Alliant Energy’s Wisconsin Power and Light (WPL) has urged the Federal Energy Regulatory Commission to “act expeditiously” in its rehearing of ANR Pipeline Co.’s application for its $42.1 million WestLeg pipeline expansion (see Daily GPI, June 5). WPL said the new gas transportation capacity is desperately needed to fuel new power generation at the Riverside Energy Center that is “crucial to electric reliability in the state.” FERC issued an order on Aug. 6 granting rehearing of the application at the request of ANR.

“Expeditious action in this docket is necessary so that ANR can commence necessary construction in a timely manner to meet the requirements of the already-under construction electric generation facility,” WPL told FERC.

The WestLeg project, which is designed to transport about 22,000 Dth/d of gas to the Madison and Janesville market areas, is scheduled to be in service in November 2004, but ANR and WPL have requested that a part of the project be allowed to go into service this fall. About 86,500 MDth/d of the proposed capacity will replace volumes currently transported for ANR by Northern Natural Gas Co.

“Because electric system reliability within Wisconsin is highly dependent upon ANR’s work progressing on schedule, WPL respectfully requests the Commission to issue its order on rehearing as soon as it can, but no later than Oct. 6, 2003.”

In its request for rehearing in July, ANR asked the Commission to allow construction of the Tiffany East Meter Station upon execution of service contracts of 70,000 Dth/d and all environmental and other conditions so that WPL could begin receiving test gas on Nov. 15, 2003 at its 600 MW Riverside Energy Center. The gas-fired generation facility is currently under construction in Beloit, WI.

“The completion of the Riverside Energy Center on schedule is critical for maintaining electric system reliability in the state of Wisconsin. Therefore the timely consideration and decision by the Commission of ANR’s Implementation Plan and [request for rehearing] is critical to increased electric reliability in Wisconsin and would be greatly appreciated by WPL,” the utility said.

Calpine Corp. said Monday that it completed a $230 million non-recourse project financing for the Riverside project. Upon completion of the project in June 2004, Calpine will sell 450 MW of electricity to WPL under the terms of a nine-year tolling agreement and provide 75 MW of capacity to Madison Gas & Electric under a nine-year power sales agreement.

A group of banks, including Credit Lyonnais, Co-Bank, Bayerische Landesbank, HypoVereinsbank and NordLB, will finance construction of the plant at a rate of Libor plus 250 basis points. Upon commercial operation of the Riverside Energy Center, the banks will provide a three-year term-loan facility initially priced at Libor plus 275 basis points.

Calpine began construction of the facility in November 2002. The facility is designed to operate in a combined-cycle configuration, using two natural gas-fired combustion turbines and a steam turbine, for maximum fuel efficiency. Calpine currently produces 900 MW of electricity for Wisconsin utilities to help meet growing demand.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.