OMAHA, Neb. and HOUSTON, Sept. 12, 2000 Tenaska Alabama II Partners, L.P. has executed an Energy Conversion Agreement with Coral Power L.L.C. (Coral) for the entire electrical production of a 900 MW generating station. The planned facility will be located near Billingsley, Ala., northwest of Montgomery. Under this long-term agreement, the Tenaska facility will convert fuel owned and supplied by Coral into electricity, which will be marketed by Coral throughout the Southeast region’s wholesale power market.
Tenaska Inc. (Tenaska), headquartered in Omaha, is developing the project and formed Tenaska Alabama II Partners L.P., a limited partnership comprised of affiliates of Tenaska to build, own and operate the facility. A Tenaska affiliate will be the managing partner responsible for overall project development, including site development, financing, construction and project management. Another Tenaska affiliate will operate the facility when construction is completed.
This is the second major energy agreement between Tenaska and Coral. In August of 1999, Tenaska and Coral signed an agreement for Coral to deliver the fuel and purchase the wholesale output of the 845 MW Tenaska Gateway Generating Station in Rusk County, Texas, near Henderson.
“Our relationship builds on both companies’ belief that the Southeast is a growing wholesale power market for many years to come. This new generating facility will play an essential role in meeting this region’s need for clean,
reliable, low-cost and flexible power supplies,” said Howard Hawks, Tenaska chairman and CEO.
“Coral is extremely well positioned as a gas and power marketer and trader to contribute to the commercial success of this power development project. The plant’s output will be an important addition to our growing power supply portfolio in this region,” said Debbie Wernet, Coral president of North American Trading.
Terms of the agreement were not disclosed.
The Tenaska project will be a modern natural gas-fired facility with catalytic emission controls. The development phase of this project is near completion and the initial financing process will begin early next year. Construction of the generating facility is scheduled to begin in the summer of 2001 with completion scheduled for summer 2003.