August 2005

(San Antonio, Texas) –Calaveras Power Partners has been selected by CPS Energy, San Antonio's gas and electric utility company, to construct a new 750-megawatt coal-fired power plant at Calaveras Lake.

Unit 2 of the J. K. Spruce Power Plant will be constructed adjacent to three existing coal-fired generation units in the complex, including Spruce 1 that Zachry completed in 1992. At 750 megawatts, Spruce 2 will be the largest of the coal units at Calaveras Lake, and it will be equipped with the best-available emissions-control technology. Unit 2 will help CPS Energy keep pace with Greater San Antonio’s strong growth.

“This project is very important to the future of our community,” said Jim Nesrsta, CPS Energy’s director of the Spruce 2 project. “We conducted a highly competitive bidding-and-evaluation process to choose a design-build team. Calaveras Power Partners put together a good winning proposal that is in line with our budget.”

The project is expected to employ about 900 during the four-year construction process and to cost several hundred million dollars.

Calaveras Power Partners is a joint venture led by Zachry Construction Corporation., Black & Veatch, and The Industrial Co. ZCC and TIC will construct the project. Black & Veatch will handle the design the power plant. Utility Engineering will design and engineer the emissions control system.

CPS is the nation's largest municipally owned energy company providing both natural gas and electric service. CPS serves more than 600,000 electric customers and more than 300,000 natural gas customers in and around the eighth largest city in the United States.

(This story contains information from a CPS Energy press release.)

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