Panda Energy International Inc. and PSEG Americas, part ofPublic Service Enterprise Group, announced 50-50 joint ventureTexas Independent Energy to develop and operate high efficiency,low-cost electric power generating plants in Texas.

The alliance’s initial venture is a 1,000 MW combined cycle gasplant in Guadalupe County in South Central Texas, a projectinitiated by Panda last year. Maximum daily gas consumption of theplant is expected to be 170,000 MMBtu, and the average dailyconsumption is expected to be 145,000 MMBtu.

The planning of the Guadalupe project is complete and financingis underway. The project is slated to start construction thissummer and be completed by January 2001. Plans for two other Texasfacilities will be announced shortly, representing an additional2,000 MW of power generation. Total investment in the three plantsinitially will be about $1.3 billion financed with both debt andequity.

Panda Energy International, a privately held companyheadquartered in Dallas, operates plants in North Carolina andMaryland and has additional projects under construction in Chinaand Nepal. Panda also announced plans earlier this week for a $400million generating plant near El Dorado, AR.

PSEG Global develops, owns and operates private power anddistribution facilities with at least 26 projects in Argentine,Brazil, China, India, the U.S. and Venezuela. PSEG Americas isheadquartered in Miami and supported by offices in Ridgewood, NJ;Sao Paulo; Caracas; and Buenos Aires.

Joe Fisher, Houston

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