Texas Independent Energy Starts Construction on $200 Million Guadalupe County Power Plant; Duke/Fluor Daniel is EPC Contractor for 1000-Megawatt Project

Business Wire, August 23, 1999

SAN ANTONIO--(BUSINESS WIRE)--Aug. 23, 1999--

Construction has begun on Texas Independent Energy's 1000-megawatt natural gas-fired generating plant at Santa Clara in west Guadalupe County, 30 miles northeast of San Antonio.

Texas Independent Energy is a joint venture of privately held Panda Energy International, a leader in the development of environmentally clean and efficient new-generation power plants, and PSEG Global, a well known international power developer, owner and operator.

"This project represents an investment in excess of $200 million and will more than double the current tax base of the Marion Independent School District," said Project Director Steve McAdams.

Site preparation work has been underway for several weeks. Duke/Fluor Daniel, the engineering, procurement and construction contractor, already has approximately 55 workers on the job site, and more are being employed weekly.

The Guadalupe-Blanco River Authority has begun work on an intake and pump structure at Lake Dunlap to supply raw water to the plant site.

McAdams said Texas Independent Energy plans a formal construction ceremony in the community for the early fall "as soon as the weather cools off."

McAdams anticipates a workforce of approximately 550 employees at the peak of construction, representing a total payroll of more than $25 million. In addition, Texas Independent Energy expects to generate $10 million to $14 million for the local economy through the acquisition of materials and services during construction.

Once in operation, the plant is expected to have a permanent staff of 40 to 50 employees with an annual payroll of $2.3 million and to spend $3 million to $5 million in local purchases annually.

Garry Hubbard, senior vice president, said that negotiations on initial sales contracts for electrical output of the South Texas power plant already are underway.

"We are experiencing enormous interest in the energy supply from this new facility," Hubbard said. He expects the first two units of the Guadalupe plant to be on line by December of 2000, with the second two units scheduled for commercial operation in March of 2001.

Hubbard noted that the Guadalupe facility is the first of three such plants under development by Texas Independent Energy. Other projects have been announced for Archer County near Wichita Falls in Northwest Texas, and in Ector County at Odessa in far West Texas. All three facilities will offer power to members of the Electric Reliability Council of Texas (ERCOT) power grid.

Texas Independent Energy is a pioneer leader in the new breed of independent power producers who employ state-of-the-art, highly efficient, environmentally friendly electric generating facilities.