Marking the start of what many expect to be a major trend overthe next few years, a Florida county authorized the construction ofa 460 MW gas-fired facility earlier this week. The $100 millionplant, which will be built and operated by Reliant Energy, willstart service in the fourth quarter of 2001. The Osceola CountyCommission Board approved the plan by a vote of 4-1.

“Reliant Energy Osceola is a key part of our Florida strategy toselectively develop power-generation capacity to meet growingdemand for electricity,” said Doug Divine, senior vice presidentgeneration development, Reliant Energy Wholesale Group. “This plantwill augment and complement area growth while providing power tothe local grid at times of peak demand for electricity.”

Reliant Energy Osceola will be located approximately 20 milessoutheast of Orlando on a 440-acre site. The project will consistof three, simple-cycle gas turbines and will be located nearFlorida Gas Transmission’s system. A Reliant spokesman said thatdoes not mean the plant will be fueled by FGT, however.Construction is scheduled to start in May.

All the signs point to a demand boom in Florida. The FloridaPublic Service Commission’s “Review of Electric Utility 199810-Year Site Plans” calls for more than 10,000 MW of new powergenerating capacity by 2007. The GRI expects the state’s gas demandto grow by 1.5 Bcf/d by 2015.

To accommodate this expected growth, two major pipeline projectsare proposed to bring gas into the state. Both projects, Coastal’sGulfstream project and a Duke and Williams joint venture called theBuccaneer Pipeline, are currently under review by FERC. Coastal’sproject expects to bring 1.1 Bcf/d into Florida by traversing theGulf of Mexico from Alabama. Buccaneer, which would travel much thesame path as Gulfstream, would deliver 900,000 Dth/d to Floridamarkets.

Two of the key players in these new pipeline projects, Duke andCoastal, are also attempting to grab a piece of the generationaction as well. Coastal Power Corp. has talked to the SouthwestFlorida Water Management District about possibly building a powerplant in that region of the state and Duke Energy Power Serviceshas already received approval from the state regulatory commissionto build the first merchant power plant in the state; a 500 MW,$160 million facility near New Smyrna Beach.

Yet problems await those companies wishing to take advantage ofthe generation demand. Opposition to the new plants, in the form ofIOUs and landowners, has taken the Duke subsidiary to the statesupreme court saying the PSC does not have the authority tocertificate a merchant power plant. The court heard oral argumentson the case in early February and should be issuing a decisionsoon.

Reliant, however, was excited about its county victory. “We arethrilled that the county commission saw the future need of ourproject and understood the quality development opportunity forOsceola County and the related benefits,” said Michael Sparks,director of business development, Reliant Energy Wholesale Group.

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