Electric Power news briefs, August 25
Trailblazer Pipeline Co. ... Kinder Morgan Inc. ... Enron Trailblazer Pipeline Co. ... New York Power Authority ... Enmax Corp. ... TransCanada PipeLines Ltd. ... Caribbean Utilities Co. Ltd. ... First Gas Holding Corp. ... Royal Dutch/Shell ... Texaco Inc. ... Manila Electric Co., ... Wisconsin Public Service Corp. ... Wisconsin River Power Co. ... Consolidated Water Power Co. ... Tucson Electric Power Co. ... Citizens Utilities Co.
Trailblazer Pipeline Co. reported its additional capacity of 300,000 dekatherms/day was fully subscribed with fixed rates for a minimum term of 10 years. Pending Federal Energy Regulatory Commission approval, company officials said the $54 million expansion project will be completed in the fourth quarter of 2002. Significant growth in Rocky Mountain natural gas supplies has prompted the need for additional pipeline transportation service, the company said. Kinder Morgan Energy Partners owns a two-thirds interest in Trailblazer, with the other one-third interest owned by Enron Corp. unit Enron Trailblazer Pipeline Co. Trailblazer is operated by Natural Gas Pipeline Co. of America (NGPL), a wholly owned subsidiary of Kinder Morgan Inc.
New York Power Authority (NYPA) has sold $210,375,000 of variable rate Subordinate Revenue Bonds. Proceeds from the sale of the tax-exempt bonds will be used to repay the Power Authority's Series 1 and 2 commercial paper notes as they mature and to finance some of the costs of a proposed 500 Mw natural gas-fueled plant in Astoria, Queens, on the site of NYPA's Charles Poletti power project. The issue includes $68.5 million in Series 1 variable rate demand obligations, maturing on Feb. 15, 2021, with interest rates tied to prevailing market conditions. It also consists of three series of auction rate securities totaling $141.9 million and maturing on Feb. 15, 2018, for Series 2 and on Feb. 15, 2025, for Series 3 and 4.
Enmax Corp. reported it has acquired the rights to sell power produced from the Wabamun and Keephills generation plants as part of the company's plan to participate in the deregulated Alberta electricity industry. The combined $315 million power purchase arrangements (PPAs) were purchased during the Alberta government's recently completed PPA auction. Enmax secured the rights to Keephills for 20 years and to Wabamun for 3 years. ENMAX's agreement is effective Jan. 1, 2001, coinciding with customers' ability to choose their electricity suppliers.
TransCanada PipeLines Ltd. said it has acquired the rights to the capacity of the 560 Mw Sundance A thermal generating power plant near Edmonton, Alta., for about $212 million. The acquisition was made through the Alberta government's auction and has a term of 17 years beginning Jan. 1, 2001. TransCanada already has agreements to re-sell approximately 400 Mw of the capacity from Sundance A to industrial customers under long-term contracts.
Caribbean Utilities Co. Ltd., (CUC) Grand Cayman, Cayman Islands, reported its growth in net generation for the 3 months ended July 31, 2000, averaged 6.9% over the similar period last year. A record peak load of 70.1 Mw was recorded in August, representing a 6.6% increase over the peak load in last year's corresponding period. The growth is being fueled by the continuing rapid development of the tourism and international financial services industries, the company said. CUC operates the only public electrical utility on Grand Cayman under a 25-year exclusive license granted in 1986 by the Cayman Islands government.
BG International joint venture, First Gas Holding Corp.�s Santa Rita 1,000 Mw power project, the Philippines, has entered full commercial operation, the company reported. Power generated from the $890 million project is being supplied to the Manila Electric Co., (Meralco), the Philippines largest electricity distributor, under a 25-year agreement. Santa Rita will initially operate on condensate fuel until the availability of gas, in 2001, from the Malampaya field offshore the Philippine island of Palawan. Units of Royal Dutch/Shell and Texaco Inc. will supply the natural gas under a 22-year agreement. Construction of the 500 Mw San Lorenzo power project began in June 2000, following the signing of $375 million in financing for the project. The San Lorenzo power plant will be located next to the Santa Rita plant and will also sell electricity to Meralco under a 25-year agreement, starting in 2002.
Wisconsin Public Service Corp. has entered into an agreement to purchase the one-third interest of Wisconsin River Power Co owned by Consolidated Water Power Co., a subsidiary of Consolidated Papers Inc., Consolidated reported. As a result, Consolidated and Stora Enso Oyj said they believe it will be unnecessary for Stora Enso to obtain prior SEC approval of Stora Enso's acquisition of Consolidated under the Public Utility Holding Company Act. If Consolidated's shareholders approve the Stora Enso acquisition Aug. 30, Consolidated and Stora Enso said they expect the acquisition to close on Aug. 31 or in early September.
Unisource Energy Corp. unit Tucson Electric Power Co. (TEP) said intends to construct a $70 million, 345,000 volt transmission line 50 miles south to Nogales, Ariz., and then connect to an existing electric substation in Sonora, Mexico. The company also has filed for approval from the US Department of Energy (DOE) for the Mexican extension. UniSource Energy Chairman James S. Pignatelli said TEP is working with Citizens Utilities Co. to jointly plan development of the power line. Citizens serves electric customers in Nogales and surrounding Santa Cruz County, Ariz.