Electric Power news briefs, Mar. 7

The Los Angeles Department of Water and Power (DWP) said it refinanced $1.25 billion in power bonds, resulting in $2.1 million/year in interest savings for 34 years. The DWP said savings from the new bond issue will help shield the department against rising costs of natural gas. The new bonds, issued at 4.95% replaced $1.22 billion in bonds at an average weighted interest rate of 5.80%.

Strategic Resource Solutions Corp.(SRS), Cary, NC, a subsidiary of Progress Energy Inc., said its expects to save Shaw Air Force Base, Sumter, SC, nearly $500,000/year through energy conservation projects. As with all federal agencies, Shaw AFB is under a mandate from Executive Order 13123 to reduce its energy usage 35% by 2010, compared to 1985. The total program consists of 258 projects in 154 buildings and represents 1.9 million sq ft.

TECO Energy Inc., Tampa, Fla., Wednesday said its planned public offering of 7.5 million common shares has been priced at $27.75/ share and is expected to raise about $201.6 million. TECO said it intends to use the proceeds to reduce commercial paper balances of its TECO Finance subsidiary and for general corporate purposes. Credit Suisse First Boston is acting as lead manager of the offering, and Goldman Sachs & Co., Merrill Lynch & Co., and UBS Warburg LLC are comanagers.

Orion Power MidWest LP, a subsidiary of Orion Power Holdings Inc., Baltimore, Md., said it will begin conversion of the 234 Mw oil-fired Brunot Island generating station in Pittsburgh, Pa., to a combined cycle 374 Mw gas-fired plant. Orion Power will invest $40 million in the modernization project.

El Paso Natural Gas Co.,a unit of El Paso Corp., said it began a nonbinding open season Mar. 2 to gauge interest in expansion of its existing pipeline system and will continue through Mar. 23. The El Paso Natural Gas pipeline system has receipt points in the San Juan, Permian, and Anadarko producing basins and delivery points in Texas, New Mexico, Arizona, Nevada, and at the California border. As part of the open season, El Paso said it will consider requests for firm transportation service originating in any receipt basin and delivered to any location on its system. It also will allow current shippers to express their nonbinding interest in relinquishing some or all of their existing capacity that might be used to serve proposed new loads.

Calgary-based ATCO Power, a unit of Atco. Ltd., said it will construct a $33 million, 32 Mw hydroelectric generating station at the existing Oldman River dam, northeast of Pincher Creek in southern Alberta. The project is expected to begin flowing to meet Alberta's power needs by May 2002. ATCO Power said it has satisfied all regulatory and environmental assessment requirements for the project. ATCO Power was awarded the development contract in an open competition by Alberta Environment, the dam's owner. Alberta Environment will receive long-term rental fees and will continue to have full control over water levels and releases.

First Choice Power, a unit of TNP Enterprises Inc., recently became one of the first retail energy providers in Texas to post pricing for the electric choice pilot program. The pilot lets consumers choose their energy provider for June 1-Dec. 31, 2001, on a first-come basis. The company said it is offering fixed rates, plus a $25 sign-up credit. Participation in the pilot program is limited to 5% of existing customers.

UtiliCorp United Inc. said it is seeking power supply contracts to secure up to 1,250 Mw of annual capacity for up to 15 years for its 425,000 customers in Missouri, Kansas, and Colorado. On Apr. 5, UtiliCorp plans to issue its request for proposal (RFP) for bids to supply 750 Mw for its Missouri service territory and 200 Mw for Kansas. UtiliCorp expects to begin receiving power June 1, 2005. Later this summer, the company will issue a RFP for 300 Mw to supply Colorado customers. Power delivery would begin Jan. 1, 2007.

Neutrogena Corp., a unit of Johnson & Johnson, said it will install a 200 kw system solar system, including 100 kw installations in two buildings, at its headquarters near Los Angeles International Airport. Project cost is $1.4 million. The solar system will help reduce energy consumption by 20%/month. The project, which will cover 24,000 sq ft of roof area, is scheduled to begin in May and to be completed in July. Because Neutrogena will be participating in the Los Angeles Department of Water and Power "Solar Buy Down Program," the company will benefit from the higher incentive of $5/w.

Entergy Corp. has extended ISG Resources Inc.'s contract to provide ash management services at Entergy's White Bluff and Independence power plants in Arkansas. Under the 5-year extension, ISG's services will include sales, disposal, and landfill management. Together, the two plants produce 500,000 tons/year of coal combustion products, including 350,000 tons of quality Class C fly ash.

Tennessee Gas Pipeline Co., a unit of El Paso Corp., said it received requests for natural gas transportation of almost 1.6 bcfd of capacity for its proposed Connecticut-Long Island (CT-LI) pipeline project. The pipeline will allow new transportation service from the Tennessee Gas' mainline facilities in Massachusetts to markets in Connecticut and on Long Island, NY, the company said. Service on the pipeline could begin as early as Nov. 1, 2003, depending on the final project scope and receipt of all necessary regulatory approvals, Tennessee Gas said.