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Mirant files notice to shut down units in California

5 May 2006 -- Mirant filed a 90-day notice of its intent to shut down the Pittsburg 7 and Contra Costa 6 units located near San Francisco, California yesterday. The notice was filed with the California Public Utilities Commission (CPUC) and the California Independent System Operator (CAISO) in accordance with California law and agreements governing operations with the CAISO.

Despite efforts over the last several months, Mirant said that it has been unable to successfully negotiate contracts or secure reliability compensation for these units, without which operating the units is not economical.

"Mirant will continue to work with all parties in an attempt to reach agreements that will allow us to continue operating Pittsburg 7 and Contra Costa 6," said Rob Hayes, President, Mirant California. "We will continue to do everything we can to achieve this result. If we're not successful in our negotiations, it's our intent to shut down these units at the end of the 90- day period," continued Hayes.

Hayes further stated, "Mirant intends to continue operations of the remainder of its California fleet and to continue with efforts to permit the new Contra Costa 8 unit."

The Contra Cost 8 unit is contemplated to be transferred to PG&E pursuant to Mirant's previous settlement of California matters.




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