Printer Friendly

SUMAS 125 MW COGENERATION FACILITY BEGINS COMMERCIAL OPERATION

 REDMOND, Wash., May 14 /PRNewswire/ -- National Energy Systems Co. (NESCO), a major developer in the independent power business and Calpine Corp., one of the nation's leading independent power producers, today announced the completion of a $135 million, 125 megawatt (MW) gas-fired cogeneration power facility located at Sumas. The facility is the largest cogeneration plant for both companies and features the most stringent environmental control system in the industry.
 The plant achieved commercial operation on April 16. Electrical power is sold to Puget Sound Power & Light (NYSE: PSD), the largest investor-owned utility in Washington, under a 20-year contract. The project, owned by Sumas Cogeneration Co., L.P., a partnership comprised of NESCO, the general partner, and an affiliate of Calpine, will produce sufficient electricity to meet the needs of 85,000 households.
 NESCO's president, Darrell Jones, stated, "Of the six generating plants developed by NESCO, this plant it the most environmentally correct, while still providing a very competitive, fixed long-term price for power to electrical users in the Pacific Northwest."
 Construction and long-term financing was provided by Prudential Power Funding ($70 million) and Credit Suisse ($50 million). Calpine provided equity financing and managed the engineering and construction of the facility.
 In developing the project, NESCO arranged for the purchase of 150 billion cubic feet of natural gas reserves in British Columbia and northwestern Alberta. These reserves guarantee an ample source of fuel for the term of the power contract. The partnership constructed a pipeline to deliver gas from the U.S./Canadian border to the facility. Calpine supervised construction and operates and maintains the pipeline for the partnership.
 Project construction began in March 1992 through a non-traditional owner/construct approach developed by Calpine. The partnership procured all of the major components. Calpine directed the construction, managing both the general contractor, a joint venture of Industrial Power Corp. and Haskell Corp. and the engineer, Hipp Engineering of Vancouver, British Columbia. The plant was brought on-line in less than 15 months.
 "By assuming direct management of the engineering, procurement and construction, we lowered costs at Sumas, while maintaining the highest standards of quality control. I'd like to congratulate NESCO, our contractor and suppliers, and our employees for their outstanding efforts in making the Sumas Project a resounding success," stated Calpine president, Peter Cartwright.
 The project is a gas-fired cogeneration plant, which means electricity and process heat is produced sequentially. A natural gas- fired turbine generates electricity (87 MW). Hot gases, exhausted from the turbine, produce steam in a boiler. This steam drives a second turbine which also generates electricity (38 MW), with a small portion of the steam going to a secondary process, in this case, lumber dry kilns. The kilns are operated by Socco Forest Products, an affiliate of NESCO.
 NESCO is a privately held cogeneration and independent power development company located in Redmond. In addition to its development work, it operates two of its facilities and provides consulting services to developers of other projects.
 Founded in 1984, Calpine is a leading participant in the independent power industry as developer, owner and operator of cogeneration and geothermal facilities throughout the United States. With more than 500 MW in its project portfolio, Calpine owns an interest in and operates six active geothermal steam fields and five operating power plants. The company's headquarters is located in downtown San Jose, Calif.
 -0- 5/14/93
 /CONTACT: Darrell Jones of NESCO, 206-885-1000; or Katherine Potter of Calpine, 408-995-5115/
 (PSD)


CO: National Energy Systems Co.; Calpine Corp. ST: California, Washington IN: OIL SU:

SG-TB -- SJ001 -- 8891 05/14/93 20:05 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 14, 1993
Words:595
Previous Article:EBMUD PROPOSAL CUTS WATER RATES AT ALL LEVELS
Next Article:SESAME PLACE UNVEILS 'TWIDDLEBUG LAND' EXPANSION
Topics:


Related Articles
DESTEC ENERGY JOINS TEXACO IN OWNERSHIP OF NEVADA COGENERATION FACILITY
COGENTRIX ENERGY, INC. $100 MILLION SENIOR NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
CALPINE COMPLETES $10 MILLION LOAN
BROOKLYN NAVY YARD PROJECT UNDER CONSTRUCTION
CALPINE CORPORATION TO ACQUIRE TWO 49.5 MW NATURAL GAS-FIRED POWER PLANTS
CALPINE ACQUIRES OPERATING LEASE FOR 28.5 MW NATURAL GAS-FIRED POWER PLANT FROM FORD MOTOR COMPANY
TRIGEN ENERGY AND GENTOR CORPORATION FORM STRATEGIC ALLIANCE
Primary Energy And BP Amoco finalize Cogeneration Project.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters