Electric power news briefs, July 18

Calpine ... GE Power Systems ... Texas Eastern Products Pipeline Co. ... ARCO Pipe Line ... CMS Trunkline ... Bonneville Power Administration ... SeaWest WindPower Inc.


Calpine Corp. said it will purchase 21 turbines from GE Power Systems, a transaction it says is an important component of Calpine's 5-year strategic plan to have 40,000 Mw of generation on line by the end of 2004. This is Calpine's first large-volume turbine acquisition from GE, but the company said through this and other recently announced turbine procurement activities, it has diversified its turbine portfolio so that all major US turbine manufacturers supply Calpine. Senior Vice-Pres. Doug Kieta said, "Calpine's aggressive turbine procurement program enables the company to act decisively in announcing new power projects and enter new electricity markets across the country." Calpine will take delivery of 12 GE turbines in 2003, with the remainder of the contract to be filled in 2004. When operated in a combined-cycle application, the total generating capacity of the 21 turbines is 5,600 Mw.

The US Federal Trade Commission approved a plan for Texas Eastern Products Pipeline Co. LLC (TEPPCO) to acquire the assets of ARCO Pipe Line Co. The ARCO Pipe Line assets include APL's interest in the Seaway crude transportation pipeline from the Texas Gulf Coast to Cushing, Okla.; crude oil terminal facilities in Midland, Tex., and Cushing, including the line transfer and pumpover business at each location; an undivided ownership interest in both the Rancho Pipeline and the Basin Pipeline; and APL's West Texas Trunk System. TEPPCO expects to close the transaction, valued at $318.5 million, by July 20.

CMS Energy Corp. subsidiary CMS Trunkline Co. has 41 committed cargoes totaling about 110 bcf of liquefied natural gas that will be delivered this year to its Lake Charles, La., LNG terminal, which it claims is the largest operating open-access LNG import terminal in North America. "We have more cargoes confirmed so far this year than have been delivered in any year of the LNG terminal's 17-year history," said Christopher A. Helms, president of the CMS Panhandle Pipe Line Cos.

The Bonneville Power Administration (BPA) and SeaWest WindPower Inc. signed a predevelopment agreement for the 24-Mw Condon Wind Project July 17. BPA is considering a 20-year power purchase agreement for the project's output. The predevelopment agreement describes how SeaWest and BPA will cooperate while BPA conducts an environmental impact statement study. The Condon Wind Project would be located on private land in Gilliam County, Ore., near the town of Condon. SeaWest and BPA are interested in pioneering the Condon site to see if it is a dependable source of wind power. The Condon project is the first of what the company hopes will be between 300 and 500 MW of renewable energy projects in the Pacific Northwest.

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