The Coastal Corp.’s Colorado Interstate Gas Co. (CIG) hasplotted a route for a lateral that will deliver gas to a planned478 MW power plant south of Colorado Springs, CO, as well asprovide for growth in gas demand along Colorado’s Front Range.

The Nixon lateral will 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.

“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 pipewill be either 16 or 20 inches in diameter, depending on finaldemand requirements. The spokesman said it is too early todetermine the lateral’s impact on shipper rates.

CIG plans to file with the FERC in June and expects to beginconstruction on the lateral in March 2002. In-service is plannedfor August 2002.

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