NEWS
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              *             from the               *
              *  AMERICAN WIND ENERGY ASSOCIATION  *
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ENRON ACQUIRES ZOND, LAUNCHES
ENRON RENEWABLE ENERGY CORP.
AWEA Calls Transaction Signal of Wind Energy's
Role in Emerging Competitive Market

"This action by Enron underscores the enormous worldwide potential for wind energy," said Randall Swisher, executive director of AWEA. In an August 14, 1996, press release, Worldwatch Institute called wind power "the world's fastest growing energy source," noting that worldwide wind power capacity increased by 32% from 1994 to 1995. According to AWEA's own projections, this growth will continue, with global wind capacity reaching 23,500 MW by 2005.

"Renewable energy will capture a significant share of the world energy market over the next 20 years, and Enron intends to be a leader in this very important market," said Kenneth Lay, Enron chairman and CEO.

"Enron is one of the most aggressive and strategic- minded players in the energy market," said Swisher. "Clearly, Enron sees renewable energy as a necessary component of their operations--a component which will give them a competitive edge in tomorrow's electricity market where consumers will be able to choose their power suppliers."

"We believe that utility restructuring holds tremendous promise for companies with 'green' energy sources, like renewables, as part of their generation mix," said Norm Terreri, Senior Vice President of Green Mountain Power and President of AWEA, "because environmentally- conscious customers will prefer to buy their power from a clean source." This phenomenon has been consistently borne out by opinion polling, and was recently evidenced in a retail wheeling pilot program conducted in New Hampshire, where several energy providers used Green Marketing to finish among the top competitors.

Swisher also noted that the Zond/Enron transaction is a huge step forward on one of the main problems facing wind companies--lack of capital. "Wind companies are typically small and undercapitalized," he said. "and have lacked the financial resources that will be necessary to aggressively engage the emerging retail electric power markets. Enron, however, consistent with its reputation for looking to the future, realizes the great potential this small industry possesses. A deal like this one should help skeptics recognize the staying power of the wind industry. Wind energy is now, and will continue to be for decades, one of the fastest growing energy sources in the world."

The Zond/Enron deal will be mutually beneficial for the two companies, said Swisher: "Zond will be able to more aggressively pursue opportunities in the domestic market, as well as overseas where the wind market is growing at an unprecedented rate. Enron will benefit by adding a new component to its business that will certainly be advantageous in the era of customer choice and growing worldwide concern about the environment."

Zond, a wind project developer and turbine manufacturer, was founded in 1981. The company was one of the first wind farm developers in California. Zond has approximately 200 employees, and produces around 600 million kWh from its fleet of 2,400 turbines. Zond turbines currently operate at three locations in California-- Tehachapi, Altamont and San Gorgonio Pass--as well as Texas and Vermont. The company is currently installing turbines in Northern Ireland and will be shipping turbines to China in February. The world's largest wind project--100 MW--will be constructed by Zond in Minnesota this year to serve Northern States Power.

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