A Southern California border spike of about 80 cents Friday,with a few quotes peaking in the lower $6.70s, was by far the mostattention-grabbing feature of a weekend market that was mostly flatto moderately higher but included a bit of backsliding at San JuanBasin/Rockies points.
Peaking
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Industry Briefs
Reliant Energy’s Shelby County, IL, peaking power plant begancommercial operation last Friday. The 340 MW natural gas-firedfacility marks Reliant’s first power generation project to be builtin Illinois. The facility, which is located about 180 miles southof Chicago, began construction in late February. The plant willoperate on its five current turbines until they are ultimatelyreplaced by eight General Electric LM 6000 natural gas turbines.The plant is expected to operate a maximum of four months duringthe summer each year.
Industry Briefs
Dynegy announced the second phase of development on theCalcasieu Generation Project, a gas-fired peaking facility nearLake Charles, LA. The addition of a 165 MW combustion turbine willbe completed during the second quarter of 2001, bringing the powerplant’s total generating capacity to a nominal 320 MW. Constructionon the initial 155 MW phase began during the fourth quarter of1999. Commercial operation will begin on June 1, 2000. “We’vedecided to expand the facility’s generating capacity in order tomeet the rapidly growing demands of the wholesale energy market inthe state of Louisiana and throughout the Southeast. If marketconditions warrant, this site could potentially see furtherexpansion beyond 2001,” said Steve Bergstrom, Dynegy president andCOO. The Calcasieu Generation Project is constructed on a 20-acresite within the Rose Bluff Industrial Area near Lake Charles. Gaswill be delivered through Koch Gateway and Sabine Pipe Line.Transmission access for power transactions will be delivered via a230-kV Entergy Services transmission line. In addition, Dynegyannounced it signed a five-year power purchase agreement with ClecoCorp., a regional energy services company based in Pineville, LA,to supply up to 310 MW of capacity and energy. The majority will besupplied by the Calcasieu Generation Project.
Dominion, Peoples Plan Expansion for Elwood Plant
Dominion Resources and Peoples Energy announced plans to expandElwood Energy LLC’s peaking gas-fired power plant in Elwood, IL, byan additional 600 MW. The expansion to the state’s first merchantpower facility will double the capacity to 1,200 MW and is thesecond phase in a process that is expected to eventually bringtotal capacity of the plant to 3,100 MW.
Industry Briefs
Dominion Resources and Peoples Energy announced plans to expandElwood Energy LLC’s peaking gas-fired power plant in Elwood, IL, byan additional 600 MW. The expansion to the state’s first merchantpower facility will double the capacity to 1,200 MW and is thesecond phase in a process that is expected to eventually bringtotal capacity of the plant to 3,100 MW. The $230 million expansionwill add four General Electric 150 MW gas-fired turbines.Construction to add the high efficiency, low-emission turbines willbegin this summer and be completed during the summer of 2001, intime to meet peak summer demand. The Elwood facility is locatedadjacent to several interstate gas pipelines that provide access tocompetitively priced gas supplies. The facility’s generatorsinterconnect to a high-capacity Commonwealth Edison transmissioncorridor that provides delivery to Midwest power markets. Contractdiscussions with potential purchasers of Elwood’s expanded outputare underway, but details are not available. Existing production issold under multi-year contracts with Commonwealth Edison and EngageEnergy US, LP. Elwood’s existing 600 megawatts of capacity wasplaced in service in July 1999. When fully built, Elwood would beIllinois’ largest merchant facility.
Prices Continue to Rise But Give Hints of Peaking
Cash prices rode the continuing tropical storm news and aninitially higher screen to further gains Wednesday, but there weresigns that the big run-up had just about run its course. Mostincreases in the East were between about a nickel and a dime. Whilethat range also held true in much of the West, northern Californiaonce again tended to outpace the general market with dime-or-moreupticks at Malin and the PG&E citygate.
Prices Up, But Some See Cash Market Peaking
Cash prices continued climbing by another nickel or more at mostpoints Wednesday, but traders sensed the market might have peakedfor the first week of the May aftermarket. They cited late dealsbeing done several cents below the early-morning highs. And the AGAstorage report of 34 Bcf in injections last week, although it cametoo late to affect Wednesday’s cash business, was regarded by manyas contributing to a more bearish mood. One source characterizedthe figure as “kind of middle of the road” (because it met theexpectations of many) but leaning slightly to the bearish side. Heand others noted the drop in Access futures prices after the reportcame out.
Reliant Energy Picks Illinois for Peaking Facility
In its latest bid to add generation assets to its growingportfolio, Reliant Energy selected a 125-acre plot of land inMcHenry County, IL, last week as the site to develop a 500 MW,gas-fired power plant. The cost of the project was not disclosed. AReliant spokesperson said the company hopes to have the plant inservice by mid-2001.
Reliant Energy Picks Illinois for Peaking Facility
In its latest bid to add generation assets to its growingportfolio, Reliant Energy selected a 125-acre plot of land inMcHenry County, IL, Tuesday as the site to develop a 500 MW,gas-fired power plant. The cost of the project was not disclosed. AReliant spokesperson said the company hopes to have the plant inservice by mid-2001.
ComEd to Sell 4,085 MW Of Fossil Generation
ComEd announced it plans to sell the Collins generating stationand the company’s peaking units in conjunction with the sale of itscoal-fired generation business. The company said it received anumber of attractive proposals for all the power plants during thefirst phase of its coal plant auction. A “short list'” of qualifiedbidders on all the plants is being compiled for the next phase.