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COGENTRIX, SPANISH COMPANY FORM JOINT VENTURE FOR PUERTO RICO POWER PROJECT, LATIN AMERICAN PROJECTS

 COGENTRIX, SPANISH COMPANY FORM JOINT VENTURE
 FOR PUERTO RICO POWER PROJECT, LATIN AMERICAN PROJECTS
 CHARLOTTE, N.C., June 11 /PRNewswire/ -- Cogentrix, Inc., a leading U.S. developer of coal-fired cogeneration facilities, and Empresa Nacional de Electricidad, S.A. (NYSE: ELE) (ENDESA) have formed a joint venture to continue development of a $520-million electricity generating and steam producing project in Puerto Rico and to pursue other projects in Latin America.
 The two companies will share equally in the risks and the profits, according to George T. Lewis, Jr., chairman and chief executive officer of Cogentrix.
 Robert W. Anderson, Jr., president of Cogentrix Development Company, said ENDESA, a publicly traded Spanish company, and privately held Cogentrix, want to continue both companies' recent rapid growth by seeking additional opportunities to expand in Central America, South America and the Caribbean.
 The project in Puerto Rico is a 300-megawatt coal-fired cogeneration facility in Mayaguez. The facility will produce electricity for the Puerto Rico Power Authority (PREPA) and steam for the adjacent Starkist and Bumble Bee tuna fish processing plants. The developers anticipate using coal from Venezuela or Colombia to fuel the facility. Anderson said oil currently fuels 98 percent of Puerto Rico's electric generation capacity and that makes the commonwealth's economy particularly sensitive to shifts in the price of oil.
 Early in 1991, Cogentrix signed a power purchase agreement with PREPA for the electrical output of the facility and began the detailed design and environmental licensing phase of the project. Lewis said, "It soon became apparent that a joint venture between a Spanish utility and an American development company was the ideal combination to provide the electric generation infrastructure needs of Puerto Rico and, for that matter, the balance of Latin America."
 Feliciano Fuster Juame, chairman and chief executive officer of ENDESA, said, "This project brings together the complementary capabilities of our two companies to provide reliable, economical electric power to meet the growing energy needs of Puerto Rico."
 The facility will be a "qualified" cogeneration facility as defined by the 1978 Public Utilities Regulatory Act (PURPA) because it will supply a portion of the generated steam to adjacent Starkist and Bumble Bee tuna processing facilities, which collectively employ approximately 5,000 people. Anderson said the reduction in operating overhead resulting from the decrease in steam costs will enhance the tuna processors' competitive position and increase job security for employees.
 Jose A. del Valle, executive director of PREPA, said: "We are extremely pleased that Cogentrix and ENDESA have formed a joint venture to develop the Mayaguez project. The combined capabilities of the two companies bring to bear the necessary experience and financial strength to ensure the timely completion of the project."
 Founded in 1983, Charlotte-based Cogentrix had fiscal 1991 revenues of $255 million and is projecting $295 million in revenues in fiscal 1992, which ends June 30. This rate of growth brought a listing by "Inc." magazine as the fastest growing, privately held company in the United States in 1989 and 1990. Cogentrix operates 10 cogeneration facilities in three states with approximately 900 megawatts of generating capacity.
 ENDESA reported sales of 684.6 million pesetas (U.S. $6.85 billion) for 1991. Its 28 fossil-fuel, nuclear and hydroelectric generating facilities have total installed capacity of 11,536 megawatts. In 1991 those facilities accounted for 33 percent of Spain's total generating capacity and 38 percent of its production of electricity in 1991.
 ENDESA has approximately 16,000 employees. Its shares are listed on the Madrid and New York Stock Exchanges. The company has approximately 260 million common shares outstanding.
 Besides serving the Spanish market, ENDESA has development projects and other activities in Argentina, Costa Rica, Germany, Portugal, Eastern Europe, and Morocco.
 -0- 6/11/92
 /CONTACT: Jim Wagner, 704-525-3800, or Lamar Gunter, 704-522-1220, both of Cogentrix, Inc./
 (ELE) CO: Cogentrix, Inc.; Empresa Nacional de Electricidad (ENDESA) ST: North Carolina IN: OIL SU: JVN


JZ -- CH004 -- 9444 06/11/92 17:16 EDT
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Date:Jun 11, 1992
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