Wood Group Power Operations Awarded Gas Turbine O&M Contract

Wood Group Power Operations, Inc. ("WGPO") has been awarded a 10 year gas turbine operations and maintenance (O&M) contract by the Sacramento Municipal Utility District Financing Authority ("SFA" or"Authority").

The contract involves the provision of full care, custody and control O&M services, including mobilization, start up support and O&M services, for two General Electric Frame 7FA advanced technology gas turbines at the 500MW combined cycle Cosumnes Power Plant ("CPP") Phase I, located 25 miles south east of the City of Sacramento in Sacramento County, California, USA. The contract also allows for O&M services for the Phase II of CPP to be provided by WGPO, if the plant's second phase is indeed built and if the Authority retains ownership of Phase II. Electrical energy produced by CPP will be sold by the SFA to the Sacramento Municipal Utility District ("SMUD"), the sixth largest municipal utility in the United States in terms of customers served.

Frank Avery, President of WGPO, said: "We are one of the only truly independent O&M providers who, in addition to offering comprehensive professional O&M services at highly competitive value driven rates, can also offer the additional depth of support required in today's market to our customers through the broad maintenance and repair capabilities within Wood Group. We are delighted to have an opportunity to bring our unique approach of combining high quality O&M services with our value added solutions to the Cosumnes Power Plant."

Bob Nelson, SFA's Asset Manager for CPP, said: "We are pleased to see a positive outcome from this highly competitive process and I would like to offer my sincere congratulations to Wood Group Power Operations, Inc. Wood Group did what it took to win the Authority's business and has committed to provide the level of service that we require and which is commensurate for the task of operating and maintaining a critical asset such as the Cosumnes Power Plant. We are a highly involved owner and look forward to working closely with Wood Group and towards our mutual success."

This is the second 'F' technology gas turbine contract win for Wood Group in recent months, following the announcement in May of the award to Wood Group Integrated Plant Solutions of a long term packaged maintenance contract for two General Electric Frame 7FA gas turbines operated by Interstate Power and Light Company in Clear Lake, Iowa, USA.

The Sacramento Municipal Utility District ("SMUD") is the sixth largest community-owned electric utility in the U.S. in terms of customers served, and generates, transmits and distributes electric power to a 900 square mile service area that includes Sacramento County and a small portion of Placer County in California.

The Sacramento Municipal Utility District Financing Authority ("SFA" or "Authority") is a joint powers agency governed by a Commission comprised of SMUD's Board of Directors.

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Posted 14/09/05

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