HispanicBusiness

MCALLEN, Texas, Nov. 6 /PRNewswire/ -- Sharyland Utilities, L.P., serving industrial, commercial and residential electric customers in the 6,000-acre Sharyland Plantation in South Texas, today announced plans to build an electrical tie between the Texas and Mexico power grids. This cross-border tie will be the first of its kind to support both emergency power and commercial business activity in Texas and Mexico. The 150-megawatt High Voltage Direct Current Tie ("DC Tie") will allow two-way electricity transfers between completely independent power grids, which supports economic development and increased reliability of both grids.

"Two of my administration's top priorities are economic development for South Texas and stronger economic integration with Mexico. Sharyland Utilities' proposed DC Tie plays an important role in advancing both," said Texas Gov. Rick Perry. "The tie will enhance the reliability of the power grids in both South Texas and northern Mexico. As Fortune 500 companies continue to relocate their operations to Texas, they should take comfort that we are doing everything possible to ensure they have the quality infrastructure required to support their businesses."

Florencio Aboytes, Power System Planning Division Manager at Mexico's state-owned utility, Comision Federal de Electricidad ("CFE") commented, "DC ties are an integral part of Mexico's electric infrastructure management strategy. The ties enhance system reliability and expand our electric markets by providing access to low-cost power from diverse sources. Cross-border ties also stimulate economic activity since stable, dependable power is one of the key decision factors in business relocation and expansion."

Sharyland Utilities has planned construction to begin next year, with electric power transfers predicted by year-end 2005. The DC Tie converter station will be located in Mission, Texas, with an electrical transmission line between facilities in McAllen, Texas and Reynosa, Mexico. The Electric Reliability Council of Texas ("ERCOT") will coordinate open-access operations of the DC Tie and the Public Utilities Commission of Texas ("PUCT") will regulate electrical transmission rates.

"Reliable power is our top priority, with low costs of service holding a close second place," said Mark Caskey, general manager of Sharyland Utilities. "We continually work to fulfill those commitments to our customers and the electrical industry. This DC Tie will provide yet another enhancement to the strength of Texas' overall electrical grid, as well as significant reliability and economic benefits to electric consumers."

The utility has filed its PUCT application for a Certificate of Convenience and Necessity to build the U.S. portion of the electric transmission line that will cross the border into Mexico. In September 2003, Sharyland Utilities applied with the U.S. Department of Energy for a Presidential Permit to construct the international transmission line and is awaiting approval. Sharyland Utilities is also working with CFE and Mexican governmental agencies to gain formal approvals.

About Sharyland Utilities, L.P.

Sharyland Utilities is the first greenfield electric utility in the United States since the Reedy Creek Improvement District was created to serve Disney World in the late 1960s. The vast majority of Sharyland Utilities' electrical distribution system is underground for enhanced safety and reliability. The system is also looped, allowing redundant power support to facilities in its South Texas service territory of Sharyland Plantation, a 6,000-acre mixed-use industrial park and real estate development. For the past three consecutive years, Sharyland Utilities has had the fewest average power interruptions, with shorter durations, than any other Texas utility regulated by the PUCT. The utility also has one of the United States' most proactive energy-efficient tariff structures, charging customers solely on their peak electric usage, instead of the total energy consumed. And all customers in Sharyland Utilities' service territory have automated metering at their premises, which allows their electricity usage to be measured every 15 minutes instead of the standard once-a-month reading by a utility's meter reader. Sharyland Utilities makes this metered data available to each of its customers via a personal Web page, free of charge. Sharyland Utilities, L.P.

CONTACT: Cathryn Binz, +1-214-978-8945, or cbinz@huntpower.com , forSharyland Utilities