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Reliant Energy Increases Midwest Power Presence

Reliant Energy Increases Midwest Power Presence

Reliant Energy improved its West Coast portfolio last week by announcing a six-year agreement with the Springfield, IL municipal utility City Water, Light and Power (CWLP) to market its total 600 MW generation. Financial terms of the deal were not disclosed.

The announcement comes seven months after Reliant Energy revealed its intentions of moving aggressively into the Midwest market by agreeing to develop a 600 MW gas-fired power plant at Wood River's refinery in Roxana, IL, which will go on line in 2001. "We see the agreement with CWLP as an expansion of our commitment to the Midwest merchant market that builds on our recently announced 600 MW Cardinal Energy facility in Roxana, IL," said Reliant Energy Wholesale Group CEO Charles Oglesby.

"This marketing agreement, as well as the Roxana plant are not the linchpins to our Midwest operations; they are collectively more of a beachhead," said Reliant spokesman Terry Naulty. "The deal with the municipal increases our presence in an area where we want to have a very large influence."

The contract allows for Reliant Energy to supply the gas to fire the CWLP's generation, yet no firm commitments have been made. Reliant plans to supply the gas for the Roxana plant, which officials said burned 30 Bcf last year. The municipality said several other parties attempted to sign with CWLP, but the names of the other bidders were not disclosed.

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