Illinois’ First Merchant Power Plant Signs
Long-Term Contracts for 100 Percent of Capacity
With Commitment of 600 Megawatts,
Elwood Energy Hits Ground Running in Fast Deregulating Midwest
CHICAGO – Illinois’ first, and potentially largest, merchant
power plant has signed multi-year contracts with two large energy companies
to sell 100 percent of its electric power generation now under construction.
Earlier this month, Elwood Energy LLC, a joint venture between
subsidiaries of Peoples Energy Corporation, through its Peoples Energy Resources
Corporation, and Dominion Energy Inc., signed agreements with Commonwealth Edison
Company (ComEd) and Engage Energy US, L.P. to sell all 600 megawatts of generation
capacity from its natural gas-fired facility. Under the agreements, ComEd and
Engage will each purchase 300 megawatts of power from Elwood Energy.
Ronald D. Usher, general manager of Elwood Energy, said,
"Elwood Energy is off to a promising start – we’ve sold all of our power before
even opening the doors. Our early success is a credit to having the right partners
in the right location at the right time. Our dedicated team at Elwood is well
prepared and eager to meet the growing power needs of the people of northeastern
Illinois."
Paul McCoy, senior vice president of transmission and distribution
operations at ComEd, said, "ComEd looks forward to working with Elwood Energy
as well as other independent power developers to ensure reliable electric service
to customers throughout northern Illinois."
Mark W. Stiers, vice president of structured power at Engage,
said, "The purchase of Elwood’s power generation strengthens Engage’s position
as one of the premier energy service companies in the Midwest region. This capacity
and energy will complement Engage’s current portfolio of resources and enhance
our ability to structure products and services for our customers."
The facility, located 60 miles southwest of Chicago in Elwood,
IL., is adjacent to multiple interstate natural gas pipelines that provide access
to competitively priced gas supplies from all major gas producing regions of
the United States. The facility is also close to a high capacity ComEd transmission
corridor that provides access to the wholesale electric market.
The facility’s first 600 megawatts of generation capacity
is expected to be on line in time to help meet the region’s power needs in summer
1999. Elwood Energy has received regulatory approval to increase capacity to
3,100 megawatts. When fully built out, it could be the state’s largest merchant
facility, capable of serving approximately one million homes.
Peoples Energy Resources is the midstream power and gas asset
development subsidiary of Peoples Energy Corporation (NYSE: PGL), a diversified
energy company with businesses that focus on power generation, oil and gas production,
asset-based gas wholesale and retail energy services. Peoples Energy’s core
operations are two natural gas utilities, Peoples Gas and North Shore Gas, serving
nearly one million customers in Chicago and northeastern Illinois.
Dominion Energy is the independent power and natural gas
subsidiary of Dominion Resources Inc. (NYSE: D), an $18 billion holding company
also active in regulated electric power and financial services.
ComEd is the principal subsidiary of Unicom Corporation (NYSE:
UCM). Incorporated in 1994 and based in Chicago, Unicom Corporation is a public
company dedicated to meeting the energy needs of residential, commercial, industrial
and wholesale customers. With nearly 16,000 employees and $7 billion in revenues,
Unicom Corporation is also the parent holding company of Unicom Enterprises
Inc. (UEI), the umbrella organization for its unregulated subsidiaries.
Engaged principally in the production, purchase, transmission,
distribution and sale of electricity to retail and wholesale customers, ComEd
provides service to more than 3.4 million customers across northern Illinois,
or 70 percent of the state’s population.
Engage is a joint venture company of The Coastal Corporation,
a Houston-based diversified energy holding company with consolidated assets
of nearly $12 billion, and Westcoast Energy Inc. of Vancouver, British Columbia,
a major Canadian natural gas company with assets of approximately Canadian $10
billion. Engage offers a full spectrum of energy services, including natural
gas and electricity sales and trading activities, energy management services,
structured storage and transportation services, structured power and management
services, energy risk management and financial services.
