The AES Corporation (NYSE: AES) today commented on the current situation in Bulgaria, relating to its 690 MW Maritza coal-fired plant. Recently, Bulgaria’s State Energy and Water Regulatory Commission (SEWRC) issued statements limiting the ability of National Electric Company (NEK), Maritza’s offtaker, to pass-through certain costs to the regulated market. SEWRC also recommended that NEK begin negotiating amendments to Maritza’s Power Purchase Agreement (PPA), including taking one of Maritza’s units out of the PPA and reducing the price for the remaining unit’s output by 30%. All of these developments could affect the financial performance of Maritza and AES.
AES believes that Maritza has a valid and binding PPA with NEK, and Maritza will take all actions necessary to protect its interests, whether through negotiated agreement with NEK or through enforcement of its rights under the PPA. Recently, Maritza filed administrative appeals of these decisions by SEWRC with the Supreme Administrative Court of Bulgaria and, if necessary, will pursue other remedies as appropriate. Maritza will continue to work in partnership with NEK, the Government of Bulgaria and their lenders, a consortium of 25 international banks, led by the European Bank for Reconstruction and Development (EBRD).
Further information regarding Maritza is included in AES’ 2013 Form 10-K and Form 10-Q for the period ended March 31, 2014.
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