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PEI Power Corporation ("PEI") is a state-of-the-art renewable energy producer that specializes in the generation of electricity through the process of landfill gas (methane) recovery. The Company was founded in 1997 to coordinate the retrofit of the Archbald Cogeneration Power Plant and the development of PEI Power Park. PEI's principle assets include a 25-megawatt cogeneration facility and two Solar Mercury 50 combustion turbines, all located in Archbald, Pennsylvania. PEI Power Corporation also owns a 49.9% interest in and is the operator of PEI II, LLC, whose primary asset is a 50 MW natural gas combustion turbine which is also located at PEI’s Archbald facility.

The plant opened in mid-1998 after converting from an anthracite culm-burning facility to one that utilizes natural and landfill gases. Landfill gas, primarily comprised of methane and carbon dioxide, is a byproduct of the decomposition of municipal waste. Landfill gas is extracted from two local landfills and transported via underground pipelines to PEI’s facility. In essence, PEI uses the landfill gas to produce a safe and environmentally friendly fuel source. At full operation, the plant produces close to 30 megawatts from landfill gas for the PJM Interconnection, a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The Plant became a certified PJM generating facility on June 30, 1998.

PEI Power Corporation is a subsidiary of Southern Union Company (NYSE:SUG). Southern Union is a Houston based integrated natural gas company primarily involved in the gathering, processing, transportation, storage and distribution of natural gas in the United States. For more information, visit www.sug.com.

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