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FGE Power Reaches Agreement to Finance and Construct 1,500-MW Natural Gas Project in Texas

LCG, July 23, 2014-FGE Power, LLC yesterday announced an agreement to partner with an affiliate of Starwood Energy Group Global LLC to finance and build two, 747-MW combined-cycle gas turbine facilities in Mitchell County, Texas. Phase I of the project, FGE Texas I, is planned to commence construction this fall and achieve commercial operations no later than early 2017. Phase II, FGE Texas II, will add an identical 747-MW power block, with construction to start in early 2015 and reach commercial operations by the summer of 2017. The FGE Texas Project (FGE Texas I and FGE Texas II) represents over $1.2 billion of direct investment.

Minnesota Power Reaches Settlement Agreement with EPA Over NSR Allegations

LCG, July 17, 2014-Minnesota Power, a utility division of ALLETE, Inc., announced yesterday that it has reached a settlement agreement with the Environmental Protection Agency (EPA) and the Minnesota Pollution Control Agency to resolve alleged violations of the New Source Review (NSR) provisions of the Clean Air Act. The agreement does not include any admission of wrongdoing on the part of the company. Minnesota Power is one of many utilities in the U.S. whose investments in electric generation facilities were reviewed as part of the EPA's Coal-Fired Power Plant Enforcement Initiative that began in 1999 and resulted in over 25 related settlements.

Industry News

Sempra Plans 600 Megawatts in Mexicali, Mexico

LCG, Feb. 22, 2001A subsidiary of utility holding company Sempra Energy Inc. said yesterday it would build a 600 megawatt natural gas-fueled power plant in Mexico, in the border town of Mexicali. Sempra values the project at $350 million and said the facility should begin commercial operation by the summer of 2003.

The plant, Termoelectrica de Mexicali, will be built by Sempra Energy Resources and would be connected to the California transmission system through a 230 kilovolt interconnect. Mexicali is 10 miles south of El Centro, Calif., and about 80 miles east of San Diego.

"Electricity from this new power plant can help alleviate California's energy crisis," said Donald Felsinger, Sempra Energy group president.

Natural gas fuel for the plant will be delivered through the new North Baja Pipeline, which will begin construction this summer. In order for Termoelectrica de Mexicali's power to be exported into California, permits will be required from the Mexican Energy Regulatory Commission and the U.S. Department of Energy, but not from California regulators.




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