Dynegy Inc. yesterday announced plans to develop its firstmerchant power plant to serve the growing electricity market inFlorida.

The 500 MW natural gas-fired peaking facility — to be known asthe Palmetto Power Project — will be located in Osceola County,about 30 miles southeast of Orlando. It plans to sell power in thewholesale market to public utilities, electric cooperatives andmunicipalities throughout the Sunshine State when commercialoperations start up in the summer of 2002, according to theHouston-based energy marketer.

“Florida is one of the most attractive markets in the countryfor new power plant development,” said Dynegy President SteveBergstrom. “A constrained transmission network, coupled with strongwholesale load growth opportunities, provides excellentopportunities for market participants with regional experience [in]developing, building and operating power generation facilities.”This, combined with Dynegy’s national power trading and fuel supplycapabilities, will enable the company to provide full service towholesale markets in Florida, he noted.

The Palmetto facility will include three advanced technologycombustion turbines operating in simple-cycle. It will generateelectricity using natural gas delivered by Florida GasTransmission, and a 230-kilovolt interconnection with Florida PowerCorp. and Florida Power & Light will provide transmissionaccess for power transactions.

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