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 home for RI Hope Energy, a 500 MW merchant plant to servederegulated wholesale markets in Rhode Island and New England. RIHope Energy will be in an industrial park currently being developedby RIRRC in Johnston, 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 Services. The plant’s development is part ofa strategy to secure generation assets in key markets across thecountry.

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