Nicor Inc., whose principal business includes Nicor Gas, andDynegy Inc., formerly NGC Corp., yesterday announced they haveformed a strategic alliance to jointly pursue wholesale generationand cogeneration power plants in six states in the Midwest.
Specifically, the alliance plans to develop, build and/oracquire new power plants, cogeneration facilities and powergeneration assets in the 50-500 MW range in Illinois, Wisconsin,Indiana, Iowa, Minnesota and Missouri. However, it will have theflexibility to take on even larger projects, according toNaperville, IL-based Nicor.
Associated capital requirements are estimated to be up to $250million per project. Potential customers will include industrialbusinesses, energy utilities and municipalities, the alliancepartners said.
“With the growing electric demand in this region, deregulationof the energy industry and predicted shortfalls in electricgeneration, we see excellent potential for this alliance tosuccessfully develop and own generation assets,” said Tom Nardi,Nicor vice president. Likewise, the alliance fits with theHouston-based Dynegy’s overall strategy of aligning itself withcompanies on a regional basis, noted Dan Ryser, president ofsubsidiary Dynegy Power.
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