Reliant Energy plans to build air-cooled generating facility in Arizona

HOUSTON, Sept. 4, 2001 – Reliant Energy Wholesale Group, a unit of Reliant Resources, announced plans to build a combined-cycle generating facility in Arizona near its recently completed Desert Basin facility in Pinal County.

Phase I, scheduled for commercial operation in 2004, will include two natural gas-powered turbines and one steam-powered turbine and will have a total capacity of 580 megawatts. Named Signal Peak after a nearby landmark, the plant will be Arizona’s first “dry” merchant power generating facility.

Reliant Energy Signal Peak will use an innovative air-cooled condenser, a technology that drastically reduces water use to only about 300 acre-feet per year, less than a tenth of the water used for natural gas-powered generating facilities with conventional cooling towers.

Phase II of the Signal Peak project, which would be the same size and use the same equipment, is scheduled for commercial operation in 2009, contingent upon the region’s need for power.

“Reliant Energy Signal Peak will be a valuable energy resource that’s designed to meet the region’s need for electricity while protecting the environment and conserving precious water supplies,” said Jack Farley, president Western Region, Reliant Energy Wholesale Group. “We’re keeping our commitment to Arizona to be a good neighbor and a valued member of the community who shares the concerns of its citizens and makes a positive contribution to the economy and quality of life.”

Signal Peak will use Best Available Control Technology to meet stringent federal, state and local environmental performance criteria, and it will not negatively impact air quality in Pinal County.

Reliant Resources, based in Houston, Texas, provides electricity and energy services to wholesale and retail customers in the U.S. and Europe. The company has nearly 20,000 megawatts of power generation capacity in operation, under construction or under contract in the U.S. and is one of only five companies to rank among both the ten largest power marketers and the ten largest natural gas marketers in North America. Reliant Resources also has wholesale trading and marketing operations and nearly 3,500 megawatts of power generation in operation in Western Europe.

At the retail level, Reliant Resources provides energy and Internet/communications services and will serve approximately 1.7 million customers in Texas when the electricity market opens to full retail competition in January 2002. Reliant Resources currently is a majority owned subsidiary of Reliant Energy.

SOURCE: Reliant Resources

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