GREAT BAY POWER CORPORATION
20 Ladd Street, Portsmouth, New Hampshire 03801
telephone 603/433/8822
facsimile 603/433-8645
FOR IMMEDIATE RELEASE
Contact: Great Bay Power Corporation
John A. Tillinghast
President
(603) 433-8822
GREAT BAY POWER ANNOUNCES
STRATEGIC MARKETING ARRANGEMENT WITH PECO ENERGY
PORTSMOUTH, NEW HAMPSHIRE, November 6, 1995 --- Great Bay Power
Corporation (NASDAQ: GBPW) announced today that it has entered
into a strategic marketing arrangement with PECO Energy Company.
PECO Energy is a major operating utility which provides electric
and gas service in southeastern Pennsylvania.
To establish the strategic marketing arrangement, Great Bay
and PECO signed a services agreement in which Great Bay appointed
PECO as its exclusive agent to market Great Bay's approximately
130 megawatts of uncommitted capacity generated by Great Bay's 12%
ownership interest in the Seabrook Nuclear Power Plant in
Seabrook, New Hampshire. Under the services agreement, PECO will
provide back-up power to customers during scheduled and
unscheduled outages at the Seabrook plant. This service from PECO
is expected to permit Great Bay to compete more effectively for
firm, all requirements power contracts. The arrangement also
provides for Great Bay and PECO to jointly pursue other
opportunities which are intended to maximize the value of Great
Bay's interest in Seabrook.
In addition, PECO agreed to purchase a warrant from the
Company for $1,000,000. The warrant grants to PECO the right to
purchase 420,000 shares of Great Bay's common stock (4.99% of the
total shares outstanding) at an exercise price of the higher of
(1) $9.75 per share, or (2) the stock's highest trading price
between the date that additional shares (to be reserved for
issuance upon exercise of the warrant) are authorized at the
Company's annual meeting of shareholders scheduled for the first
quarter of 1996 and the warrant expiration date. The purchase
price for the warrant will be credited toward the purchase price
for the shares upon exercise of the warrant. The warrant expires
on September 30, 1996 unless extended because the Seabrook
facility fails to maintain a 60% capacity factor for the first 9
months of 1996, in which case the expiration date is extended
until the earlier of such time as Seabrook's rolling 12-month
capacity factor equals or exceeds 60% or December 31, 1997.
Issuance of the warrant is subject to approval by the New
Hampshire Public Utilities Commission.
The marketing agreement has an initial term through
December 31, 1997, but may be terminated by Great Bay at the end
of 1996 if PECO fails to exercise the warrant. If PECO exercises
the warrant to acquire 4.99% of the Company, the marketing
agreement will be extended to December 31, 1998.
Commenting on the strategic marketing arrangement with PECO,
John A. Tillinghast, Great Bay's President and CEO, stated, "PECO
currently markets over 1100 megawatts of its own uncommitted
capacity in the Pennsylvania, New Jersey and Maryland region and
has proven itself to be a leader in the power marketing field.
PECO's commitment to provide firm, back-up power expands Great
Bay's product offerings and strengthens our ability to compete in
New England and beyond. Great Bay welcomes PECO's confidence in
Great Bay as evidenced by PECO's agreement to purchase a warrant
to acquire 4.99% of the Company. We look forward to working with
PECO to aggressively pursue new opportunities as the New England
power markets increasingly embrace competition."
The Company owns 12% of the Seabrook Nuclear Power Plant in
Seabrook, New Hampshire. This ownership entitles Great Bay to
sell approximately 140 MW of the plant's power output. Great Bay
currently has 10 MW committed on a long-term basis and sells the
other approximately 130 MW on short term markets. Marketing
services are currently provided to Great Bay by UNITIL Resources,
Inc.
Incorporated in 1986, Great Bay is a New Hampshire
corporation authorized by the New Hampshire Public Utilities
Commission to engage in business as a public utility.