British Energy sells Bruce stake

9 January 2003

In addition, British Energy (BE) will sell its 50% interest in Huron Wind, Ontario's first commercial wind farm, to a consortium of Cameco, TransCanada, and the Ontario Municipal Employees Retirement System.

BE expects to receive C$770 million ($487 million), subject to potential adjustments. Of this, BE will receive C$630 million ($400 million) in cash. In addition, BE expects to receive up to:

• C$100 million ($63 million), contingent on the restart of the two Bruce A units. C$50 million of this will be released to British Energy provided the first unit is restarted by 15 June 2003, and C$50 million will be released if the second unit is restarted by 1 August 2003. Delays in the restart of each unit would result in the payments being reduced by 10% per month.

• C$20 million ($13 million), which will be retained for two months following closure against a potential adjustment in respect of any pension fund deficit.

• C$20 million, which will be retained to cover any successful claims in respect of customary representations and warranties until any claims raised against BE within two years from the date of closure are resolved.

An additional C$80 million ($51 million) will be retained to cover the estimated outstanding tax liabilities of British Energy (Canada).

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