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BECHTEL SELECTED TO BUILD CROCKETT COGENERATION PLANT

 SAN FRANCISCO, May 27 /PRNewswire/ -- Bechtel has been selected by Energy National, a unit of Pacific Generation, to negotiate an engineering, procurement and construction contract for a state-of-the- art $250 million cogeneration plant in the Bay Area's Contra Costa County.
 When it begins operation in late 1995, the Crockett Cogeneration Plant will produce steam for C&H Sugar Company's refinery in Crockett, as well as 240 megawatts of economically dispatchable electricity for sale to Pacific Gas and Electric Co. The natural gas-fueled plant was unanimously approved April 26 by the California Energy Commission, which found it would improve air quality in the region by shutting down the old C&H boilers, displacing older, higher emission power sources and purchasing emissions offsets.
 "I'm delighted that Bechtel has been chosen to build this plant," said Harold Somerset, president and chief executive officer of C&H Sugar. "Our two companies share deep roots in the Bay Area, and we both believe that this project is important to our businesses. From our standpoint at C&H, the project is vital to maintaining our position as a leading producer of refined cane sugar and as one of Contra Costa County's largest employers."
 "Building this plant will show that we can make a real contribution to the economy while preserving the environment we all share," said Riley P. Bechtel, president and chief executive officer of Bechtel Group Inc., whose Bechtel Power Corp. subsidiary will handle the Crockett Cogeneration assignment. "Pacific Generation has put together a trend- setting project, showing a lot of responsiveness to the needs of neighbors. We'll work hard to keep that same spirit during the construction phase."
 "There were three companies on our short list for this project. From a technical standpoint, any one of them could have built a good plant," said John Miller, vice president of Pacific Generation. "Bechtel proposed the best package of technical expertise, cost control and the ability to meet our schedule. We selected Bechtel in part due to their proven track record dealing with public concerns related to their projects."
 Beyond its environmental contribution, the plant will provide much- needed economic support to the town of Crockett, an enclave nestled under the busy Carquinez bridges of Interstate 80 at the northern entrance to San Francisco Bay. In an innovative arrangement, the unincorporated community of 3,200 residents will receive direct benefit from a portion of the project's property tax payments to Contra Costa County. In addition, Crockett Cogeneration will make an annual contribution that will be administered by the specially created Crockett Community Foundation.
 Beyond the more than 300 construction jobs created by the project, at least 28 permanent jobs will come from operation of the plant. More importantly, the plant will enhance the competitiveness of the adjacent C&H sugar refinery by reducing its energy costs an estimated 25 percent, helping maintain the viability of 900 existing jobs in that facility. Of these workers, 82 percent live in Contra Costa County or adjoining Solano County.
 Selection of Bechtel as the plant's builder is an important milestone in the extended history of this project, which was originally proposed in 1984, withdrawn, then revived by Pacific Generation with a commitment to working closely with concerned community members in what many observers feel is a model process for achieving approval of a new industrial facility in California.
 In the summary of its 5-0 decision approving the plant, the California Energy Commission noted: "The success of this project is primarily due to the progressive and constructive strategy implemented by this Applicant (Crockett Cogeneration). First, the Applicant proposed a design which reflected state-of-the-art machinery specifically configured to meet project objectives with the highest possible efficiency and attention to safety. Second, beginning prior to filing its application and continuing to the present time, the Applicant has met repeatedly with representatives of the Crockett community to determine the public's concerns about the project, address many of those concerns and create a mechanism for the community to participate in the project's economic benefits. Finally, this Applicant has done a noteworthy job of dealing with the relevant regulatory agencies in an affirmative and constructive manner which eliminated many sources of delay experienced by similar proposals."
 "The Energy Commission's strong support of this project is gratifying, because it acknowledges our commitment to building this plant the right way, making it a positive proposition for the community, the region and the state," said Miller. "Choosing Bechtel as our builder is another step in that direction. But we're not through. We want to maintain a dialogue with the group of concerned people on both sides of the Carquinez Strait who would prefer that this plant not be built at all. As we move forward, we will continue to provide a forum for their constructive suggestions to help us."
 The plant will be owned by the Crockett Cogeneration Limited Partnership, developed by Energy National Inc. Energy National is a wholly owned subsidiary of Pacific Generation Co., which is a unit of PacifiCorp (NYSE: PPW). PacifiCorp., a Portland, Ore.-based diversified utility, provides electric service to seven western states through its electric operations group, consisting of Pacific Power & Light and Utah Power & Light. Pacific Generation currently owns interests in 11 operating electric-generation projects, operates five of the facilities and is developing three more.
 Bechtel, founded in 1898 and headquartered in the Bay Area since early this century, is a privately held worldwide engineering- construction and management firm which last week reported 1992 revenues of $7.8 billion. For the second year in a row, Environmental Business Journal ranked Bechtel number one among America's environmental contracting/construction firms for 1992, with $893 million in environmental-related revenues as defined by the magazine.
 Bechtel has been involved in the development of electric power facilities for more than 60 years and has played a major role in more than 15 cogeneration projects throughout the United States in the last decade, including two of California's most successful cogeneration plants, built for Basic American Foods in Gilroy and King City.
 Current Bechtel projects in the Bay Area include general engineering services for the Bay Area Rapid Transit (BART) District's extensions program, including the Concord-West Pittsburg segment; engineering and construction management for the City of Richmond's new 7-1/2-mile parkway; program management consulting for the Santa Clara County Traffic Authority on $1 billion of highway expansion projects; engineering and construction management for the $100-million Muni Metro Turnaround project, which will bring San Francisco's streetcar subway to the surface on The Embarcadero; program management for San Francisco's new Museum of Modern Art in Yerba Buena Center; and several clean fuels projects at refineries in Contra Costa County.
 Of Bechtel's worldwide workforce of 21,200, 3,500 live in the Bay Area, and 1,100 of those in Contra Costa County.
 -0- 5/27/93
 /NOTE TO EDITORS: Copies of the California Energy Commission's decision on the Crockett Cogeneration Plant are available by telephoning Rick Laubscher of Bechtel at 415-768-4596, or faxing 415-768-0263./
 /CONTACT: Rick Laubscher of Becthel, 415-768-4596; or John T. Miller of Pacific Generation, 503-236-3323, ext. 280/
 (PPW)


CO: Bechtel Group Inc.; Bechtel Power Corp.; Pacific Generation;
 C&H Sugar Refinery Co.; PacifiCorp ST: California IN: CST UTI SU: CON


GT-TM -- SF006 -- 3011 05/27/93 13:58 EDT
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