Thanks to a new deal with CMS Energy’s Panhandle EasternPipeline Co., three FirstEnergy gas turbines in Defiance, OH, willenjoy a 15-year supply of gas. The agreement, announced yesterday,makes FirstEnergy Panhandle’s seventh power plant customer. Neitherthe volumes nor the financial terms of the transaction weredisclosed.

CMS Panhandle will build a new tap, meter and up to 4.5 miles of12-inch diameter pipeline from its mainline Ohio system to theplant. Initial deliveries are expected to begin in April with fulldeliveries scheduled to begin in June.

CMS Panhandle Companies already provide 275 MMcf/d to plantsowned by Midland Cogeneration Venture in Midland, MI.; SitheEnergy/Independence Station in Oswego, NY; Soyland Power in Alsey,IL.; Electric Energy Inc. in Joppa, IL.; Indiana Gas/Cinergy Cayugain Vermillion County, IN.; Springfield CWLP in Springfield, IL.;and CLECO/Rodemaker in Alexandria, LA.

“From the beginning of 1999 through June of 2001, CMS PanhandlePipe Line Cos. will have 10 new gas-fired plants sited on itssystems that can generate approximately 4,170 MW of power,” saidChristopher Helms, president of CMS Panhandle Cos. “By June, CMSPanhandle Eastern will have five additional plants that cangenerate 1,620 MW and CMS Trunkline will have three additionalplants that can generate 1,340 MW of power. CMS Panhandle Easternalso has commitments from two other plants that will be able togenerate 1,210 MW by June of 2001.

“This contract continues the implementation of CMS Energy’scorporate strategy to provide new energy services for the growingnumber of gas-fired power plants in the United States,” Helmsadded. “CMS Panhandle plans to continue to expand its business baseby providing transportation, storage and other services to newgas-powered plants.”

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