Two Peoples Energy Resources Natural Gas-Fired Projects Totaling 1,440 Megawatts Delayed in Western United States

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Peoples Energy Resources Corporation (PERC) (NYSE:PGL ) (Chicago, Illinois) has indicated that two of its new power plant development projects, located in the Western U.S. have been delayed, due to the inability for the company to sign long term Power Purchase Agreements (PPA). The projects delayed include the Valencia Energy Facility (Belen, New Mexico), which is a 280-megawatts (MW) plant and the COB (California-Oregon Border) Energy Facility (Bonanza, Oregon), which is a 1,160 MW plant.

Power plant developers, like PERC, that have developed power plant projects such as the Valencia Peaking Plant and the COB Energy Facility are having a hard time getting long term PPAs for their power and so they can not get the necessary funding. This is an ongoing trend, as more and more utilities are avoiding long-term agreements. If built, the two plants would provide enough energy for about 1.4 million households. This puts about 550 construction jobs and about 40 permanent jobs on hold, as well as increases the chance for possible power shortages in the Western United States.

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