American Superconductor and GE Energy receive order for two D-VAR systems from City of Detroit Public Lighting Department

Westborough, MA, May 10, 2006 — American Superconductor Corp., an energy technologies company, and GE Energy, a business of the General Electric Co., received an order for two D-VAR systems from the City of Detroit Public Lighting Department (PLD), a Municipal Electrical Utility with public and private customers based in Detroit, Michigan.

D-VAR voltage regulation systems are designed to dynamically regulate voltage levels on power grids. PLD will utilize the D-VAR systems to provide the voltage support that was previously provided by local electrical generators but at a much higher cost. American Superconductor expects to ship the D-VAR systems in June 2006 for installation at the Detroit PLD Mistersky 24 kilovolt (kV) substation in Detroit, Michigan. Commissioning is planned to take place in late summer of 2006.

“We expect our annual energy costs to be reduced by at least $10 million with the D-VAR solution in place,” said Kwame Kilpatrick, mayor of Detroit.

Detroit PLD’s Mistersky Power Station managers found that they were frequently running multiple local generators to provide voltage stability on their 24kV network. This results in a premium cost of power versus the import price available on the wholesale market. By replacing the generators with the two D-VAR systems, Detroit PLD expects significant enough savings in their energy costs to completely offset the D-VAR costs in approximately 6 months.

Classified as a STATCOM, Flexible AC Transmission System (FACTS) device, D-VAR dynamic voltage regulation systems detect and instantaneously compensate for voltage disturbances by injecting leading or lagging reactive power, measured in VARs, precisely where it is needed on the grid.

Powered by AMSC’s PowerModule advanced power electronic converters, the D-VAR systems can be customized to meet specific customer needs through variations in operating software and in the number of PowerModule electronic converters required for the proper level of VAR support.

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