Washington Group provides engineering for power plants in Arkansas and Michigan

BOISE, Idaho, Jan. 11, 2001 (BUSINESS WIRE) — Washington Group International (NYSE:WNG) announced today that its Washington Power unit is providing engineering and procurement services to Kinder Morgan, Inc. for two new 550-megawatt, natural gas-fired power plants, one in Wrightsville, Arkansas, and the other in Jackson, Michigan.

Each plant has a total installed cost of approximately $250 million.

The new electric generating plants will employ Kinder Morgan’s proprietary Orion technology, which offers the operational flexibility of a simple-cycle peaking plant with the fuel efficiency of combined-cycle technology.

“With this assignment, Kinder Morgan has recognized our expertise with the range of electric generating technologies,” said Stephen G. Hanks, President, Washington Group International. “We fully welcome the opportunity to join the team supporting Kinder Morgan’s program to increase the nation’s electric generating capacity through use of its unique plant arrangement.”

Washington Power’s office in Englewood, Colo., is providing conceptual, preliminary, and detailed design for both projects plus procurement of balance-of-plant equipment. Washington Power is also providing field construction liaison services.

Kinder Morgan is developing the Arkansas plant in partnership with Southern Energy, Inc. Plant construction began in July 2000. Expected to be on-line by April 2002, the plant will typically operate during intermediate- and peak-demand periods to provide wholesale electricity to utility companies.

The Jackson, Michigan, plant will occupy an existing reconditioned industrial site. Kinder Morgan has begun demolition of the existing structures and mobilization for construction of the new generating plant. The Jackson plant is scheduled to be on-line by June 2002. It will supply electric power to the regional grid.

Kinder Morgan, Inc. (NYSE: KMI – news) is one of the largest midstream energy companies in America, operating more than 30,000 miles of natural gas and products pipelines in 26 states. It has significant retail distribution, electric generation and terminal assets.

Washington Group International, Inc. is an international engineering and construction firm with more than $5.0 billion in annual revenues and a backlog of approximately $6.6 billion. With 39,000 employees at work in more than 40 countries, the company serves the environmental, government, heavy-civil, industrial, mining, nuclear services, petroleum and chemicals, power, process, pulp and paper, telecommunications, transportation, and water-resources markets as an engineer, constructor, program manager, and developer.