Deregulation
InterGen takes on the Calif. crisis: InterGen’s 90 MW Larkspur Energy Facility is up and running in San Diego. The Larkspur plant is one of two InterGen facilities that comprise the Wildflower Energy Project, some of the first plants to be licensed under the California Energy Commission’s emergency siting process instituted upon Gov. Gray Davis’ order to expedite electricity plants that can be on line by Sept. 30, 2001.
Projects and Contracts
Calpine wants to add Calif. MW: Calpine Corp. said it is ready to begin building a “hotly-debated” power plant in the heart of California’s Silicon Valley as early as this fall, if state officials give it the go-ahead. A committee of the California Energy Commission has recommended approval of the proposed 600 MW natural gas-fired Metcalf Energy Center in south San Jose. Final approval by the Commission could come as early as August. The plant cost is estimated at $350 to $400 million.
PNM to energize TNMP: Texas-New Mexico Power (TNMP) and Public Service Company of New Mexico (PNM) have signed a long-term wholesale power contract, which runs from July 1, 2001 through Dec. 31, 2006. PNM will provide varying amounts of firm power to TNMP through 2002 to complement existing contracts. As those contracts expire, PNM will replace them and become TNMP’s sole supplier beginning Jan. 1, 2003.
CONSOL’s got the coal: CONSOL Energy Inc. has completed the purchase of American Electric Power’s (AEP) affiliate mining companies in Ohio and West Virginia. As part of the agreement, AEP will enter into coal supply arrangements with CONSOL to purchase approximately 34 million tons of coal from the affected mines and other CONSOL affiliate mines through 2008.
Tenaska, Kiowa to build Okla. plant: Tenaska Inc. and Kiowa Power Partners LLC began construction on the Kiamichi Energy Facility in early July. The 1,250 MW natural gas-fueled plant will be located in Pittsburgh County south of Kiowa and should be operational in 2003.
Legal and Regulatory
Southeast transmission line owners to form RTO: Eleven owners of transmission systems across Alabama, Florida, Georgia, Mississippi, and South Carolina reported signing a memorandum of understanding to develop a regional transmission organization (RTO) for the Southeast. A formal filing with the Federal Energy Regulatory Commission is expected by December 15. Alabama Electric Cooperative, City of Dalton (Ga.) Utilities, City of Tallahassee (Fla.), Georgia Transmission Corp., Jacksonville (Fla.) Electric Authority; the Municipal Electric Authority of Georgia, Santee Cooper (SC), Southern Co., and South Mississippi Electric Power Association agreed to work toward RTO status. If successful, the RTO would be one of the nation’s largest, covering more than 39,000 miles of transmission with an investment in assets exceeding $6 billion.
Xcel gets exemption: Xcel Energy has been granted an exemption from the routing process normally associated with building transmission lines in Minn. The Minnesota Environmental Quality Board found no significant impacts associated with Xcel’s proposed replacement of an existing 115 kV line between Willmar and Paynesville.
Indiana to cut NOx: Nitrogen oxide emissions from fossil-fueled power plants are expected to decline 66 percent by May 2004 in Indiana, under a new emissions trading system adopted by the Indiana Air Pollution Control Board. The rule, which is subject to EPA review, targets power plants, large industrial boilers and cement kilns.
BPA to increase rates: The wholesale rates of the Bonneville Power Administration (BPA) will increase by 46 percent on October 1. BPA spokesmen said that load-reduction agreements with Northwest power purchasers averted a possible 250 percent increase. BPA said it would look at rates every six months, assessing need and possible adjustment.
Executive Appointments
American Electric Power: Julio Reyes is the new Texas state president, replacing Alphonso Jackson, who is now deputy secretary of housing and urban development under the Bush administration.
CES International: Jeff Chapman has been named director of global alliances.
Public Service Enterprise Group: Dr. Shirley Jackson has been elected to the board of directors.
Allegheny Energy: Peter J. Daily is vice president, corporate development.
CMS Energy: Curtis Lizzi has been promoted to vice president, wholesale gas trading. Patrick Grimes was promoted to vice president, financial gas trading.
National Energy Marketers Assn.: Bob Dickerman, president of Sempra Energy Solutions, has been elected vice chairman.
Pirelli Cables and Systems: Mark Andrews has been appointed president and CEO.
AEA Technology Engineering Software: Chris Reid is president and CEO of its CFX division.
