PEI Power Corporation to Utilize Landfill Gas for Electricity Generation; Largest Renewable Energy Project on the East Coast

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PEI Power Corporation to Utilize Landfill Gas for Electricity Generation; Largest Renewable Energy Project on the East Coast
    WILKES-BARRE, Pa., Jan. 15 /PRNewswire/ -- PEI Power Corporation, a
subsidiary of Pennsylvania Enterprises, Inc. (PEI) (NYSE: PNT) has signed an
agreement with the Keystone Sanitary Landfill, Dunmore, PA., providing PEI
Power Corporation with the rights to recover the over 150 billion cubic feet
of methane gas expected to be produced by the landfill over the next 30 years.
PEI Power Corporation intends to utilize this supply of methane gas to fuel
its recently acquired 25 megawatt co-generation plant in nearby Archbald,
Pennsylvania.  It is expected that the landfill will produce sufficient
methane to supply 100% of the power plant's fuel requirements.  This will make
it one of the largest of its kind in the world.
    This long term, fixed price contract will allow PEI Power Corporation to
become a competitive low cost electric generator.  The Company will install a
pipeline to connect the Archbald co-generation facility to a methane recovery
facility at Keystone Sanitary Landfill which will be constructed, owned and
operated by PEI Power Corporation.  Currently, most of the gas is scheduled to
be flared off or burned on site under existing Department of Environmental
Protection (DEP) permits to reduce odor levels and prevent the buildup of
methane.  This agreement is in large part a result of Keystone Sanitary
Landfill's aggressive approach to the remediation of environmental issues
created by the buildup of methane gas.
    Vincent A. Bonaddio, President of PEI Power Corporation, explained that
this project has exceptional environmental benefits as well as the obvious
economic value.  The use of landfill produced methane gas creates a reusable
source of energy that will lower the cost of producing electricity at the
facility.  The Archbald plant was originally constructed to burn anthracite
culm from two on-site culm banks.  Mr. Bonaddio said, "From the start, our
intention was to purchase this facility and convert it to natural gas.  This
was a business decision with enormous environmental benefits since converting
to natural gas will significantly reduce air pollutants.  Our decision to
utilize the landfill gas has the same business and environmental motives."
    PEI has joined with the United States Environmental Protection Agency
(EPA) as an ally in EPA's Landfill Methane Outreach Program.  This voluntary
public/private partnership encourages cost effective landfill gas use as a way
to mitigate global climate change.
    Converting the plant to methane and natural gas will dramatically decrease
the emissions of nitrogen oxide and sulfur dioxide.  The 25 megawatt output
produced by this plant will be marketed by PG Energy PowerPlus, a nonregulated
subsidiary of PEI, that markets electricity to a 26 county area in central and
northeastern Pennsylvania.
    PEI President and CEO Thomas F. Karam added, "The combination of a local
power plant using a local, low cost fuel source not only sets a precedent in
the energy industry, but is also very beneficial for our region as well.  We
intend to aggressively market this low cost electricity as a retail product
and as a catalyst to economic development.  This investment will produce
significant benefits for our customers, shareholders, and communities for many
years."
    PEI is a holding company with regulated and non-regulated subsidiaries.
The regulated group consists of PG Energy and its subsidiary, Honesdale Gas
Company, which together provide natural gas to approximately 148,000 customers
in 13 counties in northeastern and central Pennsylvania.  The non-regulated
group consists of PEI Power Corporation, Theta Land Corporation and PG Energy
PowerPlus and its subsidiary, Keystone Pipeline Services, Inc.

    PEI news releases are available 24 hours a day by fax machine or by
visiting the Company website on http://www.pnt.com.  To receive a fax copy of
our news releases call 1-800-758-5804 on a touch tone phone and use PEI's ID
No. 684209.  Follow the prompted instructions to receive a copy of our most
recent news release or a menu of our latest news releases.  Company news will
be faxed to you immediately without charge.
SOURCE Pennsylvania Enterprises, Inc.
http://www.pnt.com CONTACT:
Albert G. Fereck of PEI Power, 717-829-8756
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
684209