Air Pollution Control Equipment Services, Coal, Emissions

Allegheny Energy signs scrubber contract

15 March 2007–Allegheny Energy Inc. signed an engineering, procurement and construction agreement for flue gas desulfurization equipment at its coal-fired Fort Martin Power Station. The scrubbers will reduce sulfur dioxide emissions by approximately 95 percent at the facility, six miles north of Morgantown, W.Va.

Allegheny signed the agreement with Washington Group International. The Fort Martin project continues Allegheny’s overall environmental improvement program, which includes commitments to invest approximately $1.4 billion to reduce emissions over the next few years.

Other environmental initiatives underway include:

•The company will install scrubbers at its Hatfield’s Ferry power station, located about 40 miles south of Pittsburgh. The project will remove approximately 95 percent of the sulfur dioxide emissions and reduce mercury emissions from the Hatfield’s Ferry facility.

•Construction is underway for chimney and ductwork enhancements to fully scrub emissions at the company’s Pleasants Power Station at Willow Island, W.Va., north of Parkersburg, W.Va. The improvements will reduce sulfur dioxide emissions and mitigate fly ash dispersal issues.

•Allegheny has introduced Powder River Basin coal to the company’s fuel mixture. The coal complements the majority of the company’s coal, which originates from mines in Pennsylvania, West Virginia and Ohio. The fuel blend reduces total emissions from the combustion process.

Upon completion of the Fort Martin, Hatfield’s Ferry and Pleasants projects, all of the company’s largest, supercritical coal-fired generation facilities will employ enhanced scrubber technology to manage emissions. These projects are part of Allegheny’s comprehensive plan to reduce total sulfur dioxide emissions by more than 275,000 tons a year.