Press Release:

LCRA MORE THAN DOUBLES ITS STAKE IN RENEWABLE WIND ENERGY

For Immediate Release: Sept. 12, 2000
Contact: Bill McCann, 1-800-776-5272, Ext. 4032

AUSTIN -- Amid dramatic recent increases in natural gas prices, the Lower Colorado River Authority is taking additional steps to diversify its sources of electricity by more than doubling its commitment to renewable wind energy.

The LCRA, which is the largest supplier of renewable energy in Texas, has announced an agreement to purchase 50 megawatts of wind energy from the Indian Mesa Wind Farm, which is due to begin construction this month in Pecos County in West Texas. The 50 megawatts is enough to power about 15,000 homes. LCRA officials estimate that the cost of purchasing this wind power will be substantially less than the cost of power generated by natural gas.

National Wind Power Ltd., based near London, England, and Orion Energy LLC, based in Oakland, CA are jointly developing the project. This will be the second wind project in Texas for National Wind Power, which is the largest developer, owner and operator of wind farms in the United Kingdom.

The Indian Mesa Wind Farm initially will have 125 wind turbines capable of generating 82.5 megawatts of power. In addition to the 50 megawatts purchased by the LCRA, Dallas-based TXU Electric & Gas will purchase 30 megawatts. The plant is expected to begin producing electricity by mid-2001 and be completed later next year. The University of Texas owns part of the land on which the project will be built. Under a lease proposal approved in August by the UT System Board of Regents, the university will receive at least $2.9 million in royalty payments over 30 years.

"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," said LCRA General Manager Joseph J. Beal, P.E. "We are making this commitment because it is the right thing to do environmentally and economically.

"Also, when we held public meetings last year, many people told us that they wanted more renewable energy," Beal said. "This project further demonstrates that we are listening."

David Butterworth, head of international development at National Wind Power, said: "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 megawatts is our largest project to date, but like our other Texas project has scope for expansion. 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 Indian Mesa Wind Farm is a winner on all fronts," said Reid Buckley, vice president of Orion Energy. "It generates royalties for the University of Texas System and local ranchers, creates jobs in Pecos County, produces electricity without the negative impacts of burning fossil fuels, and benefits ratepayers by providing low-cost wind-generated electricity not subject to the risks of rising fuel prices."

The Indian Mesa Wind Farm will be the third wind energy project for the LCRA. The LCRA has agreements to purchase 35 megawatts of power from the Texas Wind Power Project in Culberson County. The project, completed in 1995, is the first commercial wind project in the state. LCRA sells 10 megawatts of that power to the City of Austin. The LCRA also is purchasing 7.5 megawatts of wind power from the Delaware Mountain Wind Farm, a 30-megawatt facility built last year in Culberson County by National Wind Power.

LCRA's commitment to wind power as well as hydroelectric power makes it by far the largest supplier of renewable energy in Texas. The LCRA operates hydroelectric units at six dams on the Highland Lakes northwest of Austin. The hydro units are capable of generating about 276 megawatts.

The LCRA is a conservation and reclamation district that generates and transmits electricity, manages the waters of the lower Colorado River in Texas, operates parks, and assists communities with economic development. The LCRA operates on revenues from the sale of electricity, water, and other services it provides. It cannot levy taxes and receives no tax money.