Press Release

New Generator Program Adds Reliability for Lexington Electrical System

Raleigh, NC, September 26, 2006 – The City of Lexington, in cooperation with North Carolina Municipal Power Agency Number 1 (NCMPA1), one of the state’s two municipal power agencies, has added two new electric power generating units at the City’s Cotton Grove Substation on Highway 8 just south of I-85. The Cotton Grove Substation is a main electrical facility for Lexington’s citizens. The generator will provide power to Lexington during times of heavy electric usage and it will be an emergency source of electric power for the City during power outages. As a public power community, the City of Lexington owns and operates its electric system, serving more than 18,000 customers located both inside and outside the city limits. The city is a member of NCMPA1, an organization of 19 cities and towns in piedmont and western North Carolina, which provides wholesale power to its member cities. NCMPA1 receives its electric generation from its percentage ownership of the Catawba Nuclear Station located southwest of Charlotte in York County, SC.

NCMPA1 created the program that resulted in the new units in 2004 to provide the agency with more generator peaking capacity for use when demand for electricity is high. By locating the generators in the member cities, like Lexington, the cities receive an electrical power source that can also be used during emergencies to serve critical needs. Each generator produces 2,000 kilowatts of electrical power.

With the addition of the generators, the city now has an additional backup source of electrical power for its citizens during an emergency. The purchase and installation of the generators cost approximately $1.2 million and was fully covered by NCMPA1, which also pays the costs needed to operate and maintain the units.

“We are pleased with this program,” said Mayor Richard Thomas. “The addition of the generators at the Cotton Grove Substation, along with two other NCMPA1 generators installed in 2002, provides our citizens with 8 megawatts of electrical power we can use during an emergency, such as a hurricane or ice storm. Additionally, the offer from NCMPA1 was a fiscally responsible decision in that we are able to achieve this security at no cost to the city, electric customers or citizens.”

In 2006 and 2007, NCMPA1 officials plan to install diesel generating units at sites in most of the remaining member cities. Locating these peaking generators in Lexington is beneficial for both the City of Lexington and NCMPA1.

ElectriCities of North Carolina, Inc. (ElectriCities), North Carolina Municipal Power Agency Number One (NCMPA1), North Carolina Eastern Municipal Power Agency (NCEMPA) - More than 70 North Carolina public power communities, municipally owned and operated electric systems, serve more than 500,000 residential, commercial and industrial customers in North Carolina. ElectriCities' members in NC, SC and VA serve more than one million customers. Most have been providing reliable electric service for 100 years or more. ElectriCities is the service organization that provides customer service and safety training, emergency and technical assistance, communications, government affairs and legal services to public power cities. ElectriCities provides management services to the states two municipal power agencies: NCMPA1 and NCEMPA. NCMPA1 has 19 member cities in the western part of North Carolina and NCEMPA has 32 member cities in eastern North Carolina. More information about ElectriCities, the power agencies and public power is available on the Internet at www.electricities.com or at www.ncpublicpower.com.

###