Tenaska Frontier Partners Ltd. and Power Team said constructionwill begin immediately on the largest non-utility electricgeneration plant in the U.S. The Tenaska Frontier GenerationStation is an 830 MW gas-fired, combined-cycle facility to beconstructed near Shiro, TX, 70 miles northwest of Houston. Theplant is expected to use about 145,000 MMBtu/d.

Tenaska has contracted with Power Team, a division ofPhiladelphia, PA.-based PECO Energy to market the plant’s entireoutput in the Electric Reliability Council of Texas (ERCOT) and allof the Eastern Interconnect.

“What makes this plant unique is its ability to dispatch powerto multiple grids extending beyond ERCOT,” said Howard L. Hawks,chairman of Tenaska Frontier Partners. The plant is to be completedin 2000. Financing for the project was completed Aug. 27.Construction and term loan financing is being arranged andunderwritten by Credit Lyonnais.

Tenaska Inc., an independent power company with headquarters inOmaha, NB, developed the project and formed Tenaska FrontierPartners Ltd., a Texas limited partnership, to build, own andoperate the facility. The partnership is composed of affiliates ofTenaska; Continental Energy Services Inc., a subsidiary of MontanaPower Co. of Butte, MT; and Illinova Generating Co., a subsidiaryof Illinova Corp. of Decatur, IL.

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