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Williams Inks Power Deal With Hoosier Energy
Williams said its new 170 MW gas-fired power plant under construction in Worthington, IN, will support a full requirements agreement with Bloomington-based Hoosier Energy and that Hoosier will have an option to buy the plant at the end of the contract term.
Under the agreement, Williams' energy marketing and trading unit will supply and manage Hoosier Energy's electricity requirements through 2002, subject to a potential one-year extension by Williams. Williams will provide the service by utilizing a number of resources, including the Worthington plant and Hoosier Energy's own generation. Financial terms of the agreement were not disclosed.
"Hoosier Energy has recognized the need to protect its customers from the volatility of the market, and Williams has the risk management experience and expertise to provide that shelter," said Bill Hobbs, president of Williams Energy Marketing and Trading. "The Worthington generating facility will establish a stronger presence for Williams in the ECAR market and provide much-needed power to meet the growing demand for electricity in the Indiana area."
Hoosier CEO Steve Smith said the arrangement provides mutual benefits by "maximizing the marketing and trading expertise of Williams and the competitive cost profile of Hoosier Energy's generating facilities. The agreement helps Hoosier Energy maintain its position as a stable, low cost power provider for the benefit of member systems. It's a significant risk management initiative that mitigates market exposure at times of unprecedented price volatility."
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