Electric Power news briefs, June 23
PPL Corp. ... Tennessee Valley Authority ... Allegheny Power Co. ... Exelon Capital Partners ... Reliant Energy Gas Transmission Co. ... Central & South West Corp. ... PanCanadian Petroleum Ltd. ... Canadian Occidental Petroleum Ltd.
PPL Corp., Allentown, Pa., reported its PPL Global subsidiary plans to build 600 Mw of peaking power capacity on Long Island, New York, at a cost of about $300 million. PPL Global plans to develop up to 12 gas-fired units on 15 acres of a 21-acre site. Electricity generated at the facility will be sold on the wholesale market. The station is near a major natural gas pipeline and one of Long Island's major transmission lines. Pending approvals from state and local agencies, plans call for construction to begin in 2001 and for the facility to be operational in June 2002. Company representatives have met with area residents to discuss the project, and PPL Global will soon file permitting documents, said PPL Global Pres. Paul Champagne.
The Tennessee Valley Authority said it has launched a $1-billion, 30-year global power bond offering targeted to investors world-wide. The 2000 Series G power bonds are available in minimum denominations of $1,000. These noncallable bonds mature in 2030 and are triple-A rated by Moody's Investors Services Inc. and Standard & Poor's. The bonds are expected to be listed on the Luxembourg and New York Stock exchanges. Proceeds from the sale will be used to retire existing debt. TVA is a wholly owned US government agency and the nation's largest producer of electricity for the wholesale market. TVA Chief Financial Officer David N. Smith said current market conditions indicate strong demand for long-term bonds.
Allegheny Energy Inc.'s Ohio subsidiary, Allegheny Power Co., has reached a stipulated agreement with major parties on a transition plan to bring electric choice to the company's 28,000 Ohio customers, the company reported. Allegheny will recover regulatory asset costs through a transition charge and the transfer of about 325 Mw of generating capacity to an unregulated affiliate at book value. Allegheny Energy expects to have more than 6,000 Mw of generating capacity in the deregulated marketplace by Jan. 1, 2001. Customers will receive a combination of rate reductions and rate freezes during the transition to competition, called the "market development period." In addition, customers will be able to shop for an electricity supplier in January 2001. The plan is subject to the Public Utilities Commission of Ohio's approval.
Exelon Capital Partners, the venture arm of PECO Energy Co., Philadelphia, has committed $15 million to its second round of funding for Wayne, Pa.-based OmniChoice.com, an independent adviser to customers in the research and selection of communications and energy plans online, OmniChoice.com reported. OmniChoice.com's internet search resource matches customer preferences in energy and telephone services with a 'best fit' service plan from a comprehensive database of several thousand.
Reliant Energy Inc. unit Reliant Energy Gas Transmission Co.(REGT) has increased deliveries of natural gas to Southwestern Electric Power Co.'s 882-Mw Wilkes generating plant in East Texas. REGT is supplying as much as 100 MMcfd of gas to the plant under a long-term contract with Central & South West Corp. (CSW) on behalf of CSW's SWEPCO subsidiary. CSW recently completed a merger with American Electric Power Co. Inc., Columbus, Ohio. Increased deliveries began in early June following installation by Reliant Energy Pipeline Services of the new, 18-mile, high-pressure extension of REGT's 6,200-mile, interstate natural gas transmission system. The new 16-in. section, which requires no additional compression, interconnects with Reliant Energy pipeline facilities in Harrison County, Tex.
PanCanadian Petroleum Ltd., Calgary, says it will build two new electric generating plants in southern Alberta at a cost of $100 million (Can.) each. One plant will be built at the site of a Canadian Occidental Petroleum Ltd. (CanOxy) natural gas plant at Balzac, near Calgary. CanOxy will have a 50% interest in the cogeneration plant. The other plant will be located at PanCanadian�s Cavalier gas compressor station, about 30 miles east of Calgary, and will be wholly owned by PanCanadian. Each plant will have a 106 Mw capacity. Start-up is planned for 2001.