Electric Power news briefs, June 4

June 4, 2001
American Electric Power Co.. ... Houston Pipe Line Co. ... Mirant ... Cheng Power Systems ... PG&E National Energy Group ... Calpine Corp. ... GWF Energy LLC ... Industrikraft Midt-Norge ... Endesa ... Companhia de Interconexao Energetica ... PacifiCorp ... SeaWest WindPower ... Termogaucha-Usina Termelectrica ... General Electric International ... Canadian Fertilizers ... PanCanadian Petroleum Ltd. ... Intermountain Gas Co. ... Westcoast Energy


The Federal Energy Regulatory Commission approved a temporary increase in hydroelectric generation at the Priest Rapids hydroelectric project in Washington state. The project, licensed to the Public Utility District No. 2, Grant County, has a capacity of 1,755 Mw. It is subject to requirements to increase flow in spring and summer to protect migrating fish. Under the FERC order, the project will be able to produce an additional 219,600 Mw-hr.

American Electric Power Co. Inc. (AEP), Columbus, Ohio, reported completing purchase of Houston Pipe Line Co., an intrastate natural gas pipeline subsidiary of Enron Corp. The transaction includes inventory and a 30-year prepaid lease related to the operation of the Bammel storage facility. The $726.6 million for the transaction will be raised by issuing a noncontrolling, preferred equity interest to private investors, AEP said.

Mirant Corp., Atlanta, said it will invest $3 million in Cheng Power Systems (CPS), Mountain View, Calif. The funding will support development and commercialization of two CPS products: the Cheng Low Nox System and the Advanced Cheng Cycle which improves plant output by increasing the amount of megawatt hours of electricity a turbine can produce without increasing fuel intake. Separately, Mirant Corp. said because of uncertainty about California energy market rules, it is unsure when it will begin construction on a permitted 530 Mw expansion at its Contra Costa power plant. The company received its permit to build the expansion May 29.

PG&E National Energy Group, Athens, NY, a unit of PG&E Corp., said it received final regulatory approval for the 1,080 Mw Athens generating facility in New York. Commercial operation is expected in mid-2003. Approval by the US Army Corps of Engineers was the final step in a 4-year permitting process involving 14 separate regulatory approvals from local, state, and federal authorities. To win approval, the the cooling technology was changed from a wet to a dry system. Visual impact modifications included reducing the height of the stacks by 33 feet, using nonglare colors on the plant exterior, and investing $275,000 in vegetative screening and mitigation.

Calpine Corp., San Jose, Calif., said it commissioned the gas-fired 540 Mw South Point energy center at the Fort Mojave Indian Reservation in Mohave County, Ariz. The facility will provide electricity to help meet the summer's peak power demand in Arizona and the tristate region.

The California Department of Water Resources has signed a 430 Mw, 10-year electric supply contract with GWF Energy LLC, Pittsburg, Calif., a unit of GWF Power Systems Inc., the company reported. Initial energy deliveries are planned to begin in September 2001 when the 90 Mw gas-fired simple cycle Hanford energy park peaker plant is completed. GWF said it also expects to build and operate two additional plants in California by 2002.

Mirant Corp., Atlanta, said it will buy 40% of the five-member Norwegian industrial consortium Industrikraft Midt-Norge (IMN). Mirant said the deal will move the company closer to its target of more than 10,000 Mw in Europe by 2005. The US company said it plans to contribute to the building, financing, and operating of IMN's planned combined heat and power plant in Skogn, Norway. Construction could begin as early as 2002, with anticipated start-up of the first turbine in 2004. Over time, Mirant's investment is expected to total $80-85 million.

Spain's Endesa SA said it is accelerating construction of a second transmission line between Argentina and Brazil, subject to regulatory approval, as part of its strategy to minimize the effects of the electricity crisis in Brazil. This second line has a transmission capacity of 1,000 Mw that would be added to the existing 1,000 Mw interconnection, which began supplying energy to Brazil in May 2000. The new project is led by Companhia de Interconexao Energetica (CIEN), an affiliate of Endesa, and Endesa Chile, an affiliate of Enersis SA. Cost of the two lines is an estimated $700 million.

PacifiCorp, Portland, Ore., a unit of the UK's ScottishPower PLC, and SeaWest WindPower Inc., San Diego, Calif., reported a 20-year agreement under which PacifiCorp will purchase the entire output of SeaWest's 50 Mw Rock River I wind project near Arlington, Wyo. Construction has begun and the facility is anticipated to be on line in fall 2001.

Termogaucha-Usina Termelectrica SA, Porto Alegre, RS, Brazil, awarded General Electric International Inc. a $100 million contract to supply equipment and associated services for a gas-fired combined cycle 500 Mw power plant in the South Petrochemical complex, Triunfo, state of Rio Grande de Sul. Installation, commissioning, and testing of the power plant is expected to be completed in the third quarter of 2003, GE said. From September 2003 to January 2004, the power will be sold on the spot market. Base load operation is scheduled to begin in 2004.

Canadian Fertilizers Ltd. (CFL), Medicine Hat, Alt., has entered into an agreement with a unit of PanCanadian Petroleum Ltd., Calgary, for development of an 85 Mw gas-fired cogeneration plant at CFL's Medicine Hat nitrogen complex, the companies reported. The project was selected by Alberta's transmission administrator under the location based credits standing offer process designed to eliminate transmission constraints with new power projects in southern Alberta.

The Idaho Public Utilities Commission set a June 22 deadline for those wanting to file written comments in regard to Intermountain Gas Co.'s request to recover $27. 1 million in costs the company paid to gas suppliers over the last 6 months. To recover those costs, the Boise company is seeking a 9-13.8% rate hike from residential customers. Commercial customers' rate would rise 13.1% increase or about $33.28/month.

Westcoast Energy Inc., Vancouver, BC, said its 200 MMcfd open season for additional transportation capacity on its Southern Mainline was fully subscribed. In addition, 50 MMcfd of additional transportation capacity on its Westcoast Alberta facilities was subscribed. The proposed Westcoast expansions will link growing gas markets in British Columbia and US Pacific Northwest with additional natural gas supplies from British Columbia, Alberta, and the Northwest Territories. Both expansions, which have an anticipated in-service date of Nov.1, 2003, are subject to regulatory and other approvals.