The Shaw Group Inc., based in Baton Rouge, has signed anagreement with PG&E National Energy Group to construct 3,300 MWof new generating capacity, comprising three combined-cycle powerplants, with the first plant to be constructed in Michigan. Noexact location or financial details were disclosed.

PG&E National Energy Group currently owns or manages morethan 7,000 MW and has more than 10,000 MW in new power plantdevelopment or construction under way. It operates 30 power plantsin 10 states.

Stone & Webster, a Shaw subsidiary, will construct the threefacilities, and plans to begin work in six-month intervalsbeginning in June once project financing is secured. Engineeringhas begun for the first project, and the third project is expectedto be completed and in commercial operation by the end of 2004.

Shaw spokeswoman Christine Noel said yesterday that PG&E didnot want to disclose the location of the plants, including theexact location of the Michigan site. She affirmed that the othertwo plants would be located in the Midwest.

Of the announcement, Maitland Horner, PG&E National EnergyGroup’s vice president of construction said, “partnering withcompanies like The Shaw Group has helped the National Energy Grouprealize many of its strategic growth plans during a very dynamictime in the industry.”

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