EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
PLANT BEGINS OPERATIONS IN DENVER AREA
Will Help Meet Growing Colorado
Energy Needs While Balancing Environmental Concerns
PARVADA, Colo. - The Denver
area gained a new 111-megawatt natural gas-fired peaking power plant
today when Plains End, LLC began commercial service in Arvada, Colo.
The plant, which has the capability to deliver enough electricity
for more than 110,000 homes, is owned by PG&E National Energy Group,
a unit of PG&E Corporation (NYSE: PCG).
The technology used at the
Plains End plant allows it to operate more efficiently in higher
altitudes than most other available sources. The peaking facility
is designed to be started and quickly brought on-line, allowing
for a swift response during periods of increased power demand, particularly
those prompted by extreme weather conditions.
"Plains End represents among
the best of today's technology to meet peak power demand in Colorado,"
said Chris Iribe, president and chief operating officer of PG&E
National Energy Group's east region. "Our new power plant balances
the energy needs of the area while being sensitive to local environmental
In addition to using natural
gas, the Plains End plant has modern carbon monoxide (CO) catalysts
for CO reduction and uses selective catalytic reduction to help
reduce nitrogen oxides. Traditional power generation steam cooling
is not needed, so demands on water resources at Plains End are equivalent
to that used at seven to nine residential homes.
Electricity Plant Begins
Operations In Suburban Denver
Located on 15 acres, the
plant uses 20 reciprocating engines to produce electricity under
a 10-year power purchase agreement with Xcel Energy.
"We are very pleased about
the new Plains End facility," said David Eves, managing director
of Energy Trading and Purchased Power for Xcel Energy. "It is the
most flexible and responsive electricity resource to operate."
"We were excited about this
project when it first came before us and we are pleased to see that
it will soon be serving the needs of the citizens of Colorado,"
said Arvada Mayor Ken Fellman. "This project is a great example
of what can be accomplished when the community and private industry
The Plains End facility
came together in relatively short time with construction beginning
less than a year ago. Wärtsil?North America, Inc., built the plant
and provided the engines.
"We are proud to have been
a part of the Plains End project, and to assist our customer in
providing power to the community of Arvada, Col.," said Tom Carbone,
president of Wärtsil?North America, Inc. "The efficiency and flexibility
of Wärtsil?engines at high altitude and temperatures, as well as
the low emissions and water usage, will provide that energy at the
lowest possible cost to the community and its environment."
Plains End, LLC is a wholly-owned,
indirect subsidiary of PG&E National Energy Group. Headquartered
in Bethesda, Md., PG&E National Energy Group develops, builds, owns
and operates electric generating and natural gas pipeline facilities
and provides energy trading, marketing and risk-management services.
This news release discusses
certain matters that may be considered "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933,
as amended, including statements regarding the intent, belief or
current expectations of PG&E National Energy Group and its management.
Actual future results could differ materially from those expressed
or implied in any forward-looking statements. Some of the key factors
that could cause actual results to differ materially include, but
are not limited to, (i) changes in government regulations, including
federal and state regulation of the electric energy industry; (ii)
the delay, interruption or prevention of operations because of various
construction and operation risks, such as a failure to obtain or
maintain necessary permits or equipment, necessary permits or equipment,
the failure of third-party contractors to perform their contractual
obligations, the failure of equipment to perform as anticipated,
or an inability to obtain equipment or labor on acceptable terms,
(iii) the development and operation of competing power plants; (iv)
fluctuations in natural gas and electricity prices and the ability
to successfully manage such price fluctuations; (v) the risks associated
with marketing and selling power from power plants in the newly
competitive energy market; and (vi) the other risks identified in
PG&E National Energy Group's reports filed with the Securities and