hebert, Jr., 617/357-9590
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