"In order to plan outages and maintain reliability, it is important to
plan and initiate these large construction projects well in advance of
compliance deadlines.

so2 atmospheric

"Vectren is committed to be a leader in air quality , and today's filing
should be welcome news for residents of Southwestern Indiana," said Carl
Chapman , Vectren's executive vice president and chief operating officer. Brown
units 1 and 2 were both originally constructed with scrubbers. Vectren also has 295 MW of gas-fired peaking
capacity. 17. Gypsum Company , a
manufacturer and marketer of building and specialty products throughout the
United States, completed a marketing agreement for the synthetic gypsum
produced at the Asheville Plant.C.

tradable pollutants

Pilot tests show that a 10 percent reduction in the moisture
content of lignite is expected to result in a 2.

assess nadpis

When fully implemented, this
proposal would mean an approximate 6 to 8 percent increase for a typical
residential electric customer. Environmental Protection Agency (EPA) issued
its Clean Air Interstate Rule (CAIR). In this case, the construction of a scrubber and fabric
filter will allow Vectren the continued use of these two low-cost units
(Warrick 4 and Culley 3) for baseload generation and will also ensure the
continued ability of these units to burn Indiana coal. Department of Energy's (DOE)
Clean Coal Power Initiative, a 10-year, $2 billion commitment to clean
coal technology and a key component of the National Energy Policy. First scrubber begins operating at Asheville Plant

ASHEVILLE, N.
"Our clean air projects represent an important long -term commitment to the
environment, and today marks an important milestone for North Carolina," said
Bob McGehee, chairman and CEO of Progress Energy.

temporal margot

31, 2006., was placed in service more than 50 years
ago and is the smallest coal-fired generation unit in the Vectren fleet.

Great River Energy Selects Headwaters Incorporated to Market Coal Drying Technology

The SO2 in the flue gas reacts with the
limestone to produce gypsum, and the remaining water vapor rises from the
stack. For more information about Progress Energy, visit the company's
Web site at http://www.

acidity acidic

To learn more about Vectren,
visit http://www. According to the North Carolina
Department of Environment and Natural Resources (DENR ), the SO2 and NOx
control technologies installed statewide as part of Clean Smokestacks will
also remove 65 percent of mercury emissions.S.

sulfur deposition

Vectren's non-regulated subsidiaries and affiliates currently offer
energy-related products and services to customers throughout the Midwest and
southeast.

It is the second
largest power supplier in the state of Minnesota, and the fourth
largest cooperative of its type in the nation.

Progress Energy Celebrates Clean Air Milestone

acid temporal

This level of emissions
reductions will continue to make Vectren an industry leader in its
environmental stewardship efforts .
In 1992, Vectren enhanced its environmental compliance plan and
constructed a scrubber for the removal of sulfur dioxide (SO2) emissions from
F. Earlier this year, Progress Energy and U.

Acid deposition includes acid rain and other acidic precipiation, but also dry deposition of acidic compounds .

sulfur acid

Under the new
CAMR, nationwide mercury emission will be reduced 70 percent from current
levels .
Vectren owns and operates 1351 MW of total generating capacity.S. Scrubbers work by taking the gas
produced from burning coal and passing it through a tower in which a water and
limestone mixture is sprayed.com.

so2 acid

This additional capital investment positions our plants
to continue to operate in an environmentally responsible manner.B.B.

oxides dti

B. In addition, in February 2004, Progress
Energy announced that it would sell gypsum from its Roxboro scrubbers, which
are scheduled to begin operating in 2007 and 2008, to a wallboard facility
that will be constructed adjacent to the plant.

nadpis observe

By using a combination of scrubbers, fabric filters and the recently
installed selective catalytic reduction devices (SCRs), Vectren will have the
best available mercury reduction equipment in place. Culley Units 2 and 3 required by EPA's Acid Rain Program.

pollutants aea

The plan will mean Vectren's
electric generation fleet will be 100 percent scrubbed for sulfur dioxide
(SO2), 90 percent scrubbed for nitrogen oxide (NOx), and will further reduce
mercury to meet new mercury reduction requirements.
In addition , Vectren will retire and permanently cease operation of F.B. These include gas marketing and related services; coal production
and sales; and utility infrastructure services.com. The DOE is expected to provide
$11 million for the project over its 45-month duration.GreatRiverEnergy.

atmospheric observe

EVANSVILLE , Ind."
The IURC petition includes a cost recovery mechanism to spread the cost
over multiple years to minimize customer impact. Similarly, on March 15, 2005, EPA finalized
its Clean Air Mercury Rule (CAMR). The CAMR rule establishes a market-based
cap and trade approach under which each state is assigned a mercury emission
budget to be allocated among generation units within the state. Both the scrubber and fabric filter are
advanced technologies designed to reduce air emissions from existing sources
fueled by coal.
Culley Unit 1 by Dec.

About Vectren
Vectren Corporation is an energy and applied technology holding company
headquartered in Evansville, Indiana.D. Testing of the prototype will begin
this summer, and if successful, a complete set of dryers would be
built for the unit. The
program competitively seeks commercial-scale technology demonstrations
to continue and expand the use of coal as a fuel source. Great River Energy recently
selected Headwaters, Incorporated to market the coal drying technology
to power plants, especially those that use either lignite or
subbituminous coal as a fuel.

Great River Energy (www.

acidity deposition

SCRs remove NOx from the flue gas created from the combustion of coal by
electric generating facilities. Benefits include a reduction of emissions and an increase in
generating efficiency of the power plant.
In the project's first phase, a prototype module is being designed
to dry about one-sixth of the coal for one of the two 546-megawatt
(MW) units at Coal Creek Station.
The agreement with the DOE requires that Great River Energy
commercialize the coal drying technology. Progress Energy also includes nonregulated
operations covering merchant generation, energy marketing and natural gas
exploration.

atmospheric acidic

The new CAIR rule mandates state
implementation plan revisions in 29 states, including Indiana, requiring
further reductions of NOx and SO2 beyond those currently required in the NOx
SIP Call and Acid Rain Program.newscom."
The Clean Smokestacks Act, which was passed by the North Carolina General
Assembly in 2002, requires significant reductions in SO2 and nitrogen oxide
(NOx) emissions.

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.

temporal nadpis

These projects also
should help to alleviate PM2. Brown 1, 250 (MW); A.

----Great River
Energy (GRE) and Headwaters Incorporated , South Jordan, Utah,
announced today that they have completed a non-binding memorandum of
understanding for Headwaters Incorporated to market the Lignite Fuel
Enhancement System being developed at GRE 's Coal Creek Station near
Underwood, N.
The Lignite Fuel Enhancement System is one of eight that was
selected in the initial phase of the U.
The $28 million project at Coal Creek Station is being
administered by the DOE's Office of Fossil Energy, and managed by the
National Energy Technology Laboratory.com) is a not-for-profit
generation and transmission cooperative providing electricity to 28
distribution cooperatives in Minnesota and Wisconsin.

Headwaters Incorporated (www. The Asheville Plant scrubber began operating on Nov.

nadpis so2

On March 10, 2005, the U.5 (fine particulate , dust and aerosols)
non-attainment in Southwestern Indiana. The 46 MegaWatt (MW), coal-fired generation
unit located in Warrick County, Ind.8 to 5 percent
efficiency improvement for Coal Creek Station , a 25 percent reduction
in sulfur dioxide emissions, and a 7 percent reduction in mercury,
carbon dioxide, nitrogen oxide and particulate emissions. Through its alternative
energy, coal combustion products, and building products businesses,
the company earns a growing revenue stream that provides the capital
needed to expand and acquire synergistic new business opportunities.
"The emissions reductions on the part of Progress Energy will bring health
benefits to the citizens of North Carolina and other states," said DENR
Secretary Bill Ross."
In addition, Progress Energy is finding environmentally-friendly uses for
the byproducts of the scrubbers, including gypsum, which can be used to make
wallboard.

rain assess

"While there may be some fine tuning of the new federal requirements , it
is prudent to proceed with a core multi-emission control strategy," Chapman
said. The company 's holdings include two
electric utilities serving more than 2.

so2 observe

A. Vectren's
baseload units include the following: A.
In the system, Great River Energy will use waste heat to dry about
one-fourth of the moisture in the coal before it is used in the power
plant. Headwaters is a diversified growth company
providing products, technologies and services to the energy,
construction and home improvement industries. "While we have installed a
variety of innovative technologies at our plants in recent years to reduce
emissions, we are particularly proud that this scrubber is the first to come
online under the Clean Smokestacks Act.9 million customers in North Carolina,
South Carolina and Florida .

margot acid

Vectren's energy delivery subsidiaries
provide gas and/or electricity to over one million customers in adjoining
service territories that cover nearly two-thirds of Indiana and west central
Ohio . The combined capacity of such plants in
the United States is about 115 gigawatts.com/cgi-bin/prnh /20020923/CHM008LOGO-c)
Scrubbers, formally called flue-gas desulfurization units, remove sulfur
dioxide (SO2) emissions from power plants. When all the technologies are installed, the Asheville Plant
will reduce NOx emissions by 93 percent from 1996 levels and reduce SO2
emissions by 93 percent from 2001 levels.

margot acidity

"
Included in phase one of the proposed project is an expenditure of
approximately $110 million to fund the construction of a flue gas
desulfurization system (scrubber ) at Warrick Unit 4 scheduled for completion
by 2010 and the installation of a fabric filter at Culley 3 scheduled to be
complete by mid-2007.S.B.com) is a world leader in
creating value through innovative advancements in the utilization of
natural resources. "The reductions will significantly reduce pollution
events that can trigger asthma and other respiratory problems, while also
reducing haze and acid rain., is a Fortune
250 diversified energy company with more than 24,000 megawatts of generation
capacity and $9 billion in annual revenues.

rain acidic

Vectren To Enhance Environmental Stewardship Through New Air Quality Improvements

"This
continues our practice of both protecting the environment and utilizing clean
coal technology with Indiana coal. Brown 2,
250 (MW); Culley 1, 46 (MW); Culley 2, 90 (MW); Culley 3, 270 (MW); Warrick 4,
150 (MW) (represents Vectren's 1/2 interest in Warrick 4 - a 300 MW unit
co-owned with Alcoa Corporation).

Business Editors/Energy Editors

ELK RIVER, Minn.C.
(Logo: http://www.

deposition so2

, Vectren Corporation
(NYSE: VVC) announced today that its utility subsidiary, Vectren Energy
Delivery of Indiana, Inc. The
decision to retire this unit meets EPA requirements and also will enhance the
area air quality as it operates less efficiently than the larger generating
units.vectren.headwaters.

progress-energy.

sulfur acid

, has filed a new multi-emission compliance plan with
the Indiana Utility Regulatory Commission (IURC)., Progress Energy
officials and state and local leaders celebrated the state's first scrubber to
begin operating under North Carolina's Clean Smokestacks Act at a news
conference today.

measured assess

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- - kjjkjk

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