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) March 8, 2002
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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
Recent Developments:
On March 11, 2002, the California Attorney General filed a civil suit
against Mirant Corporation and several of its wholly-owned subsidiaries in San
Francisco Superior Court. The lawsuit alleges that between 1998 and 2001 Mirant
effectively double-sold its capacity by selling both ancillary services and
energy from the same generating units, such that, if called upon, Mirant would
have been unable to perform its contingent obligations under the ancillary
services contracts. The California Attorney General claims that this alleged
behavior violated both the tariff of the California Independent System Operator
and, more importantly, California's unfair trade practices statute. The suit
seeks both restitution and penalties in unspecified amounts.
On March 14, 2002 we received notice that on March 8, 2002, Edison Mission
Energy ("EME"), a subsidiary of Edison International, and EME Del Caribe, a
subsidiary of Edison Mission Energy, filed a breach of contract action against
Mirant Corporation and two subsidiaries of Mirant, Mirant EcoElectrica
Investments I, Ltd., and Mirant EcoElectrica Finance, Ltd., in the Superior
Court of Orange County, California. In July 2001, Mirant and its subsidiaries
entered into a contract with EME and EME Del Caribe to purchase their 50%
ownership interest in EcoElectrica L.P., a limited partnership owning a 540
megawatt liquefied natural gas fired combined cycle cogeneration facility in
Puerto Rico together with various related facilities. At the same time Mirant
and its subsidiaries entered into a separate agreement with Enron Asset
Holdings, a subsidiary of Enron Corporation, to purchase an additional 47.5%
ownership interest in EcoElectrica L.P.. EME and EME Del Caribe allege that
Mirant and its subsidiaries breached their obligations under the purchase
agreement by failing to complete the purchase of EME's and EME Del Caribe's
ownership share of EcoElectrica and by wrongfully invoking termination
provisions in that agreement. The plaintiffs seek damages in excess of $50
million, plus interest and attorneys fees. The purchase and sale agreement
between the Mirant entities and Enron Asset Holdings also did not close and was
terminated by Mirant. At this time, no action has been filed against Mirant or
its subsidiaries by Enron Asset Holdings.
On March 19, 2002, the California Attorney General filed a complaint with
the Federal Energy Regulatory Commission (FERC) against certain California
generators, including Mirant Corporation and several of its wholly-owned
subsidiaries, alleging that market-based sales of energy made by such generators
were in violation of the Federal Power Act because such transactions were not
appropriately filed with FERC. The complaint requests, among other things,
refunds for any prior short-term sales of energy that are found to not be just
and reasonable, along with interest on any such refunded amounts.
Mirant cannot now determine the ultimate outcome of these proceedings but
will oppose the matters vigorously.
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: March 20, 2002 MIRANT CORPORATION
` By /s/ James A. Ward
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James A. Ward
Senior Vice President, Finance
And Accounting
(Principal Accounting Officer)