Fired

Gregory Power Partners (GPP), a joint venture between LG&EPower and Columbia Energy’s Columbia Electric Corp., securedfinancing Monday for a new gas-fired co-generation project nearGregory, TX, allowing the partnership to proceed with powercontract obligations with Reynolds Metal Co., the second largestU.S. aluminum producer. Terms of the financing were not disclosed.

Columbia Electric Corp. and Westcoast Power Inc. are developinga 500 MW gas-fired generation plant in Pennsylvania. Each companywill own a 50% interest.

Florida Power Corp. has joined in the flurry of new energyprojects spurred by this summer’s record-setting heat wave, filingplans with the Florida Public Service Commission to accelerate thebuilding of a second generation unit at its Hines Energy Complex inPolk County. The unit will provide additional capability to meetgrowing demand for electricity well into the next century. Thecompany has offered to absorb construction costs for the plant inits current customer rates.

Consolidated Edison Co. of New York yesterday began auctioningoff all its fossil-fired generating stations located in New YorkCity. The assets up for sale total about 5,500 MWs of capacity andhave been divided into three groups, or bundles, with each to besold separately to third parties as part of the state’s effort topromote a competitive electric industry.

Temperatures that were 15.2% and 2.1% warmer than normal in thefirst and second quarters of the year, respectively, prompted theAmerican Gas Association to significantly scale back its gas demandforecast for the year. The association is projecting a 0.3% decline(0.1 quadrillion Btus -1 quad is roughly equivalent to 1 Tcf) ingas demand in 1998 to 22.6 quads in contrast to its Decemberforecast of 3.1% gas demand growth this year.

Peoples Energy and Dominion Energy announced they plan todevelop and operate a 300 MW gas-fired electric generating peakingfacility near Elwood, IL, 60 miles southwest of Chicago. The $90million project is expected to be completed in time to providepower to the grid in summer 1999.

Pacific Gas and Electric started its second auction of electricgenerating plants in Northern California, placing four gas-firedpower plants and the company’s geothermal facilities on the blockthis week. The auctions are in support of California’s move towardfull competition in the energy utility industry.

Houston Industries Power Generation (HIPG) completed its $237million acquisition of four gas-fired generating plants totaling2,276 MW from Southern California Edison. HIPG had submitted thewinning bids for SCE’s Ellwood, Mandalay, Etiwanda and Cool Waterplants, which have been renamed Oeste, Ocean Vista, Mountain Vistaand Alta Power, respectively.