WILKES-BARRE, Pa., Oct. 3 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today announced that the Company signed an agreement to
acquire the Archbald Power Corporation, including its 25 Megawatt cogeneration
facility on a 300+ acre site in Lackawanna County, in the Boro of Archbald,
Pennsylvania.  The facility was constructed in 1987 and employed 30 full time
workers.  The facility was closed in July of 1997 when contracts to supply
electricity to a local electric utility were repurchased forcing the plant to
close.
    PEI plans to convert the facility from burning anthracite culm to
environmentally friendly natural gas.  Converting the facility to natural gas
will dramatically decrease the emissions of nitrogen oxide and sulfur dioxide
which are inherent with the burning of any fossil fuel.  PEI is exploring
opportunities to increase the efficiency and capacity of the plant.
    Thomas Karam, President and CEO of PEI, stated, "Our Company is making a
significant investment in the purchase of this facility and its conversion to
natural gas.  Rather than choosing to solely import power which is produced in
other areas of the state or country, we intend to sell as much power as we can
that is generated here in Northeast Pennsylvania.  We are committed to
becoming a major power supplier in our service territory.  Today, we also
announced a joint marketing alliance with CNG Energy Services and the creation
of PG Energy PowerPlus, which adds electricity to our portfolio of energy
products.  This plant complements our full array of energy products and
services."
    The facility uses excess steam generated in the production of electricity
to heat on-site greenhouses.  The Company plans to continue these activities.
    PEI is a holding company with regulated and nonregulated 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 thirteen counties in northeastern and central Pennsylvania.  The
nonregulated group consists of Theta Land Corporation and PG Energy Services
and its subsidiary, Keystone Pipeline Services, Inc.
    PEI news releases are available by fax machine at 1-800-758-5804 (use
PEI's ID No. 684209).

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