Destec captures Oakland airport power contract
Destec Energy Inc., an independent power producer in Houston, Texas, announced its first wholesale power supply contract, awarded by the Port of Oakland in Oakland, Calif.
The contract states Destec, through its power marketing subsidiary Destec Power Services Inc., will supply 7 MW of electricity to the Metropolitan Oakland International Airport for five years, beginning Jan. 1, 1996. The airport is operated under the port`s authority. The power supply covered by the agreement will come from the Destec power pool.
Destec will monitor the airport`s power demand and balance generation needed to meet the changing load. Transmission services will be provided under a transmission agreement negotiated in 1994 between Destec and Pacific Gas & Electric Co. and accepted by the Federal Energy Regulatory Commission in April 1995.
This agreement is one of the first between a power marketer and a full requirements customer. The port was declared a wholesale electricity customer in 1985, which gives it the right under federal law to purchase power on the competitive market.
“Destec`s proposal will save the Port of Oakland $1.9 million per year compared to what we`re currently paying for airport power,” said James Lockhart, Port Commission president.