Coal, Gas

News Updates

Issue 2 and Volume 106.

Construction and Contracts

Lexington, Ky.-based EnviroPower LLC has announced plans to develop coal-fired power projects totaling more than 4,000 MW and costing more than $3 billion. The plants would be located in the Great Lakes and Northeastern regions and would be expected to go into service between 2003 and 2005. They would utilize circulating fluidized bed boilers to burn waste coal supplemented with locally mined coal.

Allegheny Energy has ordered ROFA (rotating opposed fire air) and Rotamix systems from Mobotec USA for installation on Units 1 and 2 of the Armstrong Generating Station in Kittaning, Pa. Both units are 180 MW, wall-fired Foster Wheeler boilers. The first installation will be completed this summer. The NOx emission reduction is projected to be in the range of 75 percent. Dynegy Midwest Generation has also ordered a ROFA system, for the 80 MW corner-fired Unit 1 boiler at its Vermilion Power Station in Oakwood, Ill. A 50 percent NOx reduction is expected.

Construction has begun on three gas-fired plants with a combined capacity of 2,240 MW being built for Duke Energy North America by Duke/Fluor Daniel. The projects are the 600 MW Luna Energy Facility in Luna County, N.M., the 620 MW Grays Harbor Energy Facility in Grays Harbor County, Wash., and the 1,200 MW Moapa Energy Facility in Moapa County, Nev. Operation is planned for summer, 2003.

Everest VIT has received a two-year contract from Hudson, Wis.-based Nuclear Management Company (NMC) to provide remote visual inspection services and equipment to the six nuclear plants operated by NMC: Monticello, Prairie Island, Kewaunee, Point Beach, Duane Arnold, and Palisades.

Black & Veatch and H.B. Zachry have partnered to provide full design, procurement, delivery, construction, startup, testing and initial operation of the Reliant Energy Choctaw County power project near French Camp, Miss. The 800 MW project will be one of the largest uses of an air-cooled condenser on a combined cycle power plant in the U.S., and feature a 3-on-1 combined cycle design comprising three GE 7FB gas turbine generators; three triple-pressure reheat cycle heat recovery steam generators (HRSG), each equipped for supplemental duct firing; and one reheat condensing steam turbine generator.

AAR Power Services, formerly known as ECS New York, has been chosen by Orion Power New York overhaul five GE Frame 5 Model N gas turbines located at their Gowanus & Narrows generating facilities. AAR was also recently awarded a three-year long-term agreement by Exelon and a five-year long-term agreement by Tennessee Valley Authority.

Mergers and Acquisitions

American Electric Power (AEP) has acquired the 160 MW Indian Mesa Wind Power Project in West Texas from Enron Wind Corp. Under the terms of the agreement, AEP will fulfill previously announced power supply arrangements with City Public Service (CPS), the municipal electric utility for San Antonio, Texas.

Gas turbine maintenance specialist Rolls Wood Group (RWG) has acquired the industrial engine program of California-based Rolls-Royce Engine Services Oakland (RRESO). The acquisition includes the Rolls-Royce Allison 501K and 570/571K product lines. The sale gives RWG all RRESO resources and assets relating to the engines along with a worldwide market in providing after market services for 501K and 570/571K engines.

In mid-January, a federal appeals court directed a review of the $4.37 billion acquisition of Central and South West Corp. by American Electric Power. The merger, completed in June 2000, created a company whose affiliates serve 4.8 million customers in 11 states. Municipal and rural electric power companies challenged the merger. The three-judge panel ordered the SEC to review the matter further and justify that it complies with the Public Utilities Holding Company Act of 1935.

Exelon Generation will acquire two large gas-fired generating plants in the Dallas/Fort Worth area from TXU: Handley, with a capacity of 1,441 MW, and Mountain Creek, with a capacity of 893 MW. The sale includes the land, water rights, transmission interconnections, gas pipeline interconnections, production facilities, and emission allowances associated with both plants.

Public Service Company of New Mexico has terminated its $4.4 billion merger agreement with Western Resources Inc.

Personnel and Promotions

Matt Schatzman has been named president and CEO of Dynegy’s Energy Convergence Business, where he will oversee energy marketing and origination, commercial asset management, operations and development of Dynegy’s U.S. generation facilities.

Mark Forsyth has been named vice president of operations for Wood Group Rotating Equipment Services, which specializes in the maintenance, repair and overhaul of gas turbines and other high speed rotating equipment. He also assumes the role of president of Wood Group Light Industrial Turbines Inc, which operates in the aftermarkets for Solar and Vericor.

Ralph Sperrazza has been named president of the Thermo Electron Weighing and Inspection business unit of Thermo Electron Corp. The company makes weighing, inspection, monitoring and control equipment marketed to the power generation and other industries.

Gary Wolter has added the role of chairman to his duties as president and CEO of Madison Gas & Electric Co.

Stephen P. Reynolds has been elected president and CEO of Puget Energy, succeeding William S. Weaver, who has announced his retirement. Weaver remains chairman of the board of directors.

William R. Matthews, vice president and senior nuclear executive at Dominion’s Millstone nuclear plant, has assumed additional responsibilities overseeing the operations at the company’s two Virginia nuclear power stations, North Anna and Surry. J. Alan Price has been named site vice president at Millstone, responsible for day-to-day operations at the plant.

James W. Malone has rejoined Babcock & Wilcox as vice president of sales and marketing.

Karen K. Clark has joined Capstone Turbine Corp. as CFO. She had been senior vice president and CFO of PacifiCorp.

Edward M. Coll has been appointed managing director of Metso Automation MAX Controls, Inc.

Business Briefs

Northern Indiana Public Service Company (NIPSCO), a unit of diversified gas utility NiSource Inc., has announced plans to separate its gas and electric businesses into two separate companies. NIPSCO said the separation will better reflect the units’ individual operating and financial risks. The action will also prevent its natural gas customers from potentially subsidizing any future electric operations.

Des Moines, Iowa-based MidAmerican is considering adding a $1.4 billion coal-fired plant to its existing Council Bluffs Energy Center, with commercial operation planned for spring of 2007. The facility currently has three coal-fired units with a total capacity of 800 MW. MidAmerican, Central Iowa Power Cooperative, Corn Belt Power Cooperative and the cities of Atlantic and Cedar Falls jointly own the plant.

FPL Energy has begun full operation of large wind power plants in Texas and Washington state. The 278 MW King Mountain Clean Energy Center near Odessa, Texas, and the 263-MW Stateline Clean Energy Center near Walla Walla, Washington, began operations in mid-December 2001. FPL Energy operates 1,830 MW and owns 1,439 MW of wind power facilities in eight states.

Xcel Energy will spend about $2.7 million in Colorado on energy-related research projects. The National Renewable Energy Laboratory in Golden will get the bulk of the research funding, with smaller portions going to the Colorado School of Mines and Littleton-based Community Power Corp. Research will focus on generating energy from biomass, solar cells and fuel cells. Colorado’s share is part of Xcel’s pool of $16.5 million earmarked for renewable energy under a Minnesota law requiring Xcel to fund research in exchange for holding nuclear waste at its Prairie Island power plant.

Nevada utilities have received proposals for 3,000 MW of wind power in response to a request for proposals (RFP) issued in mid-October, 2001 as required by state law mandating that five percent of each utility’s electricity be generated by renewable energy by 2003, increasing to 15 percent by 2013. Five percent of that requirement must be solar energy. Five percent of Nevada’s investor-owned utilities’ load is equal to more than 1.3 billion kWh. Thirty-eight developers submitted 49 proposals for wind, solar, biomass, and geothermal projects to Nevada Power Co. and Sierra Pacific Power Co. The total capacity for all the proposed renewable projects was nearly 4,300 MW, more capacity than the two utilities own.

Vestas Wind Systms is considering Portland, Ore. as a manufacturing site. Vestas manufactures wind turbines, including those used in the Stateline Wind Project at the Oregon-Washington border near Walla Walla, the Northwest’s largest wind project. Vestas and associated companies have nearly 6,000 employees worldwide, with production facilities in Denmark, Germany, India, Spain and Italy.

Mexican President Vicente Fox warned that unless the flow of private investment in the energy sector to Mexico doesn’t increase by about $5 billion per year, the country will soon have to ration electricity. Speaking at the inauguration of a generation plant in Hermosillo, Sonora, and the symbolic inauguration of another five power plants, Fox said it is necessary to open the energy sector to private investment. “To invest in Mexico is a display of confidence in its government and in political and social stability. The democratic opening is guaranteeing a new certainty for investment,” he said. Spain’s Union Fenosa and Abengoa, Japan’s Mitsubishi, Switzerland’s ABB Energy, and France’s Electricite de Franceand Alstom constructed the plants being inaugurated.

Vectren Power Supply of Evansville, Indiana has selected the Avantis.PRO enterprise asset management software supplied by Invensys. Vectren will use Avantis at two of its power plants located near Evansville, Indiana. The plants include both gas turbine and coal-fired units. Total capacity is more than 1,300 MW.

The Bush Administration has announced plans to convert 34 metric tons of surplus weapons-grade plutonium into fuel for nuclear power plants, allowing the U.S. to comply with a Sept. 2000 agreement with Russia to dispose of an equal amount of surplus plutonium. The program will turn the material into mixed oxide fuel. Conversion will cost $3.8 billion over 20 years, including construction of two new facilities at the Department of Energy’s Savannah River weapons and research site in South Carolina, set to begin in 2004.