EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
ENERGY GROUP COMPLETES FINANCING FOR DENVER AREA POWER PROJECT
Transaction Will Help Bring
Clean and Reliable Peak Power to the Mile High Region
BETHESDA, Md. - PG&E Corporation's
(NYSE: PCG) PG&E National Energy Group (PG&E NEG) has completed
financing for its 111-megawatt Plains End Generating project now
under construction in Arvada, Colo., about 8 miles northwest of
Credit Lyonnais was the
lead arranger and underwriter for the non-recourse project financing.
"We look forward to helping
meet the growing energy needs of Colorado, while balancing environmental
concerns," said Tom King, president and chief operating officer
of PG&E NEG's West Region. "The Plains End Generating project is
an excellent example of everyone working together to bring this
project on-line within an aggressive time frame."
The project will use 20
natural gas-fired reciprocating engines, each rated at 5.5 megawatts,
to produce electricity under a 10-year power purchase agreement
with Xcel Energy. The peaking facility is designed to be started
and quickly brought on-line, allowing for a swift response during
increased or decreased power demand, particularly those prompted
by extreme weather. The process used at Plains End requires very
little water and is expected to operate more efficiently than most
other competing sources, providing a good heat rate, despite the
area's high altitude.
Located on 15 acres of a
55-acre site in Jefferson County's Vauxmont development, Plains
End Generating will be capable of delivering enough electricity
for about 111,000 homes. It is scheduled to be operational in spring
"We were pleased that PG&E
National Energy Group was among the many bidders seeking to provide
additional electricity to help Xcel Energy serve its customers'
energy needs in Colorado," said David Eves, managing director of
Energy Trading and Purchase Power, Xcel Energy. "The purchase power
agreement we have with them will provide peaking power when we need
it the most."
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.
This news release contains statements
concerning plans for the construction and operation of the Plains
End Generating plant that may be considered forward-looking statements
that involve a number of risks and uncertainties. Actual future
results could differ materially from those expressed or implied
in any forward-looking statements. Some of the key factors that
could cause actual results to differ materially include, but are
not limited to; (i) changes in government regulations, including
federal and state regulation of the electric energy industry; (ii)
the delay, interruption or prevention of commercial operations because
of various development, construction and operation risks, such as
necessary permits or equipment, the failure of third-party contractors
to perform their contractual obligations, the failure of equipment
to perform as anticipated, or an inability to obtain equipment or
labor on acceptable terms; and, (iii) the other risks identified
in PG&E Corporation's and PG&E National Energy Group's reports filed
with the Securities and Exchange Commission.