Electric power news briefs, Jan. 8

Jan. 8, 2002
MidAmerican Energy Holdings ... Islander East Pipeline ... KeySpan ... Long Island Power Authority ... Duke Energy ... Kinder Morgan Energy Partners ... NOVA Chemicals ... Procter & Gamble ... AES NewEnergy ... Peabody Energy Corp. ... SJC Latvenergo ... Fortum ... First Gas Holdings Corp. ... BG Group ... Shell Development Petroleum Co. ... Eskom Enterprises ... Tennessee Gas Pipeline ... First Energy Solutions ... WPS Energy Services ... Giant Eagle


MidAmerican Energy Holdings Co. said Council Bluffs, Iowa, is the preferred site to build a 900 Mw coal-fueled electric generating plant. Development of the $1.4 billion plant is expected to proceed following environmental review, public hearings, and regulatory approvals. Although still in the design stage, the unit is scheduled to come on line in the spring of 2007.

Islander East Pipeline Co. LLC received preliminary approval from the Federal Energy Regulatory Commission to construct, own, and operate 50 miles of interstate natural gas pipeline in Connecticut and on Long Island, NY. Islander East, equally owned by subsidiaries of KeySpan Corp., Brooklyn; the Long Island Power Authority; and Duke Energy Corp., Charlotte, NC, is expected to have capacity of 260,000 decatherms/day of gas.

Kinder Morgan Energy Partners LP, Houston, increased to 45% its ownership in the Cochin Pipeline System with the purchase of an additional 10% interest in the pipeline from NOVA Chemicals Corp. for $29 million in cash. The 1,900-mile pipeline operates between Fort Saskatchewan, Alta., and Sarnia, Ont. Cochin transports high vapor pressure ethane, ethylene, propane, butane, and natural gas liquids to the US Midwest and eastern Canada.

Procter & Gamble Co., Cincinnati, Ohio, selected AES NewEnergy, a unit of AES Corp., Arlington, Va., to supply electricity to its southern Ohio facilities, including P&G's global headquarters. The contract covers nearly all of P&G's electricity usage throughout Cinergy Corp.'s service territory at a variety of commercial and industrial properties. Terms were not disclosed.

Peabody Energy Corp., St. Louis, Mo., received preapproval for an air quality permit for the proposed 1,500 Mw coal-fired Thoroughbred Energy Campus electricity generation project in western Kentucky. The proposed project would include a 6 million ton/year underground coal mine. Peabody said it is engaged in discussions with several prospective partners regarding the scope and structure of the project.

Latvia's SJC Latvenergo and Fortum Energy Solutions, a unit of Finland's Fortum Corp, reported signing a consulting services contract for the Riga TPP-1 refurbishment project, including replacing the existing power plant with a combined cycle gas-turbine plant. The work is scheduled to take place in 2002-2007.

The 1,000 Mw Santa Rita power station in the Philippines, which switched to natural gas following the opening of the Shell/Texaco Malampaya gas field in October 2001, entered commercial operations Jan. 1. Near Batangas on the island of Luzon, it is capable of providing 20% of the island's electricity. The plant is owned by First Gas Holdings Corp. -- a joint venture between BG Group and First Generation Holding Corp.

Shell Development Petroleum Co. and its joint venture partners received approval to operate the Afam I-V power plants in southeastern Nigeria. The $540 million project is expected to be undertaken jointly with Eskom Enterprises, a South African utility company. The new investment is expected to add about 400 Mw, increasing capacity to 930 Mw by 2004.

Tennessee Gas Pipeline Co., a unit of El Paso Corp., Houston, accepted the Federal Energy Regulatory Commission's certificate authorizing construction of the $35 million, 12-mile Dracut pipeline expansion project to serve the US Northeast. The project will increase take away capacity from the Dracut interconnect by an additional 200,000 decatherms/day.

The Michigan Public Service Commission granted First Energy Solutions Corp., a unit of FirstEnergy Corp., Akron, Ohio, and WPS Energy Services Inc., a unit of WPS Resources Corp., Green Bay, Wis., each a license as an alternative electric supplier to sell electric generation to Michigan retail customers. The commission has approved 12 previous licenses.

Giant Eagle Inc., Pittsburgh, Pa., signed a multiyear contract with FirstEnergy Solutions Corp., a unit of FirstEnergy Corp., for the supply of electricity to 74 of the chain's grocery stores and warehouse facilities in Ohio. Terms were not disclosed.