The Babcock & Wilcox Company to Supply Environmental Control Equipment to Public Service Company of New Mexico

Business Wire, Jan 25, 2007

BARBERTON, Ohio -- The Babcock & Wilcox Company (B&W) has received a contract valued at more than $100 million from Public Service Company of New Mexico (PNM) to design, supply and erect low nitrogen oxide (NOx) burners, baghouses and related equipment for the utility's San Juan Generating Station in Waterflow, N.M.

B&W's contract includes the supply of 42 DRB-4Z([R]) low NOx burners, overfire air systems, baghouses and ash handling systems, and activated carbon injection systems for mercury control for Units 3 and 4 at the San Juan Station. Babcock & Wilcox Construction Co., Inc. will provide erection services. Units 3 and 4 are 550-megawatt boilers originally supplied by B&W in 1980. In 1998, B&W modified the scrubber system that had been provided by another supplier with a B&W limestone forced oxidation flue gas desulfurization system.

"We are extremely pleased that PNM has once again demonstrated its confidence in our technology, in our project team and in our construction capabilities," said David L. Keller, B&W president and chief operating officer. "We look forward to another successful project together and to helping PNM continue to meet its environmental goals and serve its many customers in the region."

"This contract allows us to add our latest retrofit low-NOx burner design to San Juan's units," added Brandon Bethards, B&W senior vice president and general manager, Fossil Power Division. "With this addition, and our previously installed scrubbers and other environmental equipment, San Juan will be an outstanding model for other plants looking to lower emissions of NOx, sulfur dioxide and mercury."

Engineering is underway at B&W's Barberton headquarters. Unit 4 is scheduled to go into service (operation) in the fall of 2007, with Unit 3 scheduled to go into service (operation) in spring 2008.

PNM is a subsidiary of PNM Resources, an energy holding company based in Albuquerque, N.M. PNM provides electric utility service to 426,000 customers and natural gas service to 481,000 customers in New Mexico. The company also sells power on the wholesale market in the West. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information, see the company's Web site at PNM.com.

The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc., a leading worldwide energy services company. McDermott subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for the offshore oil and natural gas industry. The Babcock & Wilcox Company is located on the Internet at www.babcock.com.