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KENETECH ANNOUNCES FINANCING FOR TWO WIND ENERGY PROJECTS

 SAN FRANCISCO, Jan. 10 /PRNewswire/ -- KENETECH Corp. (NASDAQ: KWND) today announced that its Windpower subsidiary has secured financing commitments for two wind energy projects which will sell electricity to Southern California Edison (SCE) and Northern States Power Co. (NSP) of Minnesota.
 KENETECH President Gerald Alderson said: "This financing is extremely important and underscores KENETECH's integrated approach to wind energy development -- from turbine design and reliability to overall Windplant(TM) economics to project financing to long-term operations and maintenance. It also demonstrates the investment community's confidence in KENETECH and confirms that project financing is not a constraint to the development of utility-scale wind energy development."
 The $82 million capital cost of the two Windplants will be financed through a limited partnership capitalized with approximately 50 percent debt and 50 percent equity. Twelve-year, non-recourse, fixed-rate debt is provided by John Hancock Mutual Life Insurance Co. of Boston. Approximately 75 percent of the limited partnership equity is provided by LG&E Energy Corp. of Louisville, Ky., and Allstate Project Finance of Northbrook, Ill. The projects will be managed through a general partnership of KENETECH and LG&E Power, a subsidiary of LG&E Energy Corp. KENETECH Windpower expects to sell the balance of the equity to an institutional partner in early 1994.
 Last spring, KENETECH purchased an existing 17-megawatt (MW) wind energy project which supplies electricity to SCE. In December, the company acquired three additional projects and power contracts with SCE totaling 22 MW. Those existing projects, located near Palm Springs, Calif., are being redeveloped to utilize 115 of KENETECH's Model 33M-VS variable speed wind turbines. The 33M-VS is a utility-grade wind turbine that can generate pollution-free electricity at a price competitive with newly constructed fossil fuel plants. The Palm Springs Windplant will be operational this spring.
 The Minnesota Windplant, located on Buffalo Ridge in Lincoln County, will deliver power to NSP under a 25-MW power contract. The project utilizes 74 of KENETECH's Model 33M-VS turbines. The facility will be operational in March.
 The Minnesota project is the first utility-scale Windplant to be constructed in the United States outside of California. It also represents the largest domestic installation of KENETECH's 33M-VS advanced turbine technology in a cold-weather setting.
 KENETECH will manage the Windplants and provide operations and maintenance services under 12-year contracts. In addition, CNF Constructors Inc., a subsidiary of KENETECH Corp., is the principal contractor and is engineering the projects.
 LG&E Energy Corp. has 23 power generation plants that are owned, operated or under construction in eight states and owns Louisville Gas and Electric Co., which provides local electric and gas utility services to residential, commercial and industrial customers in Louisville and surrounding areas.
 KENETECH Corp. is a leading provider of products and services to the electric power industry. Through its subsidiaries, the company designs, builds, finances and maintains power plants that utilize environmentally preferred technologies -- principally wind, biomass and natural gas. The company also provides energy management services to industrial, institutional and commercial customers.
 -0- 1/10/94
 /CONTACT: Clarence Grebey of KENETECH, 415-398-3825/
 (KWND)


CO: KENETECH Corp.; Southern California Edison; Northern States Power
 Co.; LG&E Energy Corp. ST: California, Kentucky, Minnesota IN: OIL UTI SU: FNC


TM-RB -- SF003 -- 0386 01/10/94 07:31 EST
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Publication:PR Newswire
Date:Jan 10, 1994
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