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Edison Mission Energy to Take $100-Million Charge

January 09, 2003|Nancy Rivera Brooks

Edison Mission Energy said Wednesday that it will take impairment and bad-debt charges of $100 million in the fourth quarter, or $70 million after taxes, because a 220-megawatt power plant it owns in England was placed in receivership.

The subsidiary of Rosemead-based Edison International said in a filing with the Securities and Exchange Commission that lenders appointed receivers Dec. 20 to administer the assets of Lakeland Power Ltd., the power plant in Cumbria, England. The lenders had demanded repayment after Lakeland's primary power customer, a subsidiary of TXU Europe, entered into formal administration proceedings, similar to bankruptcy proceedings in the United States.

Edison Mission Energy said it will account for the Lakeland project as a discontinued operation.

Edison International executives had warned investors in November that Edison Mission Energy, which owns power plants and trades energy, would continue to perform poorly.

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