Plum Point Energy Associates Signs Agreement with Southwestern Electric for Arkansas Coal-Fired Plant.
Plum Point Energy Associates, a member of the LS Power Group of St. Louis, Mo., has signed a 30-year power purchase agreement with Southwestern Electric Cooperative Inc. for its 665 MW facility in Osceola, Ark.
Plum Point will be one of the cleanest coal fired units in the country and one of the lowest variable cost units in the region when it comes on line in early to mid-2010.
The agreement with SWECI is for 70 MW and marks the fourth 30-year power purchase agreement to be executed for the Plum Point project. The other three agreements are with the Empire District Electric Company, South Mississippi Electric Power Association and the Missouri Joint Municipal Electric Utility Commission.
The addition of the SWECI agreement, along with the joint ownership interests sold in the energy station, completes the sale of capacity from the large-scale coal project.
"We searched the country for a source of long-term energy that would meet our needs in terms of price and performance," said Kerry Sloan, chief executive officer of Southwestern Electric Cooperative. "The Plum Point plant will provide reliable, low-cost energy for future generations of Southwestern Electric members. We're pleased to count ourselves among the utilities buying power from this state-of-the-art facility. And we're happy to be doing business with a trusted name like LS Power."
LS Power broke ground on the 665 MW pulverized coal facility in March and has sold tenancy in common interests in the project to East Texas Electric Cooperative Inc., the Missouri Joint Municipal Electric Utility Commission, the Empire District Electric Company, and the Municipal Energy Agency of Mississippi.
"We are very pleased to have fully subscribed the Plum Point project, bringing another electric cooperative, SWECI, into the strong purchaser group," said Jason Hochberg, President of LS Power.
LSP Services Plum Point LLC, an affiliate of LS Power, is managing construction and will manage operation of the project. The project is being constructed pursuant to a turnkey engineering, procurement and construction contract with Plum Point Power Partners, a joint venture of Zachry Construction Corporation, Black & Veatch, and Gilbert Central Corp, an affiliate of Kiewit Construction Company.
In addition to the Plum Point Energy Station, members of the LS Power Group have coal-fired projects in advanced development in Texas, Georgia, Nevada and Iowa. Founded in 1990, the LS Power Group is a fully integrated power plant owner, developer and manager.
For information, visit www.lspower.com.
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|Date:||Dec 8, 2006|
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