Electric Power news briefs, Nov. 13

Calpine Corp., San Jose, Calif., said it has begun work on the 530 Mw gas-fired Osprey energy center in Auburndale, Fla. Output from the facility will help serve the needs of Seminole Electric Cooperative Inc. under a long-term contract. The Osprey plant is adjacent to Calpine's existing 150 Mw Auburndale Power cogeneration facility.

Canada's Boralex Inc. and Gaz Metropolitain Inc., Quebec, reported an agreement to develop, own, and manage gas-fired electricity and steam cogeneration facilities in Quebec. The companies said the deal was made in anticipation of Hydro-Quebec's impending call for tenders from private power producers for 4.6 Tw-hr of power in 2006.

An agreement between the Public Utility Commission of Texas and an affiliate of American Electric Power Co. Inc. known as Mutual Energy-CPL will guarantee provider of last resort electric service (POLR) for residential and small commercial customers in an area currently served by TXU Corp. covering 51 Northeast Texas counties when retail competition begins Jan. 1, 2002. The Mutual Energy - CPL average residential POLR rate will be 10.75¢/kw.

An agreement between the Public Utility Commission of Texas and an affiliate of Reliant Resources Inc. known as StarEn Power will guarantee provider of last resort electric service to residential and small commercial customers in an area currently served by TXU Corp. covering 45 North Texas counties. The StarEn Power average residential POLR rate will be 11.12¢/kw.

Wisconsin Energy Corp., Milwaukee, Wis., reported it agreed to sell $300 million of unsecured 5.50% senior notes due Dec. 1, 2008. The securities will be issued off an existing debt shelf registration filed with the Securities and Exchange Commission. The proceeds of the offering will be used to repay a portion of the company's outstanding commercial paper as it matures.

A unit of TXU Corp., Dallas, Tex., reported signing a multiyear contract, effective Jan. 1, 2002, to purchase 141 Mw of output from AES Deepwater Inc., a unit of AES Corp., Arlington, Va. The 141 Mw petroleum coke-fired plant will allow TXU to serve 30,000 Houston households.

Idaho Power Co., Boise, Ida., is asking that more than $100 million in costs the company incurred in implementing two conservation programs be included in the company's annual power cost adjustment next spring. If the commission approves, that amount will be considered for recovery from Idaho Power customers next year. The company claims it incurred the costs from two load reduction programs, one with irrigation customers and the other with Astaris, a Pocatello-based phosphorous plant.

TransAlta Corp., Calgary, Alta., said it agreed to issue $150 million of preferred securities to a syndicate of underwriters lead-managed by RBC Capital Markets and Scotia Capital Inc. Each security represents $25 principal amount of unsecured junior subordinated debentures, bears interest at 7.7%/year, and is redeemable at par by TransAlta at any time after 5 years. Proceeds will be used to fund construction of previously announced power projects, other investments, and general corporate purposes.

Washington state regulators today approved Bellevue,Wash.-based Puget Sound Energy's request to terminate its all-customer electric buy-back program Nov. 8, or 7 weeks early. With the decline in the cost of electricity, the utility unit of Puget Energy Inc. claimed the program is losing money. Current wholesale prices are about 3-4¢/kw-hr less than the 5¢ being credited to customers for their energy savings. The purpose of the buy-back program was to encourage conservation and reduce the company's power supply expenses.

The Missouri Public Service Commission has asked state utilities to supply information on their disaster and emergency preparedness plans, including procedures for dealing with possible terrorist threats to employees or facilities, computer systems, hazardous materials, and remote facilities. The commission will report its findings Dec. 31.

National electricity marketer NewPower Holdings Inc., parent of New Power Co., agreed to waive a $30 early termination charge for Georgia customers after state regulators raised concerns about a new $25 late payment fee the company instituted retroactively. The waiver is limited to customers who object to the late fee and want to switch to another supplier. The waiver ends Nov. 14.