Electric Power news briefs, November 8
Bonny Gas Transport Co. ... Hyundai Heavy Industries ... Commonwealth Energy ... Forest City Commercial Group Inc. ... FirstEnergy Services ... New Power Co. ... Midwest Independent Transmission System Operator Inc. ... Commonwealth Edison Co. ... Plug Power Inc. ... PG&E Corp. ... CMS Viron Energy Services
LAGOS�Bonny Gas Transport Co., a subsidiary of Nigeria LNG (NLNG), has awarded a contract to Hyundai Heavy Industries to build an LNG carrier. The contract, the third in a series awarded by BGT to the South Korean firm, is to build a ship identical to the two vessels contracted last year. The third carrier is scheduled for delivery by the end of February 2003. It will carry the extra production capacity of LNG from NLNG's plant at Bonny. With the three new builds on order from Hyundai, the fleet serving NLNG will total 10 ships.
In the article, "Electric Power news briefs, Nov. 3" (OGJ Online, Nov. 3, 2000), in which it was reported that Empire Energy Corp. had reached an agreement in principle to acquire Commonwealth Energy Corp., Commonwealth Energy was incorrectly identified as a California-based power marketer. The Commonwealth Energy Corp. referred to in the brief is an exploration and production company based in White Rock, BC, which has E&P operations in Texas, Oklahoma, Wyoming, and Alberta. It is in no way related to Commonwealth Energy Corp., the California-based power marketer. OGJ Online regrets the error.
Forest City Commercial Group Inc., Cleveland, Ohio, signed an energy and facilities services agreement with FirstEnergy Services, a unit of FirstEnergy Corp., according to FirstEnergy. Under the agreement, FirstEnergy Services will be the exclusive provider of lighting, chiller replacements, facility automation, and energy conservation measures for Forest City's 17 commercial facilities in Massachusetts, New York, Ohio, Pennsylvania, Virginia, and West Virginia. Terms were not disclosed.
New Power Co. reported it filed an application with the Ohio Public Utility Commission to provide electricity in Ohio. The company said it will offer customers competitive energy prices, flexible payment, and pricing choices., plus such things as frequent flyer miles. Separately, the company said it signed a letter of intent with Community Energy Inc., to provide wind generated energy to customers in the Philadelphia area. The new wind turbines are scheduled to begin operation by yearend 2001.
Standard & Poor's said it revised its outlook to negative from stable on the Midwest Independent Transmission System Operator Inc. (MISO). Standard & Poor's also affirmed its triple-'B'-plus issuer credit rating on MISO. The action reflects enhanced risk to lenders that may result from Commonwealth Edison Co.'s recent decision to leave MISO, S&P said. A nonprofit, MISO will manage operations of a portion of the high-voltage transmission assets in the 12-state MISO service area and will repay debt obligations through a cost adder applied to certain transmission loads. ComEd is the largest member of MISO and contributes about 26% of the load that was initially forecast to incur the MISO cost adder. ComEd's defection could be felt financially through a larger MISO cost adder applied to remaining members, and operationally by introducing uncertainty, the ratings agency said.
Fuel cell developer Plug Power Inc. reported a third quarter loss, and said it will manufacture its first prototype commercial unit in the fourth quarter. The company said the net loss for the quarter ended Sept. 30, 2000, which includes a one-time noncash charge of $7.4 million related to stock-based compensation for its former chief executive officer, was $28.6 million, or 66�/share, compared to $9.8 million, or 38�/share, on fewer shares outstanding, a year earlier. Plug Power said its first commercial product, RU1, will be a fully integrated unit designed to convert natural gas into hydrogen-rich fuel that is passed through the system's fuel cell stack, where electricity is electrochemically generated.
PG&E Corp.'s National Energy Group said it filed an application with the Oregon Office of Energy to build a new combined cycle, gas-fired electric generating station in Umatilla County, adjacent to the company's operating power plant in Hermiston. The company hopes to begin construction on the plant in early 2002 and complete it in 2003.
Williamson County School District, Franklin, Tenn., awarded CMS Viron Energy Services, a unit of CMS Energy Corp., a $5.7 million energy performance contract, CMS said. CMS Viron will provide facility upgrades that will lower energy and operational costs by nearly $900,000/year for the 28-school district. CMS Viron reported it is financing the $5.7 million upgrade under a 10-year municipal lease, which will generate $9.6 million in energy savings based on guaranteed savings of $877,000/year.