Williams and Utilicorp United continued their prosperousrelationship yesterday as the two companies announced a four-yeargas supply contract between Williams Gas Pipeline-Central and a 600MW power plant in Cass County, MO, that is 50% owned by Utlicorp.No financial terms were disclosed. Williams said gas is expected toflow in time for the testing phase of the plant in the early summerof 2001.

The contract calls for 42,000 Dth/d of firm year-round service.There also was a provision to increase that total to 86,000 Dth/dduring summer service to meet the growing needs of westernMissouri.

The Aries power plant is expected to use 35,000 Dth/d. Thestart-up date for the facility, which is jointly owned by Utilicorpand Calpine, is in the third or fourth quarter of 2001. In order tomeet the agreement with Utilicorp, Williams said it will have toconstruct of 1.5-mile, 24-inch pipeline near its Ottawa compressorstation in Franklin County, KS. It will also have to upgrade two1,350 hp compressors to 2,000 hp and add a 1,590 hp turbine at itsPeculiar compressor station in Cass County, MO. The company hasalready filed at FERC for the construction of these facilities.

Williams provided the “best economic solution” to Utilicorp’sgas supply needs, said Dennis Odell, director of gas supplyservices for the Kansas City, KS-based Utilicorp.

“We received bids from two other pipelines in the area andWilliams provided the best price and demonstrated a greatermotivation to secure the load. In addition to providing the bestoffer from an economic standpoint, Williams also was moreaccommodating on a variety of issues necessary to consider whencompleting such an agreement.”

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