NICOR and GE Power Systems signed a memorandum of understanding,calling for GE to supply NICOR with GE-Elliott Energy Systems (EES)turbo alternators for sale to customers in the midwestern UnitedStates.

Under a sales agreement expected to be completed within 90 days,NICOR will be GE’s exclusive distributor for turbo alternators(also referred to as microturbines) in Illinois and Wisconsin, andGE’s non-exclusive distributor in the remainder of NICOR’sterritory, which includes Indiana, Ohio, Minnesota and Michigan.The agreement also provides for NICOR’s sales to multi-site,national accounts on a non-exclusive basis.

In May, GE signed an agreement to become a global distributor ofEES’s new line of turbo alternators. The GE-EES turbo alternatorsare being developed in 45 kilowatt (kW), 80 kW and 200 kW unitsizes, and can operate on a variety of liquid and gaseous fuels.The units to be purchased by NICOR will be fueled primarily bynatural gas.

Turbo alternators offer an alternative to grid-supplied power,particularly during peak times. Turbo alternators can generatepower at the end-user site for 4-5 cents per kWh, which istypically 30 to 50% less than peak period utility rates forcommercial and light industrial customers throughout the majormetropolitan areas of the Midwest. In addition to cost savings,turbo alternators provide customers with a low-emission, low-noisealternative for ensuring reliability and power availability tocritical equipment such as lighting, computers, cash registers andair conditioning.

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