Wartsila secures contract for peaking plant in Pennsylvania

ANNAPOLIS, MD, October 9, 2002 — Wartsila North America announced Wednesday that it has received an order for a Wartsila peaking plant.

The Borough of Chambersburg, PA has signed a contract, valued at $17,335,000, with Wartsila for the purchase of a 23-megawatt plant, consisting of four 18V32DF dual fuel engines, which will be located in Chambersburg, PA.

The new Wartsila power plant, together with the existing 7.3 megawatt plant, will be used to control present and future power supply costs, provide for greater system reliability and afford the opportunity for the sale of power. The plant is expected to operate up to 2,500 hours per year and increase reliability of service to the City of Chambersburg, once the installation is completed in the third quarter of 2003.

“By working with Wartsila, Chambersburg joins a growing group of communities that have decided to take the bull by the horns and control their energy future,” said Frank Donnelly, vice president of power plants for Wartsila North America. “The Wartsila peaking plant was chosen for its ability to provide the Borough of Chambersburg with security, independence and leadership during a time when deregulation has created great turbulence in the electric industry.”

The standard Wartsila peaking plant is a pre-engineered 1-300 megawatt power plant, designed to run parallel with the transmission grid when electric demand is at its highest. With the dual fuel feature, providing capability to operate on fuel oil and natural gas, the plant is able to switch to liquid fuel during winter peak gas rate periods, thereby providing the most optimal life cycle economy possible. Dual fuel capability also increases the reliability of such a peaking plant, so that when the market calls for power, power is delivered regardless of fuel source.

“For more than one hundred years, the Borough Electric Department has been providing affordable and dependable electric service to the residents of Chambersburg. By signing this contract with Wartsila for its peaking plant, we are taking the first step toward guaranteeing that the same quality of electric service continues for the next hundred years,” said William McIaughlin, president of Chambersburg Borough Council. “I have little doubt that future Councils will call on Wartsila to continue to expand this power plant’s capacity.”

Wartsila Corporation, based in Helsinki, Finland, is a major provider of solutions for decentralized power generation, and a global ship power supplier. Wartsila provides complete turnkey power plants ranging from one to 300 megawatts, for applications such as peaking, multi-fuel base load, combined heat and power, mechanical drives and biopower. Wartsila’s network company in North America is headquartered in Annapolis, MD. For more information on Wartsila, visit its website at www.wartsila.com.

The Borough of Chambersburg Electric System began in 1893 primarily as a street lighting service and has grown steadily throughout its almost 110-year history. Currently, the Borough serves approximately 10,300 customers within the Borough’s boundary with a peak summer load of approximately 52 megawatts. For more information on the Borough of Chambersburg, visit its website at www.borough.chambersburg.pa.us.

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