FAYETTEVILLE, N.C. and COLUMBIA, S.C., Nov 10, 2000 /PRNewswire via COMTEX/ Fayetteville Public Works (PWC) and SCANA (NYSE: SCG) signed a memorandum of understanding (MOU) today to participate in the joint construction and ownership of a 500-megawatt combined cycle natural gas turbine power plant to supply electricity to Fayetteville residents and businesses beginning in the summer of 2004. The signing followed a vote Monday evening by Fayetteville City Council authorizing the PWC to move forward on the MOU.
The agreement allows SCANA to begin work critical to the pipeline construction timeline while definitive agreements are being finalized.
Steven K. Blanchard, Fayetteville PWC general manager, said the PWC has been through a lengthy process of reviewing proposals, and narrowed their choices to three proposals to provide long-term electric service to the community, before deciding to pursue a joint development with SCANA. The proposal includes construction of a two-unit natural gas-fueled combustion turbine generation plant, and the construction by SCANA of a 106-mile, 16-inch natural gas transmission line stretching from the company’s pipeline system in South Carolina to Fayetteville. SCANA will also provide natural gas procurement, transportation and scheduling, power scheduling and control area services.
“One of Fayetteville’s greatest challenges is meeting the growing demand for electricity in our community, the result of our continuing economic prosperity,” Blanchard said. “We recognize that self-sufficiency is the key to being able to reliably provide low-cost electricity to our citizens and businesses in the future. To meet this objective, we must begin today to develop new capacity and we needed an experienced energy partner who is interested in working in the future of Fayetteville and eastern North Carolina.”
The generation project is estimated to cost approximately $265 million. The Public Works Commission will own a 60 percent interest in the plant and SCANA will own the remaining interest. The natural gas pipeline project is projected to cost approximately $90 million, which will be funded and owned by SCANA. The company will ensure 80,000 dekatherms per day of firm delivery to the plant, once it is completed. In addition, SCANA plans to offer additional firm capacity on the pipeline to shippers in South Carolina and eastern North Carolina.
“This public/private partnership is a tremendous plus for Fayetteville’s long-term energy needs,” Gibbes said. “In addition, the new interstate gas pipeline project will provide a valuable second source of firm natural gas transmission capacity into eastern North Carolina. This will provide a strong incentive for future economic development in the eastern part of the state.”
Shippers who would like more information on firm capacity on SCANA’s new interstate natural gas pipeline, should contact Devy Traylor, manager of market and business development, at (803) 217-7900.
The Fayetteville Public Works Commission was created in 1905 and provides electricity to more than 60,000 customers. In addition to wholesale electricity, the Public Work Commission operates nearly 300 megawatts of peak shaving electricity capacity. Information about the Fayetteville PWC is available on the Internet at www.faypwc.com.
SCANA Corporation, headquarted in Columbia, SC, is an energy-based holding company principally engaged in electric and natural gas utility operations. The company provides natural gas to more than 1 million customers in Georgia, South Carolina and North Carolina and electricity to more than 525,000 customers in South Carolina. Information about SCANA and its businesses is available on the Internet at www.scana.com.
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