Mirant enters 10 year purchase agreement with PG&E

Atlanta, September 4, 2009 — Mirant Corp. unit Mirant Marsh Landing, LLC, entered into a ten-year power purchase agreement with Pacific Gas and Electric Co. for 760 MW of natural gas-fired peaking generation to be constructed at Mirant’s existing Contra Costa facility near Antioch, Calif.

Construction of the Marsh Landing facility is scheduled to begin in late 2010 and to be completed by May 2013. At its peak, the project will create over 350 union construction jobs.

During the ten-year term of the power purchase agreement, Mirant Marsh Landing will receive fixed monthly capacity payments and variable operating payments. The contract provides PG&E with the entire output of the 760 MW facility which will be capable of producing 719 MW during peak July conditions.

Separately, Mirant Delta, LLC, another Mirant subsidiary, has entered into an extension of its existing power purchase agreement with PG&E for Contra Costa Units 6 and 7 from November 2011 through April 2013. At the end of the extension, and subject to regulatory approval, Mirant Delta has agreed to retire Contra Costa Units 6 and 7, which began operations in 1964, in furtherance of state and federal policies to retire aging power plants that utilize once-through cooling technology.

Both of the Mirant Marsh Landing and Mirant Delta power purchase agreements are subject to California Public Utilities Commission approval.