Electric Power news briefs, December 8
Wisconsin Electric ... SkyGen Energy ... PG Energy ... TransCanada PipeLines Ltd. ... AES Corp. ... EDF International SA ... Reliant Energy Inc. ... BC Gas Utility Ltd. ... Sempra Energy ... Dominion Resources Inc. ... New York Power Authority ... Duke Energy Gas Transmission ... Energen Corp.
Wisconsin Electric, a unit of Wisconsin Energy Corp., and SkyGen Energy, a subsidiary of Calpine Corp., reported signing a 10-year power purchase agreement under which SkyGen will provide the utility with 550 Mw of electricity. SkyGen Energy has several natural gas-fired projects in the region under development. The first facility should begin providing Wisconsin Electric with power by the spring of 2002, the companies said. Terms were not disclosed.
The Pennsylvania Public Utility Commission (PUC) today approved a settlement with PG Energy, a unit of Southern Union Co., permitting the utility to raise natural gas rates by 6.72% or $10.8 million. The company had originally requested an 11.35% increase or $17.9 million. The new rate will become effective on 1 day�s notice after the company files its tariff with the PUC. It may file its tariff on or after Jan. 1, 2001.
TransCanada PipeLines Ltd. said it filed applications with Canada's National Energy Board and the Alberta Energy and Utilities Board for interim tolls on its respective Canadian mainline and Alberta natural gas transmission systems. TransCanada requested the interim tolls be effective Jan. 1, 2001. TransCanada applied for an interim firm transportation toll of $1.132/gigajoule (Can.) from the Alberta border to the Eastern Zone, compared to the current toll of $1.009/gigajoule.
Units of AES Corp. and EDF International SA completed the purchase of Reliant Energy Inc.'s intererest in Light Servicos de Eletricidade SA (Light) for $430 million, Reliant reported. An AES subsidiary purchased approximately 30% of Reliant Energy's shares in Light, while EDF purchased the remainder. Light and its subsidiary, Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, together serve approximately 7.4 million customers in Rio de Janeiro and Sao Paulo, Brazil.
BC Gas Utility Ltd. said its $376 million (Can.) British Colombian gas pipeline from Yahk to Oliver has come on stream. The 303-km Southern Crossing pipeline took 5 years to plan and 6 months to build, said a BC statement.
Sempra Energy said the Maricopa County Board of Supervisors approved the proposed 1,000 Mw Mesquite power project. The $600 million project was approved by the Arizona Corporation Commission Nov. 28. Construction is expected to begin in the second quarter 2001, with completion slated for 2003. The Mesquite plant will be located adjacent to the Palo Verde nuclear generating station.
Dominion Resources Inc., Richmond, Va., has extended the open season for the 600,000 Dth/day capacity Greenbrier pipeline project to Dec. 19 from Dec. 5. The $400 million project will stretch from Dominion's Cornwell Station near Charleston, W.Va., to the Transcontinental Gas Pipeline Co. line in Rockingham County, NC (OGJ Online, Oct. 2, 2000). Greenbrier is expected to come on stream in June 2005.
AES Corp. said it extended until midnight Dec.12, 2000, the expiration date of its offer to exchange all Gener American Depositary Shares (ADS) pending the outcome of the vote of Gener shareholders. As previously reported, Gener shareholders are scheduled to vote Dec. 12 on an amendment to Gener's bylaws to eliminate provisions limiting the number of shares that may be owned or voted by any shareholder or related person. The amendment is a condition of AES's offers to exchange Gener's ADSs and to purchase Gener's shares.
The New York Power Authority (NTPA) Friday reported selling $300 million of Series 2000 A Revenue Bonds. In addition, NYPA began Thursday the sale of $450 million in Series 5 through 13 Variable Rate Subordinate Revenue Bonds. NYPA will use proceeds from the Series 2000 A bond sale to refund more than $216 million of Series 4 Commercial Paper Notes, which it had issued to finance construction of its transmission cable under Long Island Sound; to pay for upgrading and relicensing its Niagara power project; and to reimburse information technology expenses. NYPA said it will use the proceeds from the Surbordinate Revenue Bonds to pay costs associated with up to 11 gas-turbine generators that it intends to install by next June in New York City and on Long Island.
Duke Energy Corp. said its Duke Energy Gas Transmission (DEGT) unit will begin Dec. 12 conducting a month-long open season for pipeline capacity associated with its 24-in., 200 MMcfd Patriot extension, a 95-mile expansion of the company's East Tennessee Natural Gas system into portions of southwest Virginia and North Carolina. The open period for expressing interest in Patriot capacity ends Jan. 12. The pipeline extension is expandable, in increments, to 600 MMcfd.
Energen Corp. said it hedged an additional 1.3 bcf of natural gas in its fiscal year 2001 at an average NYMEX price of $7.71/Mcf, bringing the natural gas hedge position in fiscal year 2001 for Energen Resources, the company's oil and gas acquisition and exploitation subsidiary, to 38.3 bcf at an average NYMEX price of $2.93/Mcf. These volumes represent just over 80% of Energen Resources' estimated natural gas production of 47 bcf in fiscal year 2001.