OAKLAND (Sept. 12, 2000) -- Orion Energy LLC of Oakland, California and National Wind Power Limited (NWP), the UK's leading wind farm developer and subsidiary of Innogy PLC, said September 12 that they have completed a $73 million deal for a wind farm project in Pecos County, West Texas.

The wind project, to be known as Indian Mesa, is being jointly developed by Orion Energy and NWP and will consist initially of 125 Vestas V47 660-kW wind turbines. The site has a capacity of up to 150 MW and a 125-MW interconnection agreement has been signed with West Texas Utilities Company. An order for the supply and construction of an 82.5-MW turnkey project has been placed with Vestas American Wind Technology Inc.

Construction of the project will commence in late September, with initial electricity deliveries expected in the second quarter of 2001. Power purchase agreements have been signed with the Lower Colorado River Authority (LCRA) and TXU Electric & Gas (TXU) for 50 MW and 30 MW, respectively.

Reid Buckley, Orion Energy vice president, said, "The Indian Mesa Wind Farm is a winner on all fronts. It generates royalties for the University of Texas System and local ranchers, creates jobs in Pecos County, produces environmentally-friendly energy, and benefits LCRA and TXU customers by providing low-cost, wind-generated electricity not subject to the risks of rising fuel prices."

David Butterworth, head of international development at NWP commented, "We are very pleased to announce the start of construction for our third U.S. project and our second Texas project. The first phase of Indian Mesa at 82.5 MW is our largest project to date, but like our Culberson County project has scope for expansion. It has been a pleasure to work again with the LCRA and with TXU to help meet the renewable energy requirements of Texas. We look forward to expanding these projects in the future and to completing the development of others in the region to further establish our commitment to this exciting market."

The three-bladed wind turbines will be erected on 165-foot-tall tubular steel towers, with each blade approximately 75 feet long. The wind farm is situated on land which is presently used for grazing and for limited oil and gas activity and is compatible with those existing uses. A portion of the project land is owned by the University of Texas, and royalties from the project will go to support the University of Texas system. Environmental reviews have been conducted to ensure that there will be no impact on cultural or biological resources.

LCRA general manager Joseph J. Beal commented, "We are proud to expand our commitment to clean, renewable wind energy, whose prices are not subject to the vagaries of the energy market like natural gas. We are making this commitment because it is the right thing to do environmentally and economically."

"TXU Electric & Gas is pleased to add the Indian Mesa Wind Farm to our growing renewable energy portfolio. This project further demonstrates our commitment as a renewable energy leader," said Steve Philley, TXU Electric Energy Supply vice president.

Orion Energy LLC, headquartered in Oakland, California, specializes in the development and implementation of renewable energy facilities in the U.S., Europe, and Latin America. National Wind Power Limited is the developer, owner and operator of 10 U.K. wind farms having a capacity of 140 MW. It has developed 16 wind farms world wide, including two projects developed with Orion Energy in the U.S. totaling 40 MW and located in Texas and Pennsylvania.

For further information about Orion Energy, contact Reid Buckley, phone (510) 267-9323, e-mail Rbuckley@orion-energy.com. For further information about National Wind Power, contact David Butterworth, phone 011-44-1628-532-300, e-mail davidbutterworth@natwindpower.co.uk.