Combined heat and power (CHP), or cogeneration, is advocated for a dozen states heavily dependent on coal-fired power generation as a way to ease off of coal and address global climate change. CHP often relies on natural gas as its fuel source, although biomass, biogas and other fossil fuels also can be used. A report by the American Council for an Energy Efficient Economy predicts that in the next two decades there will be “substantial changes” in the way electricity is produced, and CHP is one of the tools for making the transition smoother and less carbon-intensive. “Energy efficiency, and CHP, in particular, represent significant near-term opportunities to make highly cost-effective investments in new energy resources,” said Anna Chittum, author of the report, “Coal Retirements and the CHP Investment Opportunity.” The report urges states to encourage their utilities to invest more in CHP as a means of meeting future demand.
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Articles from Cogeneration
FERC Asked to Reject SPP Request
Several alternative energy companies, qualifying cogeneration facilities (QFs) and electric power groups have asked FERC to reject a request by utilities located in the Southwest Power Pool (SPP) to be relieved of their obligation to enter into new contracts to purchase electricity from QFs or small power producers under the Public Utilities Regulatory Policies Act of 1978 (PURPA).
CMS Unit to Sell Stake in 1,500 MW Power Plant
Consumers Energy, the principal subsidiary of CMS Energy, has reached an agreement to sell the utility’s interests in the 1,500 MW Midland Cogeneration Venture power plant to GSO Capital Partners and Rockland Capital Energy Investments for $60.5 million.
NiSource Posts Large 2Q Loss on Discontinued Operations
With its exploration and production segment and cogeneration assets reported as discontinued operations, NiSource reported last week that net income for the second quarter of 2003 resulted in a net loss of $324.9 million, or $1.24 per share, versus net income of $25 million, or 12 cents per share, for the comparable 2002 period.
NiSource Posts Large 2Q Loss on Discontinued Operations
With its exploration and production segment and cogeneration assets reported as discontinued operations, NiSource on Wednesday reported that net income for the second quarter of 2003 resulted in a net loss of $324.9 million, or $1.24 per share, versus net income of $25 million, or 12 cents per share, for the comparable 2002 period.
Industry Briefs
American Electric Power has signed a deal with Dow Chemical toconstruct a new gas-fired cogeneration plant to be located on thesite of Dow’s Plaquemine, LA, chemical complex. The 900 MW plantwill provide both electricity and steam to power the complex thatpreviously supplied its own power. “The power plant will enable Dowto be more energy efficient in producing over 50 different productsat our 23 units and allow us to grow to meet the needs of ourcustomers,” explained Chris Mudd, Dow’s Energy Commercial Managerfor Louisiana. The project is expected to begin construction in2001, with a fully operational date set for 2002. AEP will buildthe facility, but Dow will take over the day-to-day operations ofthe plant. A majority of the power will be used by the Dow complexwith the remaining energy being sold to area customers underlong-term contracts by AEP.
New Cogeneration Plant Eyed for Midwest
Alliant Energy Resources Inc., announced plans yesterday topartner with Corn Products International Inc., a major cornrefiner, to build a 750-MW “co-generation” facility near Chicago,IL. The plant, which will be called Argo Power LLC, will produceenough electricity to serve 225,000 average homes when completed inthree years.
Industry Briefs
MCN Energy Group Inc. completed the previously announced sale ofits share of the Midland Cogeneration Venture Limited Partnership(MCV) in Michigan. Subsidiaries of Coastal bought MCN’s 23% interestin MCV for an undisclosed amount said to be near book value. MCV wasdesignated as a Qualifying Facility (QF) under the federal PublicUtility Regulatory Policies Act of 1978, or PURPA. PURPA requiresutilities to purchase power from QFs at the utilities’ avoided cost ofproducing power. MCN is selling its interests in three other QFs inanticipation of its pending merger with DTE Energy Co. (see Daily GPI,Oct. 6).
El Paso Merchant Power Collecting Cogens
El Paso Merchant Power has found a way to leverage itsregulatory expertise into a whole new business, buying up gas-firedcogeneration facilities across the country – and the power supplycontracts that go with them – to create “the lowest cost merchantpower plant portfolio being assembled in the industry.”
Calpine’s Buying Binge Engulfs CGCA
Acquisitive Calpine Corp. stuck to its strategy last Friday,saying it agreed to buy 80% of the Minneapolis, MN-basedCogeneration Corp. of America (CGCA) for $145 million. The proposedacquisition will increase Calpine’s gas-fired energy production to2,476 net MW of capacity, representing a 20% jump in production.Calpine expects to complete the deal in January.
