Texas Genco Signs Sales Agreement With AEP to Purchase Additional Stake in STP

Texas Genco Signs Sales Agreement With AEP to Purchase Additional
Stake in STP 


HOUSTON, Sept. 7  /PRNewswire-FirstCall/ -- Texas Genco Holdings, Inc.
(NYSE:TGN), a majority-owned subsidiary of CenterPoint Energy, Inc. (NYSE:CNP),
signed a sales agreement Friday to purchase a portion of AEP Texas Central
Company's 25.2 percent interest in the South Texas Project Electric Generating
Station (STP) for approximately $174 million.  AEP Texas Central is a
subsidiary of American Electric Power (AEP).  Once the sale is complete, Texas
Genco will own an additional 13.2 percent of the nuclear plant for a total of
44 percent or about 1,100 megawatts.  The company exercised its right of first
refusal in late May.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20030127/DAM020LOGO )

In addition to AEP and Texas Genco's current 30.8 percent ownership, the 2,500
megawatt nuclear plant is presently owned by City Public Service of San Antonio
(CPS), 28 percent and Austin Energy, 16 percent.  CPS is purchasing AEP's
remaining 12 percent ownership interest.

The sale is subject to certain regulatory approvals, including the Hart-
Scott-Rodino Antitrust Improvements Act, the Nuclear Regulatory Commission,
Federal Regulatory Commission and Securities and Exchange Commission.

Texas Genco hopes to close the transaction in early 2005.

Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest
wholesale electric power generating companies in the United States with over
14,000 megawatts of generation capacity, of which approximately 2,500 megawatts
are currently in mothball status.  It sells electric generation capacity,
energy and ancillary services in one of the nation's largest power markets, the
Electric Reliability Council of Texas (ERCOT).  Texas Genco has one of the most
diversified generation portfolios in Texas, using natural gas, oil, coal,
lignite, and uranium fuels.  The company owns and operates 60 generating units
at 11 electric power-generating facilities and owns a 30.8 percent interest in
a nuclear generating plant.  Texas Genco currently is a majority-owned
subsidiary of CenterPoint Energy, Inc.  For more information, visit our web
site at http://www.txgenco.com/ . 

http://www.newscom.com/cgi-bin/prnh/20030127/DAM020LOGO

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DATASOURCE: Texas Genco Holdings, Inc.



CONTACT:  media, Leticia Lowe, [phone], or investors, Marianne

Paulsen, [phone], both of Texas Genco Holdings, Inc.



Web site:  http://www.txgenco.com/

http://www.centerpointenergy.com/ 

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