SCEcorp AND SOUTHERN CALIFORNIA EDISON SETTLE LAWSUIT WITH TUCSON ELECTRIC POWER CO.
SCEcorp AND SOUTHERN CALIFORNIA EDISON SETTLE LAWSUIT WITH TUCSON ELECTRIC POWER CO. ROSEMEAD, Calif., Sept. 16 /PRNewswire/ -- SCEcorp (NYSE: SCE) and Southern California Edison have agreed to settle a lawsuit filed by Tucson Electric Power Co. (NYSE: TEP) (TEP). The two companies also agreed to a new power exchange contract. Under terms of the settlement agreement, SCEcorp will pay TEP $25 million in settlement of claims of interference with the 1988 merger agreement between TEP and San Diego Gas & Electric Co. (NYSE: SDO), plus $15 million to cover TEP's litigation and related expenses. TEP had sued Edison and SCEcorp, seeking substantial actual and punitive damages for the collapse of the merger. The jury trial in TEP's civil lawshe agreement, lawyers for both sides will ask the court to dismiss the lawsuit. The two companies have agreed that the settlement of the lawsuit completely resolves all disputed claims. The settlement was reached to avoid the expense and disruption of further litigation, the companies said. TEP and Edison also agreed to a new 10-year power exchange between the two utilities beginning in 1995. The agreement benefits both utilities by providing needed capacity to TEP and utilizing some of Edison's surplus generating capacity. Under the agreement, Edison will provide 110 megawatts of power to TEP during summer months, for which TEP will pay $1.2 million annually. TEP will be entitled to schedule firm energy deliveries from Edison during the summer of up to 36,300 megawatt-hours per month, and will be obligated to return to Edison the same amount of energy the following winter season. The agreement is subject to approval by the Federal Energy Regulatory Commission. -0- 9/16/92 /CONTACT: Lewis Phelps of Southern California Edison, 818-302-7933; or George Miraben of Tucson Electic Power Co., 602-884-3643/ (SCE TEP SDO) CO: SCEcorp; Southern California Edison; Tucson Electric Power Co.; Tucson Electric Power Co.; San Diego Gas & Electric Co. ST: California, Arizona IN: UTI SU:
JL -- LA015 -- 0104 09/16/92 12:15 EDT
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|Date:||Sep 16, 1992|
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