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EcoElectrica receives PPA for Puerto Rico cogeneration

EcoElectrica receives PPA for Puerto Rico cogeneration

EcoElectrica L.P., a joint venture of Kenetech Corp. and Enron Development Corp., has announced a long-term power purchase agreement with the Puerto Rico Electric Power Authority for electricity generated by a 461-MW gas-fired cogeneration plant in Peruelas, Puerto Rico.

"The signing of the power purchase agreement is an important step in the continuing development of the EcoEl?ctrica power plant and LNG (liquefied natural gas) import terminal," said Gerald Anderson, Kenetech president. "Our development efforts will now focus on obtaining the required federal and commonwealth permits, engineering and design of the power plant, and LNG terminal and project financing."

The facility will use two gas turbines and one steam turbine, with a primary fuel of LNG, imported via the LNG terminal. Steam recovered from the electrical generating process will be used in an adjacent desalinization facility, producing up to 4 million gallons of drinking water daily for the island`s south coast.

"The project represents a private sector investment of more than (US)$500 million. As many as 400 new jobs will be created during the construction of the facility, as well as 40 to 50 long-term positions when the plants are fully operational."

Commercial operation is expected within three years. The Puerto Rican Electric Power Authority estimates the island will need to add at least 1,000 MW to meet demand by the year 2000.

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