SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 3, 2001
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MIRANT CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware 001-16107 58-2056305
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(State or other jurisdiction (Commission File (IRS Employer Identification
of incorporation) Number) No.)
1155 Perimeter Center West Suite 100, Atlanta, Georgia 30338
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (678) 579-5000
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N/A
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(Former name or former address, if changed since last report.)
Item 5. Other
On October 2, 2001, the California Public Utilities Commission ("CPUC") and
Southern California Edison ("SCE") announced a settlement of SCE's filed rate
doctrine lawsuit, which is pending in federal district court in Los Angeles. The
terms of the proposed settlement provide that SCE will fully repay what the
settlement agreement calls "Procurement Related Liabilities" by the end of 2005.
Although the proposed settlement agreement purports to provide for the payment
of all Procurement Related Liabilities, which includes $920,000,000 owed to the
California PX and the California ISO (a portion of which is owed to us), there
is no specific information about when any particular creditor or class of
creditors can expect repayment. Further, SCE has agreed to work with the CPUC
and the California Attorney General in pursuing litigation against energy
sellers and to meet and confer with the CPUC as to all significant strategic and
tactical decisions in existing or future litigation, including administrative
proceedings. Effective March 1, 2002, CPUC approval is required of any
settlement of existing or future litigation, and, if the CPUC rejects a proposed
settlement, SCE is required to continue with such litigation.
The impact of the proposed settlement agreement on us remains uncertain, but
could include delayed payment, extended litigation, or discriminatory treatment
in the repayment process. We are currently analyzing the proposed settlement
agreement and our analysis may indicate that other available remedies are
preferable to this settlement proposal. Such remedies may include participation
in an effort to file an involuntary bankruptcy petition against SCE.
Also on October 2, 2001, the California Governor rescinded the executive order
calling for a third special session of the state legislature. The purpose of the
third special session was to consider legislation to restore SCE to solvency. In
view of the announced settlement, California's Governor declared the third
special session unnecessary.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: October 3, 2001 MIRANT CORPORATION
By /s/ James A. Ward
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James A. Ward
Senior Vice President, Finance
And Accounting
(Principal Accounting Officer)