Power Engineering - Lightyear Capital joins forces with energy industry veterans to acquire California-based electric generating facilities

NEW YORK, New York, Jan. 30, 2004 -- Lightyear Capital, LLC, a private equity firm that manages more than $2 billion in assets, announced the formation of Lightyear Rockland Partners LLC in order to acquire Ripon Cogeneration, Inc., from Tractebel Power, Inc, a subsidiary of Suez SA.

Lightyear Capital, through its partnership, The Lightyear Fund, LP, now owns a majority interest in Lightyear Rockland Partners LLC. Other investors include Rockland Capital Energy Investments, LLC and D. Milne Associates, LLC (DMA).

Ripon Cogeneration, Inc. owns and operates two electric generating facilities in California, which have long-term power purchase agreements with the local regulated utility in their respective service territories. The 47-megawatt Ripon facility, located in San Joaquin county, 70 miles south of Sacramento, sells power to Pacific Gas & Electric.

The 41 megawatt San Gabriel facility, located in Pomona, sells power to Southern California Edison. Both facilities are natural gas-fired stations and will be managed by Rockland and operated by North American Energy Services, a leading third-party operator of independent power projects.

"The Ripon Cogeneration acquisition provides Lightyear with an excellent platform to make additional investments in the energy sector," said Donald B. Marron, chairman and chief executive officer of Lightyear Capital, LLC. "We are delighted to partner with Rockland and DMA, firms that possess solid industry experience and relationships with major utility companies and others likely to divest modest-sized power generation facilities. This investment also fits with our investment strategy of investing in quality companies that have stable and recurring revenue bases built on excellent service and strong customer relationships."

"Rockland is enthusiastic both about our newly-formed partnership with Lightyear and the opportunities this transaction creates for us. These assets fit our strategy of acquiring well-run qualifying facilities with long term power purchase agreements," said Scott Harlan, chief operating officer and managing director of Rockland. "We look forward to the chance to participate in the California power market and to make the most of the inherent value embedded in these assets."

"DMA is pleased to be part of the Lightyear Rockland team and have assisted in the acquisition of the Ripon projects. We look forward to expanding this investment in the vital California market and other vibrant power markets in the east," said Dave Milne, managing member of DMA, a Garden City, New York-based energy consulting firm.

Lightyear Capital, LLC (www.lycap.com) is a New York-based private equity investment firm that manages approximately $2 billion in assets, including The Lightyear Fund, L.P., a $750 million private equity fund. The Lightyear Fund invests in leveraged buyouts, recapitalizations, and growth capital opportunities in financial services and other select industries. Lightyear's approach to investing centers on partnering with skilled management teams who lead quality companies with significant potential for growth, either organically or through acquisitions.

Rockland Capital Energy Investments, LLC (www.rocklandcapital.com) is a privately funded energy investment company managed by former El Paso Corp. executives Scott Harlan and David Yeager in Houston, Texas and Martin Pickard in London, England. The firm was created to capitalize on the substantial business opportunities resulting from the recent financial turmoil in the deregulated power industry in North America and Europe. Rockland has a disciplined business plan focused on acquiring and optimizing independent power projects with long-term contracted cash flows. The company has offices in Houston, New York, and London.

The principals of D. Milne Associates LLC (www.dmaenergy.com), Dave Milne, Ted Spar and Michael Herz have over 85 years of experience as utility executives and energy practitioners. They have had direct responsibility for the completion of projects valued at over $1 billion. Since its inception in 1998, DMA has assisted clients in Domestic and International assignments involving Project Development and Execution, Asset Valuation and Project Analysis, New Product Marketing, and Energy Business Development.

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