BOSTON, MA (September 30, 2002) -- POWER INDUSTRY PRIVATE EQUITY FUND

ArcLight Capital Partners, LLC, a Boston-based private equity firm, today announced the final closing of its $950 million debut fund, ArcLight Energy Partners Fund I, L.P. ArcLight established the fund to capitalize on attractive investment opportunities in the rapidly evolving power, utility, and energy industry. The Fund attracted more than 20 institutional investors, including John Hancock Life Insurance Company, WestLB AG, Stanford University, and CDP Capital-Americas, a member of CDP Capital. Lehman Brothers served as global placement agent.

Daniel R. Revers and Robb E. Turner, senior investment professionals with substantial experience managing investments and companies in the power and energy sector, lead the ArcLight management team. Mr. Revers said the time is right for investing private equity in the power industry. "The power and energy sector is going through unprecedented change, creating unique private equity opportunities for knowledgeable investors," said Mr. Revers. "The size and complexity of the industry, coupled with recent market turmoil has effectively closed access to the public markets for power companies, making the power industry one of the largest and most attractive investment areas for private equity."

The Fund will make equity and equity-like investments primarily in power generation, transmission and distribution, as well as power related fuel, services, and equipment assets. To date ArcLight Energy Partners Fund I, L.P. has invested more than $400 million in 14 power and power-related investments, including power generation plants, coal mines, and a natural gas storage facility.

Mr. Turner said ArcLight has assembled a team with unparalleled transactional expertise and proprietary industry relationships in the power and energy sector.  Each of the firm's six Principals joined ArcLight from some of the world's leading financial institutions. Together with Mr. Turner and Mr. Revers, they will leverage their experience, relationships, and specialized knowledge to identify emerging trends and acquire attractive assets within the power industry.