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Balancing Our Business
To help meet our earnings goal, we need a large-scale international business. We also need a balance of growth
and value investments, geographic locations, and functional lines.
That's the road we've taken.
We are one of the world's five largest independent power producers. Outside our
traditional business, we operate nearly 8,000 megawatts in Asia, Europe, North America, South America, and the
Caribbean. Our operations include stand-alone generation and energy distribution, as well as integrated
utilities.
Achieving Global Success
Our international success results from prudent acquisitions and excellence in operating them.
For example, when it comes to satisfying customers, SWEB is now one of the best electricity companies in
England. We've taken it from worst to best in a national ranking of customer complaints received. And we did it
while also making significant improvements in productivity and cost control.
Bewag has immediately added to our earnings. Serving some 2.1 million customers in metropolitan Berlin, it also
provides us with a platform for growth across Europe.
Aiming Higher in Asia
In Asia, we've reduced long-term risk and added near-term earnings. We sold our interest in a plant under
development in Indonesia. And we acquired the remaining 20 percent of CEPA.
The transaction should cut the dilution initially expected from CEPA in 1998. As a result, we've raised our
goals. We are now aiming for CEPA to contribute positively to our per share earnings in 1999.
The outlook continues to be one of growth and expansion. Sual-our 1,200-megawatt plant in the Philippines-is
scheduled to begin operations next year.
Our expertise in building and operating generating plants translates well in Asia. So does our commitment to be
a strong presence in fast-growing energy markets.
Performing and Growing
Performance and growth will drive the future of our international business. Making our international holdings
perform up to expectations is part of the picture. The other part is continuing to look for opportunities that
will help build additional value.
We've positioned ourselves well for new opportunities. Asia is the world's fastest-growing economic region.
England and Germany provide a major foothold in Europe. Our stake in Companhia Energetica de Minas Gerais
(CEMIG)-a purchase we announced in January-will be a platform for growth in Brazil.
Our strategy is to be a market leader around the world. Not necessarily in market share, but in operational
excellence and superior financial performance.
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