Conoco Global Power, Conoco’s power subsidiary, announced plansto build a $250 million, 420 MW cogeneration plant at Dupont’sSabine River Works facility near Orange, TX. Conoco also announceda 10-year tolling agreement with PG&E Energy Trading in whichthe San Francisco-based company will provide the 80-90 MMcf/d ofgas for the plant while gaining the right to dispatch up to 250 MWof the project’s output. The value of the tolling agreement was notdisclosed. Conoco will be the project manager during construction,then give way to Dupont, which will operate the facility when it isfinished. Commercial operations are scheduled to begin in 2001.”This is the largest agreement of this kind PG&E Energy Tradinghas in Texas. What’s more, this energy will be sold into theEntergy power grid, making it even more valuable,” said TonyChovanec, vice president of PG&E Energy Trading’s marketingoperations.

SRP, an electric utility for more than 700,000 customers in thegreater Phoenix area, Dynegy Inc. and Northern States Powersubsidiary NRG Energy, Inc. announced yesterday the creation of analliance to develop a 500 to 750 MW natural gas-fired,combined-cycle generating facility for the growing Phoenix-areapower market. The three companies are initiating the process toobtain the necessary siting permits and are considering multiplesites in Phoenix’s East Valley. The site of the project has notbeen finalized, although existing SRP properties at the KyreneGenerating Station in Tempe and the Santan Generating Station inGilbert are among the sites under consideration. Both Kyrene andSantan offer existing transmission facilities, natural gasconnections and convenient water supplies. Pending approval fromlocal and state authorities and regulatory officials, constructionon the project would begin in late 2000.

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