Fuel

Watertown Municipal Utilities chose Tenaska Marketing Venturesof Omaha, NB, to be its gas transportation and fuel manager for thenext five years. Watertown will buy about 8 Bcf of gas from Tenaskaover the contract term. The utility recently finished constructinga five-mile pipeline directly connecting it to Northern BorderPipeline. Previously, the utility moved gas on Northern Natural.Thecombined gas, electric and water utility serves about 20,000 innortheast South Dakota.

Public Service Co. of Colorado and Cheyenne (WY) Light Fuel andPower will continue to refuse imbalance payback gas at leastthrough today’s gas day. If operational constraints from warmregional weather continue, the two utilities said, the paybackrestriction will be extended.

South Carolina Electric & Gas will replace coal-burninggenerating equipment at its oldest fossil fuel facility in Aiken,SC, with two natural gas-fired turbines generating 150 MW each. The$180 million project at the Urquhart station will be designed andbuilt by Duke/Fluor Daniel for completion in June, 2002.

South Carolina Electric & Gas will replace coal-burninggenerating equipment at its oldest fossil fuel facility in Aiken,SC, with two natural gas-fired turbines generating 150 MW each. The$180 million project at the Urquhart station will be designed andbuilt by Duke/Fluor Daniel for completion in June, 2002.

Gas-rich Texas is moving to include preferences for the fuel andfor distributed generation in electric industry restructuring.

El Paso will take the Gallup (NM) Station’s B turbine down forsix hours today to calibrate fuel controls. Capacity out of SanJuan Basin will be reduced by 80 MMcf/d for today’s gas day only.

Public Service Co. of Colorado and Cheyenne (WY) Light Fuel& Power will implement Operational Balancing Procedures in allareas effective Saturday and Sunday. The effect is to requireshippers to cut nominations to a level that does not exceedestimated daily consumption taken from a previous “Model Day” (inthis case July 4, 1999). Imbalance paybacks will not be allowedduring the OBP period.

Edison Mission Energy, an Edison International companyestablished Midwest Generation EME LLC to own and operate Illinoisfossil-fuel electric generating plants to be acquired fromCommonwealth Edison later this year. Midwest Generation EME alsowill operate a coal-fired power plant in Homer City, PA, which wasacquired earlier this year.

LG&E Energy Corp. utility subsidiaries Louisville Gas andElectric and Kentucky Utilities received orders from the KentuckyPublic Service Commission (PSC) implementing performance-basedratemaking (PBR) effective July 2.