| FROM: | Alliance Energy Renewables, LLC | FOR IMMEDIATE RELEASE |
| CONTACT: | Jane E. Rubinstein Rubenstein Associates 212-843-8287 direct / 516-993-0708 cell |
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ALLIANCE ENERGY BEGINS TO FILL SWINGING BRIDGE RESERVOIR
Repairs to Dam 45 Days Ahead of Schedule As Alliance Accelerates Repair of Swinging Bridge Dam Since Acquisition in May 2007
(Monticello, NY - June 20, 2007) - Alliance Energy Renewables, LLC ("Alliance Renewables") announces that they have initiated the first phase of refilling the Swinging Bridge Reservoir pursuant to FERC (Federal Energy Regulatory Commission) authorization. This first phase will bring the Swinging Bridge Reservoir water level from elevation 1050 to elevation 1055. Since closing on the former Mirant assets in May of this year, Alliance has significantly accelerated the dam repair schedule by assigning additional manpower, shifts, and resources. In less than two months since formally acquiring these hydro-electric assets, Alliance is now 45 days ahead of the original schedule for Swinging Bridge Dam repair which will exceed $35 million.
"We're extremely pleased with our progress in expediting repair of the Swinging Bridge Dam," explained Joe Klimaszewski, Director of Operations for Alliance. "We're hopeful that when the water level reaches this first target of 1055' ASL, repairs will have proceeded such that FERC grants Alliance immediate authorization to advance the filling process towards the final target elevation of 1065' ASL." The reservoir is filled through natural precipitation events and inflow from the entire reservoir system.
"Weather permitting and barring unforeseen complications during the remaining repairs, we hope to have the reservoir back in service for public and recreational use by August 1," suggests Mr. Klimaszewski. "While we are beginning to restore the water level, we remind the community that the Reservoir remains closed to all recreational use and public access," cautions Mr. Klimaszewski.
The filling is the first in a sequence of milestones required to reopen the Reservoir to the public for recreational use. When the reservoir reaches the target elevation of 1065, Alliance will install and monitor safety measures including booms, signs, buoys and marine patrols and will seek necessary agency approvals.
"Alliance recognizes the critical role these water bodies play in the regional economy and in maintaining the quality of life for local residents," explains Mr. Klimaszewski, "and at Alliance, we continue to work diligently to expedite completion of the repair and restoration of the target water levels."
Residents in the area surrounding these water bodies should note that they may experience fluctuations in water levels as the system feeds the Swinging Bridge Reservoir. "We remind the community that the Mongaup system is not made up of separate and distinct water bodies, but an interconnected series of water bodies managed as a system in its entirety."
"We'll continue to keep the community apprised of our progress," concluded Mr. Klimaszewski.
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