Houston Industries Power Generation, a subsidiary of HoustonIndustries, signed an option agreement to purchase a 33-acre sitefrom the R.I. Resource Recovery Corp. This site is the planned homefor RI Hope Energy, a 500 MW merchant plant to serve deregulatedwholesale markets in Rhode Island and New England. RI Hope Energywill be in an industrial park currently being developed by RIRRC inJohnston, RI.

Steve Davies, project manager for the R.I. Hope Energy Projectsaid the plant will burn 90,000 MMBtu/d when it’s operating at fullload, about 85% to 90% of the time. Gas supply has not beencontracted for yet. The plant will be on a Tennessee Gas lateral,though. Down the road, Davies said the plant could access SableIsland gas. There are no contracts in place yet to sell the plant’spower output. Electricity will be marketed by Houston Industriesaffiliate NorAm Energy. The plant’s development is part of astrategy to secure generation assets in key markets across thecountry. NorAm Energy Management already has ties to the RhodeIsland electricity market as it was selected by the Rhode IslandFood Dealers Association to provide all of the energy needs of itsmembers, including electricity, natural gas, and energy efficiencyservices.

R.I. Hope Energy has applied to the Rhode Island EconomicDevelopment Corp. to have its project classified as being “ofcritical economic concern to the state.” By early June, permitapplications will be made with the Rhode Island Department ofEnvironmental Management and with the state’s Energy FacilitySiting Board.

Joe Fisher, Houston

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