Williams said its new 170 MW gas-fired power plant underconstruction in Worthington, IN, will support a full requirementsagreement with Bloomington-based Hoosier Energy and that Hoosierwill have an option to buy the plant at the end of the contractterm.

Under the agreement, Williams’ energy marketing and trading unitwill supply and manage Hoosier Energy’s electricity requirementsthrough 2002, subject to a potential one-year extension byWilliams. Williams will provide the service by utilizing a numberof resources, including the Worthington plant and Hoosier Energy’sown generation. Financial terms of the agreement were notdisclosed.

“Hoosier Energy has recognized the need to protect its customersfrom the volatility of the market, and Williams has the riskmanagement experience and expertise to provide that shelter,” saidBill Hobbs, president of Williams Energy Marketing and Trading.”The Worthington generating facility will establish a strongerpresence for Williams in the ECAR market and provide much-neededpower to meet the growing demand for electricity in the Indianaarea.”

Hoosier CEO Steve Smith said the arrangement provides mutualbenefits by “maximizing the marketing and trading expertise ofWilliams and the competitive cost profile of Hoosier Energy’sgenerating facilities. The agreement helps Hoosier Energy maintainits position as a stable, low cost power provider for the benefitof member systems. It’s a significant risk management initiativethat mitigates market exposure at times of unprecedented pricevolatility.”

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