Built

Noticing continued futures strength and a growing threat of newstorm shut-ins in the Gulf of Mexico, cash prices built onTuesday’s gains with even bigger ones Wednesday. Increases oneither side of 20 cents were common at nearly all points. TheCalifornia market, far removed from Gulf storm influence, sawsmaller gains of about a dime, although a Malin rise of 13 centsnearly fulfilled one source’s prediction of up 20 cents there (seeDaily GPI, Sept. 16) based on Tuesday’s intra-Alberta pricestrength.

UtiliCorp subsidiary Aquila Energy contracted for the option toprovide gas in exchange for power at one of three combined cyclepower units being built in Batesville, MS, by LSP Energy LimitedPartnership. The unit is expected to go on line by summer of 2000.Under the initial 15-year agreement, Aquila will provide gas to runthe unit, and in exchange LSP will provide Aquila the power andelectrical capacity.

Westinghouse reported last week that it had just built thelargest solid-oxide fuel cell (SOFC) generating system for a Dutchenergy distribution utility. The system, which runs on natural gas,is delivering 106 KW to the electric grid plus 80 KW of thermalpower to the area’s district heating system, according to thecompany. The unit is the first to integrate a natural gas reformerwithin the SOFC stack.