British Energy and US partner PECO Energy have announced the signing of a definitive asset purchase agreement with GPU Inc, for the Three Mile Island 1 plant. Through the joint venture company AmerGen, due diligence work has been carried out since the companies announced their intention to purchase the power station outside Harrisburg, Pennsylvania last July (See NEI, Aug p2).

The purchase agreement confirms a purchase price of $100 million, $23 million for the reactor and $77 million, payable over five years, for existing fuel stocks. British Energy will pay $30 million in total for a 50% stake, however there may be a further payment of up to $80 million to GPU, depending on actual energy market prices between 2002 and 2010. AmerGen will be responsible for the decommissioning of TMI 1. This work is pre-funded by GPU.

GPU Energy, the parent company’s energy delivery subsidiary, will purchase power from the plant from 1 January 2000 to 31 December 2001, should the deal be completed by the end of 1999. There remains significant regulatory approvals before the deal is complete, including those from the US Nuclear Regulatory Commission, the Federal Nuclear Energy Commission and Pennsylvania and New Jersey Utility Commissions.

The shut-down Three Mile Island unit 2, which suffered a major accident in 1979, is not part of the purchase and will continue to be owned and maintained by GPU.