Aug. 13, 2002 — Tenaska Inc. said Tuesday that its affiliate, Kiowa Power Partners, LLC, has executed the necessary contracts to begin building an 85-mile, 345-kV electric transmission line from Pittsburg County, Okla., to Fannin County, Texas.

Darrell Bevelhymer, vice president of business development for Tenaska, said the transmission project had been developed and will be completed within a short two-year time frame. “This is quite an achievement considering the complex development issues involving two states and two regional transmission grids.”

Bevelhymer explained that project development began in June 2001, with 2002 activities including obtaining necessary regulatory approvals, construction and operation arrangements and financing. Construction of the transmission line, he said, will begin soon, with commercial operation expected in mid-2003.

Kiowa Power Partners has entered into agreements with Western Farmers Electric Cooperative (WFEC) of Anadarko, Oklahoma, to construct, operate and own the 76-mile Oklahoma portion of the transmission line. Kiowa Power Partners will own the nine-mile Texas portion of the transmission line.

The transmission line originates near the Tenaska Kiamichi Generating Station located near Kiowa, Okla. The facility’s six generating units have the ability to interconnect with either the Electric Reliability Council of Texas (ERCOT) grid or the Southwest Power Pool (SPP) grid. The 1,220-MW Kiamichi Station, scheduled for completion in 2003, will be Tenaska’s third project with the unique ability to deliver power simultaneously to two electric grids.

Bevelhymer said that Tenaska is a pioneer in the development of generating stations with this dual electric grid capacity. “Two Tenaska plants currently in operation within ERCOT boundaries have similar dual-grid capabilities. The Tenaska Frontier Generating Station near Shiro, Texas, which was named the “2000 Project of the Year” by the trade journal Power Engineering, can dispatch power to both ERCOT and the Southeast Electric Reliability Council (SERC). The Tenaska Gateway Generating Station near Mt. Enterprise, Texas, can deliver electricity to both ERCOT and SPP grids.”

The transmission line will follow a route from near Kiowa, Oklahoma in Pittsburg County through Atoka and Bryan counties in Oklahoma, to its southern terminus near Savoy, Texas, in Fannin County.

About Tenaska

Headquartered in Omaha, Nebraska, with regional offices in Dallas, Texas, Denver, Colorado, and Calgary, Alberta Canada, Tenaska is a privately held international energy company that develops, owns and operates cost-efficient independent electric generation and cogeneration plants, transmission lines, and provides natural gas and electric power marketing, trading and risk management. The company also is