Washington Water Power’s newly formed affiliate Avista PowerInc. and Cogentrix Energy Inc. agreed to jointly build and/or buyinterests in gas-fired electric generation plants in the PacificNorthwest states of Washington, Oregon and Idaho. The first projectunder the new agreement is an approximately 270 megawatt facilityto be located in Rathdrum, ID. A power purchase agreement for theRathdrum project was signed simultaneously with the developmentagreement.

For the Rathdrum project, Avista Power and Cogentrix will sharein the ownership of the facility. Cogentrix will have the lead rolefor the development, construction and operation of the facility,which will produce electricity at a guaranteed conversion rate.Commercial operation is expected in the third quarter of 2001.Avista Energy, Washington Water Power’s national energy trading andmarketing affiliate, will deliver gas to the plant and purchase theelectrical output of the facility under a long-term power purchaseagreement. The installed cost of the Rathdrum facility isanticipated to be about $150 million.

T.M. Matthews, Washington Water Power CEO, said Avista Power wascreated to develop and own generation assets, primarily in supportof the company’s electric and gas marketing and trading affiliate,Avista Energy. “Through this agreement between Avista Power andCogentrix, we will profit from the development of new, efficientgeneration. At the same time, we will strengthen Avista Energy inits prudent growth as one of the nation’s top energy marketingcompanies. By combining our substantial expertise in energymanagement and energy marketing with Cogentrix’s proven projectdevelopment skills, we have entered into a truly powerfulcollaboration.”

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