(December 10, 2002) Waukesha Electric Systems has announced that its subsidiary, P.S.D., Inc., in Canton, OH, has been awarded a multi-million-dollar EPC (Engineering, Procurement & Construction) contract for the installation of 2.4 miles of 230kV underground transmission line, including transition station and tie-in work, for Pacific Gas and Electric Company in California. The PSD Cayetano underground project represents Phase II of a 3-phase project and is a major part of an electric power system upgrade for the growing Tri-Valley region of east San Francisco Bay, including the cities of Dublin, Livermore, Pleasanton, and San Ramon, and neighboring unincorporated areas of Alameda and Contra Costa counties.

PSD (Power Systems Development) will serve as lead contractor on the Cayetano underground project, which includes the laying of extruded dielectric underground cable, constructing a 230kV transition station from overhead lines, and terminating the underground line into a new switchyard. According to Wil Hardee, Director of Public Affairs for Pacific Gas and Electric Company, "The project is vital to the continued economic health of the Tri-Valley and the goal is to get the project up and running as quickly as possible." The critical Phase II portion of the project, which is being managed by PSD, is scheduled for completion in December 2003.

"P.S.D., Inc. was awarded the contract based on a competitive bid process," stated Ben Acojido, Supervisor, Technical & Construction Contracts, for Pacific Gas and Electric Company. "Their proposal was the best evaluated proposal in the areas of price, company experience, implementation plan, technical capabilities and approach, and supplier diversity."

According to PSD, the company has more than 25 years experience in engineering and managing successful high-voltage projects and maintains close working relationships with best-in class subcontractors. As part of its total systems approach, PSD also stated that it is committed to keeping community residents and government leaders up-to-date and has engaged the Shinoff Group of San Francisco to provide community information via a special web site as the project progresses. Information on the project will be available at www.cayetanounderground.com.

"PG&E is confident," said Acojido, "that PSD can perform this project to support PG&E's schedule and technical requirements."

On the Cayetano project, high-voltage cable and installation services will be provided by Nexans, a global leader in cable manufacturing. Contra Costa Electric, a major electrical contractor in California and Nevada, will pull the cable.

P.S.D., Inc. (Power Systems Development in Canton, Ohio) provides Engineering, Procurement and Construction services for utilities, wind farm developers and industrial customers and is a wholly owned subsidiary of Waukesha Electric Systems, Inc., the largest manufacturer of power transformers in the United States and a leading supplier of compact modular substations, services and components.