Semco Energy acquires pipeline project, construction assets

Semco Energy Inc., Port Huron, Mich., on Monday said it's building a 7.5-mile, 16-in. natural gas pipeline to serve a power plant being built in Zeeland, Mich., by a unit of Atlanta-based Southern Co.

Southern unit Southern Energy Inc. plans to construct an 830-Mw plant to help supply growing demand for electricity in the US Upper Midwest. Construction of the gas-fired plant is scheduled to begin this month. Commercial operations are anticipated to begin in June 2001 with 300 Mw of capacity, with an additional 530 Mw coming on stream by June 2003.

The gas line will connect the Southern Energy Inc. plant with ANR Pipeline's interstate mainline system in the Western Michigan community. Semco also will own and operate the interconnecting line for 12 years.

Maverick Pipeline Services Inc., a subsidiary of Semco, will handle the complete turnkey construction project. Preliminary work on the pipeline is under way. Construction is expected to be completed early in 2001.

Semco also announced on Monday that it has acquired KLP Construction Co. Inc. and certain assets of Lake Area Utilities Inc. The acquisitions advance Semco's goal of developing a national full-service construction company specializing in service to the utility and telecommunications industries.

Based in Peoria, Ill., KLP provides gas pipeline and fiber optic construction services mainly for the utility industry in Illinois, Indiana, Wisconsin, and Missouri. KLP is expected to generate about $5 million in revenue during 2000. It will become part of Iowa Pipeline Associates Inc., which is owned by Semco subsidiary Semco Energy Ventures.

The acquired assets of Lake Area Utilities involve specialized underground cable-fiber construction equipment. Potential service areas for the business includes Iowa, Minnesota, and Nebraska.

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