| Deal Description | New York State Electric & Gas Corporation applied the net proceeds from this transaction to the prepayment of notes outstanding under its revolving credit agreements with 13 banks. Such borrowings were incurred for construction purposes. The principal project in the 1969 through 1971 construction program was the Homer City Project. This project involved the joint construction with the Pennsylvania Electric Company ("Penelec") of a 1,280,000 kilowatt mine-mouth generating station at a site located near Homer City, Pennsylvania. This generating station, which consisted of two 640,000 kilowatt units, was jointly owned and operated by the Company and Penelec as tenants in common owning equal undivided interests, and each company received one-half of the capacity and energy available from the station. The first unit was placed in service on July 31, 1969. The second unit was scheduled for completion in December, 1969. Varying amounts of power from the company's share of this generating station were sold to other utility companies. |
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