Electric Power news briefs, June 28

ANR Pipeline Co. ... BP Amoco PLC ... Calpine Corp. ... Engage Energy US LP ... Southern Co. Energy Marketing ... Acetex Energy Holdings LLC ... CalEnergy ... Southwestern Energy Co.


Coastal Corp. said its ANR Pipeline Co.subsidiary has executed binding precedent agreements with nonaffiliated shippers for 583 MMcf/d of capacity on its SupplyLink expansion project and filed the agreements with the Federal Energy Regulatory Commission. The agreements represent 78% of SupplyLink's capacity. Jeffrey A. Connelly, CEO of ANR Pipeline , and senior vice-president, natural gas, of Coastal, said the company believes it has satisfied FERC's requirements for obtaining the agreements necessary to receive a certificate of public convenience and necessity for the project. SupplyLink is designed to provide 750 MMcf/d of additional west-to-east transportation service on ANR's system from Sandwich, Ill., to Defiance, Ohio. With its application submitted to FERC on March 31, 1997, the SupplyLink project includes about 73 miles of mainline looping at various locations in Illinois, Indiana, Michigan, and Ohio and 15,000 extra hp at an existing compressor station near Bridgman, Mich.

BP Amoco PLC has selected Calpine Corp., San Diego, to build, own, and operate a $350 million, natural gas-fired cogeneration power plant at the BP Amoco Decatur Works chemical facility, Decatur, Ala. The proposed Morgan Energy Center will generate 660 Mw of electricity, in addition to supplying steam for BP Amoco's facility. The project will also be capable of generating an additional 130 Mw of peaking capacity. Construction is scheduled to start in the third quarter of 2000 with the first phase slated to begin operating in 2002. The second phase is expected to begin operations in the first quarter of 2004. Under the terms of a 20-year agreement, the Morgan Energy Center will provide BP Amoco with steam for its Decatur facility. In addition, Amoco Energy Trading Corp., a BP Amoco affiliate, will purchase from Calpine up to 168 Mw for sale into the wholesale power market. Calpine will market the remaining power into the southeast US wholesale power market. In addition, an intrastate natural gas pipeline will be constructed to fuel the new plant.

In a transaction known as a tolling agreement, Engage Energy US LP, Houston, has selected Southern Co. Energy Marketing, Atlanta, to convert natural gas provided by Engage into 300 Mw of electricity that Engage Energy will then sell on the open market. The 5-year agreement will make use of a power plant Southern Energy Inc. plans to have running in Zeeland, Mich., in 2001. Southern Co. Energy Marketing is jointly owned by Southern Energy Inc. and Vastar Resources Inc. Purchase of this tolling capacity will increase Engage's ability to customize power and natural gas products in Michigan and the upper Midwest markets, said Clark C. Smith, Engage CEO. Engage Energy is a joint venture company of Coastal Corp. and Westcoast Energy Inc., Vancouver, BC.

Acetex Energy Holdings LLC, Chicago, an on site supplier of energy services to industrial and commercial customers, has completed purchase of the Southbridge Energy Center from Yankee Energy Services Co., a wholly owned subsidiary of Yankee Energy Systems Inc., which was recently acquired by Northeast Utilities. Terms of the agreement were not disclosed. The energy center provides electricity, steam, compressed air, hot water, chilled water, and industrial process water to 13 customers within the business park. Acetex Energy develops and acquires energy assets throughout the US and Canada. Acetex Energy is owned by an energy partnership managed by Haddington Ventures LLC, Houston. The partnership owns a portfolio of midstream energy related companies and includes Chase Capital Partners, Prudential Capital Group, Travelers Cos., and Indiana Energy Inc.

An affiliate of CalEnergy Generation, Des Moines, the independent power production arm of MidAmerican Energy Holdings Co., is planning construction of a $200 million, 500-600 Mw natural gas-fired, combined-cycle power plant in Outagamie County, Wisconsin. Construction of the project could begin in July 2001 and the plant is planned to start commercial operation by 2003. The project company is currently seeking the necessary regulatory approvals for the facility.

Southwestern Energy Co., Fayetteville, Ark., said it will sell its gas distribution business to fund a $109 million judgement against it. The Arkansas Supreme Court upheld a class action claim by royalty owners of SEECO Inc., a unit of Southwestern. The claim originally arose from landowners seeking additional royalties from a contract initiated in 1978 for the company�s Arkoma natural gas basin in central Arkansas. The company said the decision to sell the utility business that serves 134,000 customers sets a clear strategy that was initiated about 2 years ago when the company began making changes to its exploration and production activities.

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