Coral Energy affiliates have signed a deal to supply gas to andpurchase the power from the proposed 830 MW Tenaska GatewayGenerating Station in Rusk County, TX. Construction of the plant isscheduled to begin this summer and be completed in spring 2001. Aspart of the deal, Coral also has gained an equity position inTenaska Gateway Partners, which will build, own and operate thefacility. It is Omaha-based Tenasaka’s second power project in thelast two years. “Joining with Tenaska in the Gateway GeneratingStation supports Coral’s strategy to build a power generationplatform that complements our marketing and trading activities,”said Coral CEO Charlie Crisp. Terms of the deal were not disclosed.

The Gas Research Institute (GRI) predicted residential gasconsumption would grow at 1% per year through 2015 continuing atrack record that started in the mid-1980s. GRI’s 1999 ResidentialSector Summary, provides an in-depth look at key market andregulatory factors expected to shape future residential gas demand.Most of the projected growth in residential consumption is from gaswater heating, clothes drying, and hearth products, rather thanfrom home heating because of increasing heating efficiencies.Demand for gas-fired hearth products, the fastest-growingresidential gas technology, is projected to increase fourfold-from92 TBtu in 1997 to 354 TBtus in 2015. GRI predicts gas prices willdecline slightly, about 0.2% per year through 2015, whileelectricity prices are projected to drop 1.3% per year through thesame period. The study can be ordered by fax at 630-406-5995. Itcosts $20 for GRI members and $25 for nonmembers.

Dynegy said it plans to expand its gas-fired Rocky Road powerplant, a peaking unit located in East Dundee, IL. Dynegy isproposing to add a 100 MW turbine, increasing the generatingcapacity to 350 MW. Pending regulatory approval, construction couldbegin in the foruth quarter with completion next summer.

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