STP News Release

"POWER" MAGAZINE RECOGNIZES STP WITH 1998 POWERPLANT AWARD

June 2, 1998 -- Bay City, TX-- In its May/June 1998 issue, Power Magazine recognized the South Texas Project with the "1998 Powerplant Award." The McGraw-Hill-published magazine praises the 2,500 megawatt nuclear energy plant for "achieving a remarkable turnaround in performance and pioneering techniques for risk assessment, radiation protection, radwaste control, on-line maintenance, and [refueling] outage management."

In a letter to STP Nuclear Operating Company President and CEO Bill Cottle, Power Vice President Robert Schwieger stated that "STP joins a prestigious group of facilities that have received our Powerplant Award over the past 25 years. These diverse facilities represent leadership in the application of advanced equipment designs and operations and maintenance techniques, and creative management practices that optimize competitive economics, energy efficiency, and environmental impact."

The 1998 Powerplant awards will be presented June 18, 1998, in Bloomingdale, Illinois.

In its article, Power emphasizes that STP "did not compromise operating safety in pursuing its corporate vision of a 'world class producer in the base-load energy-generation market.'" As evidence Power cited the recent rating of "1" for overall excellence STP received from the Institute of Nuclear Power Operations (INPO), and an aggregate score of 1.25 on a similar rating system by the U.S. Nuclear Regulatory Commission.

Bill Cottle of STP responded to the article, "STP Nuclear Operating Company employees work hard to keep safety in the forefront and to be leaders in their field. To be recognized like this at a national level is a tribute to them."

The South Texas Project is owned by Houston Lighting & Power Company, Central Power and Light Company, City Public Service of San Antonio and the City of Austin. The South Texas Project is managed and operated by the STP Nuclear Operating Company. The plant is located 12 miles southwest of Bay City, Texas, and annually produces energy sufficient to power more than one million homes.

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