Avista-STEAG LLC and NRG Energy have entered into a partnershipin the hopes of adding 633 MW of power generation to Texas’ powerpool in 2003. The partnership will build, manage and operate thenatural gas-fired Brazos Valley project to be located in Fort BendCounty, TX, about 30 miles southwest of Houston.

The project, which has already received its major permits, willbe owned by Avista-STEAG with a 51% holding, and NRG Energy withthe remaining 49%. Construction is scheduled to begin in the firstpart of 2001.

“The Brazos Valley project represents an important step towardincreasing the efficiency of the ERCOT (Electric ReliabilityCouncil of Texas) generation fleet, 63% of which is between 21 and40 years of age,” said Eberhard Schmidt, president of Avista-STEAGLLC. “One estimate puts total ERCOT generation shortfall at over10,000 MW in the year 2005 at a 15% reserve margin. This projectwill help reverse that trend.”

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