Under a five-year tolling agreement announced last week withHouston-based Engage Energy, Southern Company Energy Marketing hasagreed to convert natural gas supplied by Engage into 300 MW ofelectricity. The agreement allows Engage to sell the electricityfollowing its conversion, which will be done at a power plantcurrently under construction in Zeeland, MI. The plant, beingconstructed by Southern Company Energy Marketing’s parent, SouthernEnergy, is expected to begin operations by mid-2001.

“The purchase of this tolling capacity from Southern CompanyEnergy Marketing supports Engage’s objective of acquiring strategicresources in core market regions,” said Engage CEO Clark C. Smith.”This capacity will enhance Engage’s ability to customize power andnatural gas products in Michigan and the upper Midwest markets.”

Atlanta-based Southern Energy began constructing the natural-gas fired plant in Zeeland in May, and it will use advanced natural gas combined-cycle technology and state-of-the-art emission control equipment (see NGI, May 15).Initially, it will have 300 MW of capacity, and an additional 530 MW will begin commercial operation by June 2003. Semco Energy plans to build the natural gas line to serve the facility, connecting the plant with ANR Pipeline’s interstate mainline system.

When the Zeeland plant begins operation, along with another550-MW plant in Arkansas currently being constructed, SouthernEnergy will top more than 10,000 MW in power-generation capacity itowns or controls in the United States. The company develops,builds, owns and operates power production and delivery facilities,and also offers other services to utilities and industrialcompanies worldwide.

Engage is a joint venture of The Coastal Corp., based inHouston, and Westcoast Energy Inc. in Vancouver, BC. It offersnatural gas and electricity sales and trading services, energymanagement, structured storage and transportation services, powermanagement and energy risk management services.

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