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TRANSCO, DESTEC ACQUIRE INTERESTS IN POWER PROJECTS DEVELOPED BY EACH OTHER

 TRANSCO, DESTEC ACQUIRE INTERESTS IN
 POWER PROJECTS DEVELOPED BY EACH OTHER
 HOUSTON, Sept. 10 /PRNewswire/ -- Transco Power Company, a subsidiary of Transco Energy Company (NYSE: E), and Destec Energy, Inc. (NYSE: ENG), leading independent power producers based in Houston, have signed joint development agreements concerning two large power generation projects under active development.
 Subject to regulatory approvals, affiliates of Destec will acquire a 50-percent ownership interest in the Hartwell Energy Limited Partnership, an affiliate of Transco Power Company that is developing a $156 million, 300-megawatt gas-fired independent power project (IPP) in Hart County, Georgia. In addition, affiliates of Transco Power Company have acquired a 50-percent ownership interest in Oyster Creek Limited, a Destec affiliate that is developing the $419 million, 424-megawatt Oyster Creek cogeneration project near Freeport, Texas. The Hartwell project is scheduled to be operational in the first quarter of 1994, and the Oyster Creek project is scheduled to begin operations during the third quarter of 1994. Each project will use non-recourse project financing.
 The Hartwell IPP will supply peaking power to Oglethorpe Power Corporation, a generation and transmission cooperative supplying wholesale electricity to 39 of Georgia's 42 electric membership cooperatives. The Oyster Creek project will sell steam and electricity to The Dow Chemical Company for use by Dow's Texas Operations manufacturing complex in Freeport. A portion of the project's electrical output has been reserved for sale to prospective power purchasers.
 "We are excited about this acquisition and our partnership with Destec," said Transco Energy Company Chairman, President and Chief Executive Officer John P. DesBarres. "With this agreement, Transco Power is now involved in constructing, operating or developing projects totaling more than 1500 megawatts of electricity. Power generation offers tremendous potential for the natural gas industry with demand for electric power increasing each year, and we are currently pursuing additional opportunities, both domestically and internationally," he said.
 "We are very pleased to be associated with Transco Power in this joint development, which helps advance Destec's strategic growth objectives, in terms of capacity size, geographic reach and projects financed," said Charles F. Goff, president and chief executive officer of Destec. "Destec now has projects in operation or advanced stages of development in all geographic regions of the United States. In 1992 alone, Destec anticipates closing financing on more than 1,064 megawatts of new power projects."
 Destec is a major independent power company that develops, builds, owns and operates gas-fired cogeneration facilities that produce and sell electrical and thermal energy, as well as facilities that manufacture synthetic fuel gas for use in energy production. Successful completion of the Hartwell and Oyster Creek projects will give Destec interests in 15 operating power projects with a total rated equivalent capacity of more than 2,100 megawatts of electricity and approximately three million pounds per hour of steam. In addition, Destec markets over 425 megawatts of electricity cogenerated by The Dow Chemical Company.
 Transco Power Company, a subsidiary of Transco Energy Ventures Company (TEVCO), develops, constructs and operates cogeneration and independent power plants. Through its subsidiary companies, TEVCO provides energy consulting services, natural gas vehicle fueling services and high-tech compressors and power plant products. TEVCO is a subsidiary of Transco Energy Company, which transports natural gas through its interstate pipeline systems to markets in the eastern and midwestern United States, arranges for the transportation and sale of natural gas throughout the U.S., and is active in independent power generation and natural gas vehicle fueling services. Transco also maintains modest positions in other energy-related businesses.
 -0- 9/10/92
 /CONTACT: Katherine K. Putnam, 713-439-2455, or (investors) R. Dean Ayers, 713-439-2593, both of Transco Energy Company/
 (E ENG) CO: Transco Power Company; Destec Energy, Inc. ST: Texas, Georgia IN: OIL SU: TNM


TS -- NY055 -- 8041 09/10/92 12:57 EDT
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Date:Sep 10, 1992
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