|
Wabash Valley Power
Association (WVPA)
has purchased one
unit of the Wabash
River Power Station
in West Terre Haute,
Indiana, from Duke
Energy Indiana. The
purchase of Wabash
River Unit 1includes
the 192-megawatt gas
turbine and
100-megawatt steam
turbine, along with
the unit’s
associated equipment
and property. WVPA
provides all
wholesale power to
EnerStar Power.
Unit 1 was one of
the nation’s first
demonstrations of
using coal
gasification to
produce
electricity. The
facility produces
electricity using
synthetic gas from
an adjacent coal
gasification plant
that is owned by
sgSolutions, a
subsidiary of WVPA.
When the synthetic
gas is unavailable,
the unit can also
run on natural gas.
"Wabash Valley Power
Association has
enjoyed a long
history of
partnerships with
Duke Energy Indiana,
including the joint
ownership of
substantial assets,"
said Wabash Valley
Chief Executive
Officer Rick Coons.
"We see the
acquisition of
Wabash River Unit 1
as a continued
growth of that
relationship, while
also satisfying the
growing energy needs
of our membership."
The purchase is part
of WVPA’s long-term
strategy to own a
larger percentage of
its sources of
electric generation.
"By owning more of
our generation, we
can provide a more
reliable source of
electricity to our
member cooperatives,
and provide more
stable pricing,"
Coons added.
Duke Energy Indiana
employees will
continue to operate
and maintain Unit 1
under a contract
with WVPA. Duke’s
remaining Wabash
River Station units,
which have the
capacity to generate
668 megawatts, are
not being sold.
"Our unit and Wabash
Valley Power
Association’s coal
gasification plant
are fully linked
operationally, so it
makes sense that
these facilities are
owned by the same
company," said Duke
Energy Indiana
President Jim
Stanley. "WVPA has
done an excellent
job operating the
coal gasification
plant since it
became the owner."
The sale must be
approved by the
Indiana Utility
Regulatory
Commission, the
Federal Energy
Regulatory
Commission, the
Federal Trade
Commission and the
Department of
Justice. These
approvals are
anticipated by
mid-2007.
Wabash Valley Power
Association is a
generation and
transmission
cooperative based in
Indianapolis that
provides wholesale
electricity to 28
distribution systems
and their more than
800,000 retail
customers in
Indiana, Illinois,
Michigan, and
Missouri. In
achieving its
corporate goal of
low-cost wholesale
supply for its
members, Wabash
Valley manages a
diverse mix of power
supply options,
including both plant
ownership and
wholesale market
purchases. Wabash
Valley is a founding
member of ACES Power
Marketing, one of
the nation’s largest
physical traders of
electricity, and
Touchstone Energy,
the nationwide
alliance of over 600
customer-owned
electric
cooperatives. |