CINCINNATI, Ohio, April 24, 2001 Cinergy Capital & Trading, Inc. (CC&T), an energy merchant-focused affiliate of Cinergy Corp., announced today that its subsidiary, CinCap VII LLC, has received approval from the Indiana Utility Regulatory Commission for construction of a 130 MW gas-fired electric peaking facility near Cadiz in Henry County, Ind.
A significant portion of the output from CC&T's share of the facility will serve ultimate customers in Indiana as a result of a contract with the Wabash Valley Power Association to provide 50 megawatts of capacity from the facility for the next 20 years to meet peak demands of WVPA's customers in Indiana.
The balance of the energy generated from the three-unit plant will be sold on the wholesale electricity market by its owners, CC&T and Duke Energy North America, to address the growing demand for electricity at peak times in the Midwest.
Construction of the facility, which was halted by the IURC in March, 2000, will restart promptly with the first units scheduled to be on line in July 2001. Total project cost is estimated at approximately $70 million.
"We are pleased that we have been able to demonstrate the need for this plant to the IURC's satisfaction," said Michael J. Cyrus, chief executive officer of Cinergy's Energy Merchant Business Unit and president of CC&T. "We will strive to build a long term relationship as an outstanding corporate citizen and community partner in Henry County and Indiana, and we will comply with the conditions established by the IURC."
In its order, the IURC said the facility must be operated only with natural gas and should be landscaped so that its appearance is similar to other non-residential facilities in the area. CC&T must also work with the Indiana Department of Natural Resources to monitor ground water and will correct any well problems to nearby landowners that are determined to be caused by the facility. It must also meet several other conditions prescribed by the IURC in its order.
Cinergy Corp., one of the nation's leading diversified energy companies, has a focused strategy intent on growing its energy merchant business. The company owns, operates or has under development over 21,000 megawatts of generation. Cinergy has the 6th largest electricity trading organization in the U.S. as well as physical and financial gas trading capabilities of 17 bcf/day. The "Into Cinergy" power trading hub is the most liquid trading hub in the United States. Cinergy's energy merchant business operates in several regions of the U.S. and is based on a profitable balance of asset development, customer origination, marketing and trading, industrial-site cogeneration infrastructure development and plant operations.
Cinergy also owns regulated operations in Ohio, Indiana and Kentucky that serve about 1.5 million electric customers and about 500,000 gas customers. In addition, Cinergy manages one of the industry's top power technology portfolios.