Construction is scheduled to begin this month on the PacificNorthwest’s first merchant power plant, a natural gas-fired 500 MWplant in the southern Oregon city of Klamath Falls just north ofthe California border and east of the Cascade Mountains. Commercialstart-up is scheduled for July 2001. The City of Klamath Falls,using $300 million tax-exempt public revenue bonds, will own theplant. PacifiCorp Power Marketing will build, manage, operate andfuel the plant. And PG&E Gas Transmission/NW will transport gasthrough an enlarged portion of its 80-mile, east-to-west MedfordLateral off its main north-to-south interstate pipeline thatcarries Canadian supplies to markets in California as well as thePacific Northwest. The plant is expected to need about 9 MMcf/d forits peak output. The City of Klamath Falls will use half of theplant’s electricity generation to operate municipal facilities, andPacifiCorp will market the remaining power, mostly to surroundingprivate- and public-sector utilities.

Coral Energy LP and affiliates will be responsible for the powermarketing and fuel supply for the Pine Bluff Energy Center, to bemanaged and operated by SkyGen Energy LLC. The Pine Bluff EnergyCenter will be a 228 MW gas-fueled cogeneration plant developed bySkyGen adjacent to International Paper Co.’s mill near Pine Bluff,AR. As part of the deal, Coral has joined SkyGen as an equity ownerof Pine Bluff Energy LLC, which will own the project. Ownershippercentages and terms were not disclosed. The center will be one ofthe first new merchant generating plants operating in Arkansas.Commercial operation is planned for the second quarter of 2001.

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