BILLINGSLEY, Ala., May 8, 2002 — The Tenaska Lindsay Hill Generating Station was placed into commercial operation on schedule on May 1, 2002.
Under a long-term fuel-conversion service agreement with Williams Energy Marketing and Trading, a unit of Williams (NYSE: WMB – news), the 846-megawatt facility converts natural gas supplied by Williams into electricity, which Williams markets throughout the Southeast.
Tenaska Inc., of Omaha, Nebraska, developed the project and formed Tenaska Alabama Partners, L.P., a limited partnership to build, own and operate the facility. The partnership is comprised of affiliates of Tenaska, Inc. and Diamond Generating Corporation of Los Angeles, California. Another Tenaska affiliate, Tenaska Operations, Inc., is operating the facility with 27 employees.
The Tenaska Lindsay Hill Generating station is the first large-scale, combined cycle project to be built by a non-utility company in Alabama. It is also the first independent power project to interconnect with the Southern Company grid in the state of Alabama. The plant was constructed adjacent to the Southern Company’s 500-kilovolt (kV) Mid-State Transmission Line in Autauga County, northwest of Montgomery, Alabama.
“Tenaska’s success in developing projects lies in our ability to find innovative approaches to meet our customers’ needs,” said Howard Hawks, chairman and chief executive officer of Tenaska, Inc. “This new generating facility plays an important role in providing clean, reliable, low-cost and flexible power supplies in a growing market.”
“The power we market from this new facility will assist in meeting our current and future customers’ energy needs in the growing Southeast power market,” said Bill Hobbs, president and chief operating officer of Williams Energy Marketing and Trading. “We appreciate the opportunity to be a part in this project and look forward to future opportunities of this type which allows each company to bring individual expertise and experience to enhance power development.”
GBV-Alabama, a joint venture formed by Gilbert Industrial Corp., an affiliate of Peter Kiewit Sons, Inc. of Omaha, and Overland Contracting, Inc., a subsidiary of Black & Veatch Holding Company of Kansas City, Missouri, completed the project in approximately 22 months.
Three General Electric Frame 7FA gas turbines, three Deltak heat recovery steam generators and one General Electric steam turbine are incorporated into the station design. It is a modern, natural gas-fueled facility with catalytic emission controls.
Tenaska Inc., an experienced developer of power generating facilities, has developed approximately 8,000 MW of generating capacity and owns and operates approximately 6,800 MW of generating facilities in operation or construction. Additionally, Tenaska has approximately 6,000 MW in pre-financing development. Tenaska projects in operation and construction are located in the states of Alabama, Georgia, Oklahoma, Texas and Washington, and in Bolivia and Pakistan.
With regional offices in Dallas, Texas; Denver, Colorado, and Calgary, Alberta Canada, Tenaska is also involved in energy marketing and transportation, fuel procurement, and energy asset acquisition. Company information is available at www.tenaska.com .
About Diamond Energy
Diamond is Mitsubishi Corporation’s wholly owned subsidiary in the United States electric power generation market. In addition to the Tenaska Lindsay Hill Generating Station, Diamond participates in six other Tenaska projects through its affiliates with the total generating capacity of 1,700 MW on a net equity basis. The company aims to assemble a balanced portfolio of investments comprised of operating assets with historical performance, and new projects. Through Diamond and another affiliate, Mitsubishi invested in Orion Power Holdings, Inc. (Orion). In February 2002, Reliant Resources, Inc. completed its acquisition of Orion. Mitsubishi is also active in private- sector electricity projects in Latin America, Europe, the Middle East and Asia.
Williams moves, manages and markets a variety of energy products, including natural gas, liquid hydrocarbons, petroleum and electricity. Williams’ operations span the energy value chain from wellhead to burner tip. Williams information is available at www.williams.com .