Riverstone Holdings and The Carlyle Group Announce Closing of Coleto Creek Sale and Acquisition of 50% Share in Topaz Power Group

New York – Carlyle/Riverstone Global Energy and Power Fund II, L.P. (C/R II) today announced it has completed the sale of Coleto Creek Power. The sale of Coleto Creek Power to International Power plc (L: IPR; NYSE: IPR) for $1.14 billion in cash was announced April 20, 2006. In addition, Carlyle/Riverstone Global Energy and Power Fund III, L.P. (C/R III) announced it acquired the 50% stake in Topaz Power Group from its partner, Sempra Energy. Topaz Power Group consists of seven natural gas and oil-fired Texas power plants previously, jointly owned by C/R II and Sempra Generation, a subsidiary of Sempra Energy.

In July 2004, Sempra Generation and Riverstone Holdings formed Topaz Power Group to purchase 10 power plants. Since the initial acquisition, Topaz Power Group sold three facilities including Coleto Creek Power. Of the remaining seven plants purchased today by C/R III, three remain in operation, including Barney M. Davis, a 682-MW natural gas fueled plant in Corpus Christi; the Laredo Power Station, a 178-MW power plant in Laredo and the La Palma Power Station, a 255-MW plant located in San Benito. Four idled plants involved in the agreement include the 491-MW Victoria Power Station in Victoria; the Bates Power Station, a 182-MW facility in Palmview, and two Corpus Christi plants, the 559-MW Lon C. Hill Power Station and the 559-MW Nueces Bay Power Station.

Michael Hoffman, Managing Director with Riverstone Holdings, said, "We have had a great partnership with Sempra. We are excited about the future as we shift the focus of Topaz Power group to development opportunities around these seven power facilities."