First Reserve and GenPower announce formation venture to pursue development

Greenwich, CT, and Needham, MA, Oct. 13, 2006 — GenPower LLC (GenPower) and First Reserve Corp. (First Reserve), a private equity firm, announced their agreement to form GenPower Holdings L.P., a new joint venture that will pursue the development, ownership, acquisition and operation of power generation facilities in the United States and abroad.

GenPower is contributing to the joint venture a portfolio of projects under development and an existing team of power development professionals to manage the company. The first plant to be financed by the new entity is expected to be the Longview coal project (Longview), a 695 MW pulverized coal-fired generating facility to be located in Maidsville, West Virginia.

Longview will represent a total investment of approximately $1.8 billion, the equity for which is expected to be provided by First Reserve through GenPower Holdings. Longview has received substantially all necessary permit approvals and is currently finalizing EPC contract negotiations with a consortium of Siemens Power Generation Inc. and Aker Kvaerner Songer Inc. Ground breaking is expected in January 2007 and commercial operation in late 2010. Longview will sell a portion of its output to various parties under intermediate term power purchase agreements with the remaining output to be sold into the PJM merchant market or opportunistically sold under additional long-term contracts.

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