Electric Power news briefs, November 22
Tennessee Valley Authority ... Innogy Technology Ventures ... Sempra Energy ... New York Power Authority ... Wal-Mart Stores Inc. ... AES CILCO ... Danaher Corp. ... Dominion Resources ... United Power Corp. ... Edison Mission Energy ... Texaco Power & Gasification ... AstroPower Inc.
The Tennessee Valley Authority board approved construction of a first-of-its-kind 12 Mw power plant in Mississippi that will work like a battery, storing electricity during periods of low demand and providing it when power demand is high. The board approved a contract with the UK's Innogy Technology Ventures, a unit of Innogy Holdings PLC, to design the plant and provide the fuel cells. Construction could start as early as next spring and would take about 2 years. TVA staff members will identify a specific site for the new plant, which is expected to begin operation in 2003.
The California Energy Commission staff recommended certification of Sempra Energy's proposed 500 Mw combined cycle natural gas-fired Elk Hills power project in western Kern County, Calif. The proposed project will include a new 230 kv switchyard and a new 8.6 or 9-mile transmission interconnect to Pacific Gas & Electric Co.'s regional transmission system. The project is still subject to approval of the full commission.
The New York Power Authority (NYPA) reported it has selected sites for nine 44 Mw gas turbine electric generators designed to meet rising demand for electricity in New York City next summer and is considering a site for a 10th unit. The state Department of Public Service, in an Oct. 12 letter, cited "an urgent and compelling need" for at least 315 Mw of additional generating capacity in the city by next summer and said that it is "prudent and highly desirable" that still more capacity be installed in the city to assure system reliability.
Dominion Resources Inc. reported it has acquired the Fairless Works natural gas-fired power generation site being developed at the USX Industrial Park, Falls, Pa. Dominion said it expects to complete permitting and begin construction by the third quarter of 2001. The first 550 Mw is expected to begin commercial operation in the fourth quarter of 2003 and the second 550 Mw in the second quarter of 2004. Dominion acquired the rights to the facility from SWEC LLC., Morrisville, Pa. Terms were not disclosed.
Danaher Corp. said it executed a $100 million definitive agreement to acquire United Power Corp., a manufacturer of power quality products, from Delta PLC. The transaction is subject to regulatory and other customary closing conditions. Danaher expects the effect of the acquisition to be neutral to slightly positive to 2001 earnings.
AES Corp. reported waiving the financing condition in its offer to purchase 3.5 billion shares of Chile's Gener SA at the Chilean peso equivalent of $0.235294118/share (US). AES is also offering to purchase all outstanding Gener American Depositary Shares for AES common stock having a value of $16/ADS. As a result, the Chilean offer is no longer conditioned on the receipt by AES of sufficient funds to purchase the Gener shares sought in the Chilean offer and to pay all fees and expenses incurred in connection with the offers. The US offer is conditioned upon, among other things, the purchase of shares in the Chilean offer.
Edison Mission Energy (EME), an Edison International company, reported acquisition of rights to the Sunrise power project from in Kern County, Calif., from Texaco Power & Gasification, a unit of Texaco Inc. The Sunrise project will be completed in two phases. Phase 1 will consist of a 320 Mw simple cycle peaking facility scheduled to begin operating during summer 2001. Phase 2 will convert the peaking facility to a 560 Mw, combined cycle operation with an in-service date of summer 2003. EME said it will seek expedited permitting of the Phase II expansion under the fast-track authorization enacted by the California legislature.
Solar product manufacturer AstroPower Inc. said it temporarily postponed its follow-on financing due to market conditions. The company filed a registration statement on Form S-3 for 2 million shares Nov. 3 and had initially planned to complete the financing before the end of the year.