NGI The Weekly Gas Market Report / NGI All News Access

Peoples, Dominion to Build Chicago-Based Power Plant

Peoples, Dominion to Build Chicago-Based Power Plant

Peoples Energy and Dominion Energy announced they plan to develop and operate a 300 MW gas-fired electric generating peaking facility near Elwood, IL, 60 miles southwest of Chicago. The $90 million project is expected to be completed in time to provide power to the grid in summer 1999.

The plant is expected to be connected to multiple gas lines and Commonwealth Edison's electric transmission lines. "ComEd has been very cooperative as we work toward tying into their transmission grid," said Thomas Patrick, executive vice president of Peoples Energy. "The Elwood plant will offer an added source for electric power and enhanced supply reliability for northeastern Illinois, including Chicago."

The project marks People foray into the merchant power plant business. A spokesman said the Chicago local gas distributor was attracted by recent moves in the state toward electric restructuring. But its entry into merchant plant development also is part of an overall diversification strategy, which includes increasing activity in oil and gas exploration, electric power generation and the midstream energy business. Peoples has targeted to achieve 25% of its earnings from nonutility activities by 2002.

For Dominion, the deal "represents an extension of our strategy to grow our power generation and natural gas businesses in the Midwest and Northeast, home to about 40% of our nation's demand for energy," said Dominion CEO Thomas N. Chewning.

The two companies are finalizing a turnkey commitment with GE Power Systems for two turbine-generator sets and construction of the facility. Rocco Canonica

©Copyright 1998 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus