Panhandle Inks FirstEnergy to Supply Deal

Thanks to a new deal with CMS Energy's Panhandle Eastern Pipeline Co., three FirstEnergy gas turbines in Defiance, OH, will enjoy a 15-year supply of gas. The agreement, announced yesterday, makes FirstEnergy Panhandle's seventh power plant customer. Neither the volumes nor the financial terms of the transaction were disclosed.

CMS Panhandle will build a new tap, meter and up to 4.5 miles of 12-inch diameter pipeline from its mainline Ohio system to the plant. Initial deliveries are expected to begin in April with full deliveries scheduled to begin in June.

CMS Panhandle Companies already provide 275 MMcf/d to plants owned by Midland Cogeneration Venture in Midland, MI.; Sithe Energy/Independence Station in Oswego, NY; Soyland Power in Alsey, IL.; Electric Energy Inc. in Joppa, IL.; Indiana Gas/Cinergy Cayuga in Vermillion County, IN.; Springfield CWLP in Springfield, IL.; and CLECO/Rodemaker in Alexandria, LA.

"From the beginning of 1999 through June of 2001, CMS Panhandle Pipe Line Cos. will have 10 new gas-fired plants sited on its systems that can generate approximately 4,170 MW of power," said Christopher Helms, president of CMS Panhandle Cos. "By June, CMS Panhandle Eastern will have five additional plants that can generate 1,620 MW and CMS Trunkline will have three additional plants that can generate 1,340 MW of power. CMS Panhandle Eastern also has commitments from two other plants that will be able to generate 1,210 MW by June of 2001.

"This contract continues the implementation of CMS Energy's corporate strategy to provide new energy services for the growing number of gas-fired power plants in the United States," Helms added. "CMS Panhandle plans to continue to expand its business base by providing transportation, storage and other services to new gas-powered plants."

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