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PG&E Adds to Southern Marketing Base

PG&E Adds to Southern Marketing Base

PG&E Corp.'s National Energy Group (NEG) has announced an 810 MW long-term tolling agreement with Southaven Power, LLC in Mississippi, an affiliate of Cogentrix Energy.

The arrangement gives the PG&E group marketing control of its third power generation asset in the Southern U.S. power market. The agreement comes on the heels of the company's purchase last month of the 500 MW Attala Energy Facility in central Mississippi.

NEG also operates a total of 550 MW in Florida and will toll a significant portion of the capacity from the SRW Cogeneration facility in Orange County, TX, beginning in 2001 under a long-term contract.

The terms of the tolling agreement announced Monday provide PG&E National Energy Group's subsidiary, PG&E Energy Trading, with rights to the total generation capacity produced at the 810 MW natural gas fueled, combined-cycle facility, located in Southaven, MS, just south of the Tennessee border near Memphis. The 40-acre project is located adjacent to existing TVA and Entergy electric substations that will deliver the plant's electricity into the region's transmission grid.

"We believe arrangements such as this allow us to deploy our capital resources in an efficient manner by obtaining control over power generation facilities owned by third parties," stated Thomas G. Boren, NEG president.

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