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.
About AESThe AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 20 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 17,800 people is committed to operational excellence and meeting the world’s changing power needs. Our 2013 revenues were $16 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp. Safe Harbor Disclosure This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.