Dominion, Peoples Energy Merchant Power Facility
Meeting Peak Demand in First Full Week of Commercial Operations
ELWOOD, IL -- Dominion Resources Inc. (NYSE:D) and Peoples
Energy Corporation (NYSE:PGL) announced today that their jointly-owned natural
gas-fired, merchant power facility in Illinois is in commercial operation and
providing peaking capacity to two major energy clients.
The four-turbine, 600-megawatt Elwood Energy facility is
providing 300 megawatts each to Commonwealth Edison Company and Engage Energy
US, L.P. Both contracted last spring to purchase 50 percent of the new facility’s
output over a multi-year period.
Elwood Energy LLC is a joint venture between subsidiaries
of Dominion Resources and Peoples Energy Corporation.
Ron Usher, general manager of Elwood Energy, said: "It’s
gratifying that our team effort has brought a world-class facility on line in
record time just as it is needed - to meet record peak demand in unusually strong
and persistent summer heat. The current summer of 1999 heat conditions represent
exactly what our facility was designed to meet. Our units are operating well
and making a significant contribution to supplying electricity to meet the area
electric demand.
"I would like to recognize the ComEd organization for
its professionalism and the instrumental role that it played in helping us connect
this project to the power grid in an expedited timeframe."
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.
Elwood Energy LLC has begun investigating the potential development
of the next phase of the facility. Elwood Energy has received regulatory approval
to increase capacity to 3,100 megawatts. If fully developed, it would be the
state’s largest natural gas fired facility, capable of serving approximately
one million homes.
Dominion Resources is an $18 billion holding company active
in regulated and unregulated electric power, natural gas and financial services.
It is headquartered in Richmond, Va.
Peoples Energy is a diversified energy company with businesses
focused on power generation, oil and gas production, asset-based gas wholesale
services and retail energy services. Its core operations are two natural gas
utilities, Peoples Gas and North Shore Gas. It is headquartered in Chicago.
