Enron Corp. is jumping into the California electric power marketwith a plan to develop a 500-MW gas-fired, merchant power plant inPittsburg, CA. Although the figures are not their analysis, EnronCapital and Trade Resources officials said the state needs some6,000 MW of new generating capacity by 2002.

The Pittsburg plant — if built as planned — will be Enron’sfirst independent power plant in the U.S. The project is scheduledto begin commercial operation in the year 2001. When it does, about85% of electric production will be sold into the California PowerExchange on a merchant plant basis and the remaining 15% will besold to an existing steel mill, USS Posco. The steel mill is ajoint venture owned by U.S. Steel and South Korea’s Pohang Iron andSteel Co. The project is a partnership with the city. The city gets60% of the project, while Enron takes 40%. Enron will fund theentire plant and operate it.

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