Dominion Resources and Peoples Energy announced plans to expandElwood Energy LLC’s peaking gas-fired power plant in Elwood, IL, byan additional 600 MW. The expansion to the state’s first merchantpower facility will double the capacity to 1,200 MW and is thesecond phase in a process that is expected to eventually bringtotal capacity of the plant to 3,100 MW.

The $230 million expansion will add four General Electric 150 MWgas-fired turbines. Construction to add the high efficiency,low-emission turbines will begin this summer and be completedduring the summer of 2001, in time to meet peak summer demand.

The Elwood facility is located adjacent to several interstategas pipelines that provide access to competitively priced gassupplies. The facility’s generators interconnect to a high-capacityCommonwealth Edison transmission corridor that provides delivery toMidwest power markets.

Contract discussions with potential purchasers of Elwood’sexpanded output are underway, but details are not available.Existing production is sold under multi-year contracts withCommonwealth Edison and Engage Energy US, LP. Elwood’s existing 600megawatts of capacity was placed in service in July 1999. Whenfully built, Elwood would be Illinois’ largest merchant facility.

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