The Coastal Corp.’s Colorado Interstate Gas Co. (CIG) istargeting a new power plant and local demand growth with a lateralto deliver gas along Colorado’s Front Range. The line would serve aplanned 478 MW power plant south of Colorado Springs.

The Nixon lateral would deliver up to 85,000 MDth/d to the powerplant to be built by Front Range Power LLC, which is jointly ownedby Colorado Springs Utilities (CSU) and Coastal Power Co. Theplant, located near CSU’s Ray D. Nixon Power Plant, will use twogas turbine generators and is scheduled for completion in thefourth quarter of 2002. CSU will use the power to meet increasingdemand in the Colorado Springs area, and capacity will be marketedto other users in Colorado and neighboring states.

A spokesman said an existing CIG customer is expected to take25,000 to 27,000 MDth/d of capacity on the lateral, but he said hecould not name the customer.

“Demand for electricity in the Front Range is continuing togrow, and natural gas is proving to be the fuel of choice for newelectric generation,” said CIG CEO Jon Whitney. “CIG has beenexpanding its system to connect the growing natural gas supply inthe Rocky Mountain region with the increasing demand for naturalgas. This project is a perfect fit with the supply growth on thenorthern part of our system.”

The Nixon lateral will be about 85 miles long, running fromCIG’s Watkins Station east of Denver, following existing CIGpipeline right-of-way to a meter station south of Colorado Springs.The planned route will deviate from the existing right-of-wayaround areas in Douglas County, which have been substantiallydeveloped since the original pipeline was constructed.

The pipe will be either 16 or 20 inches in diameter, dependingon final demand requirements. The spokesman said it is too early todetermine the lateral’s impact on shipper rates. CIG plans to filewith the FERC in June and expects to begin construction on thelateral in March 2002. In-service is planned for August 2002.

Joe Fisher, Houston

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