Plants

Dominion last week said that it has reached an agreement to acquire three electric power generation facilities from USGen New England Inc., a subsidiary of National Energy & Gas Transmission Inc. (NEGT), for $536 million in cash, plus an adjustment for inventory and reimbursement of certain capital expenditures incurred prior to closing.

ANR reported being informed by owners and/or operators of the processing plants that service its Southeast Area that based on their current analysis of processing economics for April, most will not process gas unless the pipeline issues a gas quality requirement. Thus ANR is establishing a hydrocarbon dew point limit of 20 degrees Fahrenheit for Southeast receipts, effective April 1-30. Meters delivering into ANR that exceed the dew point limit and are upstream of a processing plant must have their gas treated. “Evidence of a valid processing arrangement with a downstream processing plant must be made available to ANR upon request,” the pipeline said. ANR will post the hydrocarbon dew point for all Southeast receipt meters delivering into its system. It had taken the same action for March (see Daily GPI, Feb. 27).

Joining the growing pile of abandoned plans for new power plants in California, the City of Roseville, about 30 miles east of Sacramento, last week terminated its agreement with part of Enron Corp. to develop a 750-900 MW power plant in Placer County. The action has officials in the counties in and around the state capital worried about new sources of power for the future.

California could save billions of dollars and reduce the number of new power plants needed in the state by investing more heavily in energy efficiency, according to a new report released last week by Xenergy. The study found California can save up to 3,500 MW of peak demand and net over $8 billion in savings over the next decade by restoring public efficiency funding to just above 1994 levels (adjusted for inflation).

Less than a week after the company announced it was acquiring a natural gas processing plant, Calgary-based Cavell Energy Corp. said Tuesday that it has finalized plans to build its first gas plant in the Shackleton area of southwest Saskatchewan. According to the company’s plans, the initial phase of the plant will have a capacity of 5.5 MMcf/d, with room for expansion.

The New York Independent System Operator (NYISO) last Wednesday called for the immediate approval of 3,000 MW of new generating capacity to avoid serious electricity shortages, improve air quality, facilitate New York’s economic growth, and avert strong upward pressure on prices. The report says that Long Island alone needs between 750 and 1,000 MWs approved as soon as possible to reduce severe reliability risks and high prices.

If the Pacific Northwest gets most of the 28,000 MW of natural gas-fired combined-cycle power plants now planned for the region, its natural gas demand will shoot up to 2.5 times current levels, according to an engineer and gas analyst from the region who spoke last week at a two-day industry conference in Seattle.

If the Pacific Northwest gets most of the 28,000 MW of natural gas-fired combined-cycle power plants now planned for the region, its natural gas demand will shoot up to 2.5 times current levels, according to an engineer and gas analyst from the region who spoke last week at a two-day industry conference in Seattle.

California’s fledgling Consumer Power and Conservation Financing Authority (power authority) last week continued its breakneck start-up, announcing its pursuit of various gas-fired and renewable power generation projects that are aimed at giving the state another 3,000 MW online by next summer. In addition, the power authority said it has posted on its web site (www.capowerauthority.ca.gov) a draft request for bids for microturbine, solar and fuel cell projects.