ALSTOM to Supply SVC to Xcel Energy Proven Technology Improves Transmission Grid Stability.

Energy Editors/Business Editors

EDDYSTONE, Pa.--(BUSINESS WIRE)--April 21, 2003

ALSTOM has won a contract to supply its highly reliable SVC technology to Xcel Energy (formerly Northern States Power Company). The equipment will strengthen Xcel's network in southwestern Minnesota, where large wind farms are coming on line to provide clean power to the Minneapolis metropolitan area. ALSTOM's static var technology will help stabilize the network and facilitate improved transmission to users.

Xcel is one of many utilities in the United States experiencing growth in wind farm power generation. The growth is mainly taking place in rural farmland areas. Xcel, therefore, needs a dependable channel through which it can bring this "electrical" crop from the wind farm to the market. By installing ALSTOM's efficient SVC technology at its 115kV Lake Yankton substation in Minnesota, Xcel will be equipped to instantaneously provide reactive power support to minimize voltage fluctuations at any given time, particularly during weak ac system conditions. Additional benefits offered by this technology are an increase in power transfer capabilities, regulation of power factor, reduction of losses, and an overall improvement to the steady and dynamic performance of the transmission system.

SVC, or Static Var Compensator, is a thyristor based technology used since the early 1970's and is part of the family of Flexible AC Transmission System (FACTS) devices designed to be inserted into transmission grids to improve the delivery of power in weak areas of the grid. ALSTOM's SVC system will be directly connected to an existing 34.5 kV bus at the Lake Yankton substation. It will include a Thyristor Controlled Reactor (TCR) rated for 85 Mvar and two harmonic filter banks rated 60 Mvar in total to provide the dynamic reactive capability range as required by Xcel. ALSTOM's latest control technology will be used for the precise control of the device.

As the sole provider of major equipment on this project, ALSTOM, through its Transmission and Distribution (T&D) Sector, will supply the SVC equipment from its Pennsylvania based factory. The equipment will be in service by the end of April 2004. Brian Pope, President of ALSTOM T&D Inc., said, "This is a fine example of how our technology can adapt to the current demands of the market. With the integration of wind power generation becoming a more common challenge for utilities, we stand ready to assist and facilitate this progression with a superior range of systems, services and products." ALSTOM is positioning itself to become increasingly more involved in opportunities presented by the expanding renewable energy market, not only through its static var technology, but also through its offering of distribution transformers, medium voltage switchgear and reactors to meet the market's needs.

ALSTOM is the global specialist in energy and transport infrastructure. The Company serves the energy market through its activities in the fields of power generation and power transmission and distribution, and the transport market through its activities in rail and marine. In fiscal year 2001/02, ALSTOM had annual sales in excess of EUR23 billion and employed 112,000 people in over 70 countries. ALSTOM is listed on the Paris, London and New York stock exchanges. The Company is listed on the Paris, London and New York stock exchanges. In the US, ALSTOM Inc. employs more than 7000 people and has annual sales in excess of $4 billion.

ALSTOM's Transmission & Distribution sector is a leading total solution provider in power transmission and distribution. ALSTOM is present at all stages in the supply chain of electricity. From the power plant to the end-user, ALSTOM offers the widest and most reliable range of products and services on the market. At the leading edge of research, ALSTOM is developing tomorrow's services in harmony with the environment. Among other achievements, we are proud to be the #1 provider of energy management software.