TECO Wholesale Generation to Divest Partially Constructed 599-Megawatt Power Plant in Arkansas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). TECO Wholesale Generation (TWG), a subsidiary of TECO Energy (NYSE:TE) (Tampa, Florida), is planning on selling a partially constructed natural gas-fired combined-cycle 599-megawatt (MW) power plant. The project site is located on about 100 acres in Dell, Mississippi County, Arkansas, about 65 miles northwest of Memphis, Tennessee, and eight miles west of Blytheville, Arkansas.

The Dell Power Station was originally developed and permitted by private energy producer GenPower LLC (Needham, Massachusetts). GenPower conceived the project in 1999 and applied for permits in the first quarter of 2000. The company received construction permits in the third quarter of 2000. TECO acquired the rights to the project in November 2000.

Dell Power Station construction commenced in June 2001. Then, due to the high cost of natural gas, with the power island installed, TECO suspended construction in Fall 2002. The station is to be a combined-cycle natural gas-fired power station utilizing two GE MS7001FA PG7241(FA) combustion turbine generators (CT's), two CMI ETPI Pioneer GT8, with duct-firing heat recovery steam generators (HRSG's), and one GE D-11 high pressure reheat steam turbine/generator. NOx emissions controls the on CT's/HRSG's include selective catalytic reduction (SCR) units. Water for the station is to be provided by three onsite water wells. National Energy Production Corporation (NEPCO) (Redmond, Washington), a now defunct subsidiary of Enron Corporation, was the engineering, procurement, and construction contractor.

Associated Electric Cooperative Incorporated (AECI) (Springfield, Missouri) is now studying the possibility of acquiring the partially built power station and completing the construction. AECI hopes to take the proposal to its board for approval in May 2005. If the transaction is completed, AECI will need to solicit a new firm to complete the balance of plant work for station operation. According to a source at AECI, the plant is only 65% complete, so it would take several months to complete construction and commissioning, so earliest availability would be summer of 2006.

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