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Millennium, Southern Plan Extension to Power Plant

Millennium, Southern Plan Extension to Power Plant

The Millennium Pipeline Project and Southern Energy New York, the company that manages Southern Energy's New York assets, jointly announced Wednesday a plan to build an extension from the proposed Millennium Pipeline to the Bowline Power Plant in Rockland County, NY. The interconnect will be counted as an addition to Millennium which still awaits FERC approval.

The 1,215 MW, two-gas-turbine facility consumes up to 300 MMcf/d. "For that reason alone, this interconnect is significant," said Karl Brack, a Columbia Energy spokesman. Columbia Energy is the majority interest holder and operator of the Millennium project. "The entire capacity of the pipeline is 714 MMcf/d, and this interconnect, when it is running at maximum efficiency, will require a substantial amount." Brack said the interconnect should pose no problem to build because Millennium's proposed path runs through the Bowline facility's property. "The interconnect would be very short, like a matter of a few yards."

If the interconnect is built, Southern would have to purchase gas from one of the marketers that has been allocated capacity on the pipeline. The marketers that have capacity on the Millennium system are Stand Energy Corp., Columbia Energy Services, CoEnergy (an MCN subsidiary), Engage Energy (a Westcoast Energy and Coastal Corp. affiliate), Renaissance Energy, TransCanada Gas Services, Duke Energy Trading and Marketing, PanCanadian Petroleum Co. IBM, and North East Heat & Light Co. (an LDC) are the only other shippers to have capacity on the system.

The 442-mile, 36-inch diameter Millennium Pipeline is proposed to extend from its point of origin in Lake Erie to Westchester County, NY. Millennium currently has an application before FERC and is requesting approval in time to start operations by November 2000. Columbia Gas says it intends to begin construction in 1999 and to meet the planned in-service date of Nov. 1, 2000.

Last November, Southern Energy bought all of Orange & Rockland's generating assets for $480 million. The sale totaled 1,776 MW with the Bowline facility accounting for the large majority of the generation. Southern Energy New York was created to manage these assets, a Southern Energy spokesman said, and it has plans for a $390 million, 710 MW upgrade plan.

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