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DESTEC AND METROPOLITAN EDISON SIGN AGREEMENT FOR 150 MW PROJECT

 HOUSTON, Oct. 5 /PRNewswire/ -- Destec Energy, Inc. (NYSE: ENG), a leading independent power producer based in Houston, today announced that it has signed a power purchase agreement with Metropolitan Edison Company of Reading, Pa., for 150 megawatts of electrical power to be produced by a combined cycle power project being developed by Destec in Richland Township, Pa.
 The natural gas-fired Blue Mountain Power project, Destec's first in Pennsylvania, is anticipated to cost approximately $160 million to build. Construction is planned to begin in 1996 and the plant is scheduled to be operational in 1997. Destec is currently negotiating fuel supply and transportation arrangements.
 Met-Ed requested bids from potential suppliers in January 1992. Of 39 proposals submitted, three were selected by Met-Ed in the preliminary selection group in September 1992. The Blue Mountain Power project was selected from that group.
 Blue Mountain Power has received certification as an Exempt Wholesale Generator in accordance with regulations in The Energy Policy Act of 1992. The act also requires that the electric rates in the power purchase agreement must be approved by the Pennsylvania Public Utilities Commission and the Federal Energy Regulatory Commission. The filings for these approvals are in the process of being submitted.
 "We are very pleased that Met-Ed selected Blue Mountain as the winning project through their competitive procurement program," said Destec President and CEO Charles F. Goff. "Selection of this project helps demonstrate Destec's competitiveness in the new electric power industry following passage of The Energy Policy Act of 1992. The operational flexibility of an EWG project such as ours has distinct benefits for a utility and its customers."
 Destec is a major independent power company that develops, builds, owns and operates gas-fired power generation facilities that produce and sell electrical and thermal energy, as well as facilities that manufacture synthetic fuel gas for use in energy production. Destec has interest in 13 operating projects with a total rated equivalent capacity of more than 1,390 megawatts of electricity and over 2 million pounds per hour of steam. Destec presently has four facilities, representing approximately 1,200 megawatts of equivalent capacity, under construction. In addition, Destec currently markets more than 425 megawatts of electricity cogenerated by The Dow Chemical Company.
 Metropolitan Edison is a subsidiary of General Public Utilities Corporation (NYSE: GPU).
 -0- 10/5/93
 /CONTACT: (Investors) Keith D. Duke, 713-735-4022, or (Media) Marvin L. Brown Jr., 713-735-4215, both of Destec Energy, Inc.
 (ENG GPU)


CO: Destec Energy, Inc.; Metropolitan Edison Company ST: Texas, Pennsylvania IN: OIL UTI SU:

TW -- NY035 -- 8809 10/05/93 10:56 EDT
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Publication:PR Newswire
Date:Oct 5, 1993
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