The Shaw Group Inc.
NYSE : SGR

The Shaw Group Inc.

February 06, 2006 09:29 ET

Shaw Awarded Engineering, Procurement, and Construction Contract for New 750 MW Power Plant by Xcel Energy

BATON ROUGE, La.--(CCNMatthews - Feb 6, 2006) -

The Shaw Group Inc. (NYSE:SGR) today announced that its Shaw Stone & Webster unit has been awarded an engineering, procurement, and construction (EPC) contract by Xcel Energy (NYSE:XEL), for an additional generating unit at its Comanche Generating Station in Pueblo, Colorado.

The new, 750-megawatt supercritical coal-fired power plant, with a total cost of $1.35 billion, will be the third unit at the Comanche Station. Shaw's lump-sum, turnkey contract covers "balance of plant" facilities, including the erection of the steam turbine, and supplying and erecting associated plant systems including piping, pumps, heat exchangers and electrical equipment. In addition, the scope includes engineering and installation of concrete foundations and other civil and electrical works for the total facility. The value of Shaw's contract was not disclosed. In addition to the turbine supply, Xcel Energy will also procure additional contractors for certain components, such as the steam generator, air quality control systems and stack. The new plant is scheduled to be completed in the fall of 2009.

J. M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "Today's rising oil and natural gas prices are driving the demand for economically reliable energy solutions, particularly coal-fired electricity generating facilities. This award, the second new coal-fired project we have been awarded in six months, provides the Shaw team another opportunity to demonstrate our 'Best in Business' practices in this growing market."

"This contract marks the beginning of what will culminate in 1,000 new construction jobs in the Pueblo area as our new generating unit is built," said David Wilks, Xcel Energy President of Energy Supply. "It marks another major milestone in our efforts to bring clean, reliable and low-cost energy to our customers, and we look forward to working with Shaw Stone & Webster on this project."

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with over $3 billion in annual revenues, Shaw employs approximately 20,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. The Company was recently named to Fortune magazine's annual list of "America's Most Admired Companies" for the second consecutive year. For further information, please visit Shaw's website at www.shawgrp.com.

Xcel Energy, which operates in Colorado as Public Service Co. of Colorado, is a major U.S. electricity and natural gas company, with operations in 10 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

Forward-Looking Statements - The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained herein that are not historical facts (including without limitation statements to the effect that the Company or its management "believes," "expects," "anticipates," "plans," or other similar expressions) and statements related to revenues, earnings, backlog, or other financial information or results are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions and are subject to change based upon various factors. Should one or more of such risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A description of some of the risks and uncertainties that could cause actual results to differ materially from such forward-looking statements can be found in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Form 10-K and Form 10-Q reports, and on the Company's website under the heading "Forward-Looking Statements". These documents are also available from the Securities and Exchange Commission or from the Investor Relations department of Shaw. For more information on the company and announcements it makes from time to time on a regional basis visit our website at www.shawgrp.com

Contact Information

  • The Shaw Group Inc., Baton Rouge
    Chris D. Sammons, 225-932-2546
    www.shawgrp.com