News & Events

 Competitive Power Ventures Announces New Investment by Warburg Pincus

 Tuesday September 12, 2006

SILVER SPRING, MD – September 12, 2006 – Competitive Power Ventures Holdings (“ CPV”), a North American power industry development and asset management company, today announced that is has closed on an agreement with global private equity firm Warburg Pincus for an equity financing over time of up to $200 million to launch the development of a portfolio of new fossil fuel power generation projects that could grow to 6,000 megawatts in the United States and Canada. CPV is a privately held company based in Silver Spring, Maryland. Warburg Pincus first invested in CPV in 2000 and maintains a significant interest in the company. The company’s development professionals have played critical roles in the successful development of more than 30 power plants, representing over 15,000 megawatts of currently operational power generation capacity. In addition to its fossil-fired generation development program, the company has over 2,500 MW of wind power projects in development and manages over 5,500 MW of operational natural-gas fired, combined cycle plants throughout the United States.

The new funding is targeted on developing primarily natural-gas fired projects in markets that are receptive to independently owned power generation. Steady growth in the demand for electricity, combined with a halt in construction of new capacity in those markets since the power market collapse in late 2001, have created a need for significant additions to the system within the time frame necessary to develop and build. In addition to recently executing a contract to develop and build a 640 MW combined cycle plant in California, CPV has initiated development on several projects in northeastern U.S. and California while aiming to have new peaking capacity on-line in 2008 and new combined cycle capacity on line in 2010.

“ CPV has had a long relationship with Warburg Pincus,” said Doug Egan, CPV Chairman and Chief Executive Officer. “The firm understands the energy and power industries and will help us respond effectively to the pressing need for new generation resources in these markets. We have assembled a development, finance, construction and asset management team that understands the needs of the power system, the financial markets and, most importantly, the communities that require an adequate supply of electricity but are concerned with the quality of our environment. ”

Commenting on the new investment, Jeffrey A. Harris, a Warburg Pincus Managing Director and a CPV director said, “We are excited about this opportunity to continue our partnership with CPV’s management team to develop a strong portfolio of power generation plants. We have tremendous respect for the CPV team’s development and project management skills, and believe that this is an opportune time to push forward on a new power plant development program in selected regions of North America.”

Along with Mr. Egan, CPV’s executive management team includes co-founder and President Gary Lambert and EVP John Foster, who is focused primarily on corporate development. The fossil fuel project development effort is led by Pete Podurgiel; wind project development is directed by Sean Finnerty; and the asset management business is run by Dave Magill. Paul Buckovich is the company’s SVP of Finance.

About Competitive Power Ventures
Established in 1999, Competitive Power Ventures is a North American power industry development and asset management company. In addition to its Maryland headquarters, CPV has offices in Braintree, Massachusetts and Denver, Colorado. It will open an office in northern California before the end of the year. The company’s development professionals have played critical roles in the successful development of more than 30 power plants, representing over 15,000 megawatts of currently operational power generation capacity. For more information please visit www.cpv.com.

About Warburg Pincus
Warburg Pincus has been a leading private equity investor since 1971. Throughout its 40-year history in private equity, Warburg Pincus has invested in all stages of a company’s life cycle, from founding start-ups and providing growth capital to leading restructuring, recapitalizations, and buy-outs. The firm currently has more than $12 billion under management and invests in a range of sectors energy, financial services, healthcare, LBOs and special situations, real estate, technology, media and telecommunications. Warburg Pincus also has a long history as a successful investor in the power sector including funding the J. Makowski Company, for which many of CPV’s key executives once worked. Jacek Makowski is a Director on the CPV Board. Warburg Pincus has raised 11 private equity investment funds which have invested more than $20 billion in 525 companies in 30 countries. Currently, Warburg Pincus is investing from an $8 billion fund which closed in August 2005. An experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value, Warburg Pincus has offices in North America, Europe, and Asia and an active portfolio of more than 100 companies. For more information, please visit www.warburgpincus.com.

For more information, please contact:

Chuck Dohrenwend
The Abernathy MacGregor Group
cod@abmac.com
212-371-5999