CPS Energy, Calaveras Power Partners to Energize 750,000 Homes

Black & Veatch Plays Leadership Role In Developing Vital Electricity Infrastructure

Overland Park, KS (September 19, 2005) – Steps are underway to further develop vital energy infrastructure in the southern United States while continuing to meet consumers’ growing demand for electricity a leading energy official said today.

According to Jim Nesrsta, project manager for City Public Service of San Antonio Energy (CPS Energy), the company has announced plans for a second unit at its J.K. Spruce Power Plant near San Antonio. The Spruce Unit 2 plant will add 750 megawatts of base load coal-fired generation, enough energy to power 750,000 homes, at Calaveras Lake in southeastern Bexar County.

Calaveras Power Partners, a limited partnership among Black & Veatch Corporation, Zachry Construction Corporation, and TIC-The Industrial Company, have been awarded the engineering, procurement and construction contract for the Spruce Unit 2, scheduled for completion in 2010.

“Utility systems around the country are concluding that, just as we did, coal must play a big part in cost-effectively meeting customers’ electric needs,” said Nesrsta. “To accommodate that, CPS Energy is playing a lead role and has assembled a project team drawing on industry wide expertise.”

According to Ron Wood, President and Chief Executive Officer of Black & Veatch Energy, CPS Energy’s Spruce 2 unit award represents the latest in a series of large coal projects that Black & Veatch is helping make a reality.

“We are excited to be a part of one of the largest U.S. coal-fired generation stations in advanced development today,” said Wood. “The team assembled brings the highest concentration of world-class, coal qualified individuals to this project.”

Wood said that only a few large U.S. coal plants are in the mature stages of development, where an engineering, procurement, and construction contract is in place; necessary permits have been obtained, or construction is underway. This latest award represents the fourth major coal project award for Black & Veatch in the last thirty-four months.

In addition, Wood said that at the recent CoalGen Conference there was validation of the tremendous need for new coal-fired generation projects in the U.S., and that the energy industry continues to balance that need with critical Federal and State environmental regulations.

CPS Energy is currently working with the Texas Commission on Environmental Quality (TCEQ) to obtain an air permit for Spruce Unit 2 and is optimistic that the company’s proactive environmental position will result in a favorable outcome.

“All in all, CPS Energy has committed to more than half a billion dollars to environmental protection on its coal-fired power plants. No other utility system in the world has come anywhere close to making such a strong, voluntary commitment,” said Joe Fulton, CPS Energy Director of Generation Planning, Research and Environmental Services.

Fulton said emissions reductions from existing plants will more than offset those from the new plant, reducing overall coal emissions by more than 60 percent. Through the use of best available control technology, he said Spruce Unit 2 will be a flagship for future large coal-fired generation facilities to follow.

About Black & Veatch
Black & Veatch Corporation is a leading global engineering, consulting and construction company specializing in infrastructure development in energy, water, information and government markets. Founded in 1915, Black & Veatch develops tailored infrastructure solutions that meet clients’ needs and provide sustainable benefits. Solutions include conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, information technology, environmental, security design and consulting, and management consulting services. The employee-owned company has more than 90 offices worldwide. Black & Veatch is ranked on the Forbes “500 Largest Private Companies in the United States” listing for 2004. The company’s Web site address is www.bv.com.

About CPS Energy
CPS is the nation's largest municipally owned energy company providing both natural gas and electric service. Acquired by the City of San Antonio in 1942, CPS serves more than 600,000 electric customers and more than 300,000 natural gas customers in and around the eighth largest city in the United States. Proceeds from CPS remain in San Antonio and account for more than one-fifth of the City's annual operating budget for police and fire protection, street improvements, parks and other services. CPS has earned the highest financial rating of any electric system in the nation. The company’s mission is to produce and deliver competitive energy products and services to meet the changing expectations of CPS customers.

For more information, please contact:

Carl Petz
Black & Veatch Corporation
(913) 458-4685
petzcf@bv.com

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