Tenaska Power Fund Completes Sale of Commonwealth Chesapeake Power Station to Tyr Energy

OMAHA, Neb., Feb. 14 /PRNewswire/ -- Sale of the Commonwealth Chesapeake Power Station in New Church, Va., by Tenaska Power Fund, L.P. (TPF) of Omaha, Neb., to Tyr Energy, Inc. (Tyr Energy) of Overland Park, Kan., has been completed.

Financial close occurred on February 13, 2008. The announcement was made jointly by Paul Smith, Senior Managing Director of Tenaska Capital Management, LLC, manager of TPF, and Karl Usami, president and CEO of Tyr Energy.

J.P.Morgan Securities Inc. served as advisor to TPF and Fieldstone Private Capital Group served as advisor to Tyr Energy on the transaction. The purchase price was not disclosed.

Commonwealth Chesapeake Power Station delivers energy to the PJM regional power reliability grid serving large areas in the East, Northeast and Midwest. The plant includes seven simple-cycle, oil-fueled turbine electric generator sets able to produce 315 megawatts of electricity -- enough to meet the energy needs of approximately 300,000 households. Also, the facility provides "spinning reserve" capacity from four of its turbines, contributing to the reliability of the regional grid.

The plant was built on a 126-acre tract on the Delmarva Peninsula in two phases, the first in 2000 and second in 2001. It has been operated by a staff of 13 full-time employees of TPF Operations, Inc., an affiliate of Tenaska Energy, Inc. All employees were offered full-time positions with North American Energy Services Company (NAES), an affiliate of Tyr Energy, which will operate the plant going forward.

About Tenaska Power Fund

Tenaska Power Fund (TPF) is a private equity limited partnership which was formed by the owners of Tenaska to pursue opportunities for investment in the energy sector. TPF is owned outside of Tenaska's holding company structure. Tenaska Capital Management, LLC (Tenaska Capital), a Tenaska affiliate, provides management services to TPF using Tenaska employees' experience and skills to evaluate acquisition opportunities -- analyzing the value of assets, operating efficiencies, market opportunities, and fuel agreements that can be optimized to increase value. Since closing in 2005, TPF has acquired a diverse group of assets that include power generating plants; national providers of transmission and pipeline construction and maintenance services; and natural gas storage facilities.

About Tyr Energy

Tyr Energy, which was formed in 2002 to provide comprehensive management services to financial owners of distressed power assets, is owned by ITOCHU Corporation, an international trading conglomerate and its U.S. based subsidiary, ITOCHU International, Inc. Tyr Energy focuses on owning equity interests in North American independent power assets and providing asset management services to facilities in which it is an owner. Worldwide, ITOCHU owns interests in independent power facilities in Saudi Arabia, the Philippines and Japan in addition to the United States.