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SCEcorp FILES FORM 8-K WITH SECURITIES AND EXCHANGE COMMISSION

 ROSEMEAD, Calif., Oct. 11 /PRNewswire/ -- SCEcorp announced today that it expects to file a Current Report on Form 8-K with the Securities and Exchange Commission containing the following:
 On Oct. 11, 1993, SCEcorp announced that its wholly owned subsidiary, Mission Energy Co. ("Mission Energy"), its joint venture partner, Grupo Acerero del Norte, S.A. de C.V. ("GAN"), and Comision Federal de Electricidad ("CFE"), the Mexican national electric utility, have mutually agreed to terminate negotiations for the ownership and operation of the Carbon II power project by Operadora de Piedras Negras, S.A. de C.V. ("OPINSA"), a joint venture subsidiary of GAN and Rio Escondido Energy Co. ("Rio"), a subsidiary of Mission Energy. The Carbon II project is a four-unit, 1,400 megawatt coal-fired power plant that CFE has been constructing in northern Coahuila, Mexico. Rio was to acquire a 49 percent interest in the Carbon II project, through OPINSA. Power sales and asset transfer agreements with CFE pertaining to the proposed project were signed effective December 1992. Since that time, Mission Energy had been working with the other parties to complete the financing and other elements of the project.
 Mission Energy had invested approximately $300 million in connection with these transactions. Of the approximate $300 million investment, Mission Energy previously had received repayment of $67 million from its partners. As part of the termination arrangements, CFE has reconfirmed its agreement to repay, with interest, $150 million that had been advanced to CFE through OPINSA. This represents the portion of Mission Energy's investment that had been advanced to CFE. The remaining $83 million invested by Mission Energy had been advanced to GAN. Of this amount, $78 million will, upon notification from Rio, be converted into a five-year obligation of GAN's parent to Rio, with interest payable quarterly and the principal amount due in a balloon payment after five years. The remaining $5 million was advanced to cover GAN's development costs and will be repaid. In addition, Mission Energy had recorded approximately $58 million in project development costs and capitalized interest related to the Carbon II project. CFE has agreed to reimburse Rio and GAN for a portion of their project development costs. The remaining project development costs will be shared between Rio and GAN.
 As a result of the foregoing, Mission Energy will incur in the third quarter of 1993 an approximate $18 million after-tax charge for its share of the project development costs and its capitalized interest costs related to the Carbon II project, or approximately 4 cents per SCEcorp share.
 It is expected that Mission Energy's 1993 earnings will be significantly below 1992 levels and that the termination of the Carbon II project will significantly impact Mission Energy's earnings potential for 1994, and possibly beyond.
 -0- 10/11/93
 /CONTACT: Lewis M. Phelps, SCEcorp, 818-302-7933/


CO: SCEcorp; Mission Energy Co. ST: California IN: UTI SU: ERP

EH-JL -- LA017 -- 0743 10/11/93 15:00 EDT
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Publication:PR Newswire
Date:Oct 11, 1993
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