Dynegy and Nicor announced plans to jointly build a gas-fired,peak demand power generation facility in East Dundee, IL, in aneffort to provide relief for the Midwest’s “capacity shortfalls.”The 250 MW facility, called the Rocky Road Power Plant, is expectedto begin construction during the first quarter of 1999, and beginservice this summer. It is located 43 miles northwest of Chicago.The partnership, which is an even 50% split between the twocompanies, still seeks approval from local authorities andregulatory officials before it can start building. Nicor said theplant plans to use 1-2 Bcf per year.

The east Dundee plant is expected to go into service at the sametime as a 300 MW gas-fired power facility that is being jointly builtby Peoples Energy and Dominion Energy. The competing plant is locatednear Elwood IL, 60 miles southwest of Chicago. (See Daily GPI, May 29) Both plants will beoperated to meet demand on an as-needed basis. “We understand there iscompetition in the area,” said Nicor spokesman Carl Alston. “But westill feel that there is plenty of demand for our plant.”

Dynegy and Nicor announced their alliance and stated their combinedgoal of pursuing Midwest wholesale power assets last July (See Daily GPI, July 7). The Rocky Roadfacility is the first project the two companies have jointly embarkedon.

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