Gregory Power Partners (GPP), a joint venture between LG&EPower and Columbia Energy’s Columbia Electric Corp., securedfinancing Monday for a new gas-fired co-generation project nearGregory, TX, allowing the partnership to proceed with powercontract obligations with Reynolds Metal Co., the second largestU.S. aluminum producer. Terms of the financing were not disclosed.

The partnership began constructing the plant, which is designedto generate 400 MW of electricity while producing 1.5 millionpounds of steam per hour, in August of 1998 and is scheduled forcompletion by June 2000. It will be located on the site of theReynolds’ Sherwin Alumina plant and operated by LG&E. Theventure includes only the Gregory plant.

GPP has already agreed with Reynolds, maker of Reynolds Wrap, ona long-term contract for a sale of up to 55 MW and 1.5 millionpounds of steam per hour. Recently, the partnership also inked anelectricity sale with Dynegy, a gas supply and transportation dealswith Coral Energy Resources L.P. and a gas transportation deal withTejas Pipeline L.P.

“This is a good project for us and is consistent with ourcorporate strategy of continuing to grow our electric generationasset base in areas where capacity is needed,” said LG&Espokesman George Basinger, “Once completed, this plant will be oneof the lowest-cost generating facilities in Texas.”

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