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July 30, 2010

Astoria Generating Initiates Strategic Review Process

 New York, NY – July 26, 2010 —US Power Generating Company (“USPowerGen”) today announced that its Board of Directors has approved the initiation of a strategic review process to solicit a sale or merger transaction for its subsidiary, Astoria Generating Company Holdings L.L.C. (“Astoria Generating”). USPowerGen has retained Goldman, Sachs & Co. to act as its exclusive financial advisor in connection with the strategic review.

Astoria Generating’s fleet accounts for approximately 20% of the generating capacity in New York City with approximately 2,300 megawatts of competitive generation capacity.  The portfolio consists of dual fuel capable natural gas and oil-fired steam units and combustion turbines. 

Inquiries regarding this announcement should be directed to the appropriate contacts provided below.

About USPowerGen

USPowerGen, through its subsidiaries Astoria Generating Company Holdings, L.L.C. and EBG Holdings LLC, owns and operates eight power generation facilities with a total capacity of over 5,000 megawatts. These subsidiaries sell their energy and capacity into the NYISO and ISO-New England deregulated markets, representing generation sufficient to serve approximately 20% of the overall load in New York City as well as approximately 50% of the overall load in the Boston metropolitan area. More information regarding USPowerGen can also be found at www.uspowergen.com.

Media Contact:

John Reese, Senior Vice President

Phone: 212-792-0897

Email: jreese@uspowergen.com

or

Josh Hochberg, Sloane & Company

Phone: 212-446-1892

Email: jhochberg@sloanepr.com

Investors Contact:

Ted Babcock, Vice President, Investor Relations and Treasurer

Phone: 212-792-0828

Email: tbabcock@uspowergen.com