For Immediate Release

June 1, 2004

Contact:	Phil Levine
	Phone (508) 563-7181 Fax (508) 564-4851

Cape Cod, Massachusetts – Fern Engineering Inc., a worldwide engineering company that provides expert consulting services and products to the turbomachinery industry, has recently conducted a case analysis on "dual fuel" capability. Results of the completed analysis highlight the economic advantage of providing combined cycle power plants with the capability of operating on both gas and liquid fuel.

"We conducted this study for a client that was interested in learning more about the economic incentive of adding liquid fuel burning capability to gas turbines that currently can only burn natural gas" explained Jeff Phillips, Fern Engineering's vice president and project manager of the dual fuel analysis. In the analysis, Fern Engineering considered two generic combined cycle power plants located in Massachusetts: a 293 MW Siemens Westinghouse W501F and a 130 MW GE Frame 7EA. Both the W501F and the 7EA were assumed to originally be equipped to burn only natural gas fuel. Fern Engineering then analyzed the economic impact of adding the capability of burning distillate No. 2 fuel oil to both plants.

The analysis revealed that during a recent 12-month period, a W501F with access to only natural gas would have generated $19.8 million in gross profits while a W501F with dual fuel capability would have generated $27.0 million in gross profits, a profit increase of approximately 36%. In the same way, dual fuel capability on the smaller 7EA would have increased profits by approximately 43% from $6.0 to $8.6 million. "This study has undoubtedly brought to light the potential savings a gas turbine plant owner can garner by adding the capability of burning fuel oil," states Phillips. "I cannot think of any other action a gas turbine plant owner could take in the short term that would have as dramatic an impact on profit as this," he adds.

The hour-by-hour dispatch analysis was based on spot market prices for distillate No. 2 fuel oil and natural gas fuel and included the cost of delivery to Massachusetts in the assessment of the two fuels. In addition, the analysis was carried out utilizing the wholesale electricity prices from the ISO New England real-time market.

Fern Engineering conducted the analysis during the period from March 1, 2003 to February 29, 2004. The analysis addressed the issue of inconsistency with unit measurements by converting both natural gas and distillate prices to units of $/MMBtu on a "lower heating value" basis.

Fern Engineering is experienced in designing fuel nozzles with dual fuel capability and providing fuel nozzle refurbishment and testing services. Fern facilities include the only non-OEM owned fuel nozzle test facility capable of calibrating both gas and liquid fuel nozzles for Westinghouse and GE gas turbines. Fern's fuel nozzle manager, Paul Simas, noted, "If a plant owner is interested in improving their bottom line by adding dual fuel capability, we can definitely help them."