July 2006

(Osceola, Ark.) - Zachry has entered into an engineering, procurement and construction (EPC) contract as part of a tri-venture called Plum Point Power Partners (PPPP), which includes Black & Veatch and Gilbert Central Corp. (a division of Peter Kiewit Sons, Inc.). The 900-acre Plum Point Energy Station in northeastern Arkansas represents the largest single- unit contract for a coal-fueled, electric generating project of which ZCC has ever been a part.

“The fact that it will be an entirely new station constructed on a vacant piece of land has contributed significantly to the complexity of the project,” said Tom Kaczmarski, project executive. “Unlike projects to build additional generating units at an existing power complex, this project requires extra site preparation, including building up much of the site to promote drainage, site dewatering, extensive piling to support the plant structures and a complete coal handling system with rail loop and rotary car dumper unloading station.”

The 665-Mw plant will be managed by New Jersey-based LSP Services - Plum Point and will provide electricity to several municipal utilities, electric cooperatives and other entities in Missouri and Northeastern Texas. The plant will have a multiple ownership structure, with Plum Point Energy Associates (PPEA) owning the largest share. PPEA is a member of LS Power Group, which develops, owns and operates large-scale power generation sites.

In addition to Black & Veatch and Gilbert Central Corp., IHI and Toshiba are on board to supply the boiler and turbine-generator, and Alstom will provide the air quality control equipment. The plant, which is the first coal-fired plant being developed by a non-utility company during the current coal boom, is scheduled to be operational by Aug. 14, 2010.

As many as 1,200 employees are expected to work on the project at its construction peak. The project could be a boon to the nearby community of Osceola, which has a population of 9,200, both during and after construction.

“One of PPPPs’ key objectives is to use local companies, resources and labor whenever possible. And the plant itself, of course, will provide a number of local jobs when it is up and running,” said Kaczmarski. “The plant also will have a cooling tower so that water from the Mississippi River will not have to be used directly to cool the condenser.”

The plant also will bring non-economic rewards. The facility will include environmentally sensitive features to ensure cleaner emissions. Its design incorporates mercury reduction technology, consisting of a carbon injection process between the boiler and the baghouse. In addition, the plant will burn low-sulfur coal brought by rail from Powder River, Wyo. The plant also will have a cooling tower so that water from the Mississippi River will not have to be used directly to cool the condenser.

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