Key Regions

PJM

We entered the PJM power market in May 2000 by purchasing 21 generating plants from Sithe Energies, Inc. Since that time, we have expanded our presence in the market to a combined power generation capability of nearly 7,000 MW.

We sell the power generated by our facilities to customers located in the area and to buyers in adjacent electricity markets.

The PJM market encompasses a region in the northeast part of the United States that includes all or a portion of the states of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia and contains approximately 16 percent of the U.S. population.

In the PJM market, buyers and sellers "clear" their transactions through an hourly auction process. In addition, buyers and sellers can negotiate their own contracts outside of the auction process. We sell power in this market both through the hourly auction process and under negotiated contracts.

West

We own five electric power generation facilities in the state of California. Base load, intermediate and peaking capacity represent approximately 5 percent of the total generation capacity in Southern California.

The Coolwater, Etiwanda, Ellwood, Mandalay and Ormond Beach plants were purchased from Southern California Edison Company in 1998.

MISO

We have a total generating capacity of more than 1,600 MW in the Midwest Independent Transmission System Operator, Inc., (Midwest ISO) market, which serves approximately 15 million customers in the mid-continent region of the U.S.

We own and operate four power generation facilities in this region. Our gas-fired peaking plant situated in Shelby County, near Effingham, in downstate Illinois, has a generating capacity of 356 MW. Power from this plant is sold on the open market.

In western Pennsylvania, we own and operate the New Castle plant, which has a generating capacity of 333 MW.

And in Ohio, we own and operate two plants, the 763-MW coal- and oil-fired Avon Lake plant in Lorain County and the 244-MW coal-fired Niles plant in Trumbull County.

Southeast

We own two gas- and oil-fired generation facilities in Florida. The Indian River plant, with an aggregate net generating capacity of 587 MW, is located near Titusville. This facility can be operated as either an intermediate or peaking facility and represents approximately 1.5 percent of the total generation capacity in the state of Florida.

In addition to Indian River, we also own and operate a 470-MW gas- and oil-fired peaking generation facility in Osceola County. Osceola began commercial operation in the fourth quarter of 2001.

We own a 50 percent interest in a 108-MW gas-fired peaking/ cogeneration facility in Orange, Texas, which is referred to as the "Sabine" plant. Sabine has been in commercial operation since December 1999.

We also constructed an 800-MW, combined-cycle plant in Choctaw County, Mississippi, which began commercial operation in July 2003. The facility is a highly efficient, natural gas-fired, combined-cycle generating unit that uses an air-cooled condenser.