Tenaska, Inc. and Diamond Generating Corp., a subsidiary ofMitsubishi, have formed Tenaska Diamond, LP, a new power generationpartnership. Through the new company, the partners will own fourdomestic power generating facilities totaling 3,500 MW of capacity.Tenaska and Diamond have also entered into a non-exclusive,strategic alliance agreement for future power generatingdevelopment.

“This agreement is another step in Mitsubishi’s reentry into theUS electric generating market as part of a significant long-terminvestment strategy,” said Diamond’s President, Makoto Saito. “Weplan to invest over $140 million in new US projects through thisalliance with Tenaska.”

Tenaska currently has three electric generating facilities underconstruction and one facility in financing that will be included inthe agreement. Those under construction include the followingstations: Tenaska Frontier Generation Station in Grimes County, TX,an 830 MW facility expected to begin commercial operation in June2000; the Tenaska Gateway Generating Station in Rusk County, TX, an845 MW facility expected to begin commercial operation in June2001; and the Tenaska Georgia Generating Station, a 936 MW peakingfacility whose first phase is expected to begin operation in June2001. In financing is the Tenaska Lindsay Hill Generating Stationin Autauga County, AL, an 846 MW facility expected to beginconstruction in May 2000. Power sales and tolling arrangements havebeen completed for all four stations.

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