Electric Power news briefs, January 31
Dynegy ... Central Hudson Gas & Electric Corp. ... Niagara Mohawk Power Corp. ... Consolidated Edison Co. of New York ... Alcoa ... Aquila Energy ... Williams ... El Paso Energy Corp. ... Pluspetrol SA ... GE Power Systems ... Enermetrix.com ... Cinergy Ventures ... Alliant Energy Industrial Services ... Bank of America ... Tennessee Gas Pipeline Co. ... AmeriGas Propane Inc. ... Nisource Inc. ... PowerSource Corp. ... Invensys Measurement Services ... Harza Energy ... Capstone Turbine
Dynegy Inc. said it completed the previously reported acquisition of the 1,200 Mw Roseton and 500 Mw Danskammer electric generating plants in Newburgh, NY, from Central Hudson Gas & Electric Corp., a unit of CH Energy Group Inc.; Niagara Mohawk Power Corp.; and Consolidated Edison Co. of New York for $903 million. Central Hudson said it received $296 million for its interest in the two plants. Dynegy said it entered into an agreement through which it will supply a small portion of the power generated at the facilities to Central Hudson for 3-4 years.
Alcoa Inc. awarded Aquila Energy, a wholly owned subsidiary of UtiliCorp United Inc., a 5-year contract to supply the power needs of Alcoa's aluminum smelting facility in Badin, NC, Aquila reported. The contract provides risk management for both power and the impact of weather on the energy production of Alcoa's generating units. UtiliCorp also reported it is offering $250 million in unsecured, 10-year senior notes at a coupon rate of 7.95%. Net proceeds will be used to reduce short-term debt and for general corporate purposes.
Williams asked the Federal Energy Regulatory Commission for authorization to reactivate LNG import services at its Cove Point terminal, Lusby, Md., and to increase capacity to 7.8 bcf from 5 bcf. The reactivation includes $103 million in modifications and construction of new facilities, including renovation and reactivation of the offshore pier and related facilities to accommodate unloading of LNG from tankers; construction of a fifth storage tank capable of holding 850,000 barrels of LNG; and construction of a btu reduction system. Initial import service is proposed to begin April 1, 2002, while the proposed in-service date for the fifth storage tank is Sept. 1, 2003.
El Paso Energy Corp. said job loses resulting from its acquisition of the Coastal Corp. totaled 3,285, including 1,635 workers who took early retirement packages. It said employees who were not retained are eligible to receive full severance benefits including a cash payment based on years of service, counseling, and job outplacement services.
Pluspetrol SA has retained GE Power Systems to supply a MS9001E gas turbine, generator, civil work, and site erection services under a $29 million contract for a 120 Mw power plant Pluspetrol is developing in Ave Fenix, Argentina, GE reported. Commercial operation is scheduled to begin in mid-2002. Pluspetrol will sell the power into the Argentinean wholesale market through CAMESA, a power distribution company. Natural gas will be the primary fuel.
Enermetrix.com Inc., Maynard, Mass., reported completion of a $35.5 million private equity offering which included three new investors, Cinergy Ventures, a unit of Cinergy Corp.; Alliant Energy Industrial Services, a unit of Alliant Energy Corp.; and Bank of America as well as follow-on investments from the company's existing investors.
Tennessee Gas Pipeline Co., a unit of El Paso Energy Corp., said it will begin a nonbinding open season Thursday for up to 450,000 dekatherms/day of capacity on its proposed Connecticut-Long Island (CT-LI) lateral project which will provide transportation service from the company's mainline facilities in Massachusetts to Long Island, NY. Service could commence as early as Nov.1, 2003, depending on the final project scope and receipt of all necessary regulatory approvals, the company said.
AmeriGas Propane Inc., general partner of AmeriGas Partners LP, reported the partnership has signed a definitive agreement to acquire the retail propane distribution businesses of Columbia Energy Group, a NiSource Inc. unit, for $208 million. The combination will create a company distributing more than 1 billion retail gal from over 700 locations. The company said the purchase, including transaction costs, will be financed with $163 million of debt and $53 million of AmeriGas partnership common units to be issued to Columbia Energy.
Williams reported yearend 2000 proved natural gas reserves of 1.2 tcf equivalent, compared with yearend 1999 reserves of 1.05 tcf equivalent. The company said it replaced 329% of its 2000 production of 65.6 bcfe representing a 13% increase over the prior year. Williams' exploration and production unit primarily drills for natural gas in the northern Rockies, New Mexico's San Juan Basin, and onshore along the Texas and Louisiana Gulf Coast.
California energy marketer PowerSource Corp. awarded Invensys Measurement Services, a unit of the UK's Invensys PLC, a contract to provide aggregation services for its noninterval metering customers, Invensys reported. The system will allow PowerSource to track customer consumption hourly and use the information to make informed power purchasing decisions based on usage patterns. Terms were not disclosed.
The Association of California Water Agencies (ACWA) said it signed an agreement with Harza Energy, a unit of Harza Engineering Co., Chicago, to make the engineering and installation of Capstone MicroTurbine power systems available to ACWA members' facilities. Through the agreement with ACWA, Harza Energy will provide services for the engineering and installation of 30 kw microturbines manufactured by Capstone Turbine Corp.