Coal, Gas

Dynegy to build second power plant in Kentucky

Foothills Generating Project will meet peak demand in summer 2002

HOUSTON, Texas, April 16, 2001 — Dynegy Inc. today announced plans to construct its second natural gas-fired, simple-cycle peaking facility in the state of Kentucky.

The 330-megawatt Foothills Generating Project will be located in Lawrence County near Louisa, Ky. The facility will be adjacent to Dynegy’s Riverside Generating Project, a 500-MW natural gas-fired, simple-cycle peaking facility. Both power plants will be located on a 20-acre site next to the Big Sandy River.

Dynegy will sell the power generated at the plant in the wholesale electricity market to investor-owned utilities, electric cooperatives and municipalities throughout the East Central Area Reliability Council and other regions of the country. Commercial operation is expected to begin during the second quarter of 2002.

“Our decision to develop the Foothills Generating Project was based on the rapidly growing demands of the wholesale energy market in Kentucky and the neighboring region,” said Steve Bergstrom, president and chief operating officer of Dynegy Inc. “In addition to representing further progress in our long-term strategy to expand our generation portfolio throughout the country, this project demonstrates the scalability of our existing assets.”

The Foothills Generating Project will consist of two Siemens Westinghouse 501F combustion turbines. Natural gas delivered from Tennessee Gas Pipeline Co. will be used as fuel to generate electricity. A 345-kilovolt interconnection with American Electric Power will provide transmission access for power transactions.

The Foothills Generating Project will create approximately 200 new construction jobs. After full commercial operation is achieved, the facility will require four new permanent employees.

Dynegy Inc. is a leading provider of energy and communications solutions to customers in North America, the United Kingdom and Continental Europe. The company’s leadership position extends across the entire convergence value chain, from power generation and wholesale and direct commercial and industrial marketing and trading of power, natural gas, coal, emission allowances, weather derivatives and broadband to transportation, gathering and processing of natural gas liquids.