Generation

Industry executives who were expecting FERC to act soon on majorpolicy initiatives addressing second generation Order 636 issueswill be sorely disappointed. Commissioner Linda Breathitt saidyesterday she didn’t expect to see any action on the notice ofproposed rulemaking (NOPR) and notice of inquiry (NOI) for possiblyanother six months.

AES Corp., a major electric generation and distribution company, continued to shift its focus onto downstream operations by forming a new subsidiary, Power Direct, to compete for electricity and natural gas retail customers in U.S. markets. Power Direct already is licensed to sell electricity in New Jersey and anticipates the receipt of a license in Pennsylvania by the end of August. The company plans to begin marketing in those states in the near future.

AES Corp., a major electric generation and distribution company,continued to shift its focus onto downstream operations by forminga new subsidiary, Power Direct, to compete for electricity andnatural gas retail customers in U.S. markets, the company saidyesterday. Power Direct is already licensed to sell electricity inNew Jersey and anticipates the receipt of a license in Pennsylvaniaby the end of August. The company plans to begin marketing in thosestates in the near future.

The increase in prices is primarily attributable to increased demand for electric generation and storage injections.

Northern States Power Co. issued a request for proposals (RFP)for up to 1,200 MW of power generation capacity and associatedenergy for a period of 10 years, beginning sometime between May 1,2003, and May 1, 2005. NSP will use the additional resources tomeet increased retail customer demand. NSP is seeking peaking,intermediate and base-load resources. The RFP is open to allsources of power, including renewable resources. NSP will selectwinning proposals based on cost, environmental impact and deliveryguarantees. Before awarding the contract(s), NSP will submit theevaluation of the proposals to the Minnesota Public UtilitiesCommission (MPUC) for review. For a copy of the RFP or moreinformation, contact David L. Zuck at (612) 330-6452. He also maybe reached via fax, (612) 330-5868, or e-mail,david.l.zuck@nspco.com.

UtiliCorp United’s Aquila Energy signed a deal to supply gas tothe PowerSmith Generation facility near Oklahoma City, OK, Thecontract, which runs into 2004, is for 50 Bcf. “This is another ina series of long-term contracts that we’ve completed in the pastyear where we design unique energy risk migration arrangementsgiven specific independent power plant situations,” said Ed Mills,Aquila president.

UtiliCorp United’s Aquila Energy signed a deal to supply gas tothe PowerSmith Generation facility near Oklahoma City, OK, Thecontract, which runs into 2004, is for 50 Bcf. “This is another ina series of long-term contracts that we’ve completed in the pastyear where we design unique energy risk migration arrangementsgiven specific independent power plant situations,” said Ed Mills,Aquila president.

Texas Land Commissioner David Dewhurst last week presented aplan to a special senate committee on electric utilityrestructuring that would allow the land commissioner to convert thestate’s oil and gas earned from public lands into electricity andsell it to Texas schools, state agencies, and local governments.

J.P. Morgan & Co. will handle the auction of the non-nucleargeneration assets of Connecticut Light and Power Co. (CL&P), awholly owned subsidiary of Northeast Utilities, headquartered inBerlin, CT. The assets to be disposed of consist of 29 powerplants. CL&P’s power purchase agreements will be auctionedseparately in the near future.