Under a five-year tolling agreement with Houston-based EngageEnergy, Southern Company Energy Marketing has agreed to convertnatural gas supplied by Engage into 300 MW of electricity. Theagreement allows Engage to sell the electricity following itsconversion, which will be done at a power plant currently underconstruction in Zeeland, MI. The plant, being constructed bySouthern Company Energy Marketing’s parent, Southern Energy, isexpected 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-gasfired plant in Zeeland in May, and it will use advanced natural gascombined-cycle technology and state-of-the-art emission controlequipment (see Daily GPI, May 12).Initially, it will have 300 MW of capacity, and an additional 530 MWwill begin commercial operation by June 2003. Semco Energy plans tobuild the natural gas line to serve the facility, connecting the plantwith ANR Pipeline’s interstate mainline system (see Daily GPI, May 16).

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. if 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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