Kansas City firm, Aquila, to acquire Cogentrix Energy

News Release

Aquila, Inc.
Media Contact:
Mary Amundsen (816) 467-3652
Al Butkus (816) 701-6316
Media Relations (816) 467-3000

Investor Contact: Ellen Fairchild (816) 527-1409

Cogentrix Energy, Inc.
Jef Freeman (704) 525-3800

AQUILA TO ACQUIRE COGENTRIX ENERGY, ADDING 3,500 MEGAWATTS OF CONTRACTED GENERATION; DETAILS REVIEWED IN WEBCAST TODAY AT NOON EASTERN TIME

KANSAS CITY, MO and CHARLOTTE, NC, April 30, 2002 – Aquila, Inc. (NYSE:ILA) and Cogentrix Energy, Inc. announced today that they have signed a definitive agreement for Aquila to acquire privately held Cogentrix, a leading independent power producer. The transaction includes a purchase price of $415 million for 100 percent of the common stock of Cogentrix, as well as the assumption of $355 million of recourse debt and approximately $770 million of non-recourse project-level debt.

This transaction is expected to be immediately accretive to earnings and exceed Aquila’s targeted investment returns.

The agreement is another example of Aquila delivering on its client-focused strategy by further extending its national generation presence and adding one of the industry’s leading operating and development teams. The addition of 3,496 megawatts increases Aquila’s current portfolio of 3,655 net megawatts in operation and under construction by almost 100 percent and further diversifies Aquila’s portfolio by region, fuel type and technology.

After combining operations, Aquila’s generation mix will be approximately 70 percent contracted, an optimal position for balancing Aquila’s targets for predictable cash flow and earnings while maximizing commercial optimization opportunities.

“Since its inception in 1983, Cogentrix has established itself as one of the most successful and largest independent power producers in North America, with top-quality people and assets as well as a proven track record,” said Robert K. Green, president and chief executive officer of Aquila. “This is a compelling transaction for Aquila. It is expected to accelerate our strategy and improve the predictability of our cash flow and earnings. It adds industry-leading operating and build-to-suit development expertise, while leveraging our ability to optimize our collective assets.”

Cogentrix operating, environmental and safety records are consistently among the best in the industry and, at the same time, the company has delivered strong earnings and cash flow year after year.

Substantially all Cogentrix generation capacity is financed on a stand-alone project basis, supported by long-term power purchase agreements or tolling agreements with investment-grade customers. This transaction is expected to contribute to Aquila’s strategic goal of adding highly predictable cash flow and earnings. At closing, Cogentrix will have 13 projects in service and two plants under construction, which are scheduled to be fully operational by June 2003. Upon completion of the transaction, which is expected in the third quarter of 2002, Cogentrix operations will be combined with Aquila Merchant Services’ North American Capacity Services business.

“This transaction offers the best result for our shareholders and employees,” said David J. Lewis, chairman and chief executive officer of Cogentrix. “Aquila’s corporate philosophy and business management are remarkably similar to our own and were important considerations in the eventual success of this transaction. The combination of collective strengths in risk management and power generation development and operation will help ensure Aquila’s continued growth and success.”

Immediately prior to Aquila’s acquisition of Cogentrix, General Electric Capital Corporation (GECC) or its subsidiaries will acquire 1,024 net megawatts of Qualifying Facility power plant assets currently owned by Cogentrix in order for the plants to maintain their Qualifying Facility status under the Public Utility Regulatory Policy Act (PURPA).

The transaction initially will be financed with an acquisition bank facility underwritten by Credit Suisse First Boston. Aquila intends to refinance the acquisition facility with a combination of common stock and mandatorily convertible securities. Credit Suisse First Boston acted as exclusive financial advisor to Aquila.

The acquisition is conditioned on Hart-Scott-Rodino clearance, approvals by the Federal Energy Regulatory Commission (FERC), and completion of the asset sale to GECC.

Conference Call and Webcast

Aquila will discuss details of the Cogentrix transaction as part of its webcast today, scheduled at noon Eastern Time. To access the webcast via the Internet, go to Aquila’s website at www.aquila.com and click on “Investors” for the link to the live presentation. Listeners should allow five minutes to register and access the presentation.

For those unable to listen to the live broadcast, replays will be available for two weeks, beginning approximately two hours after the presentation, under “Presentations & Webcasts” in the Investors section of the website.

Based in Kansas City, Missouri, Aquila (formerly UtiliCorp United) is an international energy and risk management company. Aquila is one of the largest wholesalers of electricity and natural gas in North America, provides wholesale energy services in the United Kingdom and has a presence in Germany and Scandinavia. It also operates electricity and natural gas distribution networks in seven states and in Canada, New Zealand and Australia. Aquila will serve 2.3 million customers in the United Kingdom following its early May purchase of Midlands Electricity. At December 31, 2001, Aquila had total assets of $11.9 billion and 12-month sales of $40.4 billion. More information is available at www.aquila.com.

Cogentrix Energy, Inc., headquartered in Charlotte, North Carolina, acquires, develops, owns and operates electric generation and other power assets in the United States and internationally. Cogentrix has, in whole or in part, equity interests in 28 facilities in 14 states with a total generating capability of approximately 7,800 megawatts. For more information on Cogentrix, visit the corporate website at www.cogentrix.com.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995:
The terms “expected” and “intends” and the statements made with respect to Aquila, Inc.’s earnings and outlook for the future contain some forward-looking information. Naturally, all forward-looking statements involve risk and uncertainty and actual results or events could be materially different. Although Aquila believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ include: weather conditions; financial market conditions, including changes in exchange rates, interest rates, and commodity prices; prices of natural gas, natural gas liquids, and electricity; future economic conditions in our regional, national, and international markets; our ability to enter new markets successfully and to capitalize on growth opportunities in non-regulated businesses; changing competition, including the deregulation of the U.S. electric utility industry and the entry of new competitors; and adverse changes in applicable laws, regulations or rules governing environmental, tax or accounting matters. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed might not occur. Please review the company’s latest annual report on Form 10-K, quarterly report on form 10-Q, and current reports on Form 8-K for other important factors that could cause results to differ materially from those in any such forward-looking statements. Information in these archived materials may not be current and may be superseded by more recent information published by Aquila.

Bradbury rejects appeal over rejection of seniors-drug initiative

FOR IMMEDIATE RELEASE
April 30, 2002

Contact: Marian Hammond
(503) 986-1502

SECRETARY OF STATE REJECTS APPEAL TO ACCEPT PROPOSED INITIATIVE PETITION #183
Bradbury Says Petition Would Logroll Oregon’s Voters

SALEM – Secretary of State Bill Bradbury yesterday denied the chief petitioners’ appeal to re-consider his decision to reject proposed initiative #183. On April 25, Bradbury rejected the proposed initiative petition based on the single-subject requirement in the Oregon Constitution, Art IV, sec 1(2)(d).

“This proposed initiative would logroll the voters,” said Bradbury. “It may cause voters to effectively nullify their own vote for an expansive measure by supporting a more narrow measure. The point of the Constitution’s single-subject requirement is to allow voters to make distinct choices about each change proposed by a ballot measure – and proposed initiative #183 doesn’t meet that test.”

In addition to creating a prescription drug benefit plan for seniors, the proposed ballot measure also contained a provision that would nullify any other ballot measure involving the subject of prescription prices and benefits:

“In the event that any other statutory measure other than this 2002 Act also involves the subject of pharmaceutical prices and benefits (including but not limited to the statutory amendments proposed in initiative petitions #61, #62 and #63) and is considered for approval or rejection by voters at the November 2002 General Election, the measure that receives the greatest number of votes at such election shall prevail, and the other measures shall be null and void.”

“The reality is that the prescription benefit programs proposed by this and other ballot measures are not inherently mutually exclusive – funding prescription drug benefits for seniors doesn’t mean we can’t fund prescription drug benefits for other Oregonians,” continued Bradbury. “The bottom line is that the chief petitioners are pitting ballot measures against each other and trying to defeat other ballot measures by getting voters to pass their own. That goes against the spirit and the purpose of the initiative process.”

Bradbury’s consulted the Attorney General’s office before denying the appeal.

In 2000, Bradbury allowed Measure 4 to appear on the ballot with a similar provision that the ballot measure related to the tobacco settlement funds that received the most votes would prevail and all other measures involving the proposed use of the funds would be null and void. However, unlike the prescription drug benefit programs at issue in this case, Bradbury noted that Measure 4 and other tobacco settlement-related initiatives were mutually exclusive because they proposed conflicting ways to spend a fixed pot of money. Nullifying the other measures did not therefore constitute a separate policy decision.

“The initiative process is an important part of Oregon’s political system – it gives Oregonians the opportunity to make direct decisions about our state’s laws,” concluded Bradbury. “It is my duty as the Secretary of State to defend the integrity of the process and ensure that it is fair to Oregon voters.”

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Lower Columbia spring chinook sport fishery reopens

Lower Columbia River Spring Chinook Sport Fishery Reopened
*Treaty Indian Columbia River Spring Chinook Fishing Extended

Oregon Department of Fish and Wildlife
Contact: Anne Pressentin (503) 872-5264 x5356
Internet: http://www.dfw.state.or.us

For Immediate Release April 30, 2002

Lower Columbia River Spring Chinook Sport Fishery Reopened

PORTLAND – Oregon and Washington fishery managers reviewed the Columbia River spring chinook run and sport fishery today, and announced a reopening of the sport fishery in the lower Columbia River due to an increase in the run size.
The lower Columbia River from the mouth to Bonneville Dam reopens for four days for adipose fin-clipped hatchery spring chinook, adipose fin-clipped hatchery steelhead, and shad Sunday, May 5 through Wednesday, May 8.
The area of the mainstem Columbia from Tower Island in Upper Bonneville Pool upstream to McNary Dam remains open through May 15.
The sport fishery for spring chinook, steelhead, and shad was closed last week effective April 29 because the allowable Endangered Species Act fishery impact on wild spring chinook had been projected to be reached. Managers last week had downgraded the run size to 238,000 compared to 334,000 expected pre-season.
Counts of spring chinook soared recently at Bonneville Dam. Managers today upgraded the run size to 293,000. Because of the larger run size, there remains additional ESA fishery impact allowances for further fishing.
Managers will continue to monitor the run and ongoing sport fisheries. Further announcements could be forthcoming if the four-day lower Columbia season needs to be modified or could be extended beyond May 8.
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Oregon Department of Fish and Wildlife
Contact: Anne Pressentin (503) 872-5264 x5356
Internet: http://www.dfw.state.or.us

For Immediate Release April 30, 2002

Treaty Indian Columbia River Spring Chinook Fishing Extended

PORTLAND – The Columbia River Compact and Tribes met today and extended the tribal commercial season for harvest of spring chinook. The Compact is composed of fishery managers from the Oregon and Washington Fish and Wildlife Departments.
The Treaty Indian season is open 6 a.m., Thursday, May 2 to 6 p.m., Saturday, May 4 in the mainstem Columbia River from Bonneville Dam to McNary Dam. Allowable species for commercial sales are chinook salmon, steelhead, walleye, carp, and shad.
Members of the public may purchase fish from Treaty Indian fishers during open commercial seasons. Purchasers of fish must obtain a receipt for their fish.

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Park district adult outdoor programs take off – try something new

Bend Metro Park & Recreation District
FOR IMMEDIATE RELEASE Zach Welcker
Run through May 31, 2002 Outdoor Coordinator
389-7275

Adult Outdoor Programs Take Off…Try Something New!

Canoe a lake…ride a bike…make new friends…take a hike…kayak rivers…fish lagoons…improve your health…sign up now! If you want to GET OUTSIDE this summer, register now for the Bend Metro Park and Recreation District’s adult outdoor programs. Programs include…
§ Basic River Canoeing…May
§ Fundamentals of Canoeing…June
§ Canoeing day trips…July and August
§ John Day River Multi-Day Canoe Trip…June 6-9
§ ReCYCLERS multi-day road biking trip to the Fremont National Forest and Aspen Ridge Resort…June 1-3
§ Santiam Wagon Road Hiking Series…June
§ Cascades Naturalists, hiking and natural history…June
§ Summer Star Party for women at Pine Mountain Observatory…June 11-12
§ Old Growth & Summits Soiree multi-day hiking and fire lookout trip…August
§ Rainbow Seekers, Eat Our Dust and Trailpacers, our popular weekly hiking programs…Sessions throughout the summer beginning in May.
§ Kayaking, basic, intermediate and whitewater…Sessions throughout the summer beginning in June.

Whatever you choose, do it soon…space is limited and programs are filling up quickly. For more information check out the Bend Metro Park and Recreation District Summer Program Guide or call Zach at 389-7275.

City takes step to cut down on building footing errors

For Immediate Release
From: Ellen Waterston

City of Bend Communications Liaison, 541/385-7025
Re: Notice To All Building Permit Holders
For More
Information: Building Official Bill Hunt, 541/330-
4010

Date: April 30, 2002
_____________________________

Notice To All Building Permit Holders

In an effort to reduce costly mistakes related to the placement of buildings on building sites the following statement will begin appearing on City of Bend footing inspection requests as of May 15.

THE INSPECTOR’S REVIEW OF ZONING SETBACKS IS BASED ON INFORMATION PROVIDED BY THE PROPONENT. ONLY A STATE OF OREGON LICENSED LAND SURVEYOR CAN CERTIFY THE CORRECT LOCATION OF THIS BUILDING ON THIS LOT. THE CITY OF BEND STRONGLY RECOMMENDS THAT THE PROPONENT RETAIN A LICENSED LAND SURVEYOR TO VERIFY THE ZONING SETBACKS APPLICABLE TO THIS LOT. ACCURACY OF BUILDING SETBACKS IS THE SOLE RESPONSIBILITY OF THE PROPONENT, AND THE PROPONENT ACCEPTS ALL RISKS ASSOCIATED WITH ANY INACCURATE FINDING IN THE CITY’S SETBACK REVIEW. THE CITY OF BEND CANNOT BE RESPONSIBLE FOR INACCURATE INFORMATION CONTAINED IN THE CITY’S SETBACK REVIEW BECAUSE THE CITY IS RELYING ON INFORMATION PROVIDED BY THE PROPONENT OF THIS BUILDING PERMIT APPLICATION.

For more information, please contact City of Bend Building Official Bill Hunt at 541 / 330-4010.

Gas prices stabilize; oil industry accused of price manipulation

AAA Oregon/Idaho
Serving Members Since 1905

600 SW Market St.
Portland, Oregon 97201
503/222-6729
Fax 503/222- 6756
April 30, 2002

Average Gasoline Prices Stabilize;
Oil and Gasoline Industry Accused of Price and Supply Manipulation

For the past 3 weeks, the national average price for a gallon of regular unleaded gasoline stabilized at about $1.40. But, Senate investigators sparked new interest in gasoline prices by releasing a report this week charging gasoline refiners and distributors of possibly manipulating supplies and prices. Last Fall, AAA provided Senate investigators gas price data and urged them to pay close attention to metropolitan areas in the Great Lakes states and in California where retail gasoline prices seemed to fluctuate most. AAA previously expressed concerns to the Federal Trade Commission about price and supply manipulation due to on-going consolidation in the oil and gasoline industry and the implementation of regulations that limited competition in gasoline sales and distribution during the spring and summer months.
“We are not an investigative agency,” said AAA Oregon Public Affairs Director Elliott Eki. “But, we are very sensitive to the impact of unstable gasoline prices and we want to be sure the industry remains competitive and environmentally responsible.” AAA continues to encourage the federal government to consider seriously moving to a more uniform set of regulations on gasoline blends that will restore competitive pricing particularly during the spring and summer months.
In Oregon, the statewide average price is now $1.47 per gallon. That’s about 7-cents higher than a month ago, but about a dime less than a year ago.

National Average (Regular Unleaded) Highest Recorded Price
Current $1.403 Regular Unleaded: $1.718 05/15/01
April 2, ’02 $1.370
Month Ago $1.357
Year Ago $1.631

Current April 2, `02 Month Ago Year Ago Highest Recorded
Statewide $1.474 $1.410 $1.405 $1.578 $1.825 09/29/00
Portland $1.469 $1.411 $1.391 $1.568 $1.807 10/03/00
Eugene/Springfield $1.477 $1.365 $1.347 $1.525 $1.848 09/20/00
Salem $1.413 $1.338 $1.335 $1.531 $1.798 09/16/00
Medford/Ashland $1.428 $1.356 $1.363 $1.511 $1.878 09/16/00
Vancouver, WA $1.356 $1.297 $1.290 $1.494 $1.764 09/22/00

Oregon’s average price is among the nation’s six highest; California tops the list at $1.648, almost 2-cents a gallon higher than Hawaii’s average price. The Washington state average is $1.44; in Idaho, it’s $1.435; and, in Nevada, it’s almost $1.53. Georgia has the lowest statewide average–$1.27 a gallon.
For a complete copy of the Senate report on gasoline prices mentioned above, go to:
www.senate.gov/~gov_affairs/psi.htm

An audio version of the text portions of this release is available on the AAA audio newsline. Call (503) 222-6397.
– 30 –

Walden to grill Ag secretary over Klamath, other issues

Tuesday, April 30, 2002 Contact: Dallas Boyd
For Immediate Release Phone: (202) 226-7338
Cell: (202) 744-7974

* MEDIA ADVISORY *

Agriculture Secretary Ann Veneman to Testify Before House Resources Committee

Walden to inquire about federal aid to Klamath Basin, Medford Air Tanker Base, Northwest Forest Plan

WASHINGTON, OR – U.S. Secretary of Agriculture Ann Veneman is scheduled to testify before the House Committee on Resources tomorrow, May 1, during a hearing on the future of the United States Forest Service. Congressman Greg Walden (R-OR) has indicated his intention of using the forum to inquire of Secretary Veneman her plans to use funding contained in the 2002 Farm Bill to address the water crisis in the Klamath Basin. Walden will also address other topics of importance to central, southern and eastern Oregon, including the retention of the Medford Air Tanker Base and the administration of the Northwest Forest Plan.

“I appreciate Secretary Veneman’s willingness to appear before the Resources Committee to listen to members’ concerns about programs within her area of responsibility,” said Walden. “As a member of the President’s Klamath River Basin Federal Working Group, the Secretary has an enormously important role in helping to resolve the crisis in the Klamath Basin. In particular, the Department of Agriculture will oversee the distribution of Farm Bill funds for local projects in the Basin to improve water quality and quantity. I look forward to working with Secretary Veneman to ensure that those funds are well administered to best serve the farmers and ranchers I represent in the Basin.”

Tomorrow’s hearing, which will be held in room 1334 of the Longworth building, will begin at 7:00 AM (PST). Audio for the hearing will be available by visiting the following link: http://resourcescommittee.house.gov/audio.htm .

Congressman Walden represents the Second Congressional District of Oregon, which includes 20 counties in southern, central and eastern Oregon. He is a member of the House Committee on Energy and Commerce as well as the Committee on Resources.

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American Red Cross outlines May Bloodmobile schedule

Wednesday, May 1
Prineville
Prineville Senior Center
2nd and Belknap
12:30 p.m. to 5:30 p.m.

Thursday, May 2
Madras
United Methodist Church
12th and B street
12:30 p.m. to 5:30 p.m.

Friday, May 3
C.O. Blood Center*
9:00 a.m. to 2:00 p.m.

Monday, May 6
C.O. Blood Center*
11:00 a.m. to 4:00 p.m.

Friday, May 10
C.O. Blood Center*
9:00 a.m. to 2:00 p.m.

Monday, May 13
C.O. Blood Center*
1:00 p.m. to 6:00 p.m.

Tuesday, May 14
Redmond
Church of Jesus Christ of Latter Days Saints
450 Rimrock
12:30 p.m. – 5:30 p.m.

Wednesday, May 15
Prineville
Prineville Senior Center
2nd & Belknap
12:30 p.m. to 5:30 p.m.

Thursday, May 16
Sisters/Camp Sherman Fire Dept
301 S. Elm St
12:30 p.m. to 5:30 p.m.

Friday, May 17
C.O. Blood Center*
9:00 a.m. to 2:00 p.m.

Monday, May 20
C.O. Blood Center*
1:00 p.m. to 6:00 p.m.

Tuesday, May 21
Sunriver
Holy Trinity Catholic Church
18143 Cottonwood Rd.
1:00 p.m. to 6:00 p.m.

Wednesday, May 22
Lapine
Holy Redeemer Catholic Church
16137 Burgess Rd.
1:00 p.m. to 6:00 p.m.

Thursday, May 23
Bend Church of Jesus Christ of Latter Day Saints
1260 NE Thompson
1:00 p.m. to 6:00 p.m.

Friday, May 24
C.O. Blood Center*
9:00 a.m. to 2:00 p.m.

Tuesday, May 28
C.O. Blood Center*
1:00 p.m. to 6:00 p.m.

Wednesday, May 29
Bend, National Guard Armory
875 SW Simpson
10:00 a.m. to 3:00 p.m.

Thursday, May 30
Redmond High School
675 SW Rimrock
9:00 a.m. to 2:00 p.m.

Friday, May 31
C.O. Blood Center*
9:00 a.m. to 2:00 p.m.

For information on any of these drives or to schedule an appointment, call: 382-4630

*2570 Twin Knolls, Bend

Gov to present staff member with Vietnam service medals

JOHN A. KITZHABER, M.D.
Governor

NEWS ADVISORY __

FOR IMMEDIATE RELEASE Contact: Bob Applegate

April 30, 2002 (503) 378-6496

Jon Coney
(503) 378-6169

GOVERNOR TO PRESENT STAFF MEMBER
WITH VIETNAM MILITARY SERVICE MEDALS

Governor John Kitzhaber will present several military service medals from the Vietnam War to one of his staff members, Mike Roulier, on Friday, May 3 at 4 p.m. in the Governor’s Ceremonial Office.

Roulier, who serves as a policy assistant in the Governor’s Office of Education and Workforce Policy, will be presented with Air Medal, numerals 40 through 51. During the Vietnam War, Air Medals were awarded for each 25 hours of combat assault time, and each 50 hours of combat support time. Roulier earned these medals during his second tour in Vietnam, but because it was nearing the end of the war, his paperwork was never submitted, and he never received his medals.

Roulier’s military decorations include the Bronze Star, Purple Heart with Oak Leaf Cluster, Air Medal with “V” device, Air Medal with numeral “37”, Army Commendation Medal, and the Vietnamese Cross of Gallantry with Palm.

Roulier is an Individual Ready Reservist with the U.S. Army Reserve, and is a Senior Army Aviator with over 3600 flight hours, 1870 in combat. He is an Individual Mobilization Augmentee with FORSCOM’s Army Safety Augmentation Detachment (ASAD), on orders for Kuwait.