Tractebel to buy output of AEP-Dow cogen plant

Jan. 22, 2001—Tractebel Energy Marketing Inc., the North American trading and marketing unit of Tractebel SA, reported signing a 20-year agreement with American Electric Power Co. (AEP) to purchase the output from AEP’s planned 900 MW cogeneration plant at the Dow Chemical Co. complex in Plaquemine, La.

The facility will be developed and constructed by AEP and operated by Dow under a separate agreement. Officials of AEP and Dow reported Monday executing a definitive agreement to build the project first reported in June 2000. Construction of the $325 million plant is expected to begin in 2001 and will consist of 620 MW of new baseload capacity from four GE gas turbines operating in combined cycle and 280 MW of peaking capacity. Start-up is scheduled for early 2003.

Under the agreement, Tractebel will dispatch the plant according to market conditions. The plant will be fueled by natural gas from AEP’s Louisiana Interstate Gas Pipeline.

“The Plaquemine Plant fits well with Tractebel’s North American strategy which includes owning or controlling generating capacity in selected regions of North America,” said Tractebel North America Pres. William Utt.

The energy arm of France’s Suez Lyonnaise des Eaux, Tractebel represents installed electricity generating capacity of more than 50,000 MW and operates gas transportation and distribution networks in Europe, Latin America, and Asia.

In the U.S.., Tractebel owns and operates 36 power and cogeneration facilities representing in excess of 2,100 MW and 16 million lbs/hour of steam sales. Additionally, Tractebel has seven projects in construction and six projects in advanced development representing 2,400 MW in aggregate. Tractebel recently completed the acquisition of Cabot LNG.