AES Continues Ironwood Project
GPU Energy is reimbursing AES Ironwood approximately $25 million in development fees and interest after termination of power purchase agreements (PPA) for the planned 700 MW natural gas-fired combined-cycle power plant in South Lebanon Township, Pa.
The PPAs terminated automatically due to outstanding appeals for restructuring plans submitted to the Pennsylvania Utility Commission by GPU Energy.
“Given the robust market for new power generation in the Pennsylvania region, we were not willing to extend the time period to resolve the appeals,” said Patricia Rolling, AES Ironwood project director.
Construction begins this spring with operation targeted for the first quarter of 2001.