Portfolio

PERENNIAL POWER IN ACTION

As Perennial Power works to expand our investment and technology portfolio, we are very proud of our cornerstone business. The Hermiston Generating Plant is a prototype for the Perennial Power
business model.

	Hermiston Generating Plant
	Hermiston Generating Plant (HGP) is located in northeastern Oregon, nine miles south of the Columbia River. HGP is a 474 megawatt natural gas fueled power plant that provides power for nearly 500,000 households in the Pacific Northwest. HGP is a highly reliable modern power plant that provides long-term energy and electric capacity to PacifiCorp, who is our co-owner and the fuel supplier to the facility. The plant also provides steam to Lamb-Weston's adjacent potato processing plant.

HGP was built by Bechtel for U.S. Generating Company in 1996. The plant is based on two General Electric
Frame 7FA combustion turbine generators operating in combined-cycle with two heat recovery steam
generators and two steam turbine generators. The plant has a long term parts agreement with General
Electric who provides spare and replacement parts and refurbishment and overhaul labor and supervision.

Perennial Power owns 50 percent interest in HGP and is the plant's manager and operator. HGP has been recognized by the Oregon Occupational Safety and Health Division (OR-OSHA) for the plant's exceptional
health and safety record.

	American Bituminous Power Partners
	Perennial Power Holdings owns a 40% interest in the Grant Town project, an 80 megawatt waste coal power facility located near Grant Town in West Virginia. Perennial Power owns this project jointly with Edison Mission Energy who owns 50%, American Power Investors with 9.5% ownership, and American Hydro Power Company at 0.5%. The facility is operated by Edison Mission Energy. Power generated at this facility is sold to Allegheny Power Systems under a long term power sales contract.

The Grant Town Power Plant started commercial operation in 1993. The facility utilizes circulating fluidized
bed (CFB) boiler technology to burn waste coal. The plant's CFB Boilers allow efficient combustion with
minimal environmental impact. American Bituminous recovers waste coal and pond fines from former mine operations. The Grant Town project provides a market for waste coal, which is a low-energy fuel source traditionally discarded by the coal mining industry. Older coal power plants could not efficiently handle waste
coal as a primary energy source. CFB technology was developed to efficiently burn the low-energy coal and
still meet current environmental standards and is inherently cleaner than conventional coal-fired generation.