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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