The Shaw Group Inc. (NYSE:SGR) today announced that its Shaw Stone & Webster unit has been awarded an engineering, procurement, and construction (EPC) contract by Xcel Energy (NYSE:XEL), for an additional generating unit at its Comanche Generating Station in Pueblo, Colorado.

The new, 750-megawatt supercritical coal-fired power plant, with a total cost of $1.35 billion, will be the third unit at the Comanche Station. Shaw's lump-sum, turnkey contract covers "balance of plant" facilities, including the erection of the steam turbine, and supplying and erecting associated plant systems including piping, pumps, heat exchangers and electrical equipment. In addition, the scope includes engineering and installation of concrete foundations and other civil and electrical works for the total facility. The value of Shaw's contract was not disclosed. In addition to the turbine supply, Xcel Energy will also procure additional contractors for certain components, such as the steam generator, air quality control systems and stack. The new plant is scheduled to be completed in the fall of 2009.

J. M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "Today's rising oil and natural gas prices are driving the demand for economically reliable energy solutions, particularly coal-fired electricity generating facilities. This award, the second new coal-fired project we have been awarded in six months, provides the Shaw team another opportunity to demonstrate our 'Best in Business' practices in this growing market."

"This contract marks the beginning of what will culminate in 1,000 new construction jobs in the Pueblo area as our new generating unit is built," said David Wilks, Xcel Energy President of Energy Supply. "It marks another major milestone in our efforts to bring clean, reliable and low-cost energy to our customers, and we look forward to working with Shaw Stone & Webster on this project."

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with over $3 billion in annual revenues, Shaw employs approximately 20,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. The Company was recently named to Fortune magazine's annual list of "America's Most Admired Companies" for the second consecutive year. For further information, please visit Shaw's website at www.shawgrp.com.

Xcel Energy, which operates in Colorado as Public Service Co. of Colorado, is a major U.S. electricity and natural gas company, with operations in 10 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

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