Re Contract

ABB Ltd
29 October 2001


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        ABB-led group to build world's largest battery storage system
Global power and technology company wins US$ 30 million Alaskan utility contract


Zurich, Switzerland, October 29, 2001 - ABB, the global power and automation 
technology group, has won an US$ 30 million order from Golden Valley Electric 
Association Inc (GVEA) in Fairbanks, Alaska, for the supply, installation and 
project management of the world's largest Battery Energy Storage System (BESS). 
The energy storage system includes a massive nickel-cadmium battery, power 
conversion modules, metering, protection and control devices and service 
equipment. It will provide continuous voltage support during normal operation, 
as well as energy back-up - known as 'spinning reserve' - to quickly provide 
power during system disturbances, minimizing customer interruptions.

'In most electrical systems a demand peak or power failure is generally handled 
by unused or reserve capacity in a generator that is already spinning, hence the
name 'spinning reserve,' said Richard Siudek, executive vice president and head 
of ABB'S Utilities division. 'But that is expensive to provide in a remote or 
islanded system like Alaska, which must be self-sufficient and cannot import its
power from outside. GVEA has opted for a unique solution in the form of a 
Battery Energy Storage System which will facilitate a major reduction in the 
cost for providing spinning reserve on its grid.'

In operation, BESS will produce power for several minutes to cover the time 
between a system disturbance and when the utility is able to bring back-up 
generation on line. GVEA placed the order with an ABB-led consortium which 
includes Saft AB, the battery company, which will supply a high performance 
nickel-cadmium, storage battery made up of 13,760 energy cells in four strings. 
The first two battery strings are scheduled for commercial operation during the 
summer of 2003.

Reliable power is essential in Fairbanks, Alaska where winter temperatures can 
fall to -51C. At those temperatures, water pipes in the average home will freeze
in about two hours.

ABB (www.abb.com) is a global leader in power and automation technologies that 
enable utility and industry customers to improve performance while lowering 
their environmental impact. ABB has 160,000 employees in more than 100 
countries.