Electric Power news briefs, Sept. 21
BP Gas & Power, a unit of the UK's BP PLC, will buy certain gas marketing and trading operations from TransCanada PipeLines Ltd., Calgary, including CanStates Gas Marketing, the contract to manage gas supply assets for SEMCO Energy Gas Co., and TransCanada's Omaha, Neb., gas marketing and trading operations, the companies said. The sale is expected to close in the fourth quarter, pending regulatory approvals. Financial terms of the agreement were not disclosed.
Neptune Regional Transmission System said it extended the open season for electrical transmission scheduling rights. Firm bids for Phase I Neptune RTS service linking New Jersey, New York City, and Long Island will be due Nov. 5. Indicative bids for the system�s subsequent phases II-IV linking Boston, southwestern Connecticut, New York City, Nova Scotia, New Brunswick, and Maine will be due Nov. 14th. Firm bids for phases II-IV will be due Dec. 21.
The California Energy Commission scheduled a Monday meeting for the public to hear details of a 500 Mw power plant proposed by Reliant Energy LLC, a unit of Reliant Energy Inc., Houston. If approved, the facility would be located near Williams. The project would be a natural gas-fired, combined cycle electric generating facility.
Niagara Mohawk Power Corp., Syracuse, NY, said natural gas will cost residential customers about 20% less this winter than last, assuming comparable weather and barring unforeseen circumstances in the market. As part of its proposed merger with National Grid PLC, a freeze on Niagara Mohawk's gas delivery charges would be extended by a year to August 2004.
Canada's National Energy Board said it received an application from the Manitoba Hydro Electric Board to construct a 230 kv international power line from Manitoba Hydro's Glenboro station in southwestern Manitoba to the international boundary near Killarney, Man. Manitoba Hydro has entered into an agreement with US companies Northern States Power Co. and Otter Tail Power Co to build the power line. The estimated cost of the Canadian portion of the line is $22 million (Can.) and the estimated cost of the US portion is $30 million (US). The proposed in-service date is October 2002.
Four of Wisconsin's investor-owned utilities, including Wisconsin Electric, a unit of Wisconsin Energy Corp., Milwaukee, have asked the Public Service Commission of Wisconsin to recover costs associated with the formation of American Transmission Co. Wisconsin Electric is requesting $58.8 million in rate relief, equivalent to a 2.8% increase in customer bills or $1.26/month. The utilities also are seeking recovery for associated incremental transmission costs of the Midwest Independent System Operator.
Minnesota-based NRG Energy Inc. will not be able to win the regulatory approvals needed to acquire the last of Connecticut's most polluted power plants from Wisconsin Energy Corp., the companies said. The fossil-fueled power plants, located in Bridgeport and New Haven, Conn., are operated by Wisconsin Energy's subsidiary, Wisvest Connecticut LLC. The company anticipated earning $350 million from the sale.
Total Austral SA, a subsidiary of France's TotalFinaElf SA, has completed the purchase of AES Corp.'s interests in the Argentine hydroelectric facility Hidronequen, AES said. Total Fina purchased AES Gener's 70% interest in Hidronequen for $72.5 million as well as subordinated debt related to Hidronequen held by AES Gener for $50 million. AES, Arlington, Va., agreed last year to sell both Hidronequen and Central Puerto in conjunction with its tender offer for Gener SA.
A Canadian unit of Calpine Corp., San Jose, Calif., completed the acquisition and assumed operations of two Canadian power generating facilities from British Columbia-based Westcoast Energy Inc., the company reported. The acquisition adds 275 Mw of gas-fired generation to Calpine's Canadian power portfolio. Calpine acquired the generating assets for $255 million (US).
Newfoundland Power Inc.'s $54.6 million capital budget for 2002 was approved by the Newfoundland & Labrador Board of Commissioners of Public Utilities. Philip G. Hughes, Newfoundland Power CEO, said the company will invest $55 million to improve customer service, reliability, and safety. Separately, Newfoundland Power said it closed a $40 million (Can.) deal to acquire 70,000 joint use poles and related infrastructure from Aliant Telecom Inc. in Newfoundland Power's service territory.