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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

Blugegrass State's Bluegrass Plant Starts Up

LCG, June 13, 2002--A new 500-megawatt, natural gas-fired power plant, intended to operate during peak-demand months June through September, began operating in Kentucky's Oldham County this week.

The plant is run by Bluegrass Generation Co. LLC, a subsidiary of Dynegy, and will sell its output on the open market, mostly in the Midwest. The simple-cycle peaking plant's three turbines are connected to the Louisville Gas & Electric Co. transmission system.

Some opposition to the plant persists, even following emissions testing and the lifting in May of a state moratorium on new merchant permit applications. An organization called Community Against Power Plants is bringing legal challenges concerning alleged health and environmental effects. An administrative hearing is planned for the second week of September.

Dynegy owns another plant in Kentucky's Lawrence county; that facility began producing power in June 2001.


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