In an effort to assist the Northwest meet its needs during the current energy shortage out West, the Bonneville Power Administration plans to establish a short-term policy that will encourage the immediate addition of electricity generation to help the region until planned long-term generation can be built. While the BPA will not fund construction of the generators nor buy the output, BPA said that the policy complements the load reduction strategy it has with its customers. In addition, BPA noted that customers who reduce their load on BPA by 10% would be allowed to use temporary small generators to supply a small portion of their needs. The agency has asked its customers to reduce their demands on BPA so that it can avoid expensive large power purchases in the wholesale market. Such purchases could lead to a triple-digit wholesale rate increase this October, according to BPA (see Daily GPI, April 11). The temporary policy would run from June 1, 2001 through Sept. 30, 2002. But the BPA said that before it implements the policy next month, it wants to hear from the public on the details of the plan. A public meeting on BPA’s proposed policy is scheduled for May 24 at BPA headquarters in Portland, OR.

Williams reported on Friday that one of its units has entered into an agreement with PSEG Power LLC. to build facilities to transport natural gas to PSEG’s 1,150 MW Lawrenceburg Energy Generating Station to be built in Dearborn County, IN. The plant, which will be located near Williams’ Texas Gas system, will be able to receive up to 220,000 Dth/d through a 5-mile pipeline lateral constructed by Williams. Service to the plant is expected to commence during the summer of 2002.

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