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WESTMORELAND COAL COMPANY
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Agreement Reached
In ROVA Contract Dispute
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Colorado Springs, CO - September 25, 2000 - Westmoreland-LG&E Partners and
Dominion Virginia Power reported today that an agreement to settle the Roanoke
Valley Independent Power facility ("ROVA") Unit 1 Forced Outage Day contract
dispute has been reached for cash and other considerations. The settlement is
subject to certain conditions, including mutually acceptable completed
documentation of a revised and mutually beneficial Power Purchase and Operating
Agreement and consent of project lenders. Further details of the anticipated
settlement are not being made available at this time.
"The ROVA Forced Outage Day situation was challenging and frustrating for all
parties involved, but we are glad that we continued to pursue the matter to a
positive end for everyone," commented W. Michael Lepchitz, President of
Westmoreland Energy, Inc., a wholly owned subsidiary of Westmoreland Coal
Company. "The ROVA project has been and continues to be a flagship of our power
projects and revised power sales contract provisions as a result of the
settlement will now allow for long-awaited operational flexibility and improved
availability."
Christopher K. Seglem, Chairman, President and CEO of Westmoreland Coal Company
added, "We are pleased to have reached a negotiated settlement with LG&E Power,
Inc. and Dominion Virginia Power which we believe is advantageous to all parties
both now and in the future. Westmoreland looks forward to a new, more
constructive relationship with these parties and to the contribution of this
transaction to the implementation of the strategic plan we presented to
shareholders in April."
ROVA was developed and is owned by the Westmoreland-LG&E Partners, a 50/50
partnership between Westmoreland Coal Company's (AMEX:WLB) wholly owned
subsidiary, Westmoreland Energy, Inc. and LG&E Power Inc., a wholly owned
subsidiary of LG&E Energy Corp. (NYSE:LGE). Dominion Virginia Power is an
affiliate of Dominion (NYSE:D).
Westmoreland Coal Company, headquartered in Colorado Springs, is implementing a
strategic plan for expansion and growth through the acquisition and development
of opportunities in the changing energy marketplace. The Company recently
announced reaching an agreement to acquire Montana Power's coal business as well
as exclusive negotiations for the acquisition of the coal business of Knife
River Corporation, an affiliate of Montana-Dakota Utilities. The Company's
existing operations include Powder River Basin coal mining through its 80%-owned
subsidiary Westmoreland Resources, Inc. and independent power production through
its wholly owned subsidiary Westmoreland Energy, Inc. The Company also holds a
20% interest in Dominion Terminal Associates, a coal shipping and terminal
facility in Newport News, Virginia.
As to Westmoreland Coal Company: Certain statements in this press
release which are not historical facts or information are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. For
example, words such as "may," "will," "should," "estimates,"
"predicts," "potential," "continue," "strategy," "believes,"
"anticipates," "plans," "expects," "intends," and similar expressions
are intended to identify forward-looking statements. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
levels of activity, performance or achievements of the Westmoreland
Coal Company, or industry results, to be materially different from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include, among others, the following: general economic and business
conditions; the ability of the Company to implement its business
strategy; the Company's access to financing; the Company's ability to
successfully identify new business opportunities; the Company's
ability to achieve anticipated cost savings and profitability targets;
changes in the industry; competition; the Company's ability to utilize
its tax net operating losses; the ability to reinvest excess cash at
an acceptable rate of return; weather conditions; the availability of
transportation; price of alternative fuels; costs of coal produced by
other countries; demand for electricity; the effect of regulatory and
legal proceedings and other factors discussed in Item 1 of
Westmoreland Coal Company's Form 10-K for the year ended December 31,
1999. As a result of the foregoing and other factors, no assurance can
be given as to the future results and achievement of the Company.
Neither the Company nor any other person assumes responsibility for
the accuracy and completeness of these statements.
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For further information contact Diane Jones (719) 442-2600.
