Panda Energy International inked a firm electrical transmissionagreement with Arizona Public Service to supply power from itsproposed natural gas-fired 2,000 MW plant to be located in the townof Gila Bend. The proposed plant is before the Arizona CorporationCommittee for review. Senior vice president of merchant plantdevelopment for Panda, Garry Hubbard, said that the firm contractis “a critical step forward for the plant.” The new plant is onschedule to commence construction later this year, with start up 18months later, he added. Powering the plant will be eight GeneralElectric 7 FA natural gas turbines operating in combined cycle.

DukeSolutions has signed a $9.2 million energy cost reductioncontract with the Army Corps of Engineers to install and fundenergy-saving measures at the Charleston, SC, Air Force Base. Themeasures implemented by DukeSolutions will be paid for out of thebase’s expected energy cost savings of $840,000 a year. Thecontract will help the base comply with Executive Order 13123,which states that government agencies must cut energy use 30% by2005, and 35% by 2010, based on 1985 emissions levels.

Southern Company Energy Marketing reported that its secondquarter wholesale power sales declined slightly compared to lastyear but its wholesale natural gas sales increased. The companysold 46.7 million MWh of electricity during the second quarter,compared with 49.4 million MWh in 2Q99. And it sold 5.9 Bcf/d ofnatural gas, compared with 4.3 Bcf/d in 2Q99. Southern CompanyEnergy Marketing is jointly owned by Southern Energy Inc. andVastar Resources Inc.

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