Coal, Solar

CPV Sentinel signs EPC for 850 MW peakers

1 August 2008 — Gemma Power Systems, a unit of Argan Inc., said it signed a $210 million engineering, procurement and construction (EPC) contract and received a limited notice to proceed from Competitive Power Ventures Inc. (CPV) to design and build the Sentinel Power Project. The project, nominally rated at 850 MW, is to be located in southern California.

The proposed project consists of eight 100 MW natural gas-fired General Electric (GE) LMS100 combustion turbine generators (CTGs) operating in simple cycle mode.

CPV Sentinel said it has a power purchase agreement with Southern California Edison for five of the units and said it anticipates securing an agreement to sell the capacity, energy and ancillary services under long-term contract to one or more load-serving entities for the remaining three units. The project will supply quick-start peaking capacity, energy and ancillary services into the California Independent System Operator’s (CAISO) Los Angeles Basin Local Capacity Requirement (LCR) Area.

The project is scheduled to be completed in two phases. The first phase, which includes the construction of five simple cycle peaking units, is expected to be completed in the summer of 2010.

The second phase of the project, comprising the construction of three units, is expected to finish in April 2011.

CPV, a greenfield development, asset management and transaction execution company, has contributed to the development of more than 30 power plants, including Dominion’s combined cycle Warren County, Va. facility and the 640 MW CPV St. Charles plant in Maryland.