For Immediate Release
For Immediate ReleaseNovember 22, 1999
Potomac Electric Power Company (NYSE: POM) today announced a subsidiary has added to its financial portfolio an additional investment in the Netherlands involving 17 natural-gas transmission and distribution networks from four Dutch municipal-owned entities for $525 million.
Pepco said its Potomac Capital Investment Corporation, an unregulated subsidiary, agreed to purchase and lease back the assets to the municipalities for about 25 years in a transaction similar to one completed in July involving 21 other gas distribution networks located throughout the Netherlands. The acquisitions will begin to add to PCI`s earnings this year.
Under terms of the latest transaction, PCI put up about $76 million with the remaining $449 million financed through third party, non-recourse lenders over about a 25-year period. The July acquisition was valued at $724 million.
"We are pleased to have been able to complete this transaction and add these high-quality energy assets to our financial investment portfolio," said PCI Chief Executive Officer John D. McCallum. "These investments provide an immediate and steady stream of income."
In addition to the natural gas assets, PCI also has financial investments in energy facilities involving Dutch and Australian power plants.
Pepco provides electricity to about 700,000 customers in the District of Columbia and the Maryland suburbs.
Point of Contact:Robert A. Dobkin