TO: EDITORS, NEWS DIRECTORS

DATE: April 4, 2001

FOR: IMMEDIATE RELEASE

Commission Approves Power Plant but Adds Tough New Emissions Requirements

PHOENIX - The Arizona Corporation Commission yesterday approved the siting of a power plant in Gila Bend. The natural gas fired combined cycle plant will generate 845 MW once completed. The plant is being developed by Gila Bend Power Partners, LLC, a joint venture of Power Development Enterprises and Industrial Power Technology. The approval came with several conditions, including one that requires the plant to meet strict environmental standards.

Commission Chairman Bill Mundell sponsored a groundbreaking amendment intended to hold the applicant to strict emission standards such as those in coastal California. After debate, the applicant agreed to meet more stringent air quality standards. The amendment approved by the Commission reads:

"Applicant shall install and operate catalytic oxidation technology that will produce a carbon monoxide emission rate equivalent to California BACT and similar collateral reductions for Volatile Organic Compounds (VOCs) and condensable particulate matter."

BACT stands for Best Available Control Technology. The purpose of BACT is to control specific emissions and limit the adverse effect of a plant's emissions on a region. BACT prescribes standards and technology required for compliance with air quality provisions.

Catalytic oxidation technology is used to remove carbon monoxide and Volatile Organic Compounds, including those which condense to form particulate matter, from the exhaust stacks. Catalytic converters on automobiles perform a similar function, though on a much smaller scale.

Gila Bend currently meets the federal air quality requirements so this additional pollution control equipment is not required to comply with federal or state standards. The Commissioners each commented, however, that the boundaries for attainment areas could shift in the future due to political, economic or environmental forces. As Chairman Mundell stated, "The plant siting statutes require the Commission to balance the need for an adequate and economical power supply with the desire to minimize the plant's effect on the environment of Arizona."

"I am pleased that the developer agreed to install additional emission control technology as a condition of approval. This is a landmark decision for power plant sitings and I hope plant developers get the message that we want minimal impact on local or regional air quality," Chairman Mundell stated. Without such a condition, Mundell indicated that he was prepared to vote against the plant. Commissioner Marc Spitzer also voted to approve the plant with the additional conditions. Although he voted in favor of the stricter emissions requirements, Commissioner Jim Irvin voted against the plant citing his concerns with the state's transmission and gas pipeline capacity.