Power subsidiaries of Westcoast Energy and Columbia Energy, partners in the Millennium gas pipeline project proposed for the northeastern U.S., have joined forces in a 50-50 joint venture to build three gas-fired electricity generating plants with a total capacity of 1,000 MW in Northeastern North America.

Gerry Backeland, president of Westcoast Power Inc., said the companies have options on several sites in the U.S. and Canada and will choose locations for the plants based on the development of several gas pipelines, the quality of the sites and the level of demand. Westcoast has invested in four new gas pipeline projects designed to bring Canadian gas to the Midwest and Northeast U.S. and eastern Canada: TriStar, Alliance, Maritimes and Northeast and Millennium.

Backeland noted Westcoast also has the expertise in gas-fired power plant development with five plants in Canada totaling 462 MW, while Columbia has a deep knowledge of the regional marketplace and a growing familiarity with power generation through its Columbia Electric Corp. subsidiary, formerly TriStar Ventures. “The combined expertise of the two organizations, coupled with Westcoast’s successful power generation development and operations track-record in Canada makes this a natural extension of our current development activities into a marketplace that allows Westcoast to leverage its strategic pipeline, storage and distribution assets,” he said.

For Columbia, its only a first step toward becoming a regional force in power generation. Robert M. Zulandi, senior vice president of Columbia Electric, said the company plans on forming a number of other alliances to build new gas-fired power plants. “Our game plan, or objective, is to have at least 2,000 MW of generating capacity operating, or in the advanced stages of development, within the next five years,” he said. Columbia also operates several smaller gas-fired power plants in New Jersey and Maine, totaling about 250 MW (100 MW net to Columbia).

A Columbia spokesman said the company expects to invest $700 million in the Westcoast joint venture for the first three projects, which will use about 160 MMcf/d of gas. The plants are expected to be operational in two to three years.

Rocco Canonica

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