Mirant reaches Clean Air Act agreement with State of New York at Lovett Power Plant

ATLANTA, June 11, 2003 — Mirant announced that an agreement has been reached between the company’s New York business unit, the New York Attorney General and the New York Department of Environmental Conservation, to install state-of-the-art environmental technology at its Lovett power plant.

The installation will significantly reduce nitrogen oxide (NOx) and sulfur dioxide (SO2) emissions.

The agreement resolves allegations of non-compliance with federal and state Clean Air Act New Source Review regulations. The allegations were made in a notice of violation issued to the prior owner of the plant for a period pre-dating Mirant’s ownership, which began in 1999. This agreement is the first of its kind between a New York power generator and the state of New York.

Mirant admitted no violation and believes the plant has been operated in accordance with the law. Mirant was not assessed any penalty or fine under the agreement.

“This agreement provides Mirant with greater certainty in managing current and future environmental requirements in New York,” said Mark Lynch, president of Mirant’s northeast business unit. “It also affirms our long-standing commitment to the environment. With the agreement in place, Mirant can invest in the environmental technology needed to help improve the air quality in New York.”

“The settlement we have reached with Mirant will improve air quality in the Hudson Valley and beyond. As this agreement demonstrates, power companies can act responsibly and with foresight. I commend Mirant for their commitment to reducing air pollution at their Lovett power plant,” said New York Attorney General Eliot Spitzer.

Under the agreement, Mirant agreed to install state-of-the-art selective catalytic reduction technology on the Lovett plant’s two coal fired units to reduce NOx emissions to 78 percent below the plant’s permitted emission rate.

Mirant also agreed to install in-duct injection technology on each coal fired unit and a baghouse, a technology to remove particulate matter, which are expected to reduce mercury emissions and reduce SO2 emissions to a level that is at least 40 percent below the plant’s permitted emission rate.

Implementation of these environmental controls will be completed by 2007- 2008.

Current estimates of the expenditures for emission controls are consistent with assumptions presented in Mirant’s financial and capital spending plans. The controls and emission reductions will position the Lovett plant to operate under more stringent future federal and state environmental requirements.

The coal-fired units at Mirant’s Lovett power plant currently utilize low sulfur coal as a primary fuel source and generate 348 megawatts of electricity, or the amount of electricity required to power approximately 350,000 homes.

Mirant purchased the Lovett power plant in June 1999 from the Orange and Rockland Utilities Inc. during New York’s divestiture of electricity generation assets.

Mirant is a competitive energy company that produces and sells electricity in the United States, the Philippines and the Caribbean. The company owns or controls approximately 22,000 megawatts of electric generating capacity around the world. Mirant integrates risk management and marketing activities with its extensive asset portfolio. Visit us at www.mirant.com.

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