GE Energy and Bechtel sign agreement for next phase of Cinergy’s IGCC project

Atlanta, GA, Mar. 24, 2006 — GE Energy and Bechtel Corp. have signed an agreement with Cinergy/PSI to proceed with preliminary engineering and design work for a proposed 600-megawatt power plant in Indiana that will use integrated gasification combined-cycle (IGCC) technology.

Vectren Energy Delivery of Indiana, a subsidiary of Vectren Corp. headquartered in Evansville, Ind. is also participating in the preliminary engineering work as a potential co-owner of the plant.

The front-end engineering design (FEED) phase of the project is expected to take approximately one year to complete and will result in site specific data for construction of the plant. A final decision on construction will be made after the engineering and design are complete and regulatory approvals have been received.

PSI Energy, the Indiana operating company of Cinergy Corp., would own and operate the facility, which would be among the first commercial-scale IGCC plants to be built in the United States in the last 10 years. Among several locations being considered for the project is the site of Cinergy/PSI’s coal-fired station in Edwardsport, Ind.

As previously announced, GE and Bechtel have formed an IGCC alliance to develop a standard commercial offering for IGCC projects in the United States, offering a single point of contact for project developers. Provided that the IGCC alliance is awarded the contract for the next phase, GE Energy would supply the IGCC technology for the new plant, while Bechtel would be responsible for engineering, procurement and construction.

GE’s “cleaner coal” IGCC process emits less than half of the sulfur dioxides, nitrogen oxides, mercury and particulate matter of a traditional pulverized coal plant. The process also uses less water than a traditional plant and can be more economically retrofitted for carbon capture, further strengthening its environmental benefits.

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