LS Power Announces
Completion of Project Financing For Sandy Creek Energy Associates, L.P.
ST. LOUIS (August 30, 2007) – LS Power Group announced today
that Sandy Creek Energy Associates, L.P. ("Sandy Creek"), a joint
venture between subsidiaries of LS Power Group and Dynegy Inc., has
completed financing that will allow construction of its 900 megawatt
pulverized coal plant in McLennan County, Texas. Sandy Creek's financing
was arranged by Credit Suisse Securities LLC and RBS Securities
On financial closing, Sandy Creek sold a 25% undivided ownership
interest in the project to Brazos Sandy Creek Electric Cooperative, Inc.
Sandy Creek has also entered into a long-term power purchase agreement
with Brazos Electric Power Cooperative, Inc., to purchase 150 megawatts
of the proposed facility's output, and expects to enter into additional
long-term power purchase agreements with regional load serving entities
for the balance of its ownership share.
An affiliate of LS Power and Dynegy will manage construction and
commercial operations of the project.
The project is being constructed pursuant to a turnkey engineering,
procurement and construction contract with Sandy Creek Power Partners,
L.P., a joint venture composed of Zachry Construction Corporation,
Overland Contracting Inc, and Gilbert Industrial Corporation. Commercial
operation is expected to begin in 2012.