Navigant Consulting to conduct auction for 540 MW facility

BURLINGTON, Mass., April 25, 2001 — Navigant Consulting, Inc. announced that its Energy & Water business unit has been selected by Sithe West Medway Development LLC to conduct an auction for the proposed 540-megawatt gas fired simple cycle electric generating facility located in Medway, Massachusetts.

The Energy & Water unit will be soliciting bids for either the purchase of the facility or for a tolling agreement for all of the electrical energy output from the facility. Either alternative provides the buyer with access to electrical output from a facility that has been fully permitted and is ready for immediate commencement of construction.

The Medway Project, comprised of three identical 180 MW General Electric Frame 7FA gas fired simple cycle advanced technology combustion turbines, has advantageous siting with interconnections to the high-voltage electric transmission system managed by ISO New England and access to a major natural gas pipeline.

The New England market is currently experiencing a shortage of peaking capacity, especially capacity with high ramp rate capability. These units provide rapid start-up and load ramping, and significant fuel efficiency, all while maintaining extremely low emission rates. Their high efficiency, high ramp rate and low emissions will position the Medway Project to favorably compete with the other generating units in the region.

The Medway Project will be located on a minimum of fourteen (14) acres at the nexus of two critical market zones, Greater Boston and Central Massachusetts/Rhode Island. It will be connected to the backbone of the New England electric transmission system via a direct connection with NStar’s adjacent 345 kV switchyard in the Central Massachusetts/Rhode Island zone. The Central Massachusetts/ Rhode Island zone will include ISO New England’s proposed Market Hub. The Medway Project will also be interconnected with Algonquin Gas Transmission’s high pressure interstate pipeline system less than one mile away.

“Our auction process is designed to be attractive both to parties which wish to own and operate these units, and parties which would prefer to deliver fuel to the facility and market the electrical output. We are open to structuring this transaction on a basis which allows the bidders to creatively offer the most value for these assets”, said Nicholas W. Mattia, Jr., a Director in Navigant Consulting’s Energy & Water business unit.

The auction process is expected to begin soon, with the availability of the Offering Memorandum. For additional information on the Medway Project sale and tolling services offering, interested parties should contact either Messrs. Mattia or Slocum. E-mail: [email protected] or [email protected] .