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Natural Gas to Fuel West Deptford Power Project

Natural Gas to Fuel West Deptford Power Project

August 29, 2007

New plant will help meet New Jersey’s growing demand for competitive energy.

West Deptford Energy, LLC, a joint venture between Dynegy Inc. and LS Power Associates, L.P., announced today that its power project at Paradise Road will be fueled by natural gas. The company expects that, once all permits and approvals have been obtained, the West Deptford Energy Project could enter service as early as 2011.

The natural gas-fired combined-cycle generating facility could be completed several years earlier than other fuel and technology choices the developer had been evaluating.

“The decision was reached after careful consideration of the more immediate need for additional power supplies in New Jersey,” said Paul Thessen, Executive Vice President for development at LS Power. “Newer, more efficient capacity – sooner rather than later – will help safeguard against supply shortages which cause energy price spikes and outages that can disrupt the economy.”

The state-of-the-art power plant will bring additional competitive wholesale electricity to New Jersey, helping ease the state’s rising dependence on out-of-state electric generation to meet growing demand.

According to Matt Held, project manager for West Deptford Energy, “An advanced coal or biomass fueled plant, for example, could take up to four years to develop and permit, and another five years to design and build. By comparison, a gas-fired facility could be brought online perhaps three to four years sooner.”

The markedly shorter timeline for a gas-fired project is attributable to a simpler development footprint relative to the coal-fired example – avoiding elements such as barge unloading and fuel storage facilities – and simpler construction using more modularized components.

“Bringing this new and highly efficient power plant to New Jersey will translate into reduced dependence on older, less efficient plants in the surrounding region,” Held added.

“An abundant supply of reliable and economic energy is a vital ingredient in a healthy economy,” remarked Thessen. “The West Deptford Energy Project is consistent with New Jersey’s burgeoning energy requirements and will benefit consumers for decades to come.”

The project is expected to cost roughly $1 billion and will generate substantial benefits for the local economy, including $107 million in local government revenues over a 34-year period. Construction of the project is expected to last approximately 30 months and, at the peak of construction, will employ approximately 1,000 highly skilled workers. When completed, the facility will employ approximately 30 permanent employees to operate and maintain the station.

About LS Power:

LS Power is a development, investment, and operating company focused on the North American power and energy infrastructure sector. Since its inception in 1990, LS Power has developed, constructed, managed, or acquired more than 46,000 MW of power generation, including utility-scale solar, wind, hydro, natural gas-fired, and battery energy storage projects, of which ~17,000 MW are currently operating. LS Power’s Energy Transition Platforms include CPower Energy Management, Endurant Energy, EVgo, Rise Light & Power, and REV Renewables, as well as Waste-to-Energy initiatives. In addition, LS Power developed and operates over 680 miles of high-voltage transmission, with an additional 100+ miles and multiple substations under construction. Across these efforts, LS Power has raised $50 billion in debt and equity financing to support North American infrastructure. Through 2021, assets under LS Power control avoided 80.67 million metric tons of CO2e, equivalent to nearly 187 million barrels of oil not consumed or over 17.5 million cars taken off the road for one year. For more information, please visit www.LSPower.com.