Subject:  Enron Acquires Wind Firm

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For immediate release: January 6, 1997
Contact: Jessica Maier, (202) 383-2500

AWEA Calls Transaction Signal of Wind Energy's 
Role in Emerging Competitive Market

       Houston-based natural gas and power marketer Enron 
Corp. announced today that it has purchased wind power 
developer and manufacturer Zond Corp. of Tehachapi, Calif., 
and will form a new business unit, the Enron Renewable 
Energy Corporation, which will be responsible for developing 
renewable energy sources for Enron.  The acquisition of Zond 
was described by the American Wind Energy Association (AWEA) 
as "a tribute to the foresight of Enron, the leading power 
marketer in the U.S." 

       "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 

       "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

       "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 

       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.  

(For additional information about global wind energy 
markets, visit AWEA's World Wide Web site at 


Formed in 1974, AWEA is the national trade association of 
the U.S. wind energy industry.  AWEA's membership of over 
800 includes turbine and component manufacturers, project
developers, utilities, academicians, and interested 
individuals from 49 states.

Additional information on AWEA and the wind energy industry 
is available from AWEA on the World Wide Web at  

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