Exhibit (c) 1
GPU News Release
October 5, 2000
GPU and UtiliCorp's Aquila Unit Reach Agreement
for Sale of GPU International
MORRISTOWN, NJ - October 5, 2000 - GPU, Inc. (NYSE: GPU) and the Aquila Energy
Corporation subsidiary of UtiliCorp United (NYSE: UCU) today announced that they
have executed a definitive agreement for the sale of GPU's wholly owned
subsidiary, GPU International, Inc., including its interests in six independent
generating plants and a development generating project, to Aquila Energy for
$225 million. All of the assets being sold are in the United States.
GPU's interests in the generating plants represent about 500 megawatts (MW) of
capacity, and it owns a one-half interest in the 715-MW development project. The
corporate employees currently associated with GPU International will be
considered for transfer to Aquila at closing.
GPU and Aquila anticipate closing the transaction by year-end. GPU reported that
it expects to realize an after-tax gain on the sale of between $60 and $80
million to be reflected upon closing of the transaction. The net proceeds will
be used by GPU, Inc. to reduce outstanding debts. The purchase will be accretive
to UtiliCorp's earnings. The sale is subject to certain regulatory approvals.
Salomon Smith Barney and Donaldson Lufkin & Jenrette were the investment
advisors for GPU and Aquila, respectively.
"We are pleased that the sale of our interests in these properties will enable
us to further focus on opportunities related to our core infrastructure
business, such as GPU's acquisition of the MYR Group, a utility infrastructure
services firm, as well as unregulated businesses such as the GPU Telcom
strategic partnership with Sting Communications to provide high-speed data
services in the Northeast," said Fred D. Hafer, chairman, president and chief
executive officer of GPU.
"These assets are an excellent strategic fit for us," said Robert K. Green,
chairman of Aquila Energy and president and chief operating officer of
UtiliCorp.
"With this transaction, Aquila owns or controls more than 3,500 megawatts of
generation in operation, construction and under active development. We expect
the earnings stream from additional ownership in generation to complement our
income from energy marketing and risk management, as well as enhance our
portfolio of independent power projects," Green said.
GPU, Inc. (NYSE: GPU), headquartered in Morristown, NJ, is a registered public
utility holding company providing utility and utility-related services to
customers throughout the world. GPU serves 4.6 million customers directly
through its electric companies -- GPU Energy in the US, GPU Power UK in England,
and Emdersa in Argentina. It serves an additional 1.4 million customers
indirectly through GPU GasNet, its gas transmission subsidiary in Australia.
GPU's 1999 revenues were $4.8 billion and its total assets were $21.7 billion.
GPU's other subsidiaries include MYR Group Inc., GPU Advanced Resources, Inc.,
GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom Services, Inc.
(http://www.gpu.com)
<PAGE>
Based in Kansas City, Aquila Energy is one of the largest wholesalers of
electricity and natural gas in North America and an innovative provider of risk
management services. It also provides wholesale energy services in the U.K. and
has a presence in Scandinavia, Germany and Spain. Aquila is a wholly-owned
subsidiary of UtiliCorp United, an international energy company with about 4.5
million customers across the U.S. and in Canada, Great Britain, New Zealand and
Australia. At June 30, 2000, UtiliCorp had $8.8 billion in assets and 12-month
sales of $21.4 billion. Further information is at www.utilicorp.com.
The agreement covers the following properties:
GPU %
Property Location Capacity Ownership
-------- -------- -------- ---------
Onondaga Geddes, NY 91 MW 100
Selkirk Selkirk, NY 345 MW 20
Prime Energy Elmwood Park, NJ 65 MW 50
Mid-Georgia Kathleen, Georgia 305 MW 50
Pasco Dade County, FL 109 MW 50
Lake Cogen Umatilla, FL 110 MW 100
Saltillo
(Under Development) Saltillo, MS 715 MW 50
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Contacts:
UtiliCorp -
Media - Al Butkus, 816-467-3616
Media Relations - 816-467-3000
Investor Relations - Ellen Fairchild, 816-467-3506
or
GPU -
Media - Jeff Dennard, 973-401-8333
Investor Relations - Joanne Barbieri, 973-401-8720
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