Genova to construct natural gas power plant in Tontitown, Arkansas

DALLAS, Nov. 8, 2001 — Genova Arkansas I, LLC, a division of Dallas-based Genova Power Company, LP, announced plans today to consider a 50-acre tract for construction of a 550-megawatt (MW) electric power generating facility one-half mile north of U.S. 412 near Tontitown, Ark.

General Manager Jeffrey W. Schroeter said construction is expected to begin in the fall of 2002 with commercial operation projected to begin in the summer of 2004.

The new facility, which will produce enough electricity to meet the needs of 300,000 homes, will use two high efficiency gas turbines and one steam turbine in combined cycle. Its power will be distributed to the regional grid by American Electric Power (AEP).

“This facility will take advantage of the latest advances in generating technology and will be state-of-the-art in every respect,” Schroeter said. “Its gas turbines will be equipped with Dry Low NOx (DLN) combustion systems and Selective Catalytic Reduction (SCR) for optimum emissions control. They are considered to be among the most efficient and cleanest gas-fired machines in operation today.”

Schroeter said an average of 250 people would be employed during the 22-month construction phase and the company plans to spend upwards of $12 million locally on goods and services during that period. Once in operation, the highly computerized plant will have an annual payroll of $1.6 million from 25 management level and skilled employees needed to operate it on a 24-hour-a-day schedule. In addition, the plant is also expected to create 75 off-site support positions.

Schroeter estimated the facility will pay approximately $4 million per year in sales and use taxes and an additional $500,000 per year in property taxes. Another approximately $1.5 million in local purchases will be made each year it is in operation.

Furthermore, this facility will be an important part of the infrastructure necessary to accommodate demand growth, and provide supply reliability for the region. The normal life for this type of plant is 30 years.

Genova Power Company, LP is a power plant development company based in Dallas and its principals have more than 60 years experience in the energy business. Genova’s financial partner is Hunt Power, L.P. of Dallas, a privately held company affiliated with Hunt Consolidated Inc. Under the direction of Hunter L. Hunt, Hunt Power, L.P. develops projects in the electric power industry and seeks opportunities to partner with and invest in companies active in the industry. More information: www.genovapower.com or www.huntpower.com .

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