CMP Natural Gas (CMPNG) said it has signed a long-term contract to deliver gas on a proposed pipeline lateral to a 540 MW gas-fired power plant being built in Westbrook, ME, by Calpine Corp. Construction of the $200 million electric generating facility is under way and Calpine said it will require gas service by June 1, 2000.

Pending Maine Public Utilities Commission approval, CMPNG plans to serve Calpine by building a new lateral that would interconnect with the nearby pipeline facilities that are jointly owned by Portland Natural Gas Transmission System and Maritimes & Northeast Pipeline.

“Having Calpine as a customer will help fulfill our overall strategy of serving both large and small customers throughout Maine and is a reflection of our ability to provide timely, competitively priced services in a rapidly changing energy market,” said CMPNG CEO Tim D. Kelley.

CMPNG began construction of its first local distribution system in Windham, ME, earlier this year and began serving its first customer in May. The company is a joint venture of CMP Group, Inc., parent of Central Maine Power, and Energy East, parent of New York State Electric & Gas. Energy East announced plans last month to buy CMP Group for $1.2 billion in cash and debt (see NGI June 21).

©Copyright 1999 Intelligence Press, Inc. All rights reserved.The preceding news report may not be republished or redistributed in wholeor in part without prior written consent of Intelligence Press, Inc.