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ALLIANCE ENERGY ANNOUNCES PLANNED TESTING OF BIOFUELS AT HILLBURN AND SHOEMAKER GAS TURBINES

(Forestburgh, NY - August 2009) - AER NY-Gen, LLC ("Alliance Energy") is planning to perform a fired test using ASTM-grade biodiesel at its Hillburn and Shoemaker gas turbine facilities located in Hillburn, NY and Middletown, NY respectively. This testing will support the viability of using this clean burning, renewable biofuel to provide electricity to the New York State electric system during periods of peak demand. All testing is expected to be complete in time for the summer operating peak in 2010.

Alliance successfully performed similar testing as early as 2006 at another of its affiliated facilities. Alliance selected the Ogdensburg Power Plant to participate in a trial program to study the viability of using biodiesel to produce electricity and steam. As a result of this testing, Alliance became the first commercial boiler operator in New York State to use biodiesel in one of its power plants. During the test, Alliance utilized 250,000 gallons of biodiesel in one of its operating units the largest amount of biofuel consumed in a fossil fuel generating plant in the United States.

Alliance Chairman Sam Nappi said "We are proud to once again spearhead the effort to utilize this advanced renewable technology. This testing will demonstrate that the same technologies proven viable at the Ogdensburg Power Plant in 2006 can be used to support the electricity needs of the New York City area."

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