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 DETROIT, Aug. 19 /PRNewswire/ -- MCN Corporation and Houston-based Destec Energy, Inc. today announced plans to build, own and operate a $150 million gas-fueled cogeneration plant in Ludington, Mich., that would sell electricity to Consumers Power Company and provide steam to The Dow Chemical Company's Ludington plant. The 123-megawatt facility, which will be located adjacent to the Dow plant, is expected to begin operations in late 1996.
 A subsidiary of MCN Investment Corporation (MCNIC) and Destec will participate equally in a partnership that will own, develop, construct and operate the facility. Other participants in the project are Grand River Equities, Inc., Indeck Energy Services and Thermo Michigan, Inc.
 The MCNIC subsidiary will also enter into a long-term contract to supply the approximately 9 billion cubic feet of natural gas per year needed for the facility. Michigan Consolidated Gas Company (MichCon), another subsidiary of MCN Corporation, will construct pipelines and other facilities, at a cost of approximately $20 million, to transport gas to the new plant.
 Natural-gas-fired cogeneration, which produces steam for industrial use as well as electricity, has become an increasingly popular power source because of its environmental and energy efficiency advantages. This technology utilizes the cleanest fossil fuel available and captures most of the energy naturally wasted in the generation of electricity. Consequently, cogeneration typically is at least 25 percent more efficient than the traditional method of producing electricity. MCN also owns a 30-megawatt, gas-fired cogeneration facility in Ada, Mich.
 "This project is consistent with our strategic direction and represents an opportunity to invest in cogeneration facilities as well as act as the natural gas transporter and supplier," said Alfred R. Glancy III, chairman, president and chief executive officer of MCN. "We think this partnership is an excellent combination of resources and expertise. Destec has extensive experience in the development of successful cogeneration facilities, and MCN can put in place reliable long-term gas supply arrangements that can help match fuel costs to energy revenues under the electricity sales agreement."
 "Destec is excited about its first development in Michigan, which boasts access to a diverse gas supply network and the country's largest natural gas storage capacity -- characteristics that greatly enhance an efficient and environmentally preferable power project," said Charles F. Goff, president and chief executive officer of Destec. "We are looking forward to participating in this project with MCN and to the opportunity of working with MCN on future projects to meet the growing demand for reliable energy."
 "Grand River Equities is very pleased to be involved with such an outstanding project, which will conserve energy and help promote job growth in Michigan," said Ralph Gregory, president of Grand River Equities.
 A key milestone in the early development of the project occurred in May 1993 when the Michigan Public Service Commission issued an order allowing the project to sell electricity to Consumers Power Company.
 Destec Energy, Inc. (NYSE: ENG) is a major independent power company that develops, builds, owns and operates gas-fired power-generation facilities that produce and sell electrical and thermal energy, as well as facilities that manufacture synthetic fuel for use in energy production. Destec has interests in 13 operating projects with a total rated equivalent capacity of more than 1,390 megawatts of electricity and over 2 million pounds per hour of steam. Destec presently has two facilities, representing 724 megawatts of capacity, under construction. In addition, Destec currently markets more than 425 megawatts of electricity cogenerated by The Dow Chemical Company.
 MCN Corporation (NYSE: MCN) is the holding company for MCN Investment Corporation, which owns subsidiaries in the gas services, computer operations services and natural gas technology businesses; for Michigan Consolidated Gas Company (MichCon), a natural gas distribution, transmission and storage company serving more than 1.1 million customers in more than 500 communities throughout Michigan; and for Citizens Gas Fuel Company, a Michigan natural gas utility.
 -0- 8/19/93
 /CONTACT: For media, Dave Coulter, 313-256-5986, or for analysts, Sebastian Coppola, 313-256-6324, both of MCN/

CO: MCN Corporation; Destec Energy, Inc. ST: Michigan, Texas IN: OIL SU: JVN

SB -- DE002 -- 4231 08/19/93 10:07 EDT
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Publication:PR Newswire
Date:Aug 19, 1993

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