Electricity plant begins operations in Denver area

ARVADA, Colo., May 30, 2002 — The Denver area gained a new 111-MW natural gas-fired peaking power plant recently when Plains End, LLC began commercial service in Arvada, Colo.

The plant, which has the capability to deliver enough electricity for more than 110,000 homes, is owned by PG&E National Energy Group, a unit of PG&E Corp.

The technology used at the Plains End plant allows it to operate more efficiently in higher altitudes than most other available sources. The peaking facility is designed to be started and quickly brought on-line, allowing for a swift response during periods of increased power demand, particularly those prompted by extreme weather conditions.

“Plains End represents among the best of recently’s technology to meet peak power demand in Colorado,” said Chris Iribe, president and chief operating officer of PG&E National Energy Group’s east region. “Our new power plant balances the energy needs of the area while being sensitive to local environmental concerns.”

In addition to using natural gas, the Plains End plant has modern carbon monoxide (CO) catalysts for CO reduction and uses selective catalytic reduction to help reduce nitrogen oxides. Traditional power generation steam cooling is not needed, so demands on water resources at Plains End are equivalent to that used at seven to nine residential homes.

Located on 15 acres, the plant uses 20 reciprocating engines to produce electricity under a 10-year power purchase agreement with Xcel Energy.

“We are very pleased about the new Plains End facility,” said David Eves, managing director of Energy Trading and Purchased Power for Xcel Energy. “It is the most flexible and responsive electricity resource to operate.”

“We were excited about this project when it first came before us and we are pleased to see that it will soon be serving the needs of the citizens of Colorado,” said Arvada Mayor Ken Fellman. “This project is a great example of what can be accomplished when the community and private industry work together.”

The Plains End facility came together in relatively short time with construction beginning less than a year ago. Wartsila North America, Inc., built the plant and provided the engines.

“We are proud to have been a part of the Plains End project, and to assist our customer in providing power to the community of Arvada, Col.,” said Tom Carbone, president of Wartsila North America, Inc. “The efficiency and flexibility of Wartsila engines at high altitude and temperatures, as well as the low emissions and water usage, will provide that energy at the lowest possible cost to the community and its environment.”

Plains End, LLC is a wholly-owned, indirect subsidiary of PG&E National Energy Group. Headquartered in Bethesda, Md., PG&E National Energy Group develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services.