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SCECORP'S MISSION ENERGY AGREES WITH MEXICAN GOVERNMENT TO TERMINATE PROPOSED CARBON II POWER PLANT TRANSACTION

 ROSEMEAD, Calif., Oct. 11 /PRNewswire/ -- SCEcorp's Mission Energy subsidiary, its partners and the Mexican government today have mutually agreed to terminate the proposed acquisition by Mission Energy and its partners of the Carbon II electric generating plant, SCEcorp said.
 Carbon II is a four-unit, 1400 megawatt coal-fired power plant located at Piedras Negras, Coahuila, Mexico. It is being built by Comision Federal de Electricidad (CFE), the government-owned national electric utility of Mexico. A similar nearby unit, Carbon I, is owned and operated by CFE. Mission Energy's joint venture partner in the proposed project was Grupo Acerero del Norte, S.A. de C.V. (GAN).
 An SCEcorp spokesman said that intensive negotiations among the parties over the weekend, involving senior representatives of the Mexican government, led to reaching an agreement today (Monday) on the termination of the proposed transaction.
 Pursuant to the signed agreements, Mission Energy and its partners will receive the deposit which they had delivered to CFE, as well as certain expenses incurred for engineering and environmental work. As a result, Mission Energy will incur in the third quarter of 1993 an $18 million after-tax charge to earnings for its portion of the project development costs and its capitalized interest.
 John E. Bryson, chairman and chief executive officer of SCEcorp, said, "Notwithstanding the efforts of all of the parties involved in this project, circumstances were not favorable for the successful completion of the transaction. We continue to applaud and support the leadership of President Salinas and his administration in moving to privatize electricity generation in Mexico."
 Mexico's Secretary of Energy and Mines, Emilio Lozoya, commented that the federal government "appreciates the effort and contributions made in this process by Mission Energy in advancing our ultimate power development and privatization goals."
 -0- 10/11/93
 /CONTACT: Lewis M. Phelps, SCEcorp, 818-302-7933/


CO: SCEcorp ST: California IN: UTI SU:

MF-EH -- LA012 -- 0739 10/11/93 14:46 EDT
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Publication:PR Newswire
Date:Oct 11, 1993
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