Avista Join Germans in Power Pact
Avista Corp. affiliate Avista Power and STEAG AG, Germany's
largest independent power producer agreed to form a joint venture
to develop, build and/or buy electric generation assets throughout
North America. Initial regions of interest include the Northwest,
the Southwest and the Southeast. Projects of interest include those
powered by natural gas, coal and hydro.
STEAG will buy a 50% interest in Avista Power to effect the
partnership and invest jointly with Avista in future projects.
STEAG also secured an option to purchase a minority interest in
Avista Corp. marketing and trading affiliate Avista Energy.
Avista and STEAG AG will have equal ownership in Avista Power,
which was formed to develop, build and buy generation facilities to
serve wholesale power markets throughout Canada and the United
States directly and in support of Avista Energy trading and
The partnership is STEAG AG's first foray into the U.S. energy
market, and the company will establish a U.S. subsidiary.
"Avista Power blends Avista Corp.'s established success in the
national energy business (through affiliate Avista Energy) with
STEAG's extensive worldwide experience in the design, construction,
financing and operation of electric generating plants (through
STEAG IPP International)," said T.M. Matthews, Avista Corp. CEO.
"This will also strengthen Avista Power's previously announced
venture with Cogentrix Energy Inc., and will strengthen Avista
Energy as STEAG exercises its purchase option."
Avista Power has two projects in development. The first project,
a 270 megawatt gas-fired combined cycle combustion turbine in
Rathdrum, ID, was announced in December. Co-owned by Avista Power
and Cogentrix Energy Inc. of Charlotte, NC, construction of this
plant is scheduled to begin in the third quarter with commercial
operation expected in the third quarter of 2001. The second
project, a 120 megawatt gas-fired combined cycle combustion turbine
in Lordsburg, NM, was announced earlier this month. Construction is
expected to begin this year with commercial operation in 2000.
Avista Energy will act as fuel manager and power marketer for the
electric generation facilities owned by Avista Power.
Avista Corp. owns/operates 11 generating plants (hydro, wood
waste, coal, and gas) in the Northwest with about 1,600 MW of
capacity. STEAG AG, through its IPP International division, owns
and operates eight plants (mostly coal) with 5,439 MW of capacity.
STEAG, with annual revenues of more than US$2 billion, is
headquartered in Essen, Germany and is a diversified group of
companies with international operations channeled through three
corporate divisions: Power Generation, IPP International and
Electronic Systems/Process Technology.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.