International Power Files Application With New York State to Build Gas-Fired Power Plant On Long Island

Business Wire, June 26, 2001

Business Editors

LONDON--(BUSINESS WIRE)--June 26, 2001

International Power announces it has filed an Article X application with the New York State Board on Electric Generation Siting and the Environment seeking approval to build and operate a new 580 MW natural gas-fired power plant in Brookhaven, Long Island.

The Article X application addresses environmental and other matters related to the siting of an energy generating facility in New York State. The filing begins a sixty-day period for the Siting Board to determine whether the application is complete. Once a completeness determination is made, the Siting Board has one year to make a final decision on the application. During that time, there will be a public comment period, and the Board will schedule and conduct public hearings on the project. Under this schedule, we plan to begin construction of Brookhaven in the second half of 2002 and have the plant ready for commercial operation in late 2004.

"Brookhaven will provide 580 MW of clean and affordable new generating capacity to the supply constrained Long Island power market where electricity prices are high and power plant siting is very difficult," said Peter Giller, International Power's Chief Executive Officer.

The New York Independent System Operator has estimated that 8,600 MW of new generation is required in the State by 2005 to avoid higher prices and the specter of unreliable supplies. Presently, only about 1,700 MW of new capacity is under construction in New York.

The proposed Brookhaven facility is a 580 MW combined-cycle gas turbine (CCGT) power plant utilizing Alstom GT-24B technology.

NOTE TO EDITORS:

International Power is one of the world's leading independent electric generating companies with over 8,550 MW (net) in operation, 3,000 MW (net) under construction and approximately 8,000 MW (net) in advanced development. Among the countries where International Power has operating facilities are Australia, the United States, the United Kingdom, the Czech Republic, Portugal, Spain, Turkey, Malaysia, Pakistan, and Thailand. International Power was created from the demerger of National Power, and its shares began trading independently on the London Stock Exchange and as ADRs on the New York Stock Exchange on 2 October 2000. The ticker symbol on both stock exchanges is "IPR".