Duke Building 3 Plants, Selling 1
Duke Energy North America (DENA) announced the start of
construction of three new merchant generation projects totaling
1,500 MW. At full capacity, each plant will burn about 3,300
MMBtu/hour. In a fourth deal, DENA announced the sale of its
remaining 78.5% interest in the 500 MW Hidalgo Energy Facility to
an affiliate of Calpine Corp. for $235 million.
DENA's portfolio currently includes 4,400 MW in operation; nine
sites under construction totaling 4,500 MW; and an additional
14,800 MW in advanced development, scheduled for commercial
operation by summer 2003.
DENA is constructing three new 500 MW gas-fired, combined-
cycle, generating plants to serve growing demand and reliability
needs in the southeastern and south-central United States.
Construction has begun on the McClain Energy Facility in Newcastle,
OK; and the Hinds Energy Facility in Jackson, MS; and will soon
begin at the Attala Energy Facility, located between McAdams and
All three plants will be operational by second quarter 2001.
Duke Energy's Texas Eastern Transmission will transport fuel to the
two plants in Mississippi. The Oklahoma plant will be served by
Oklahoma Natural Gas.
The Hidalgo Energy Facility being sold to Calpine is a 500 MW
gas-fired, combined-cycle generation plant in Edinburg, TX. DENA
broke ground on the facility this quarter and expects commercial
operation to begin by June. The Hidalgo purchase includes a cash
payment of $134 million and the assumption of $101 million of debt,
which represents the completed cost of the plant.
Calpine also is building a 730-MW natural gas-fired facility in
Edinburg, to serve the South Texas market. The Magic Valley
facility is expected to be on line in the summer of 2001.
Joe Fisher, Houston
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