Danvers, MA - October 23, 2006 (News Release)

 

Babcock Power Environmental Inc. (BPEI), located in Worcester, MA, a subsidiary of Babcock Power Inc., based in Danvers, MA, announced today the receipt of an award for Wet Flue Gas Desulfurization (WFGD) Systems from Cholla Environmental Partners (CEP) for the Arizona Public Service Cholla power plant located near Holbrook, Arizona. Cholla Environmental Partners (CEP), with offices in both San Antonio, TX and Kansas City, MO, will provide the engineering, procurement and construction for the project. CEP is a joint venture formed between Zachry Construction Corporation and Burns & McDonnell Engineering Company Inc.

The contract includes the design and supply of WFGD systems for the coal-fired Cholla Units 3 and 4 that will reduce SO2 emissions by approximately 95%. The equipment is currently planned to be operational in mid 2008 for Unit 4 and a year later for Unit 3 and has a contract value in excess of $25,000,000. BPEI's WFGD Systems utilize an open tower absorber design with multiple spray levels and nozzles arranged in a staggered pattern from level to level. Bi-directional spray nozzles are utilized throughout to generate a hollow cone, wide-angle spray pattern that increases contact efficiency between liquid surface and gas. These systems provide the lowest overall power consumption for both fan and recycle pump power not only at full power, but also at lower loads. The results are a WFGD system that typically exceeds required SO2 removal efficiencies over a wide range of sulfur loadings and operating conditions.

Jim Dougherty, President of BPEI, commented that, "Babcock Power has an FGD installed base of over 66,000 MW's and we are pleased to be adding the APS units to our experience list. Our environmental team, one of the best and most experienced in the industry, brings forth unmatched technical capabilities, providing efficient and reliable WFGD systems that will assist APS in supplying their customers with clean, efficient, low cost electricity."

APS owns and operates Cholla Unit 3, and operates Unit 4 for the owner PacifiCorp Energy. APS is Arizona's largest and longest-serving electric utility, and serves more than 1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corporation (NYSE: PNW).

Babcock Power Inc., through its subsidiaries, is one of the world's leading suppliers of technology, equipment, and services to the power generation industry. Babcock Power designs, manufactures and services heat recovery steam generators through its Vogt Power International subsidiary located in Louisville, KY, provides heat exchangers and after market services, including moisture separator reheaters, steam surface condensers and feedwater heaters, for fossil-fired and nuclear plants through its Thermal Engineering International (USA) Inc. subsidiary located in Santa Fe Springs, CA, and provides new steam generators, environmental solutions (including SCRs, flue gas scrubbers and mercury removal systems), and a complete portfolio of after market solutions to the electric utility and waste-to-energy industries for any OEM's boiler through its subsidiaries located in Worcester, MA.