Electric Power news briefs, September 28

Southern Co. ... GE Power Systems ... Sid Richardson Carbon Co. ... TransCanada PipeLines Ltd. ... Shell Canada Ltd. ... Canadian Hydro Developers Inc. ... Sakhalin Energy Investment Co. Ltd. ... Fluor Daniel ... InterGen ... Enka ... Westmoreland Coal Co. ... Knife River Corp. ... MDU Resources Group Inc. ... Southern Union Co. ... Alliance Pipeline Ltd. ... NewEnergy ... American Electric Power Co. ... Ohio Power Co. ... Columbus Southern Power Co.


Southern Co., Atlanta, has awarded GE Power Systems, a unit of General Electric Co., a $575 million multiyear service contract for combined-cycle power plants being built by affiliates of the Southern Co. in the US Southeast, GE said. The GE combined cycle systems will be located at the Wansley power station in Roopville, Ga, the Goat Rock power station in Smith, Ala., and at several other sites yet to be announced. Commercial operation dates of the projects are staggered between 2001 and 2004. The new orders bring Southern Co.'s total commitment for long-term service contracts with GE to more than $1 billion.

Sid Richardson Carbon Co., Fort Worth, Tex., has purchased TransCanada PipeLines Ltd.'s Alberta-based Cancarb black carbon unit for $160 million (Can.), TransCanada reported. The sale includes Cancarb Ltd., Medicine Hat, Alta., and an associated power plant. It is part of a planned $3 billion sale of noncore assets by TransCanada. Production at the Cancarb unit is 45,000 tonnes/year and waste heat is used by a 47 Mw TransCanada cogeneration power plant adjacent to Cancarb.

Shell Canada Ltd., Calgary, says it will buy electricity from new wind turbines operated by Canadian Hydro Developers Inc. in southern Alberta. Financial details of a three-year agreement were not disclosed. The turbines, an expansion of Canadian Hydro�s existing Cowley Ridge wind plant, near Pincher Creek, Alta., will be in operation by the first week in October.

Sakhalin Energy Investment Co. Ltd. has awarded Fluor Daniel, the engineering and construction unit of Fluor Corp., a $10 million contract for engineering services for the preparation of a project specification and TEOC documentation (Russian permitting documents) for a 9 million tonne LNG plant on the island of Sakhalin, Fluor reported. The plant will be the first world-scale LNG plant in the Russian Federation. Sakhalin Energy is a joint venture company, established by Royal Dutch/Shell Group, Marathon Oil Co., Mitsui & Co. Ltd., and Mitsubishi Heavy Industries Ltd., to develop the multibillion dollar Sakhalin II oil and gas production and export project.

InterGen, a joint venture of Royal/Dutch Shell Group and Bechtel Corp., and its Turkish partner Enka reported $1.5 billion in financing has been completed for the 155 Mw Gebze, 780 Mw Adapazari, and 1,525 Mw Izmir natural gas-fired power facilities in Turkey. Total project cost for the three plants will be over $2 billion. The power stations are the first to proceed under Turkey's new build, own, and operate (BOO) program. Botas, the Turkish state-owned gas company, will supply natural gas to all three facilities. Construction of the facilities commenced this summer. The plants are scheduled to begin full commercial operation in 2002.

Westmoreland Coal Co. has agreed to purchase the coal operations of Knife River Corp., a subsidiary of MDU Resources Group Inc., for $28.8 million cash, excluding final settlement cost adjustments, the companies reported. Included in the sale are active coal mines in North Dakota and Montana, coal sales agreements, reserves, mining equipment, and certain rights to the inactive Gascoyne mine. The operations produce about 3 million tonnes/year of coal. Coal sales agreements include contracts with three electric generating stations in Montana and North Dakota and to an industrial facility near Sidney, Mont.

Southern Union Co. said it has completed its mergers with Providence Energy Corp. and Fall River Gas Co. Providence Energy shareholders will receive $42.50/share cash of Providence Energy common stock. Fall River Gas shareholders will receive the equivalent of $23.50/common share in cash and/or Southern Union common stock.

Alliance Pipeline Ltd. said it has received notice from both the National Energy Board (NEB) and the Federal Energy Regulatory Commission (FERC) that its respective Canadian and US tariffs have been accepted as filed. The tariffs outline the applicable charges for service on the pipeline system and all of the relevant terms and conditions of this service. The tariff covering the Canadian portion becomes effective Oct. 30. FERC said Alliance Pipeline LP's FERC Gas Tariff No. 1 is to be effective on the later of Oct. 2, 2000 or its actual in-service date.

The city of Wilmington has awarded AES Corp. subsidiary NewEnergy a 7-month contract to supply 10 Mw electricity to key city facilities, including the city/county building and public safety building, beginning in October. NewEnergy says the contract takes advantage of Delaware's recently deregulated electricity market, which allows consumers to choose the company that supplies their electricity.

The Public Utilities Commission of Ohio approved American Electric Power (AEP) Co. Inc.'s electric transition plan for its utility units, Ohio Power Co. and Columbus Southern Power Co. Under terms of certain stipulations, the agreement provide for rate freezes, rate reductions, flexibility for larger contract customers not otherwise available, and low income energy efficiency grants and defined transition periods for AEP.

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