Kinder Morgan Power Co., a wholly owned subsidiary of KinderMorgan Inc. announced plans to build a 550-MW electric power plantin Jackson, MI. All the necessary regulatory permits and approvalshave been obtained, and construction on the $250 million naturalgas-fired plant will begin this month. Operations begin in June2002. CEO Richard D. Kinder said the Jackson station will be thesecond in a series of electric power plants that Kinder will buildusing its proprietary Orion configuration. The Orion projects usegas and steam turbine generator sets and auxiliary equipmentprovided by General Electric’s S&S Energy Products. Kinder saidthat electricity demand has increased nearly 35% in the state inthe past 10 years, but no additional power plants have been built.Michigan imports some of its electricity from other states. TheJackson plant will operate during intermediate- and peak-demandperiods to provide wholesale electricity to electric utilities andpower marketing companies.

The Public Utilities Commission of Nevada (PUCN) approved a $9.3million rebate for Sierra Pacific Power Co.’s electric and gascustomers that will become effective on their October bills. It isthe third and final installment of a “shared savings agreement”which enables customers to benefit from the operating efficienciesachieved by the company in 1999. For the typical residentialelectric customer, the rebate amounts to $11.26. For the typicalnatural gas customer, the rebate is $3.72. Electric customers willalso receive another 51 cents as part of a refund announced lastmonth, bringing the total rebate for electric customers to $11.77.In addition, electric prices today in northern Nevada remain lowerthan they were in 1994. The rebates are part of an agreement firstnegotiated with the Bureau of Consumer Protection and the PUCN in1997 that splits the proceeds from operating efficiencies achievedby the company during a three-year period. Under the agreement, anySierra Pacific earnings for 1997, 1998 and 1999 that exceeded acertain plateau were divided 50/50 between the utility’s customersand its shareholders. The company previously rebated customersclose to $20 million in May and August 1999 for savings attainedduring 1997 and 1998.

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