Tenaska Alabama Partners LP said last week it executed a fuelconversion services agreement with Williams’ energy marketing andtrading unit for the entire electrical production of the plannedTenaska Lindsay Hill generating station. Under the long-termservice agreement, the Tenaska facility will convert fuel owned andsupplied by Williams into electricity, which will be marketed byWilliams throughout the Southeast region’s wholesale power market.Terms of the agreement were not disclosed.

The station, located near Billingsley, AL, northwest ofMontgomery, is designed to produce 846 MW of electricity. Tenaskasaid it would be the first large-scale, combined-cycle project tobe built by a non-utility in Alabama. The development phase of thisproject is near completion and the initial financing process hasbegun, Tenaska said. Construction of the facility is scheduled tobegin this summer, with completion scheduled for late spring 2002.The plant is expected to burn 145 MMcf/d.

“Our relationship builds on both companies’ belief that theSoutheast is a growing wholesale power market for many years tocome. This new generating facility will play an essential role inmeeting this region’s need for clean, reliable, low-cost andflexible power supplies,” said Howard Hawks, CEO of Tenaska Inc.

Tenaska said it developed the project and formed Tenaska AlabamaPartners LP to build, own and operate the facility. A Tenaska Inc.affiliate will be the managing partner responsible for overallproject development, including site development, financing,construction, and project management. Another Tenaska Inc.affiliate will operate the facility when construction is completed.

The Omaha, NB-based Tenaska is involved with two similar deals.One involves the Tenaska Frontier generation station in Texas,where Power Team, a PECO affiliate, is contracted to market theelectricity produced from the 830 MW facility. The other involves a245 MW facility in Ferndale, WA.

John Norris

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