Press Release

Siting Committee OK's Environmental Certificate for Power Plant in South-Central Arizona

Application goes to Corporation Commission for final action


PHOENIX, Ariz. (Nov. 28, 2001) - A Certificate of Environmental Compatibility for a new power plant being proposed by an operating unit of SouthWestern Power Group II, LLC in south-central Arizona has been approved by the state Power Plant and Transmission Line Siting Committee. The application has now been forwarded to the Arizona Corporation Commission, which has 60 days within which to act upon it.

The 1,800-megawatt (MW) plant, to be built by Toltec Power Station, LLC, will be located on a 5,000-acre tract near the town of Eloy, approximately 60 miles southeast of Phoenix. The plant is expected to commence operation in 2004. When completed, the plant will produce enough electricity to meet the needs of a half-million homes. Primary target areas for its output will be the east valley area of Phoenix and metropolitan Tucson, two of the fastest growing regions in the country.

Tom C. Wray, SouthWestern Power general manager, said he is especially pleased with the thoroughness and promptness of the siting committee in approving the company's application and anticipates a positive response from the corporation commission.

"We have promised the people of Arizona that we will build a facility that is state-of-the-art in every respect," Wray said. "Our application for a Certificate of Environmental Compatibility confirms that commitment."

As detailed in the application, the plant will be a natural gas-fired facility that employs combustion turbine technology in a highly efficient combined-cycle design. It has been engineered to operate continuously in a base-loaded mode or to follow the demand for power in a cycling mode.

Construction will be phased in three 600-MW power blocks, each consisting of two combustion turbine electric generators, two heat recovery steam generators and one turbine electric generator.

Wray said wet-cooling towers will cool the steam turbines with water coming from an underlying aquifer. The plant will incorporate a zero discharge wastewater system. An evaporative cooling system will reduce air inlet temperatures while increasing plant efficiency during hot weather.

Use of new emissions control technology will ensure compliance with air quality regulations, Wray said. Nitrogen oxide (NOx) emissions will be reduced via in-situ combustion controls and post-combustion pollution control systems.

Featured at the plant will be six General Electric 7FA natural gas turbines that are considered to be among the most fuelefficient machines in the world. They will be incorporated into a combined cycle design. As an added environmental safeguard, each turbine will be equipped with low NOx (DLN) combustors.

Heat recovery steam generators will produce steam from hot exhaust gases and expand it in the steam turbine generators to increase electricity production and boost overall cycle efficiency.

Wray said an average of 400 jobs will be created during the plant's 24-month construction period. When operational, the facility will have approximately 60 full-time jobs at an annual payroll of $3 million. The company also expects to make as much as $8 million in local purchases each year the facility is in operation.

"We are anxious to begin construction and put this plant into operation," Wray said. "It will be an important addition to the local economy and tax base of this part of the state and an important source of power to meet the growing demands of businesses and residents in this region."

About Southwestern Power Group II

Headquartered in Phoenix, Southwestern Power Group II, LLC is a privately held company engaged in the development of clean, low-cost electric power plants. In addition to the Toltec Power Station, the company is developing a facility in Bowie, AZ. Further details are available on the company's Web site at southwesternpower.com.

Contact: Peggy Striegel
Striegel and Associates,
ps@striegela.com
(800)663-1136

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