Texas Genco Holdings, Inc. , a majority-owned subsidiary of CenterPoint Energy, Inc. , announced today that it will mothball gas-fired generation in two phases totaling 2,990 megawatts (MW).

(Photo: http://www.newscom.com/cgi-bin/prnh/20030127/DAM020LOGO )

Three units totaling 777 MW will be seasonally mothballed from October of 2003 through April of 2004. They include Webster Unit 3 (374 MW), which is currently in mothball status, T.H. Wharton Unit 2 (229 MW) and Deepwater Unit 7 (174 MW).

In addition, all four P.H. Robinson units totaling 2,213 MW, will be mothballed from October 2003 through April 2005. This includes Unit 3, which is currently in mothball status.

"Lack of bids for most of our intermediate gas products in recent capacity auctions combined with high forecasted reserve margins in ERCOT for the near- term has resulted in this decision," said David Tees, president and chief executive officer of Texas Genco. "We will still offer an adequate amount of gas-fired capacity in our upcoming auctions for retail energy providers and other purchasers."

Although the company believes its decision to mothball these plants will not have an effect on the adequacy of electricity in Texas, it will apply to the Electric Reliability Council Of Texas (ERCOT) for Reliability Must-Run consideration for each of the mothballed units.

Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest wholesale electric power generating companies in the United States with over 14,000 MW of generation capacity. It sells electric generation capacity, energy and ancillary services in ERCOT, one of the nation's largest power markets. Texas Genco has one of the most diversified generation portfolios in Texas, using natural gas, oil, coal, lignite, and uranium fuels. The company owns and operates 60 generating units at 11 electric power-generating facilities and owns a 30.8 percent interest in a nuclear generating plant. Texas Genco currently is a majority-owned subsidiary of CenterPoint Energy, Inc. For more information, visit our web site at www.txgenco.com .

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SOURCE: Texas Genco Holdings, Inc.