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Alliant Energy Corporation, announced today the settlement of an arbitration award the company received in a dispute related to an expansion of the 84-MW Juiz de Fora natural-gas fired generating facility (JDF) in Brazil.
Alliant Energy and a Cataguazes subsidiary each hold a 50% direct interest in JDF.
Earlier this year, Alliant Energy won an arbitration award from the International Court of Arbitration for an amount in local currency equivalent to approximately US$22 million associated with alleged breaches of contract related to the financing and construction for the expansion of the facility.
The arbitration panel determined that Cat-Leo Energia S.A. improperly interfered with plans to complete the expansion. The panel determined Alliant Energy would receive the awarded funds in exchange for its direct 50% interest in JDF.
The award was unsuccessfully challenged by Cat-Leo at the arbitral tribunal; however, enforcement of the award through the appropriate Brazilian courts could require a significant amount of time to process and effectuate.
The settlement is structured to pay Alliant Energy an amount in local currency equivalent to approximately US$20.4 million as follows:
(1) Upon signing of the settlement agreement today, Alliant Energy received approximately US$11 million as a non-refundable deposit for the sale by Alliant Energy to Cat-Leo of its 50% direct interest in JDF; and
(2) approximately US$9.4 million is payable on or after May 15, 2005 and concurrent with the closing of the purchase and sale agreement for Alliant Energy's 50% direct interest in JDF.
If a sale of Alliant Energy's 50% direct interest is not consummated by April 1, 2006, Cat-Leo no longer is required to purchase Alliant Energy's interest.
In the event of cancellation of the purchase and sale agreement, Alliant Energy shall be entitled to retain both its 50% direct interest in JDF and the $11 million non-refundable deposit.
"We are extremely pleased with this settlement," said Bill Harvey, President and COO of Alliant Energy. "This settlement allows us to exchange our direct ownership in the Juiz de Fora facility and regain more than our investment without spending time and resources further litigating this matter."
Alliant Energy Corporation is an energy-services provider with subsidiaries serving more than three million customers. Providing its customers in the Midwest with regulated electricity and natural gas service remains the company's primary focus.
Alliant Energy's domestic utility subsidiaries, Wisconsin Power and Light and Interstate Power and Light, serve 977,000 electric and 413,000 natural gas customers.
Other business platforms include the international energy market and non-regulated domestic generation.
Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT.
Alliant Energy Corporation
www.alliantenergy.com
PRNewswire
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