Williams reported last week that one of its units plans toconstruct natural gas-fired electric generating units near Memphis,TN and Las Vegas, NV. The company also reported that it will expandan existing gas-fired power facility located in Hazelton, PA.

Williams said the expansion and new facilities have thepotential to add 1,400 MW to the company’s power portfolio.

“Williams’ plan is to build a balanced power portfolio toinclude 40,000 MW by the year 2005 and to leverage its assets tocreate increased business for all lines of its energy business”said Bill Hobbs, president of Williams energy marketing and tradingunit. “These power generation additions and expansions will provideresources for building and sustaining power contracts in targetedareas of the country, such as our recently announced 15-year fullrequirements power agreement with Georgia Electric MembershipCorporations. Additionally they will benefit other Williams’businesses.”

The proposed Tennessee facility will be located near Williams’current refinery, with generation expected to be available in thefourth quarter 2001. The plant will be a 186 MW facility, with theoption of expanding to 265 MW, and will be in full commercialoperation by summer 2003. The company said it can also pursue asecond phase of the project which would bring capacity to 1,000 MW.

“The Memphis power plant will provide needed generation andincrease our presence in the Tennessee Valley Authority powergrid,” Hobbs said. “The plant will obtain its natural gas fuelsupplies from Williams Texas Gas Pipeline System and will serve asstandby power to the Williams refinery.”

The Las Vegas plant is expected to be a 125 MW peaking plant,with the option of expanding to 300 MW. Williams said it expects tohave 62 MW in service in the fourth quarter 2001, and an additional63 MW available in the second quarter 2002. The company said thegeneration will be used for the Las Vegas area, as well assurrounding regions such as California. The plant will receive gassupply from Williams Kern River Pipeline System.

The expansion will take place on a current 63 MW peakinggeneration unit in Hazelton. Williams said it will expand the siteby adding 100 MW of gas-fired generation, which it expects to comeonline in the fourth quarter 2001. The expanded plant will servethe Pennsylvania, New Jersey and Maryland power grid.

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