ENERGY INVESTORS FUNDS ACQUIRES ADDITIONAL 28 PERCENT STAKE IN CROCKETT COGENERATION PROJECT
Gains Control of General Partner

BOSTON, MA (July 10, 2006) – Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the energy and electric power sector, today announced that its United States Power Fund II, L.P. acquired an additional 28 percent partnership interest in Crockett Cogeneration (“Crockett”) from an affiliate of GE. Funds managed by EIF previously owned approximately 39 percent of Crockett. GE Energy Financial Services continues to own approximately 25 percent of the limited partnership interests in Crockett. Financial terms of the transaction were not disclosed. 

In operation since 1996, Crockett is a 240-megawatt natural gas fired cogeneration plant located in Crockett, California, outside San Francisco. The project has a long-term power purchase agreement with Pacific Gas and Electric Company and a thermal sales agreement with C&H Sugar Company, both of which expire in 2026. In March 2005, the project raised $295 million of senior secured notes through a Rule 144A notes issuance in order to refinance its existing bank debt. 

"We are pleased to have had the opportunity to enhance our stake in a solid project like Crockett, which we’ve been investors in since the construction phase of the facility" said Mark Segel, the Partner at Energy Investors Funds who led the transaction. "Through separate and distinct private equity funds managed by EIF, we now control Crockett's general partner and own approximately two-thirds of the economic interests in the project." 

“This transaction is another example of the high number of quality assets in the power generation sector that we’ve seen over the past few years,” said John Buehler, Managing Partner of EIF in the firm’s Mill Valley, CA office. “We continue to see exciting opportunities in the power generation and transmission sectors.”

Energy Investors Funds has already committed approximately 60 percent of its United States Power Fund II, L.P., which closed in October 2005 with total capital commitments of $750 million, in a well-rounded portfolio of power generation and transmission assets in the U.S. EIF expects to commence raising additional capital for investment in the fourth quarter of this year, with a likely target of $1 billion to $1.25 billion.

About Energy Investors Funds

Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. The firm’s consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. Energy Investors Funds provides equity capital for development, construction finance, and operational stage project investments, as well as for corporate investments. As investment managers, the firm seeks to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts. Energy Investors Funds has mobilized over $1.75 billion in capital, and currently manages six private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 87 diversified investments, with a combined underlying asset value exceeding $5 billion. For more information visit www.eifgroup.com.

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