Jackson Electric Membership Corp., Jefferson, Ga. signed a 15-year power agreement under which a unit of Williams will manage Jackson's existing power resources and load obligation, representing requirements of 1,100 Mw in Georgia. Williams will begin serving Jackson's power requirements beginning Oct. 1, 2001. Financial terms of the agreement were not disclosed.
Sierra Pacific Resources and Enron Corp. reported mutually agreeing to terminate their purchase and sale agreement for Enron's wholly owned electric utility subsidiary, Portland General Electric Co.(PGE). Sierra Pacific Chairman Walter Higgins said completing the deal was becoming increasingly difficult given the existing market and political environment in the West.
Duke Energy Field Services (DEFS), a unit of Duke Energy Corp., through its wholly-owned subsidiary Duke Energy Midstream Services Canada Ltd., said it has entered into a definitive agreement to acquire the outstanding shares of Canadian Midstream Services Ltd. (CMSL). Following the completion of the proposed transaction, DEFS' net natural gas processing capacity in western Canada will increase to 555 MMcfd from 205 MMcfd. Terms of the proposed transaction were not disclosed.
Standard & Poor's downgraded California state bonds, citing the financial drain from its continuing energy crisis. The state's ability to repay its debts, while still considered adequate, has been reduced, S&P said in dropping the rating on California's general obligation bonds by two notches from AA to A+. The agency said the rating was not reduced further because of California's diverse economy and a proposed revenue bond slated to reimburse the state's treasury. S&P said a further downgrade could occur if California does not follow through on plans to issue more than $10 billion in revenue bonds to pay off its energy-related debts.
Panda Energy International Inc., Dallas, Tex., selected France's Alstom for a 170 million euro contract to deliver 20 heat recovery steam generators (HRSGs), of which four are on option, for gas-fired combined cycle power plants in the US, Alstom reported. The HRSGs will be delivered over the next 2 years, beginning with an order of eight for a 2,200 Mw power plant in El Dorado, Ark., being built as a joint venture between Panda Energy and TECO Power Services, a subsidiary of Tampa, Florida-based TECO Energy Inc.
Calpine Corp. said it has sold $850 million of zero coupon convertible debentures due in 2021 in a private placement. These securities will be convertible into Calpine common shares at a price of $75.35. Proceeds from the offering will be used to pay project finance debt and for working capital and general corporate purposes.
Pacific Gas & Electric Co. said it filed a motion with the US Bankruptcy Court asking the court to authorize it to pay past due amounts for 1,306 Mw of hydroelectric purchased power under contracts with several California irrigation districts and water agencies. Approval would also allow Pacific Gas & Electric to clarify with the irrigation districts and water agencies that these contracts are to be honored and retained for the benefit of customers going forward.
Consolidated Edison Co. of New York Inc. (Con Edison) said it will spend $483 million in 2001 on electrical distribution system upgrades. Over the next 5 years, the company said it would invest $2.4 billion to upgrade its electric delivery system, which serves New York City and Westchester County. The 2001 program includes $392 million on the distribution system, including $108 million for upgrades to cables and transformers; $17 million on transmission upgrades; and $74 million on substation installations and circuit breakers.
A subsidiary of US-based Brazilian Resources Inc. has received approval of the project design report and feasibility study for its proposed hydroelectric plant, S�Domingos II from ANEEL, Brazil's federal agency of electric energy. The SD II site is on the S�Domingos River in the state of Goias. The feasibility study recommends an installed capacity of 28 Mw. Construction costs are estimated at $29.4 million, the company said. Daniel R. Titcomb, CEO of the US company, said the company can now conclude negotiations on the power purchase agreement and project financing. In addition to the SD II project, Brazilian Resources has been pursuing development of a 12 Mw site, and the acquisition and expansion of several small operating hydroelectric plants.
Calpine Corp. awarded Kvaerner AS's engineering and construction division a $120 million contract to build a 563 Mw natural gas-fired combined cycle merchant power plant in Pennsylvania. Kvaerner said it would act as prime contractor for Calpine's Ontelaunee Energy Center, in Reading, Pa., carrying out the project on a union direct hire basis supplemented by specialty subcontractors.
Thailand's Electricity Generating PLC (Egco) has granted a 1.1 billion baht ($24.44 million US) contract to Japan's Toyo Engineering (TEC) to supply a 117Mw combined cycle power plant on the Thai eastern seaboard in the Rayong Industrial Park. The contract was extended through TLP Cogeneration Co. (TLP Cogen), an Egco subsidiary, to Toyo-Thai Corporation Ltd, the local branch of TEC. The plant is scheduled to begin operating in December 2002. TLP Cogen will sell 60 Mw of its electrical power to the Electricity Generating Authority of Thailand starting in January 2003 under a 21-year deal.
