Combined Cycle, Gas

Tosco Announces Bayway Electric Supply Agreement with East Coast Power

LINDEN, NJ—Tosco Refining LP has entered into a contract with East Coast Power (ECP), a joint venture between affiliates of Enron North America and El Paso Energy Corp., in which ECP will build new facilities to supply electricity and additional steam to Tosco’s Bayway Refinery in Linden, New Jersey.

The Linden plant currently supplies steam to the Bayway manufacturing complex and 645 MW of electricity to Consolidated Edison, a utility in New York City. To produce the utilities for Tosco, ECP will install a new 170 MW combined cycle gas turbine at its Linden Cogeneration Plant. Tosco will at the end of 2001 consume 125 MW. The balance of 45 MW will be added to the regional electricity grid to help supply New Jersey residents and businesses during peak demand periods.

The project is expected to cost a total of $140 million. Tosco will contribute land and $30 million in capital. The balance of $110 million will be provided by ECP. Tosco will save $12 million per year from its current cost of electricity when the new system goes on line during the fourth quarter of 2001. In addition, Tosco will share in the profit from the sale of the 45 MW which is surplus to its current needs, significantly adding to the $12 million savings.

“We are very excited about this new supply agreement, which is one more step Tosco is taking to show our commitment to the future of the Bayway Refinery,” said Dwight Wiggins, Tosco Refining Co. president. “In fact, the turbine has been sized to take Bayway’s growth plans into consideration, including the world-scale polypropylene plastics plant currently under construction, as well as projects we will build to manufacture the next generation of cleaner burning transportation fuels.”

According to Herman Seedorf, III, Bayway Refinery manager, “The new turbine is the most modern, reliable, clean burning natural gas-fired design available in the marketplace, meeting strict operating and environmental standards. To further increase reliability and sell excess power generated by the plant, we are building new facilities to interconnect the refinery and the regional electrical transmission system.”

Seedorf also point out that, “When you consider the various components of this project, it appears to meet many of the public policy goals contained in the Energy Savings Act of 1999, which was enacted last year by the Whitman Administration and the New Jersey Legislature. The investment is being made as a direct result of this legislation and our goal of reducing operating costs to make Bayway more competitive.”