A transportation agreement signed by Columbia Gulf and theTennessee Valley Authority (TVA) may mark the beginning of alasting relationship. The agreement covers firm transportation onColumbia for 240,000 MMBtu/d of gas that will fuel 1,500 MW ofpower generation at TVA’s Gallatin Power Plant in Sumner County,TN. But the plant represents a small piece of a larger conversionprocess which will turn another 20 generation units to gas usageover the next year.

The Gallatin conversion project will involve converting fourfuel oil units to burn natural gas. Columbia plans to build a2.3-mile 12-inch diameter pipeline from mainline facilitates inWilson County, TN, to Gallatin.

It is Columbia’s second agreement with a power generator. In1996, the pipeline built facilities to deliver gas to two CentralLouisiana Electric Co. power plants. “Through connections withthese plants, we are moving toward Columbia Gulf becoming thepreferred platform for the eventual cross-commodity trading ofnatural gas and electricity,” said James W. Hart, Columbia Gulf’svice president of commercial services.

Columbia Gulf President Terrance L. McGill said this TVA deal isjust a beginning. In all, TVA expects to have 2,296 MW of gas-firedpower operating by late 1999.

TVA also currently is seeking proposals from third parties toprovide up to 1,200 MW of additional peaking power by 2002 – 600 MWby June 1, 2001 and 600 MW the following year. The power must besupplied by simple-cycle gas-fired power plants located in the TVAservice area. TVA is not interested in owning the plants but wouldpay a negotiated fee for an exclusive right to buy the power, a TVAspokeswoman said. TVA plans to compare any proposals with apossible TVA-built project.

The government agency was considering converting its partiallyconstructed Bellefonte nuclear plant to burn natural gas, butaccording to a spokesman, the Department of Energy has changedplans toward completing the construction of the plant as a nucleargenerator for production of tritium gas, which is used in nucleararms development. As a result, the agency will continue to seek outproposals for additional gas-fired power.

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