TECO Power Services(TPS), a unit of TECO Energy Inc. and Panda Energy International Inc. reported National Energy Production Corp. (NEPCO) has been selected as the engineering, procurement, and construction (EPC) contractor for the 2,200 Mw gas-fired Gila River power station in Gila Bend, Ariz. The project is scheduled to begin full commercial operation in the summer of 2003. The Gila River project is being developed as a joint venture between TPS and Panda. NEPCO was selected after a competitive bidding process.
The UK's National Grid Group PLC and Niagara Mohawk Holdings Inc. have received antitrust clearance on their merger under the Hart-Scott-Rodino Act, National Grid reported. The $3 billion merger was announced Sept. 5, 2000. The companies are awaiting approval from regulators in New York, as well as the Federal Energy Regulatory Commission, the US Securities and Exchange Commission, and other regulatory agencies.
NGR Energy Inc. has purchased 100% of a 640 Mw peaking power plant under construction in Audrain County, Mo. for an undisclosed sum from Duke Energy North America, a unit of Duke Energy Corp. The sale is expected to close by the end of the first quarter pending regulatory approval, Duke said. Construction began in May 2000. The facility is expected to enter into commercial operation by June 2001 in time for the peak summer season, NRG said.
Sweden's Graninge AB reported it has acquired Birka Energi's 18.3% interest in Gulsele Kraft AB, increasing its total ownership to 50%. As part of the transaction, Graninge received a 2-year option to purchase power from Birka Energi. Gulsele Kraft AB owns the Gulsele and Hallby hydropower plants at the Angerman River and also has rights to a share of power from the Edensforsen power plant. Gulsele Kraft's total production volume amounts to 700 gw-hr in a normal year.
Pacific Gas & Electric Co. said due to a decrease in the market price for natural gas, the average residential gas bill in March is expected to decrease up to16%, to $95. The new rates will take effect on March 7. Unlike electricity, California customers pay the full market price for the natural gas they use.
Minnesota Power, a unit of Allete Co., and Superior Water, Light & Power have agreed to join the Midwest Independent System Operator Inc. (MISO), the company reported. The nonprofit MISO was formed to independently manage bulk electrical transmission needs on a regional basis. Founded in 1996 by transmission owners, it is configured to comply with Federal Energy Regulatory Commission rules for an independent organization.
San Diego Gas & Electric Co. said it designated $50 million for energy efficiency assistance for homes and businesses. Many of the services are a continuation of those currently offered by the company and some are expanded offerings this year. The program range from replacement of inefficient appliances to incentives to build more efficient homes.
United Cities Gas Co., a unit of Atmos Energy Corp., has agreed to reduce its natural gas distribution rates and refund an interim rate increase the company began charging customers in southwest Virginia Jan. 1, Mark Early, attorney general, said. Under the settlement pending before the State Corporation Commission, the utility will reduce rates $534,000/year and eliminate the $2 million/year interim rate increase, Early said. A settlement calls for the reduced rates to begin April 1.
Enron Wind and Enron Power Marketing Inc. (EPMI), affiliates of Enron Corp., said Enron Wind will build a 135 Mw wind power facility near Iraan, Tex., and EPMI will purchase the project's electricity under a long-term agreement for resale into the Texas wholesale electricity market. This will be the first major wind facility that allows wholesale customers to purchase portions of the wind power production. The project is expected to be completed in late 2001.
Mirant Corp. said it agreed to buy seven heat recovery steam generators, a critical component of combined cycle power plants, from two Japanese companies, Mitsui & Co. Ltd. and Ishikawajima-Harima Heavy Industries (IHI). Mirant also has an option to buy two additional heat recovery steam generators from the companies. The generators will be used to complete combined cycle systems planned or under construction in North America. Delivery will occur between January-August 2002. Additional terms of the agreement were not disclosed.
Canada's Atco Power, a unit of Alberta-based Atco Ltd., said it will build its seventh new power plant in Alberta since deregulation began in the province. The $70 million (Can.), 92 Mw generating facility will be built at the company's existing Sturgeon site, near Valleyview, Alta. Completion is projected in 10 months.
DTE Energy Co. and MCN Energy Group Inc. reported revised terms to their merger agreement, initially announced in October 1999. Under the new terms, DTE Energy will acquire the outstanding shares of MCN Energy for $24/share in cash, or 0.715 shares of DTE Energy common stock per share of MCN Energy stock, subject to proration and tax considerations. The value of the revised transaction is $2.24 billion, or about $24.68/share. Including the assumption of debt, its value is $4.27 billion.
Detroit Edison Co. said it has begun construction of a $10 million nuclear operations training center at its 1,130 Mw Fermi 2 Power Plant. The Fermi 2 Nuclear Training Center will consolidate existing training facilities at the plant and will provide areas for hands-on training on large equipment. The 60,000 sq ft facility will be built adjacent to the plant's nuclear operations center. The new building will add another 14 classrooms and a meeting room that will accommodate up to 400 people. The building is scheduled to be completed in the spring of 2002.
China's Huaneng Power International Inc. reported it signed a letter of intent with PetroChina Co. Ltd. with regard to the purchase of natural gas and pipeline transportation. Under the agreement Huaneng Power will buy gas from PetroChina to serve the proposed 1,200 Mw Huaneng Jinling gas turbine power plant. The Huaneng Shanghai project will be jointly developed by the company, Shenergy Co. Ltd., and Shanghai Municipal Electric Power Corp. and is expected to be rolled out during 2003-2005.
China's Lancang River Hydropower Development Co. Ltd. has started operation in Kunming, capital of Yunnan Province, marking the start of development of the Lancang and the Jinsha rivers. The joint venture company was launched by the State Power Corp., the Yunnan Power Group Co. Ltd, the Yunnan Provincial Development & Investment Co., and the Yunnan Hongta Industrial Co. Ltd. The province plans to build 14 hydropower stations on the Lancang River with total installed capacity to reach 22.59 million kw.
Wisconsin Gas, a unit of Wisconsin Energy Corp., said it has begun notifying interested parties in Ozaukee County and parts of Washington County about route options for a proposed 16 mi lateral gas pipeline that would serve the Port Washington power plant. The plant is scheduled to be converted from coal-fired to natural gas-fired operations. Wisconsin Gas said it plans to identify a preliminary route with alternatives in a filing with the Public Service Commission of Wisconsin later this year.
Siemens Solar GMBH (Siemens), a joint venture of Siemens AG and E.ON Energie AG, and Shell Renewables (Shell), a unit of Royal Dutch/Shell Group, have reached agreement to form a joint solar energy business. Subject to regulatory approvals, the joint venture, Siemens and Shell Solar GMBH will begin in April 2001. Shell will initially contribute its German solar businesses and cash to the venture, receiving newly issued shares in return. The shareholdings in the new joint venture will be: Siemens AG, 34%; E.ON Energie, AG 33%; and Shell 33%. Before the end of 2002, Shell will contribute its remaining business.
Westmoreland Coal Co. said its subsidiary Westmoreland Power Inc. has submitted a proposal to the North Dakota Industrial Commission to develop, own, and operate either independently, or in partnership, a 500 Mw lignite-fired power plant near Gascoyne, ND. Westmoreland Coal is acquiring the coal operations of Knife River Corp., including the rights to develop the Gascoyne coal reserves.