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Industry Briefs

Industry Briefs

Construction is scheduled to begin this month on the Pacific Northwest's first merchant power plant, a natural gas-fired 500 MW plant in the southern Oregon city of Klamath Falls just north of the California border and east of the Cascade Mountains. Commercial start-up is scheduled for July 2001. The City of Klamath Falls, using $300 million tax-exempt public revenue bonds, will own the plant. PacifiCorp Power Marketing will build, manage, operate and fuel the plant. And PG&E Gas Transmission/NW will transport gas through an enlarged portion of its 80-mile, east-to-west Medford Lateral off its main north-to-south interstate pipeline that carries Canadian supplies to markets in California as well as the Pacific Northwest. The plant is expected to need about 9 MMcf/d for its peak output. The City of Klamath Falls will use half of the plant's electricity generation to operate municipal facilities, and PacifiCorp will market the remaining power, mostly to surrounding private- and public-sector utilities.

Coral Energy LP and affiliates will be responsible for the power marketing and fuel supply for the Pine Bluff Energy Center, to be managed and operated by SkyGen Energy LLC. The Pine Bluff Energy Center will be a 228 MW gas-fueled cogeneration plant developed by SkyGen adjacent to International Paper Co.'s mill near Pine Bluff, AR. As part of the deal, Coral has joined SkyGen as an equity owner of Pine Bluff Energy LLC, which will own the project. Ownership percentages and terms were not disclosed. The center will be one of the first new merchant generating plants operating in Arkansas. Commercial operation is planned for the second quarter of 2001.

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