Electric Power news briefs, June 12
International Power PLC ... TXU Europe ... El Paso Electric Co. ... Edison International ... Lockheed Martin Corp. ... AES NewEnergy ... Tanir Bavi Power Co. ... PSEG Holdings Inc. ... GMR Vasavi Group ... Toyo Engineering Corp. ... GE Power Systems ... Reliant Resources ... U.S. Energy Systems Inc. ... Trigen Energy Canada Co. ... Exelon Generation Co. ... Machalpower LTDA ... Noble Affiliates
The UK's International Power PLC and TXU Europe, a unit of TXU Corp., Dallas, Tex., reported a joint agreement under which International Power will acquire the 1,000 Mw coal-fired Rugeley power station from TXU Europe for £200 million. The plant is located 25 miles north of Birmingham. The transaction expected to be completed by the end of June includes a tolling contract through the end of 2005 under which TXU Europe will provide coal for the plant and purchase its output, maintaining full access to the new NETA balancing market. Separately, International Power said the first unit at its 570 Mw Blackstone power plant outside Boston, Mass., has begun commercial service.
El Paso Electric Co., El Paso, Tex., said it filed an unopposed settlement proposal with the New Mexico Public Regulation Commission to settle the company's pending New Mexico rate case. Under the terms of the settlement proposal, El Paso Electric's base rates would remain frozen at current levels for an additional 2 years, while the fuel factor could be adjusted to ensure that there is no excessive under or overrecovery of energy costs. If approved by the commission, the new fuel clause for New Mexico customers would go into effect June 15.
Edison International and Edison Mission Energy reported Mission Energy Holding Co., a unit of Edison International, Rosemead, Calif., intends to offer $1.2 billion of its senior secured notes due 2008 to certain qualified investors and overseas purchasers. Mission Energy Holding Co. will be a new holding company for Edison Mission Energy. Net proceeds of the offering will be paid as a dividend to Mission Energy Holding Co.'s parent company, the Mission Group, which will in turn loan or otherwise distribute the net proceeds to Edison International. Edison International will use the funds to repay indebtedness maturing in 2001, the company said.
Lockheed Martin Corp., Bethesda, Md., has selected AES NewEnergy, a unit of AES Corp., Arlington, Va., as its electricity supplier for its Middle River facility in Baltimore. The 10-month contract to serve its full electricity requirements begins in July. Terms were not disclosed.
India's Tanir Bavi Power Co. said it has begun simple cycle operation of 170 Mw of its planned 220 Mw combined cycle plant on a barge south of Mangalore in the state of Karnataka. The plant is expected to begin combined cycle operation in July. Tanir Bavi Power Co. is a joint venture between PSEG Global, a unit of PSEG Holdings Inc., Newark, NJ, and the GMR Vasavi Group of India. Tanir Bavi Power has a power purchase agreement with the Karnataka State Electricity Board and escrow support from the Karnataka Power Transmission Corp. Ltd. Separately, PSEG Power said it received air permits from the Indiana Department of Environmental Management for its Lawrenceburg energy facility, a 1,150 Mw combined cycle, gas-fired power plant, in Lawrenceburg, Ind.
Toyo Engineering Corp., Chiba, Japan, has awarded GE Power Systems, a unit of General Electric Co., a $17 million contract to supply two gas turbine-generators for a 110 Mw cogeneration plant in Rayong, Thailand. The natural gas-fired plant will be constructed by Toyo Engineering and owned and operated by TLP Cogeneration Co. Ltd. The three major shareholders of TLP Cogeneration are the Electricity Generating Public Co.(EGCO), Bangkok, Thailand, Thai LNG Power Corp. Ltd.. which is 100% owned by EGCO, and Electric Power Development Co. Ltd., Tokyo. Shipment of the equipment is scheduled to begin at the end of this year, with commercial operation of the new cogeneration facility set for January 2003.
Reliant Resources, a unit of Reliant Energy Inc., Houston, said it reached an agreement with the Utilities Commission of New Smyrna Beach, Fla.(UCNSB), to enter into exclusive negotiations to explore continued development of the 500 Mw New Smyrna Beach power project. Development activities were started by Duke Energy, which recently terminated its agreement with UCNSB.
U.S. Energy Systems Inc., White Plains, NY, reported the acquisition of Trigen Energy Canada Co., an indirect subsidiary of Trigen Energy Corp. in a transaction valued at $18 million. The purchase is comprised of two district energy systems; one located in Charlottetown, Prince Edward Island, and the other in London, Ont. The transaction is accretive to earnings and is expected to add $10 million in annual revenues to U.S. Energy Systems, the company said.
Exelon Generation Co., a unit of Exelon Corp., Kennett Square, Pa., said it will sell $700 million of unsecured senior notes, bearing interest of 6.95%/year and maturing June 15, 2011. Proceeds of the notes will be used by Exelon Generation to repay an intercompany obligation of $696 million to its parent, Exelon Corp., incurred to fund the acquisition of a 49.9% interest in Sithe Energies in December 2000.
Machalpower LTDA Cia, a unit of Noble Affilates Inc., Houston, contracted with Washington Group International, Boise, Ida., for the engineering, procurement, construction management, and start-up services on a 240 Mw, $90 million gas-fired power plant in Machala, Ecuador, Washington Group reported. The plant will be supplied with gas from wells owned and operated by Noble's Energy Development Corp. Ecuador Ltd.