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July 11, 2001 News Media Release

Austin Energy, Enron announce completion of Sand Hill Energy Center project

Austin Energy and Enron Sand Hill, L.L.C., a subsidiary of Enron North America of Houston, today dedicated the Sand Hill Energy Center in eastern Travis County. The facility's four peaking units will provide180 megawatts of electricity to meet the needs of the Austin community during periods of high-energy demand.

The $93.7 million project is the first peaking facility of its kind in Texas to be constructed with selective catalytic reduction pollution control equipment that reduces the nitrogen oxide emission (NOx) rate by 80 percent. NOx emissions from the units are 5 parts per million (ppm), considerably less than allowed under state and federal regulations.

In addition, the peaking units produce more megawatts of electricity per unit of fuel consumed compared to older, natural gas fired generating units. During testing in recent weeks, the units produced 184 MW and consistently emitted at or below 5 ppm of NOx.

"This project is both efficient and environmentally friendly and represents a prudent next step in meeting the energy demands of Austin," said Austin Energy General Manager Chuck Manning.

Austin Energy operates and manages the facility. Enron served as project manager during the development, engineering, procurement and construction phase. Under terms of the joint project, Austin Energy will acquire Enron's 100-megawatt share in three years. Austin Energy is paying for the project with revenues and will not increase base electric rates.

"Enron is proud to partner with Austin Energy on what has proven to be an extraordinarily efficient peaking power plant," said John Lavorato, president and CEO, Enron Americas. "The facility performance test has verified that the Sand Hill Energy Center's gas turbine generators produce clean, reliable energy at a lower cost than other units of its kind."

The Sand Hill Energy Center is located in a remote area next to the South Austin Regional Wastewater Treatment Plant on Fallwell Lane off of State Highway 71.

The Austin community has set 17 all-time peak demand records during the past three years with peak demand in the summer increasing by more than 300 megawatts since 1998. The Austin area is the second fastest growing region in the country next to Las Vegas.

Austin Energy is a community-owned utility that provides electricity to more than 360,000 customers primarily within the City of Austin. Austin Energy's portfolio includes 2,600 megawatts from a diverse generation mix including Sand Hill, two gas-fired plants in Austin and part ownership of the coal-fueled Fayette Power Project in La Grange, Texas, and 16 percent ownership in the nuclear-powered South Texas Project near Bay City, Texas. In addition, Austin Energy has contracts for 100 megawatts of renewable energy from wind power and methane gas from landfills.

Enron is one of the world's leading electricity, natural gas and communications companies. The company, with revenues of $101 billion in 2000, markets electricity and natural gas, delivers physical commodities and financial and risk management services to customers around the world, and has developed an intelligent network platform to facilitate online business. Fortune magazine has named Enron "America's Most Innovative Company" for six consecutive years. Enron's Internet address is www.enron.com. The stock is traded under the ticker symbol "ENE."

-end-

For more information, contact Ed Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000

 

 
 
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