Subject: kern river to do another open season
lorna ,
sources close to kern river confirmed with me just yesterday that the
original expansion ( 124 , 500 mmbtu / d ) is being contracted principally by one
party , pg & e national energy group , for their la paloma power project outside
of bakersfield , california . i ' m assuming that additional support for a 2 nd
krgt expansion will come from other developers interested in securing gas
supply .
it ' s important to remember the economics here - - - kern river ' s pipeline
originates in wyoming ( rockies gas ) and delivers directly into southern
california . their gas generally clears the market at the southern california
border index . consequently , there is no stacking of rates as would be the
case if tw or epng attempted to deliver their gas through mojave to the same
markets . i ' ve attached the recent press release regarding the la paloma
project for your information . . .
pg & e corporation unit begins construction of
california ' s largest  + greenfield  , merchant power plant
la paloma facility will fill a critical need for new electricity supplies in
california
san francisco  ) welcoming the opportunity to provide competitive electricity
to meet the growing electricity needs of california , pg & e corporation
( nyse : pcg ) announced today that its national energy group has begun
construction on the la paloma generating plant . la paloma is a 1 , 048 - megawatt
, natural gas - fueled combined - cycle facility . the plant is expected to begin
operating in the summer of 2001 . pg & e national energy group president & ceo
tom boren said , " the construction of the la paloma facility is an important
step in meeting the growing demand for electricity in the state . we welcome
the opportunity to further the growth of customer choice in california ' s
evolving competitive power market . "
the california independent system operator ( iso ) , a non - profit public benefit
corporation responsible for maintaining transmission reliability and ensuring
adequate electricity supplies , hailed la paloma as a welcome addition . " as
north america  , s only regional transmission operator relying on competitive
market forces to maintain the critical balance between electricity supply and
demand for california  , s 27 million electric customers , the california iso is
very pleased that pg & e  , s national energy group has stepped forward with the
la paloma facility to fill an essential consumer need , " said cal iso
president & ceo terry winter . " this investment shows that the market is
responding to the growing demand for electricity . "
" as a highly efficient plant from both an energy and environmental
standpoint , california consumers will benefit , " added pg & e corp . ' s boren .
" the la paloma generating plant provides highly competitive costs with a
minimum of energy consumption and environmental impacts . "
the la paloma plant site is approximately 40 miles west of bakersfield ,
calif . in western kern county on an industrial site previously used for oil
production . when completed , it will be the state  , s largest facility designed
from the ground up exclusively as a merchant power plant . a merchant plant
sells its electrical output to wholesale customers in a regional competitive
bulk power market . those wholesale customers , which include traditional
utilities , municipal utility districts , retail energy services companies ,
wholesale power marketers , and electric cooperatives , in turn arrange to have
the electricity delivered to retail consumers .
the la paloma development team has selected abb alstom power inc . as the
turnkey contractor for the project . abb alstom power is responsible for the
design and engineering work , the procurement of equipment and management of
sub - contractors , and the actual construction of the facility . the la paloma
generating project received its california energy commission approval in
october 1999 , and the financing package for the project is being completed
now .
" the rigorous permitting process really laid the ground for an outstanding
construction program , " said roger garratt , project development manager for
pg & e corporation  , s generating unit . " we look forward to making a major
contribution to the kern county economy in a manner that is completely
compatible with the area ' s sensitive ecosystem . " garratt noted the project ' s
plan to permanently set aside conservation land as part of its environmental
mitigation program .
market intelligence - enron transportation services
from : lorna brennan on 11 / 29 / 2000 09 : 49 am
to : courtney barker / et & s / enron @ enron , john goodpasture / ots / enron @ enron ,
michael ratner / ots / enron @ enron , sebastian corbacho / et & s / enron @ enron , yuan
tian / et & s / enron @ enron , mike mcgowan / et & s / enron @ enron , rockey
storie / et & s / enron @ enron , kent miller / et & s / enron @ enron , john
dushinske / et & s / enron @ enron , dave neubauer / et & s / enron @ enron , bill
fowler / et & s / enron @ enron , steven harris / et & s / enron @ enron , jeffery
fawcett / et & s / enron @ enron , lorraine lindberg / et & s / enron @ enron , kevin
hyatt / et & s / enron @ enron , christine stokes / et & s / enron @ enron , tk
lohman / et & s / enron @ enron , michelle lokay / et & s / enron @ enron , lindy
donoho / et & s / enron @ enron , lee huber / et & s / enron @ enron , susan
scott / et & s / enron @ enron
cc :
subject : kern river to do another open season
open season expected for kern river capacity
after the recent successful completion of an open season on an added 124 , 5000
dth / d of firm transportation capacity into california along its 922 - mile
interstate pipeline , williams ' subsidiary kern river gas transmission will
announce another open season this week , perhaps as early as today for
additional new capacity on the pipeline carrying rocky mountain supplies from
southwest wyoming , a salt lake city - based kern river spokesperson said
tuesday .
although the spokesperson indicated the current 700 mmcf / d - capacity pipeline
is running full these days , kern river has no plans to re - open its previous
proposals to build transmission laterals within california , heading north and
south into major industrial areas of the state . the growing supplies , which
are expected to come into the state to fuel the accelerating demand for new
natural gas - fired electric generation plants , will be fulfilled by adding
compression and looping , the spokesperson said .
kern river is planning on bringing " a lot more volumes " into california in
the years ahead , said the spokesperson , noting that the recent capacity
expansion will be made possible by an $ 80 million project to add three new
compressor stations , additional compression at an existing wyoming station ,
restage a compressor in utah and upgrade two meter stations . the new open
season is expected to run for two months through the end of january for
marketers , merchant generators , large industrial plants and utilities along
the pipeline route in utah , nevada and california , all of which have been
experiencing tremendous energy load growth . the bulk of the interest is still
expected to come from california , the spokesperson said .