Dynegy Inc. has started commercial operation at the CalcasieuGeneration Project, a 155 MW natural gas-fired power generationfacility near Lake Charles, LA. Construction of the simple-cyclepeaking facility took less than eight months, making it the firsttrue merchant plant in the state of Louisiana and the second powerplant developed by Dynegy under its $5 billion generation expansionprogram.

Dynegy recently announced that it has signed a five-year powerpurchase agreement with Cleco Corp., a regional energy servicescompany based in Pineville, LA, to supply up to 310 MW of capacityand energy, most of it from the Calcasieu Project. The capacitywill supplement Cleco’s existing power supply to meet anticipatedload growth and satisfy regional reserve requirements.

Dynegy also recently said it is expanding the Calcasieu Projectin order to meet the rapidly growing demands of the wholesaleenergy market throughout the state and region. The addition of a165 MW natural gas-fired combustion turbine will be completedduring the second quarter of 2001, bringing the power plant’s totalgenerating capacity to a nominal 320 MW.

The Calcasieu Generation Project is the first of three newgeneration projects totaling 1,055 MW of capacity that will begincommercial operation this summer. Dynegy is expected to complete a100 MW expansion at the Rocky Road Power Plant near Chicago in July2000. The expansion will increase the total generating capacity ofthe natural gas-fired peaking facility to 350 MW. Commercialoperation at the Rockingham Power Plant, an 800 MW natural gas-fired power plant in Rockingham County, N.C., is scheduled to beginin July 2000.

The Calcasieu Generation Project is located on a 20-acre sitewithin the Rose Bluff Industrial Area near Lake Charles. DynegyMidstream Services, a subsidiary of Dynegy, operates its LakeCharles natural gas liquids fractionation facility nearby. Naturalgas to fuel the plant is being delivered through a pipelineinterconnect with Koch Gateway Pipeline. The plant will also have anatural gas pipeline interconnect with Sabine Pipe Line.Transmission access for power transactions is delivered via a 230kV Entergy Gulf States transmission line interconnect near theplant.

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