Aquila Energy, UtiliCorp United subsidiary, signs 20-year gas deal valued at $400-$500 million to fuel cogeneration projects.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--Feb. 22, 1995--Aquila Energy, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of UtiliCorp United (NYSE NYSE See: New York Stock Exchange :UCU UCU University and College Union (UK) UCU Ucore Uranium Inc (stock symbol) UCU University College Utrecht (The Netherlands) UCU University Credit Union ), has signed a 20-year contract to provide up to 27 million cubic feet per day (mmcfd) of natural gas to affiliates of LS Power Corp. for two cogeneration projects in Minnesota and Wisconsin. The total value of the contract over its 20-year term is estimated by Aquila to be as high as $400 to $500 million. Power from the Cottage Grove Cottage Grove, village (1990 pop. 22,935), Washington co., SE Minn., near the St. Croix River; inc. 1965. There is farming (cattle, sheep, corn, and soybeans) and manufacturing (chemicals and machinery). , Minn., cogeneration project will be sold to Northern States Power Co. and the steam will be sold to 3M Co. The Whitewater, Wis., project will sell its power to Wisconsin Electric Power Co. and steam to the University of Wisconsin. Richard C. Green Jr., UtiliCorp chairman and president, said Aquila is one of two gas suppliers selected by LS Power for this long-term agreement. "We are, of course, delighted to secure this business. It reflects the marketplace's confidence in us as one of the premier long-term players in the gas business," Green said. "The gas volumes represented in this transaction are the equivalent of hooking up 50,000 residential customers with no capital investment." This is the latest in a series of ventures and agreements where UtiliCorp is ultimately providing energy to organizations such as TWA TWA Time-weighted average, see there , Corning, Ford Motor, Wendy's Ritz-Carlton and Hyatt Hotels. LS Power, a Bozeman, Mont., firm, was established in 1990 to develop, finance, construct, own and operate cogeneration and independent power plants. Cogeneration is the simultaneous generation of electricity and thermal energy thermal energy Internal energy of a system in thermodynamic equilibrium (see thermodynamics) by virtue of its temperature. A hot body has more thermal energy than a similar cold body, but a large tub of cold water may have more thermal energy than a cup of boiling , such as steam, from a single fuel source. Construction on both projects is expected to begin this spring. In December, UtiliCorp announced plans to achieve significant growth by becoming a true national utility by reaching outside the 17 states where it has physical operations in order to access opportunities and serve customers coast-to-coast with the highest quality products and services. "This long-term contract another examnple of how UtiliCorp has used its skills to take best advantage of gas deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. ." He said UtiliCorp's gas business has increased over 57 percent annually during the gas deregulation era that began in 1985. Through its Aquila Energy subsidiary, UtiliCorp has marketed natural gas to industrial and wholesale customers in nearly all of the 48 contiguous states as well as part of Canada and Mexico. Headquartered in Omaha, Aquila also has operations in gas and oil production and gas gathering, transportation and processing. UtiliCorp United provides gas and electric service to 1.2 million customers in eight states, British Columbia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . UtiliCorp also is engaged in various non-regulated energy and utility businesses in the United States, the United Kingdom and Jamaica. Including customers served indirectly, UtiliCorp's businesses reach a total of more than 22 million customers. CONTACT: UtiliCorp United, Kansas City Media: Sally McElwreath, 816/691-3596 Caroll Arnold, 816/480-3616 Investors: Dale Wolf, 816/691-3536 Ellen Fairchild, 816/691-3506 |
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