Reliant Energy Increases Midwest Power Presence
Reliant Energy improved its West Coast portfolio last week by
announcing a six-year agreement with the Springfield, IL municipal
utility City Water, Light and Power (CWLP) to market its total 600
MW generation. Financial terms of the deal were not disclosed.
The announcement comes seven months after Reliant Energy
revealed its intentions of moving aggressively into the Midwest
market by agreeing to develop a 600 MW gas-fired power plant at
Wood River's refinery in Roxana, IL, which will go on line in 2001.
"We see the agreement with CWLP as an expansion of our commitment
to the Midwest merchant market that builds on our recently
announced 600 MW Cardinal Energy facility in Roxana, IL," said
Reliant Energy Wholesale Group CEO Charles Oglesby.
"This marketing agreement, as well as the Roxana plant are not
the linchpins to our Midwest operations; they are collectively more
of a beachhead," said Reliant spokesman Terry Naulty. "The deal
with the municipal increases our presence in an area where we want
to have a very large influence."
The contract allows for Reliant Energy to supply the gas to fire
the CWLP's generation, yet no firm commitments have been made.
Reliant plans to supply the gas for the Roxana plant, which
officials said burned 30 Bcf last year. The municipality said
several other parties attempted to sign with CWLP, but the names of
the other bidders were not disclosed.
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