July 2006

(San Antonio, Texas) - Zachry and tri-venture partners Black & Veatch and The Industrial Company (TIC) have launched a highly anticipated four-year project that should help San Antonio meet its rapidly expanding electricity needs. Dubbed Calaveras Power Partners, L.P., or CPP, the group participated in a groundbreaking ceremony for the J.K. Spruce 2 project. This project will culminate with the completion of a 758-net Mw, coalfired power plant for CPS Energy, the nation’s largest municipally owned energy company.

J.K. Spruce 2 is the first coal-fired power project in Texas in 15 years. The new unit will be adjacent to CPS Energy’s existing coal plants on Calaveras Lake in Southeast San Antonio and will have the highest electrical output of all units at the site. The project team spent much of this spring preparing for the construction phase that will begin later this year. Temporary offices and warehousing space are set up, and the team also completed an upgrade of the turbine control system for the adjacent J.K. Spruce 1 as part of the contract. The newly installed system will provide enhanced operational efficiency for the J.K. Spruce 1 plant, which was completed in 1992 by a joint venture that included Zachry.

The site preparation required for construction of J.K. Spruce 2 will begin in August. Drilled shafts will be used to provide foundation support for the unit’s chimney. This foundation will be poured first, followed by the boiler and turbine foundations in October.

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