MIRANT -- SETTLEMENT WELL BELOW $28M SOUGHT BY CALIFORNIA

Dow Jones Newswire via Yahoo ^ | 19 December 2003 | Judy Lam

[MeneMeneTekelUpharsin]

ATLANTA (Dow Jones)-- Mirant Corp. (NYSE:MIR - News) settled with the Federal Energy Regulatory Commission for $3.7 million, about one-seventh of the $28 million sought by California, on charges related to the sale of ancillary services.

The company said the settlement is not an admission of guilt, in a press release Friday. The bankrupt-energy company, which filed for Chapter 11 protection in July, allegedly sold ancillary services meant for contingency purposes prior to the state's 2000-2001 power crisis without the consent of California Independent System Operator. Ancillary services are various types of generation capacity held for contingency purposes, such as the loss of a critical generation or transmission facility. The ancillary services act as replacement reserves.

"Mirant is settling today to put this matter behind us and avoid the significant investment in time and money required to fight this suit," said company Senior Vice President Doug Miller in a statement. The settlement is subject to approval by the bankruptcy court.

[MeneMeneTekelUpharsin]

Very good news. Some 24 million less than what was possible on the payout. Little by little Mirant is coming back. Wonderful news. Just documenting what is happening for those with little faith.

[MeneMeneTekelUpharsin]

Richard, Notice how Mirant is not steeped in fraud like Enron? I sincerely believe they're going to make it. The economy is improving, Mirant is making great strides in reducing costs. As the great industrialist Andrew Carnegie said, "The three rules of business are: Cut your costs, Cut your costs, and ... Cut your costs."

Good as gold.

[MeneMeneTekelUpharsin]

Looking better week by week. We've had several very good things happen. I am joyfully upbeat these days. Every day that passes, it will behoove Citibank and Credit Suisse First Boston to negotiate a compromise on this deal and extend the maturities. I believe it is going to happen with the common intact. I may be wrong...but have a LOT more hope than before.

[Bob J]

Didn't Mirant state that the common would be worthless coming out of BK?

[arete]

Good as gold.

Nothing is as good as GOLD, but I hope this situation resolves itself in your favor soon.

Richard W.

[MeneMeneTekelUpharsin]

Nothing is as good as GOLD, but I hope this situation resolves itself in your favor soon.

Perhaps you have a point...and thanks.

[MeneMeneTekelUpharsin]

Didn't Mirant state that the common would be worthless coming out of BK?

They have NOT made that statement. They have made the cursory required legal statements that the common COULD be worthless if things don't go well in the Chapter 11 proceedings. However, with recent events, it looks like the common may have value. It may be completely whole or it may be diluted. In my opinion, the common is going to come out in the Chapter 11 with value. Very encouraging. And, this is a long story that has been going on for a while. You might want to do some thorough research.