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EnerNex® to help Build Xcel Energy Wind Forecasting System

Effort will address expanding penetration of wind into generation portfolio

Knoxville, Tenn., September 6, 2004 - EnerNex Corporation, an electric power engineering and consulting firm specializing in the development and application of new electric power technologies, announced that it is part of a team being awarded a contract to develop a utility-scale wind energy forecasting system for Xcel Energy. This effort, led by WindLogics Inc. of St. Paul, Minn., will also include AREVA T&D and the Utility Wind Interest Group on the project team. The project is being funded with a $997,000 grant from the Xcel Energy Renewable Development Fund.

The project involves specifying, designing, building and demonstrating a complete wind power forecasting system for use by Xcel Energy system operators. Wind forecasting will be conducted for the entire service area, harnessing complex energy need projections with available power from all generation sources. Forecasts will be provided on time scales of one hour to seventy-two hours and will reduce the net load forecast uncertainty in the utility's operations planning and real-time operations. Key objectives of the project are to optimize the way wind forecast information is delivered, presented and used in the control room environment and to evaluate how forecasts can help power system schedulers and operators best integrate wind generation into the electric supply portfolio.

According to Bob Zavadil, EnerNex Vice President and Principal Consultant, the value of such a system is clear: "Commercial wind power development within Xcel Energy's service area is projected to grow to a point where wind generation will no longer be a negligible fraction of the regional electric supply. A region-wide wind generation forecasting system will enhance the ability of the Xcel system operators to accommodate wind energy, a concept that is important as the market penetration of wind generation increases."

EnerNex will contribute extensive technical expertise in the areas of wind turbine technology, wind plant design, power system operations, and interconnection of wind generation with utility power systems. Zavadil indicated that the project is a natural progression from a current effort by EnerNex, WindLogics, AREVA T&D, and Nexgen Energy to evaluate the technical and economic impacts of integrating up to 1500 MW of wind generation on the Xcel Energy system: "We have enjoyed a great working relationship with WindLogics, AREVA T&D, and Nexgen and are looking forward to working with them on this effort."

WindLogics Inc. (formerly SSESCO) is a leader in advanced wind resource analysis, long-term wind variability and weather forecasting services. Using weather data and advanced computer modeling techniques, WindLogics services help wind project developers, owner/operators, financiers and utilities reduce their financial risk and maximize their return through a better understanding of the wind at their exact location. The company's products, which include WxPortal® and Environmental WorkBenchTM, help customers make better and faster business decisions using complex environmental and meteorological data. For product information, visit the company on the web at www.windlogics.com.

AREVA is a worldwide expert in the energy field, with a strong industrial presence in over 40 countries. It provides its customers with technological solutions for nuclear energy production and electricity. AREVA's T&D division employs 25,000 people and is an active player around the globe. AREVA T&D designs, manufactures and supplies a complete range of equipment, systems and services for all stages in the transfer of electricity, from the generator to the large end-user. For more information, visit the company on the web at www.areva-td.com.

The Utility Wind Integration Group (UWIG) was established to provide a forum for the critical analysis of wind technology for utility applications and to serve as a source of credible information on the status of wind technology and deployment. The group's mission is to accelerate the appropriate integration of wind power for utility applications through the coordinated efforts and actions of its members, in collaboration with The U.S. Department of Energy, its National Renewable Energy Laboratory and utility research organizations. The UWIG currently has 50 members spanning 21 states, including investor-owned, public power, and rural electric cooperative utilities; transmission system operators; and associate member corporate, government, and academic organizations. For more information, visit the UWIG web site at www.uwig.org.

View the WindLogics press release.

EnerNex Corporation provides engineering and consulting services, along with software solutions and customization, for the electric power industry. EnerNex focuses on providing services around the development and application of new and emerging electric power technologies to engineer a cleaner, smarter energy system of the future. For more information on EnerNex, visit www.enernex.com.

Contact: Carrie Parks
Phone: 865-218-4600 ext.6142
carrie@enernex.com

www.enernex.com

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