5 September 2002

Pacific Gas and Electric (PG&E) has chosen Black and Veatch to provide engineering, procurement and construction services for the Los Esteros Substation, part of the Northeast San Jose Transmission Reinforcement Project. The project will expand PG&E's capacity to provide power to the northeast San Jose area. It will link the sub-transmission system in San Jose to an existing 230 kV transmission line and will involve development of the substation at Los Esteros, construction of two new overhead transmission lines, the construction of an underground 230 kV transmission line and connection of the substation to the existing 115 kV sub-transmission lines. The substation will initially consist of two 230/115 kV transmission transformers, circuit breakers, bus, capacity banks and controls. A third transformer is to be added in due course.

• East Kentucky Power Co-operative has awarded the contract to supply and install a steam turbine at its Spurlock power plant to GE Power Systems. The deal is worth $34 million. The 300 MW turbine will be installed at unit 3 of the power plant, in Maysville, Kentucky. The project represents an expansion of the existing facility, two units of which entered service in 1977 and 1981. The new turbine will be a tandem compound, double-flow design manufactured at GE's facility in Schenectady, New York. It will be shipped in the third quarter of 2003, with completion scheduled for the end of 2004. The plant will be used for base-load operation.

• The Foster Wheeler Power Group has won a contract worth around $200 million to engineer, procure and construct a 600 MW combined cycle power plant for LMB Funding Ltd Partnership. The project is located in Bangor, Pennsylvania. The power facility will comprise two gas-turbine generators and one steam turbine. It will burn natural gas. Construction has already started at the site, and delivery of power island components has begun. Operation is expected to start at the end of 2003.

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