Electric Power news briefs, June 14
Calpine Corp. ... AES Corp. ... Wolf Hills Energy ... Constellation Power Source ... Enron Energy Services ... National Energy Marketers Association ... American Electric Power Co. ... DTE Energy Co.
Calpine Corp., San Jose, Calif., said it has entered into a new $400 million, 3-year revolving line of credit led by the Bank of Nova Scotia, replacing a previous $100 million credit facility. The new facility will be used for working capital and other general corporate purposes. Independent power producer Calpine has a combined interest in about 17,800 Mw of electric generating capacity in operation, under construction, or announced development in 21 states and Alberta.
AES Corp. reported in a preliminary count about 23% of Grupo EDC shares were tendered and accepted for payment at the end of its Venezuelan offer, at midnight June 12 Caracas time. AES previously reported American Depository Receipts (ADS) representing about 49% of the outstanding shares of CA La Electricidad de Caracas and Corporacion EDC CA had been purchased pursuant to its offer for all outstanding ADSs of Grupo EDC. In addition, AES previously owned stock and ADSs of Grupo EDC representing about 1.1% of outstanding shares. As a result, AES now owns 73.1% of all outstanding shares of Grupo EDC. On this basis, AES's total investment in Grupo EDC is expected to amount to about $1.5 billion, the company said.
Wolf Hills Energy, an affiliate of Constellation Power Source Inc., Baltimore, will construct a $100 million peaking power plant in the Bristol-Washington County Industrial Park near Bristol, Va., the company reported. Subject to Bristol City Council approval, the company expects the new plant to operational by June 2001. Site clearing for the 10-acre plant is set to begin later this month. Constellation Power Source Pres. Charles W. Shivery said the Wolf Hills plant is a response to a market need for additional electricity in the area.
Enron Energy Services, an Enron Corp. unit, has selected IBM Corp. to deliver $350 million in technology services to Enron locations throughout the US. Under an agreement, IBM Global Services will provide Enron Energy Services with application development, maintenance, and personal computer and server support services for the next 10 years. IBM also will assume responsibility for Enron Energy Services' nonroutine help desk support�commonly known as Levels 2 and 3 help desk services�for the term of the contract.
National Energy Marketers Association (NEM), Washington, DC, said it will form four internet and technology policy development teams to identify issues and propose solutions to foster effective price competition. NEM Pres. Craig Goodman said existing law makes aggregating customers across multiple utility service territories and achieving national economies of scale a daunting task. To capitalize on emerging technologies that can reduce the costs of aggregation as well as billing, metering, customer care, and risk management, the rules, tariffs, and operating procedures must be rewritten to accommodate these new technologies, or the true benefits of restructuring will miss the smallest customers, Goodman explained.
American Electric Power Co. has received authorization to restart the 1,090 Mw Cook nuclear plant Unit 2 from the Nuclear Regulatory Commission. With the NRC's restart authorization, AEP will begin reactor operation once the plant staff completes the remaining functional checks of equipment and systems. The reactor coolant system is currently being heated to operating temperature and pressure. An ascension to full power includes several hold points for additional system checks and tests and is expected to take an additional 10 days.
DTE Energy Co. has joined a consortium of 21 North American energy and utility companies to create an e-marketplace to purchase goods and services. The consortium announced the formation of Pantellos Corp. to operate and manage an open, independent internet e-marketplace between the energy industry and its suppliers (OGJ Online, June 2, 2000). DTE Energy is an equity investor in Pantellos Corp. DTE Energy anticipates using Pantellos to eventually purchase 25% of its goods and materials�such as lines, poles, transformers, and other distribution system material, the company said.