HOUSTON, Jan. 22, 2001 (PRNewswire) — Tractebel Energy Marketing, Inc., the North American trading and marketing subsidiary of the global energy and services concern, Tractebel S.A., has signed a twenty year power purchase agreement with American Electric Power (NYSE: AEP) to purchase all of the output from AEP’s planned 900 MW co-generation plant located at The Dow Chemical Company (NYSE: Dow) complex in Plaquemine, Lousiana.
The plant will be fueled by natural gas from the Louisiana Interstate Gas Pipeline, which is owned and operated by AEP. The facility will be developed and constructed by AEP and operated by Dow under a separate agreement.
The plant is expected to begin operations in early 2003 and will consist of 620 MW of new baseload capacity from four GE gas turbines operating in combined cycle and 280 MW of peaking capacity. Tractebel will have the flexibility to dispatch the plant according to market conditions.
“The Plaquemine Plant fits well with Tractebel’s North American strategy which includes owning or controlling generating capacity in selected regions of North America,” said William Utt, President and CEO of Tractebel North America.
“This transaction is an important step for Tractebel,” added Dirk Beeuwsaert, CEO of Tractebel’s Electricity and Gas International division. “We are continuing to expand our trading capabilities without immediate investment in parallel with our energy marketing and related energy services in North America.”
“This project is another example of AEP’s ability to successfully link its technical and commercial skills to meet our customers’ needs,” said Paul Addis, executive vice president for AEP. “This new facility will bring generating capacity to Louisiana using environmentally friendly and energy efficient technology, while at the same time allowing Dow to achieve greater energy efficiency in its core business.”
Tractebel is a global energy and services business operating in more than one hundred countries with a range of activities covering not only electricity and gas, but also energy and industrial services, engineering and technical installations, together with waste management.
Tractebel is the energy arm of Suez Lyonnaise des Eaux. It represents installed electricity generating capacity of more than 50,000 MW and operates gas transportation and distribution networks in Europe, Latin America and Asia. In the U.S., Tractebel currently owns and operates 36 power and cogeneration facilities representing in excess of 2,100 megawatts and 16 million lbs/per hour of steam sales. Additionally, Tractebel has seven projects in construction and six projects in advanced development representing 2,400 MW in aggregate. Tractebel recently completed the acquisition of Cabot LNG located near Boston, Massachusetts.
American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it one of America’s largest generators of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume.
AEP provides retail electricity to more than 9 million customers worldwide and has more than $35 billion in assets, primarily in the U.S. with holdings in select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.
SOURCE: Tractebel Energy Marketing, Inc.