Press Release

SouthWestern Power Group Gains ACC Approval for New Natural Gas Fired Plant

PHOENIX, Ariz (February 26, 2002) - The Arizona Corporation Commission today approved SouthWestern Power Group's application for a Certificate of Environmental Compatibility for its proposed 1,000-megawatt (MW) natural gas fired power plant in southeastern Arizona, known as the Bowie Power Station.

The plant, targeted for use in both the Phoenix and Tucson metropolitan areas, is expected to be operational in 2005. It will be constructed in two 500 MW phases and will provide enough electricity to meet the energy needs of 250,000 homes. The plant will be located just outside Bowie, Ariz. in Cochise County.

"We are very pleased with today's decision and commend the commission for its foresight," said Tom Wray, general manager for SouthWestern Power Group. "This project will help ensure that there is enough energy to meet the needs of Arizona's two largest communities in one of America's fastest growing states."

In addition to strengthening the reliability of the existing electrical and transmission grid, the Bowie Power Station will provide stability for the state's rural economy.

The plant will create up to 400 jobs over the two-year construction phase and will create approximately 45 full-time jobs with an annual payroll of around $3 million. New property tax revenue to Cochise and nearby Graham County over the 30-year life of the facility is projected to exceed $100 million.

The Commission's action approved a recommendation by the state Power Plant and Transmission Line Siting Committee, which voted to approve the application in December 2001.

The plant will feature four General Electric 7 FA natural gas turbines that are considered to be among the most fuel-efficient machines in the world. The plant will use wet cooling to promote maximum fuel efficiency and will incorporate a zero-discharge waste water system. An evaporative cooling system will reduce air inlet temperatures while increasing plant efficiency during warm weather. State of the art emission control technology will minimize air pollution and ensure compliance with state and federal regulations.

To meet state siting requirements, SouthWestern Power Group conducted several environmental impact studies - including biological, visual, land use, noise and archaeological resources.

"Our standards are very high," said Wray. "Our company designs state-of-the-art power plants that are highly efficient and represent a low-cost, clean source of electricity for today's wholesale energy market. If we don't have a high-quality project, we're out of business."

Headquartered in Phoenix, SouthWestern Power Group II, LLC, is a privately held company that develops, constructs, owns and operates gas-fired power plants throughout the United States.

Contact: Peggy Striegel
Striegel and Associates,

John MacDonald
Jamieson & Gutierrez, Inc.

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