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LG&E, Columbia in Cogen Venture for Aluminum Maker

December 14, 1998
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LG&E, Columbia in Cogen Venture for Aluminum Maker

Gregory Power Partners (GPP), a joint venture between LG&ampE Power and Columbia Energy's Columbia Electric Corp., secured financing last week for a new gas-fired co-generation project near Gregory, TX, allowing the partnership to proceed with power contract obligations with Reynolds Metal Co., the second largest U.S. aluminum producer. Terms of the financing were not disclosed.

The partnership began constructing the plant, which is designed to generate 400 MW of electricity while producing 1.5 million pounds of steam per hour, in August of 1998 and is scheduled to complete it by June 2000. It will be located on the site of the Reynolds' Sherwin Alumina plant and operated by LG&ampE. The venture includes only the Gregory plant.

GPP has already agreed with Reynolds, maker of Reynolds Wrap, on a long-term contract for a sale of up to 55 MW and 1.5 million pounds of steam per hour. Recently, the partnership also inked an electricity sale with Dynegy, a gas supply agreement with Coral Energy Resources L.P. and a gas transportation deal with Tejas Pipeline L.P.

John Norris

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