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FirstEnergy To Install Leading-Edge Emission Control Technology at Bay Shore Plant

Posted on: Thursday, 22 September 2005, 15:00 CDT

Sept. 22 /PRNewswire-FirstCall/ -- FirstEnergy Corp. announced today that FirstEnergy Generation Corp. plans to install an Electro-Catalytic Oxidation (ECO(R)) system on the 215-megawatt (MW) Unit 4 of its Bay Shore Plant, in Oregon, Ohio.

ECO is a multipollutant-control technology for coal-based electric utility plants that was developed by Powerspan Corp., a New Hampshire-based clean energy technology company in which FirstEnergy has a minority ownership interest. ECO is currently being demonstrated at FirstEnergy's R. E. Burger Plant, and has proven effective in reducing nitrogen oxides (NOx), sulfur dioxide (SO2), mercury, acid gases, and fine particulates (soot). Equally important, the ECO process also produces a highly marketable ammonium sulfate fertilizer co-product, currently being sold in the fertilizer market.

FirstEnergy expects design engineering of the Bay Shore ECO system to commence in the first quarter of 2006, and estimates the cost of the system, including a fertilizer processing plant, to be approximately $100 million.

"We believe that ECO represents the future of multipollutant-control technology and provides an effective method for meeting the next generation of environmental regulations, including the Clean Air Interstate Rule (CAIR)," said Richard R. Grigg, executive vice president and chief operating officer for FirstEnergy. "Based on ECO's highly successful demonstration at Burger, we want to move forward with the first commercial installation of this technology."

In the extended reliability demonstration at Burger, ECO significantly exceeded removal goals for NOx, along with more than 98 percent of SO2 removal, greater than 80 percent of mercury, and better than 95 percent of acid gases (such as sulfur trioxide, SO3), metals, and fine particulates.

"We are pleased that our partnership with FirstEnergy in the development of our patented, multipollutant-control technology, ECO, has led to plans to install our first full-scale commercial unit," said Frank Alix, chief executive officer of Powerspan. "We believe the ECO system will provide the Bay Shore Plant with superior emission control as well as economic benefits."

The Ohio Coal Development Office (OCDO), a program of the Ohio Air Quality Development Authority, has been a major supporter of the ECO demonstration at Burger, contributing more than $5.5 million to the project. "We are pleased to be a part of this important development in clean-coal technology," said Jacqueline Bird, OCDO Director. "The ECO system greatly reduces emissions from coal-based plants, while allowing electric power producers to continue using one of Ohio's most abundant natural resources."

The ECO demonstration at the Burger Plant will continue through 2006 and possibly into 2007, FirstEnergy officials noted.

FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.4 million customers served within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey.

Powerspan Corp., a clean-energy technology company based in Portsmouth, New Hampshire, is engaged in the development and commercialization of proprietary multipollutant-control technology for the electric power industry.

Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms "anticipate,""potential,""expect,""believe,""estimate" and similar words. Actual results may differ materially due to the speed and nature of increased competition and deregulation in the electric utility industry, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of our regulated utilities to collect transition and other charges, maintenance costs being higher than anticipated, legislative and regulatory changes (including revised environmental requirements), the uncertainty of the timing and amounts of the capital expenditures (including that such amounts could be higher than anticipated) or levels of emission reductions related to the settlement agreement resolving the New Source Review litigation, adverse regulatory or legal decisions and outcomes (including revocation of necessary licenses or operating permits, fines or other enforcement actions and remedies) of governmental investigations and oversight, including by the Securities and Exchange Commission, the United States Attorney's Office and the Nuclear Regulatory Commission as disclosed in our Securities and Exchange Commission filings, generally, and with respect to the Davis-Besse Nuclear Power Station outage and heightened scrutiny at the Perry Nuclear Power Plant in particular, the availability and cost of capital, the continuing availability and operation of generating units, our inability to accomplish or realize anticipated benefits from strategic goals, our ability to improve electric commodity margins and to experience growth in the distribution business, our ability to access the public securities and other capital markets, the outcome, cost and other effects of present and potential legal and administrative proceedings and claims related to the August 14, 2003 regional power outage, the final outcome in the proceeding related to FirstEnergy's Application for a Rate Stabilization Plan in Ohio, the risks and other factors discussed from time to time in our Securities and Exchange Commission filings, and other similar factors. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

FirstEnergy Corp.

CONTACT: News Media, Keith Hancock, +1-330-384-5247, or Investors, KurtTurosky, +1-330-384-5500, both of FirstEnergy Corp.; or Stephanie Procopis ofPowerspan Corp., +1-603-570-3000;

Web site: http://www.firstenergycorp.com/http://www.powerspan.com/

Source: PRNewswire

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