Tejon Ranch Co. signed an agreement with Enron Capital &Trade Resources Corp. to develop a power plant on its property atthe southernmost end of the San Joaquin Valley at the base of theTehachapi Mountains. The site is strategic because of the proximityof the California Aqueduct, existing major transmission lines, andthe Kern River-Mojave gas pipeline.

The project is anticipated to have capacity of between 750 and1,000 MW with an estimated cost of more than $500 million. Theproject will be gas-fired.

Financial and economic terms of the venture were not disclosed,but it is projected to produce a seven-figure annual cash flow toTejon Ranch Co. Regulatory approvals are expected next year.

Tejon Ranch Co. is a diversified agribusiness, land and realestate development company. It owns the Tejon Ranch, California’slargest contiguous, private land holding located 60 miles north ofLos Angeles.

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