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CALIFORNIA ENERGY AGREES TO ACQUIRE WESTMORELAND ENERGY

 PHILADELPHIA, and OMAHA, Neb., Nov. 1 /PRNewswire/ -- Westmoreland Coal Company (NYSE: WCX) (WCC) and California Energy Company, Inc. (NYSE: CE) (CE) announced today that they had reached agreement for California Energy to acquire Westmoreland Energy, Inc. (Westmoreland Energy), a wholly owned subsidiary of WCC for a purchase price of $57 million, plus the release or payment of certain additional amounts by the projects acquired by CE upon the satisfaction of certain conditions. In connection with the transaction, CE also agreed to assume certain equity commitments in 1994 and 1995 related to projects under construction in an aggregate amount of approximately $35.5 million.
 Westmoreland Energy is engaged in the business of developing, owning and managing general partnership interests in cogeneration and other independent power plants in the United States and internationally. Westmoreland Energy controls a total of 233 MW of capacity in a combination of three operating projects and four projects under construction which aggregate 811 gross MW. These projects are located primarily along the east coast of the United States and employ a mix of fuel and technology: two combined cycle natural gas projects (in Colorado and New York), two pulverized coal projects (in North Carolina), and three stoker coal projects (in Virginia). A closing is expected prior to year-end. The project development activities of Westmoreland Energy will remain in Charlottesville, Va., and will be run as a stand alone entity under President Chuck Brown, who will report to David Sokol.
 David L. Sokol, President and Chief Executive Officer of California Energy, stated: "We are very pleased with this development as it will provide the company with needed diversification of fuel, technology and geographic markets as well as bringing technical expertise in the areas of gas and clean coal fired plants which will significantly enhance our development efforts internationally. Westmoreland Energy's existing senior management and project developers provide an especially good fit with California Energy's aggressive development philosophy and we welcome Chuck Brown and his team aboard."
 Christopher K. Seglem, president and CEO of Westmoreland Coal Company, stated: "We are pleased that California Energy intends to work diligently to close this transaction, in which Westmoreland Coal will achieve full current value for Westmoreland Energy, by year-end. This sale is a significant element in our strategy of restoring Westmoreland to sustainable long term profitability in our core business, the mining and sale of coal."
 Chuck Brown, president of Westmoreland Energy, said: "We are excited at the opportunity to join California Energy's development team and provide additional technical capabilities. Under David Sokol's direction, our primary focus will be on meeting the growing demand for coal and natural gas projects internationally."
 California Energy Company develops, owns and operates environmentally responsible power generating facilities internationally. Westmoreland Coal Company is the nation's oldest independent coal company.
 -0- 11/1/93
 /CONTACT: David L. Sokol, president and CEO of California Energy Company, 402-330-8900; or Christopher K. Seglem president and CEO of Westmoreland Coal Company, 215-545-2500/
 (WCX CE)


CO: California Energy Company, Inc.; Westmoreland Coal Company ST: Nebraska, Pennsylvania IN: UTI SU: TNM

DB-CP -- MN021 -- 9381 11/01/93 18:11 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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