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TRIGEN ENERGY CLOSES FINANCING ON 150 MEGAWATT GRAYS FERRY COGENERATION PROJECT

WHITE PLAINS, N.Y., March 11 /PRNewswire/ -- Trigen Energy Corporation (NYSE: TGN), of White Plains, N.Y., announced today that the Company and its partners have closed the construction and term financing for the 150 MW, $167 million cogeneration project to be constructed at Trigen's Schuylkill Station in Philadelphia.

Steam will be sold under a 25 year agreement to Trigen-Philadelphia Energy Corporation, owner of the community energy system in Philadelphia. Electricity will be sold under a 20 year contract to PECO Energy Company (NYSE: PE). The base load project will be capable of producing 150 MW of electricity and over 1.2 million pounds per hour of steam. The Grays Ferry Cogeneration Facility will be dual-fueled, using natural gas with #2 oil as back up. Construction has begun with service expected to commence in the fourth quarter of 1997. Trigen will operate the facility and will be managing general partner when the facility becomes operational.

Thomas R. Casten, Trigen's president and CEO stated, "This project is a major step toward our mission of producing heating and cooling with one half the fuel and one half or less the pollution of conventional generation. The overall efficiency of generation will be 2.5 times the present efficiency of the average electrical generation reported by the U.S. Department of Energy. #6 oil will be replaced by cleaner natural gas and #2 oil. Further, this marks the first installation of a Westinghouse Ultra Dry Low NOx combustion system on their family of 501-D gas turbines. Effectively, the project will increase production by more than 100 megawatts without increasing emissions. Because of the enormous size of our Trigen-Philadelphia steam load, a large cogeneration plant can be built to recover nearly 100% of the otherwise wasted heat. We believe this will be one of the world's most efficient energy production facilities. We are pleased to be in partnership with a progressive electric utility and the restructured entity of O'Brien Environmental Energy. We look forward to a long and productive relationship."

The Grays Ferry Cogeneration Project is an equal partnership of subsidiaries of Trigen Energy Corporation, PECO Energy Company, and O'Brien Environmental Energy, Inc. Chase Manhattan Bank, N.A. served as the lead lender and arranger of the project financing. Westinghouse will provide a 501-D5A Gas Turbine Generator for the project and act as the general contractor for the construction phase. Gas will be supplied by Aquila Corporation in Omaha, Neb., a wholly owned subsidiary of Utilicorp. Interstate transportation will be provided by Texas Eastern Transmission Company.

Trigen generates electricity, recovers the normally wasted heat to produce and distribute steam, hot water and/or chilled water to multiple buildings through underground pipelines. Trigen serves more than 1,500 customers in the U.S. and Canada including industrial plants, universities, hospitals, government, commercial and office buildings, hotels and residential complexes.
 -0- 3/11/96


/CONTACT: Susan Odiseos, Director of Corporate Communications of Trigen Energy Corporation, 914-286-6628/

(TGN PE)

CO: Trigen Energy Corporation; PECO Energy Company; Trigen-Philadelphia

Energy Corporation ST: New York, Philadelphia IN: UTI SU:

PL -- NYM028 -- 0589 03/11/96 08:16 EST
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Publication:PR Newswire
Date:Mar 11, 1996
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