LG&E, Columbia in Cogen Venture for Aluminum Maker
Gregory Power Partners (GPP), a joint venture between LG&E
Power and Columbia Energy's Columbia Electric Corp., secured
financing last week for a new gas-fired co-generation project near
Gregory, TX, allowing the partnership to proceed with power
contract obligations with Reynolds Metal Co., the second largest
U.S. aluminum producer. Terms of the financing were not disclosed.
The partnership began constructing the plant, which is designed
to generate 400 MW of electricity while producing 1.5 million
pounds of steam per hour, in August of 1998 and is scheduled to
complete it by June 2000. It will be located on the site of the
Reynolds' Sherwin Alumina plant and operated by LG&E. The
venture includes only the Gregory plant.
GPP has already agreed with Reynolds, maker of Reynolds Wrap, on
a long-term contract for a sale of up to 55 MW and 1.5 million
pounds of steam per hour. Recently, the partnership also inked an
electricity sale with Dynegy, a gas supply agreement with Coral
Energy Resources L.P. and a gas transportation deal with Tejas
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