UtiliCorp Energy Management (UEM) has been awarded a three-yearcontract to manage the energy requirements of Ash Grove Cement, anOverland Park, Kan.-based company operating facilities in ninewestern states. Financial terms of the agreement were notdisclosed. UEM will manage the cement company’s energy procurement,supply management, contract negotiations, and reporting and billingservices, as well as identify and implement energy cost reductionstrategies. UEM said the deal was important because it improves thegeographic presence of the company. Ash Grove Cement annually usesmore than 6.5 Bcf and 600,000 MWh at its facilities.
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Duke/Fluor Daniel has been awarded a contract by West GeorgiaGenerating Co. L.P., a subsidiary of Sonat Energy Services, toprovide engineering, procurement and construction services for a650 MW dual fuel, gas and distillate oil-fired power plant in UpsonCounty, GA. The power plant will be designed to use four PG7241(FA) gas turbines in simple-cycle operation. The $180 million powerplant, which will be built within the Thomaston Industrial Park inUpson County, is expected to be fully operational by June 1, 2000.A significant portion of the electricity from the plant will besold to Georgia Power under an existing power sales agreement.
Midcoast Energy Resources said Midcoast del Bajio has beenawarded a permit by the Mexican Energy Regulatory Commission tobuild a 59-mile, 16-inch diameter gas pipeline in the Bajio regionin the state of Guanajuato in central Mexico. The line will runfrom an interconnection with a Pemex near Valtierrilla to Leon andwill provide gas transportation services to parts of central Mexicothat currently do not have access to gas. Midcoast del Bajio willhold an open season from July 16 to July 26 for firm transportationcapacity on the proposed pipeline. And a series of informationalmeetings will be held jointly with Pemex to answer questions frompotential transportation customers and other interested parties.The meetings will be held on June 24 in Irapuato, Guanajuato at theHotel Parador del Rio and on June 25 in Leon, Guanajuato at theFiesta Americana Hotel.
Under the “Energize RI” program, Providence Gas Co. (ProvGas)has been awarded $2.45 million by the Rhode Island Public UtilitiesCommission (PUC) for losses attributable to external forces theutility experienced last winter. The original request was grantedby the the PUC’s Division of Public Utilities and Carriers (theDivision) in March but it was subject to PUC approval.
Under the “Energize RI” program, Providence Gas Co. (ProvGas)was awarded $2.45 million Wednesday by the Rhode Island PublicUtilities Commission (PUC) for losses attributable to externalforces the utility experienced last winter. The original requestwas granted by the the PUC’s Division of Public Utilities andCarriers (the Division) in March but it was subject to PUCapproval.
Cumberland County awarded South Jersey Energy, the marketingaffiliate of South Jersey Industries, a one-year gas supplycontract yesterday. A company spokesman said the contract was worth$500,000. South Jersey will supply gas to all municipal facilitiesand aims to save the county government 20% off its regular gasbill. The announcement marks South Jersey’s third contract with NewJersey county governments in the past 12 months. It also has supplydeals with Atlantic and Camden Counties.
The Mexican Energy Regulatory Commission (CRE) awarded thelicense to build and operate a gas distribution system in the LaLaguna-Durango geographic zone in north-central Mexico toDistribuidora de Gas Natural de La Laguna-Durango S. de R.L. deC.V. (DGN), wholly owned by San Diego-based Sempra EnergyInternational.
After a week of offers, acceptances and counter-offers, Southern Union and Oneok are now waiting to see who is awarded the prize of merging with Southwest Gas. Both companies said they have reached the maximum they can offer. The only winners so far, according to a source close to the situation, have been Southwest Gas’ shareholders, who have seen the price for their shares vault from an original $28.50/share to $33.50/share.
Duke/Fluor Daniel said it has been awarded a turnkey contract byPanda Paris Power LP, to provide engineering, procurement,construction and start-up services for a proposed 1,000 MWgas-fired power plant in Paris, TX. “Power from the plant will bedistributed through TU Electric and will be sold to members of theElectric Reliability Council of Texas (ERCOT), the Southwest PowerPool (SPP) and other users,” said a spokesman for Dallas-basedPanda Energy, parent company of Panda Paris Power. Commercialoperation of the combined cycle power plant is scheduled for summer2000. Construction will begin next March.