Gas

Kinder Morgan to Build Natural Gas-Fired Power Plant in Jackson, Michigan

HOUSTON-Kinder Morgan Power Co., a wholly owned subsidiary of Kinder Morgan Inc., recently announced plans to build a 550 MW electric power plant in Jackson, Mich. All necessary regulatory permits and approvals have been obtained, and construction on the $250 million natural gas-fired plant is scheduled to begin this month. The plant is expected to begin producing power in June of 2002.

“The natural gas-fired generating station in Jackson is the second in a series of electric power plants that KMI plans to build using our proprietary Orion configuration to help meet the nation’s growing demand for electricity,” said Richard Kinder, KMI chairman and CEO. “Michigan is experiencing a shortage of power, and the electricity generated by this plant should help improve that situation. In addition to generating more power, the location of the plant should help relieve some of the pressure on the electric transmission grid in Michigan.”

Electricity demand has grown by approximately 35 percent in Michigan during the past decade, but no additional power plants have been built. Michigan imports a significant amount of electricity from other states, a practice that has become increasingly difficult to rely upon.

“The Jackson plant will typically operate during intermediate- and peak-demand periods, from about 6 a.m. to 11 p.m., to provide wholesale electricity to electric utilities and power marketing companies,” explained Anthony Lannie, Kinder Morgan Power Co. president. “The beauty of the Orion technology is that these plants can be started and stopped quickly at a nominal cost, which will allow us to respond rapidly to changes in the marketplace.”

The Orion plants combine the operational flexibility and responsiveness of a simple-cycle peaking plant with the fuel efficiency of combined-cycle technology. The Orion projects will utilize gas and steam turbine generator sets and auxiliary equipment that will be provided through a previously signed agreement with S&S Energy Products, a General Electric Power Systems business.