DEARBORN, Mich., Dec 11, 2000 (PRNewswire via COMTEX) CMS Energy Corporation (NYSE: CMS) today announced it has written down its entire investment in the Loy Yang Power plant in Australia during the fourth quarter of this year.
The write down, which will have the effect of reducing equity by approximately $267 million after taxes and currency translation effects, is a result of the inability to attract a serious purchaser for the plant and the probability of continued unfavorable electric market prices in Victoria, Australia, which determine Loy Yang Power’s sales revenue.
“Writing down our investment in Loy Yang will also result in CMS Energy no longer being required to recognize Loy Yang losses,” said Alan M. Wright, CMS Energy’s executive vice president, chief financial and administrative officer. “While the write down of Loy Yang will reduce our all-inclusive reported earnings for 2000, it does not change our previous guidance for sustainable earnings for this year and thereafter.”
CMS Energy announced in the first quarter that it planned to sell its 50 percent ownership interest in the 2000 megawatt Loy Yang Power plant and that the price could result in a significant loss. CMS Energy intends to ultimately sell its interest in the plant, but has established no deadline for such a transaction.
CMS Energy Corporation has annual sales of more than $7 billion and assets of about $15 billion throughout the U.S. and around the world with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; oil and gas exploration and production; and energy marketing, services and trading.