Electric power news briefs, Aug. 20
NUI Corp. ... Transcontinental Gas Pipe Line Corp. ... Williams ... Suncor Energy Inc. ... Enbridge Inc. ... DTE Energy Co. ... Washington Group International Inc. ... Quanta Services Inc. ... FirstEnergy Corp. ... Pinnacle West Energy ... Laclede Gas Co. ... Northwest Iowa Power Cooperative ... Arizona Public Service
NUI Corp., Bedminster, NJ, said it sold a series of intermediate term notes totaling $60 million with a combined coupon rate of 7.19% through Aug. 20, 2011. The notes were purchased by a group of investors through PNC Capital Markets Inc., which acted as agent for the company. The notes have an average life of 8 � years and will be used to refinance outstanding short-term debt used, in part, to acquire Virginia Gas Co.
A unit of Williams, Tulsa, Okla., said it is holding a binding open season from Aug. 20 to Sept. 7 for shippers interested in year-round firm transportation service to be created by the South Virginia Line (SVL) expansion project between Pittsylvania County, Va., and Hertford County, NC. The project's anticipated in-service date is May 1, 2004. Separately, Transcontinental Gas Pipe Line Corp., a unit of Williams, proposed a placement of $300 million in senior notes to refinance existing debt, to fund capital expenditures, and for other general corporate purposes.
Phase I of the SunBridge Wind Power Project is generating energy to the SaskPower grid from three test wind turbines in Gull Lake, Sask. SunBridge is a $20 million, 50/50 partnership between Suncor Energy Inc. and Enbridge Inc., Calgary, Alta. The initiative was stimulated by a 10-year $12.4 million federal government commitment last fall to support green power development in Saskatchewan.
DTE Energy Co., Detroit, Mich., hired a unit of Washington Group International Inc., Boise, Ida., the nation's fourth-largest construction company, to build a $150 million 320 Mw Michigan power plant, the Washington Group reported. Washington will provide engineering, procurement, construction and start-up services for plant in East China Township, Mich.
Quanta Services Inc., Houston, reported completing acquisition of North Houston Pole Line Corp. (NHPL), one of the largest utility contractors in the Southwest, and PowerLink Corp. For fiscal year 2001, the two companies are expected to produce annualized revenues of $51 million. NHPL will function as an operating unit of Quanta Services and will maintain its current leadership team and staff, Quanta said.
FirstEnergy Corp., Akron, Ohio, reported customers of its subsidiaries sold back up to 56 Mw electricity when prices rose last week, reducing usage in exchange for credits on their bill through FirstEnergy's power curtailment program. Under the program, commercial, and industrial customers who agree to reduce their electricity demand by 1 Mw receive a percentage of wholesale electricity prices.
Pinnacle West Energy, the generation subsidiary of Pinnacle West Capital Corp., Phoenix, Ariz., said it will develop a $400 million, 570 Mw gas-fired electric generating station 20 miles north of Las Vegas, Nev. Construction on the combined cycle Silverhawk plant, located in the APEX industrial park, is scheduled to begin in 2002, and the plant is projected to be in service in 2004. The company has signed a memorandum of understanding with Las Vegas-based Southern Nevada Water Authority to be a 25% owner of the plant.
The Missouri Public Services Commission approved Laclede Gas Co.'s proposal to restructure, merge, and form subsidiary companies. Laclede Group Inc., St. Louis, Mo., would become the parent holding company. The agreement was reached after extensive negotiations involving various public interest group, unions, and industrial customers.
The Iowa Department of Commerce granted Northwest Iowa Power Cooperative permission to build a 4.82 mile 72.5 kv transmission line in Ida County, Iowa. State regulators found the proposal was in the public interest and will be located parallel to existing railroad rights of way or along division lines of land.
Operators began shutting down the 1,270 Mw Unit 3 of the Palo Verde nuclear generating station Monday because of a water leak into the containment structure, said Arizona Public Service, Phoenix. The company said the unit is expected to return to service by late next week. Units 1 and 2 continue to operate at full power, and APS said it has adequate supply to meet customer needs.