AES Says Williams Deal Is Just a Start
Following their recent plunge into California electricity
competition, the world's largest independent power producer,
Arlington, VA-based AES Corp., is combing the nation looking to
structure similar deals with a large natural gas/power marketer,
such as Williams Energy Services, according to a California-based
AES executive who operates throughout most of North America.
The deal AES signed with Williams to manage the input fuel and
output power from the Southern California Edison plants AES
purchased is a multi-year gas supply and power marketing contract
worth millions of dollars. Gas supplies, alone will average about
600 MMcf/d with peaks near 1 Bcf/d. Williams also will market all
of the power output from the three southern California coastal
plants. The plants have a combined peak capacity of 3,956 MW.
AES's Glen Davis, a vice president overseeing various domestic
projects, confirmed the company is looking at the hydroelectric and
fossil plants Pacific Gas and Electric Co. and San Diego Gas and
Electric Co. will be selling plants later this year.
"We're looking at them, but we haven't made any definitive
decisions to bid on any one set of assets," Davis said. "Until we
actually get to the point of deciding whether we can be
competitive, it is hard to say whether or not we will make other
"We don't really limit ourselves to one fuel or technology," he
said, adding that AES has no nuclear, however. It owns existing
hydro generation in South America and is developing new hydro in
Longer term, he said, AES will be "exploring ways to modify the
[Edison] plants, whether that means adding capacity or improving
efficiency, but nothing is cast in stone right now." Richard
Nemec, Los Angeles
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