Texas Genco Holdings, Inc. , a majority-owned subsidiary of CenterPoint Energy, Inc. , signed a sales agreement Friday to purchase a portion of AEP Texas Central Company's 25.2 percent interest in the South Texas Project Electric Generating Station (STP) for approximately $174 million. AEP Texas Central is a subsidiary of American Electric Power (AEP). Once the sale is complete, Texas Genco will own an additional 13.2 percent of the nuclear plant for a total of 44 percent or about 1,100 megawatts. The company exercised its right of first refusal in late May.

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In addition to AEP and Texas Genco's current 30.8 percent ownership, the 2,500 megawatt nuclear plant is presently owned by City Public Service of San Antonio (CPS), 28 percent and Austin Energy, 16 percent. CPS is purchasing AEP's remaining 12 percent ownership interest.

The sale is subject to certain regulatory approvals, including the Hart- Scott-Rodino Antitrust Improvements Act, the Nuclear Regulatory Commission, Federal Regulatory Commission and Securities and Exchange Commission.

Texas Genco hopes to close the transaction in early 2005.

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 megawatts of generation capacity, of which approximately 2,500 megawatts are currently in mothball status. It sells electric generation capacity, energy and ancillary services in one of the nation's largest power markets, the Electric Reliability Council of Texas (ERCOT). 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 http://www.txgenco.com/ .

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SOURCE: Texas Genco Holdings, Inc.