Direct Energy acquires competitive electric customer base of Entergy Solutions Ltd.

Houston, TX, April 24, 2006 — Direct Energy has acquired the competitive electric customer base of Entergy Solutions Ltd. located in the Electric Reliability Council of Texas (ERCOT) grid. The more than 100,000 residential and commercial customers are located throughout Houston, Dallas/Fort Worth and South Texas. This acquisition will increase Direct Energy’s Texas customer base to over one million customers.

The addition of customers in Houston and Dallas/Fort Worth will grow Direct Energy’s market presence to about 10 percent in those areas, positioning the company as a large competitor in Dallas/Fort Worth. Direct Energy’s overall ERCOT market presence will be boosted by two percentage points to approximately 18 percent.

“This further demonstrates our commitment to deregulation in the Texas marketplace,” said Phil Tonge, president of Direct Energy’s Texas Retail Operations.

Direct Energy will honor the existing terms of agreement that Entergy Solutions Ltd. has in place for its customers with equivalent or lower rates.

Direct Energy’s latest acquisition follows the recently announced purchase of the Paris Energy Center, which represents the third power station that Direct Energy has bought in Texas since 2004, following the acquisitions of Bastrop Energy Center near Austin, Texas, and the Frontera Energy Center, in Mission, Texas.

The company also entered into an exclusive 15-year power purchase agreement for all output from the Buffalo Gap Wind Farm located near Abilene, Texas. As a result of its acquisitions, Direct Energy can meet approximately 31 percent of its current peak demand in Texas from its own assets. In addition, Direct Energy now provides energy-related cooling and heating maintenance and installation to Texas customers thanks to its acquisition of Residential Services Group in 2004.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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