Electric Power news briefs, Nov. 15

California energy expenses declined in October for the fifth consecutive month, the Department of Water Resources said. Total costs fell to $415 million in October, compared to September costs of $679 million, and nearly a half-billion dollar difference from August expenses. During October, the California Department of Water Resources paid an average of $13.4 million/day compared to $65 million/day paid in May. In terms of volume, the DWR purchased more than 4.6 million Mw-hr roughly the same volume as purchased in February.

Intel Corp., Santa Clara, Calif., introduced a new series of products for the emerging category of low-power, space-saving "ultra dense" servers. Ultra dense systems are commonly used for tasks such as web serving, firewall protection, and web caching. Richard Dracott, director of the enterprise products group, said demand for ultra dense servers is growing, particularly in internet data centers with a high priority on lowering power usage and real estate costs.

AES Corp., Arlington, Va., reported its IPALCO Enterprises Inc. subsidiary has issued $750 million senior secured bonds. The notes were distributed in two tranches, $375 million of which mature on Nov. 14, 2008, and $375 million maturing on Nov. 14, 2011. The 7-year notes were priced to yield 7.375% and 10-year notes to yield 7.625%. The net proceeds were used to retire bank debt at IPALCO with the remainder remitted to AES as a dividend.

PECO Energy Co., Philadelphia, Pa., a unit of Exelon Corp., said it completed 22 local projects in the Philadelphia suburbs for $4.6 million to meet increasing demand for natural gas and improve service reliability. The projects involved replacement of underground gas mains in many of the region's older boroughs, installation of larger distribution facilities, increasing supply to ensure proper distribution pressure, and extension of new mains to serve growing communities.

Duke Energy Gas Transmission, a unit of Duke Energy Corp., Charlotte, NC, said one of its Market Hub Partners subsidiaries has filed an application with the Federal Energy Regulatory Commission to develop a natural gas storage facility in Copiah County, Miss. Development plans filed today by Copiah County Storage Co. call for an initial natural gas storage capacity of 3.3 bcf, about 300 MMcfd of withdrawal capability and 150 MMcfd of injection capability.

A unit of Reliant Resources Inc., Houston, said construction has begun at Reliant Energy Bighorn, a 550 Mw combined cycle facility near Primm, Nev., scheduled to begin operation in late 2003. Reliant Energy Bighorn will utilize dry-cooling technology to reduce water requirements by more than 95% compared to a water-cooled plant.

Bonneville Power Administration signed an agreement with SeaWest Windpower Inc., San Diego, Calif., to buy the output of a wind power project under construction near Condon, Ore. The first stage of the 49.8 Mw project is expected to be completed in December. Terms of the transaction weren't disclosed.

Public Service Enterprise Group Inc., Newark, NJ, said the 2 Mw Central Eolica Alto Baguales wind turbine project in Coyhaique, Chile, has begun operation. The project will provide over 16 % of the electric needs of a rural area of southern Chile. The three units are the first wind projects in Chile and displace current diesel generation.

A unit of Royal Dutch/Shell Group and PacifiCorp, a unit of the UK's ScottishPower PLC, reported the 50 Mw Rock River I LLC wind power project has begun delivering electricity to PacifiCorp, Portland, Ore. The wind farm is owned by Rock River, a subsidiary of Shell WindEnergy Inc., and was built by SeaWest WindPower Inc., San Diego, Calif. PacifiCorp has a 20-year agreement to purchase the entire output of the project.

Entergy Corp, New Orleans, La., said it plans to build a 360 Mw electric generating facility on the grounds of the Indian Point Energy Center in Buchanan, NY.Entergy said the proposal is subject to approval by the New York Public Service Commission. It expects commercial operation to begin in 2004.

Rayle Electric Membership Cooperative, Washington, Ga., has signed a 14-year agreement under which a unit of Williams Cos. Inc., Tulsa, Okla., will manage the cooperative's existing 60 Mw power resources and load obligation, Williams said. Williams will serve partial load requirements beginning Jan. 1, 2002, and as existing contracts with other suppliers expire, Williams will serve 100% of Rayle's power requirements. Financial terms of the agreement were not disclosed.

Conectiv, Wilmington, Del., said it completed the sale of Conectiv Communications to Cavalier Telephone, Richmond, Va., as part of a return to the company's core energy business. The company is now exclusively focused on Conectiv Power Delivery, its regulated, transmission, and delivery business, and Conectiv Energy, its unregulated, wholesale energy business. Terms of the transaction were not disclosed.

BC Hydro and a unit of Synex International Inc., Vancouver, BC, have signed an agreement under which BC Hydro would buy electricity from two Synex proposed hydroelectric plants on Vancouver Island under a long-term contract. Synex said BC Hydro has advised it expects to provide final electricity purchase agreements in late December. Operation is expected to begin in 2004.