Stone & Webster Development Corporation of Boston, Mass., and PP&L Global, Inc., of Fairfax, Va., announced today (4/2) the signing of an exclusivity agreement with the town of Wallingford, Conn., to initiate steps toward development of a merchant power generation plant on the site of the Alfred L. Pierce Station, owned by Wallingford. The agreement calls for a limited period of time during which the companies will investigate the technical and economic feasibility of the project originally contained in a formal proposal by Stone & Webster last fall.

A definitive long-term agreement detailing the arrangements between Stone & Webster and PP&L Global and Wallingford also will be negotiated, subject to final approvals, during the initial exclusivity period.

Plans for the power plant call for using natural gas as the primary fuel in conjunction with a combined cycle design. Combustion turbines would burn natural gas to generate power and produce steam that is directed to a steam turbine to generate additional power. This design is among the most efficient in today's market and, in combination with the use of natural gas, results in minimal environmental impact.

The two companies will assess plan outputs up to about 500 megawatts. Pending the outcome of technical and economic feasibility studies, and subject to regulatory and internal approvals and financing, Stone & Webster and PP&L Global would set up a new company to build, own and operate the power plant. The land would be leased from the town of Wallingford, and power would be sold into regional wholesale markets such as the New England Power Pool. The new company would not replace the Wallingford Department of Public Utilities which serves the needs of the Wallingford community.

Stone & Webster is a wholly owned subsidiary of Stone & Webster,Inc. Stone & Webster is a major internationally recognized engineering and construction organization with over 100 years of experience in the electric power industry.

PP&L Global , and its affiliate PP&L, Inc., are wholly owned subsidiaries of PP&L Resources, Inc., Allentown, Pa. PP&L, Inc. provides electricity delivery service to about 1.2 million homes and businesses in 29 counties of central and eastern Pennsylvania. It also generates and sells retail electricity throughout Pennsylvania and trades wholesale energy in 22 states.