Columbia Gas Transmission, has signed a multi-year agreement tosupply natural gas delivery service to FirstEnergy’s proposed 425MW power plant addition in Lorain, OH. The agreement is good for 10years.

The firm service contract will supply the power plant with amaximum of 140,000 Dth/d during the peak electricity usage summermonths and a minimum of 40,000 Dth/d for the rest of the year. Thethree new peaking units should be fully operational by summer 2001,contingent on the Ohio Power Siting Board approving the route ofthe gas transmission lines.

“This project illustrates the tremendous opportunities availableto serve growing, gas-fired electric generation markets in theMidwest,” said Catherine Good Abbott, pipeline CEO. “We thinktoday’s announcement is just the first of more to come, as thereare numerous projects in various stages of development throughoutour market area. The question now is not whether the demand will bethere; it is when,” she added.

During the construction on the 16.5-acre site next to the WestLorain Generating Station, FirstEnergy will convert two existing 60MW oil-fueled turbines to accommodate natural gas as well.

Within the next 3-year period, FirstEnergy is planning to add1,155 MW of gas-fired, peaking capacity to its already amassed12,000 MW system. This includes a brand new 390 MW project which isalready underway in Defiance, OH. The company says it will spendmore than $300 million on these projects.

FirstEnergy Corp. is a an energy and related services holdingcompany based in Akron, OH. Its electric utility companies operatein Ohio and Pennsylvania and include Ohio Edison, The IlluminatingCompany, Toledo Edison and Pennsylvania Power. The utilities makeup the nation’s tenth largest electric system, serving 2.2 millioncustomers within 13,200 square miles. FirstEnergy operates 16power plants with more than $6 billion in annual revenues and morethan $18 billion in assets.

Alex Steis

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