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FGT Expansion Receives FERC Nod

FGT Expansion Receives FERC Nod

FERC yesterday issued a preliminary determination (PD) for Florida Gas Transmission's Phase IV mainline expansion project in which it seeks to meet the growing gas needs of the burgeoning power generation market in Florida.

The project calls for the construction of 205 miles of pipeline and associated compression facilities in Mississippi, Alabama and Florida, which when combined with turned-back capacity on FGT's system, would enable the pipeline to provide about 327,000 MMBtu/d of additional firm service.

Shippers that have signed up for new capacity include mostly utilities: Florida Power and Light (FP&L), Florida Power, Kissimmee Utility Authority, Florida Municipal Power Agency, Peoples Gas System, Georgia-Pacific Corp., National Gypsum, and Enron Capital & Trade Resources.

The $350 million expansion has a proposed in-service date of May 1, 2001. The start-up is scheduled to coincide with the operation of FP&L's planned 1,500 MW combined-cycle power plant, which will have three times the capability of its two existing oil-fired steam generators. FP&L is the largest shipper on FGT's Phase IV project, with its maximum season daily contract demand ranging from 100,000 MMBtu/d to 255,000 MMBtu/d.

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