Volkswagen Group of America Chattanooga Operations Announces Multi-Million Dollar Agreement With EPB

Value of contract estimated to reach $230 million over next 20 years

CHATTANOOGA, Tenn. - Volkswagen Group of America Chattanooga Operations, LLC announced today that EPB will be the energy provider for the company's new plant. The agreement includes provisions for power service, operations and maintenance, substation construction and leased capacity for industrial growth.

"Volkswagen is pleased to partner with EPB in this significant endeavor and I appreciate the efforts of the Volkswagen purchasing team and EPB in finalizing this agreement," said Frank Fischer, CEO, Volkswagen Group of America Chattanooga Operations said.

"We are delighted that Volkswagen is building their new plant in Chattanooga and excited to be a part of this project with them," said Joe Ferguson, Chairman of EPB's Board of Directors. "We look forward to working together with Volkswagen as their power supplier in order to help make their new operation a huge success for many years to come."

Volkswagen predicts that it will spend approximately $11 million a year over the next 20 years for electricity at the facility. The Chattanooga plant, like other Volkswagen Group facilities, is committed to efficient and environmentally friendly operation that will lower energy consumption.

In addition to the costs for energy use, there will also be an $11 million investment in infrastructure, including $4.2 million for sub-station development.

Additionally, the agreement includes provisions for additional growth at Enterprise South, with 10 megawatts of electricity reserved for future customers. With this agreement, more than $55 million in local contracts have been awarded by the city, state and Volkswagen; this includes $10 million for Volkswagen contractors and subcontractors, with another $230 million over the next 20 years.

(Feb 24, 2009)