ALSTOM and PNM Plan to Develop New Transmission Line to Link USA and Mexico.

HAWTHORNE, N.Y.--(BUSINESS WIRE)--May 6, 1999--

ALSTOM and Public Service Company of New Mexico (PNM) have entered into an agreement to jointly develop a new electric power transmission link between the U.S. and Mexico.

This link which will interconnect the system of the Western Systems Coordinating Council (WSCC) in the western United States with the National Electric System (SEN) in Mexico will be the first such major connection between the two countries. The project, known as the Sonora -- Arizona Interconnection Project, will originate at the Palo Verde Generating Station west of Phoenix. From Palo Verde the transmission project will extend along one of several corridors currently under study, crossing the U.S.-Mexico border, and connecting with complementary transmission facilities of the Comision Federal de Electricidad at an existing substation in Santa Ana, Sonora, Mexico. The Mexican substation is owned by Comision Federal de Electricidad (CFE), which is the national utility of Mexico.

The proposed interconnection is ultimately to be configured as an 800-1000 MW transmission scheme. Depending on economic and business conditions at the time, however, the project may be constructed in two phases. While the choice of transmission line technology is still under study (either alternating current or direct current), in either scenario the project would utilize DC technology in the interconnection of the two systems. ALSTOM's Power Electronic Systems group is providing the power electronics equipment and HVDC expertise.

With annual sales of over $16 billion, ALSTOM is a world leader in supply of components, systems and services to the world infrastructure and industrial markets. ALSTOM also provides a complete range of products and services for power plant, electrical transmission and distribution networks, rail transport, marine and industrial automation systems. ALSTOM is well known as an innovator in Project Management and Finance. Through its 110,000 employees in more than 60 countries, ALSTOM is committed to provide its customers with innovative, appropriate and cost effective solutions.

PNM is an integrated company providing retail electric and natural gas service to more than 1.3 million people in the state of New Mexico. It markets wholesale power to customers throughout the United States and offers a comprehensive range of energy and water management services to municipalities, government agencies, and other institutional clients.