/PRNewswire/ -- With gasoline and diesel pump prices in Georgia hovering in the $4.00 range, Atlanta Gas Light (AGL) today (May 12) filed a plan with the Georgia Public Service Commission (PSC) to build a network of Compressed Natural Gas (CNG) fueling stations over the next five years in the metropolitan Atlanta region and along major transportation corridors in the state. The plan also includes low-cost equipment leasing options for home fueling stations. CNG retail prices are over a third less than that of petroleum - $2.19 per gallon of gas equivalent – as currently posted at Georgia retailers.
"Demand for CNG is growing in the United States, and Atlanta Gas Light is committed to attracting interest in this important new investment opportunity to Georgia," said Ian Skelton, director of Atlanta Gas Light's natural gas vehicle program. "Natural gas is abundant and clean, and the U.S. is estimated to have a one hundred year supply that is readily deliverable to Georgia. Fleet owners and vehicle manufacturers are beginning to recognize the significant price advantage CNG holds over petroleum at the pump and, as a result, demand for CNG should increase. Making CNG stations more prevalent and accessible makes sense for Georgia, for businesses and for consumers."
Under the plan to be considered by the PSC later this summer, AGL proposes to invest nearly $12 million dollars to stimulate private investment in the construction of approximately 10 to 15 fueling stations, depending on the size of the station and the level of private investment. The stations would be owned and operated by private retailers who must invest approximately 50 percent of the cost of the CNG station. Retailers would purchase natural gas from certificated marketers and resell it as CNG to the public. The initial station locations will be largely determined based on proximity to commercial fleet customers who contract for service.
The capital used to seed the market would be expended from the Universal Service Fund, which is funded from rates paid by industrial customers and proceeds shared by energy asset management firms. AGL annually requests funds from the USF for line extensions to serve new customers and new regions of the state. The recessed economy has stalled line extensions that normally would come with growth, leaving a temporary surplus in the fund that can be used to foster CNG growth.
Atlanta Gas Light will not sell CNG to the public nor participate in the commercial operation of the stations as part of this program. AGL will own and maintain the CNG equipment connected to its traditional natural gas distribution system, enabling USF dollars to be used to construct the CNG facilities. Atlanta Gas Light will collect transportation delivery charges and actual costs associated with operations and maintenance from retailers. Revenue collected from a separate equipment utilization fee will be placed in a reserve account to fund a portion of the cost of leasing home refueling stations, erecting additional CNG facilities, and making repairs and replacing the CNG equipment.
In order to qualify for funding, applicants must demonstrate financial resources sufficient to secure the real estate for the station, develop the site consistent with local zoning, fund at least 50 percent of the total CNG station costs, and produce contracts with fleet or end use customers that utilize no less than 15,000 gas equivalent gallons per year for five years. The 50 percent match requirement is reduced to 20 percent after the first year if there are sufficient funds remaining.
The plan is the product of months of market studies and public hearings followed by legislative action. After filing a conceptual plan last September at the urging of PSC Commissioner Doug Everett, two public hearings were held in November 2010 and January 2011 to refine the plan. In March, the Georgia General Assembly gave express authorization for USF funds to be utilized for natural gas fueling infrastructure for motor vehicles.
Construction and maintenance of CNG facilities is not new to Atlanta Gas Light. The company installed its first CNG pumps at a public station in downtown Atlanta in the early 1990's. In 1996, AGL began its service to MARTA (Metropolitan Atlanta Rapid Transit Authority) when the transportation agency converted its bus fleet to CNG in advance of Atlanta hosting the Summer Olympics. Currently, the company owns equipment located at 10 CNG stations operated by private fleets and located on customer-owned premises, including municipal transit agencies, and has installed numerous others. The company also provides maintenance services to about 40 additional fleet customers who own their own CNG stations.
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Showing posts with label natural. Show all posts
Showing posts with label natural. Show all posts
Monday, May 16, 2011
Friday, April 8, 2011
Oglethorpe Power Completes Purchase of Combined Cycle Units
/PRNewswire/ -- Oglethorpe Power Corporation today completed the purchase of two natural gas-fired, combined cycle generating units in Murray County, Ga. with the acquisition of KGen Murray I and II, LLC, a wholly owned subsidiary of KGen Power Corporation. The purchase price was approximately $529 million, including working capital and other closing adjustments.
The two Murray units represent an aggregate summer planning reserve generating capacity of about 1,220 megawatts (MW). This brings Oglethorpe Power's total owned generating capacity to approximately 7,048 MW.
The Murray acquisition also includes an existing power purchase and sale agreement with Georgia Power Company for the entire output of Murray I through May 31, 2012. Initially, both units are planned to be operated independently of the other generating facilities owned and operated by Oglethorpe Power but will be integrated into the system as needed.
Oglethorpe Power first disclosed that it was negotiating to purchase some then-unnamed natural gas facilities in October 2010 and followed in January 2011 with an announcement that it had signed a purchase and sale agreement for the Murray units, subject to applicable regulatory approvals and approval by KGen stockholders.
"We couldn't be more pleased with today's acquisition," said Elizabeth B. Higgins, executive vice president and chief financial officer. "This purchase gives Oglethorpe Power and our Member Systems a significant block of generating capacity at a very reasonable cost without the added time and additional expense of constructing a new facility."
In purchasing the Murray units, Oglethorpe Power has now officially canceled construction of a planned 605-megawatt, combined cycle generating plant that was in the siting stage.
Ms. Higgins said Oglethorpe Power expects long-term financing for the Murray units to come primarily from loans guaranteed by the Rural Utilities Service (RUS). Taxable bonds would make up the difference for any amount not funded through the RUS loan program.
Oglethorpe Power Corporation (OPC) is the nation's largest power supply cooperative with more than $7 billion in assets serving 39 Electric Membership Corporations which, collectively, provide electricity to 4.1 million Georgians.
A proponent of conscientious energy development and use, OPC balances reliable and affordable energy with environmental responsibility and has an outstanding record of regulatory compliance. Its diverse energy portfolio includes natural gas, hydroelectric, coal and nuclear generating plants with a combined capacity of approximately 7,048 MW, as well as purchased power.
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The two Murray units represent an aggregate summer planning reserve generating capacity of about 1,220 megawatts (MW). This brings Oglethorpe Power's total owned generating capacity to approximately 7,048 MW.
The Murray acquisition also includes an existing power purchase and sale agreement with Georgia Power Company for the entire output of Murray I through May 31, 2012. Initially, both units are planned to be operated independently of the other generating facilities owned and operated by Oglethorpe Power but will be integrated into the system as needed.
Oglethorpe Power first disclosed that it was negotiating to purchase some then-unnamed natural gas facilities in October 2010 and followed in January 2011 with an announcement that it had signed a purchase and sale agreement for the Murray units, subject to applicable regulatory approvals and approval by KGen stockholders.
"We couldn't be more pleased with today's acquisition," said Elizabeth B. Higgins, executive vice president and chief financial officer. "This purchase gives Oglethorpe Power and our Member Systems a significant block of generating capacity at a very reasonable cost without the added time and additional expense of constructing a new facility."
In purchasing the Murray units, Oglethorpe Power has now officially canceled construction of a planned 605-megawatt, combined cycle generating plant that was in the siting stage.
Ms. Higgins said Oglethorpe Power expects long-term financing for the Murray units to come primarily from loans guaranteed by the Rural Utilities Service (RUS). Taxable bonds would make up the difference for any amount not funded through the RUS loan program.
Oglethorpe Power Corporation (OPC) is the nation's largest power supply cooperative with more than $7 billion in assets serving 39 Electric Membership Corporations which, collectively, provide electricity to 4.1 million Georgians.
A proponent of conscientious energy development and use, OPC balances reliable and affordable energy with environmental responsibility and has an outstanding record of regulatory compliance. Its diverse energy portfolio includes natural gas, hydroelectric, coal and nuclear generating plants with a combined capacity of approximately 7,048 MW, as well as purchased power.
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Tuesday, January 25, 2011
ArcLight Teams With GE and Singapore's GIC to Form Largest Fully Independent Power Producer in US Southeast
/PRNewswire/ -- ArcLight Capital Partners, LLC ("ArcLight"), GE Energy Financial Services, a unit of GE (NYSE: GE), and the Government of Singapore Investment Corporation Pte Ltd ("GIC") announced today they have agreed to become partners in five Georgia natural gas-fired power plants that together make up the largest fully independent power producer in the southeastern United States. The GE unit and GIC will each acquire 24.95 percent of the portfolio from an affiliate of ArcLight, now its sole owner. An affiliate of ArcLight will retain 50.10 percent.
Financial details of the transaction were not disclosed. The closing of the transaction remains subject to approval by the Federal Energy Regulatory Commission and Committee on Foreign Investment in the United States and is expected to occur toward the end of the first quarter of 2011.
The plants, located throughout Georgia, comprise a combined cycle facility and four single-cycle peaking facilities, each of which is less than 10 years old. Together, they are capable of generating more than 2,500 megawatts of power, in several cases using GE gas-fired turbines. All five facilities, critical to the regional power supply and grid stability, are contracted under long-term agreements to investment-grade counterparties and are managed by Consolidated Asset Management Services, an ArcLight affiliate.
The portfolio comprises:
* Monroe – a 320-megawatt plant in Monroe, 50 miles east of Atlanta
* Walton – a 450-megawatt plant in Monroe, adjacent to the Monroe plant
* Washington – a 602-megawatt plant in Linton, 50 miles east of Macon
* Sandersville – a 640-megawatt plant in Sandersville, seven miles from the Washington plant
* Effingham – a 515-megawatt plant in Rincon, 20 miles north of Savannah
The portfolio is well positioned to benefit from the macroeconomic recovery and more stringent energy and carbon legislation as well as the boom in production of unconventional natural gas in the United States. In addition, the portfolio will support additional infrastructure investment in the region to meet the demand for power and accommodate the power supply reconfiguration expected to unfold over the next decade.
"Since the initial investment in this portfolio in 2007, ArcLight and CAMS have developed a strong track record of operational success and commercial reliability in a promising regional market," said Dan Revers, Managing Partner of ArcLight. "We are excited about the opportunity to partner with these two highly respected and valued-added investors, and we look forward to working closely with GE and GIC to maximize value across the portfolio and platform."
ArcLight has completed several transactions with GE Energy Financial Services, including the GE unit's lead lending of $98 million in senior secured credit facilities for the Sandersville power plant.
"This transaction enables us to deepen our relationship with ArcLight, establish ties with an important new partner, GIC, and work together on an attractive set of assets in a core focus area, thermal power generation," said Kevin Walsh, managing director and leader of Power and Renewables at GE Energy Financial Services.
"This is an attractive portfolio of contracted power generation facilities in a region experiencing an increasing demand for low carbon, efficient power. The completion of this transaction complements our growing portfolio of infrastructure investments in the US. We are delighted to have ArcLight and GE, who have extensive experience in owning and operating similar assets, as our partners in this deal," said Mr. Ang Eng Seng, Global Head of GIC's Infrastructure Group.
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Financial details of the transaction were not disclosed. The closing of the transaction remains subject to approval by the Federal Energy Regulatory Commission and Committee on Foreign Investment in the United States and is expected to occur toward the end of the first quarter of 2011.
The plants, located throughout Georgia, comprise a combined cycle facility and four single-cycle peaking facilities, each of which is less than 10 years old. Together, they are capable of generating more than 2,500 megawatts of power, in several cases using GE gas-fired turbines. All five facilities, critical to the regional power supply and grid stability, are contracted under long-term agreements to investment-grade counterparties and are managed by Consolidated Asset Management Services, an ArcLight affiliate.
The portfolio comprises:
* Monroe – a 320-megawatt plant in Monroe, 50 miles east of Atlanta
* Walton – a 450-megawatt plant in Monroe, adjacent to the Monroe plant
* Washington – a 602-megawatt plant in Linton, 50 miles east of Macon
* Sandersville – a 640-megawatt plant in Sandersville, seven miles from the Washington plant
* Effingham – a 515-megawatt plant in Rincon, 20 miles north of Savannah
The portfolio is well positioned to benefit from the macroeconomic recovery and more stringent energy and carbon legislation as well as the boom in production of unconventional natural gas in the United States. In addition, the portfolio will support additional infrastructure investment in the region to meet the demand for power and accommodate the power supply reconfiguration expected to unfold over the next decade.
"Since the initial investment in this portfolio in 2007, ArcLight and CAMS have developed a strong track record of operational success and commercial reliability in a promising regional market," said Dan Revers, Managing Partner of ArcLight. "We are excited about the opportunity to partner with these two highly respected and valued-added investors, and we look forward to working closely with GE and GIC to maximize value across the portfolio and platform."
ArcLight has completed several transactions with GE Energy Financial Services, including the GE unit's lead lending of $98 million in senior secured credit facilities for the Sandersville power plant.
"This transaction enables us to deepen our relationship with ArcLight, establish ties with an important new partner, GIC, and work together on an attractive set of assets in a core focus area, thermal power generation," said Kevin Walsh, managing director and leader of Power and Renewables at GE Energy Financial Services.
"This is an attractive portfolio of contracted power generation facilities in a region experiencing an increasing demand for low carbon, efficient power. The completion of this transaction complements our growing portfolio of infrastructure investments in the US. We are delighted to have ArcLight and GE, who have extensive experience in owning and operating similar assets, as our partners in this deal," said Mr. Ang Eng Seng, Global Head of GIC's Infrastructure Group.
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Thursday, October 22, 2009
Landrieu, Chambliss Announce Creation of Senate Natural Gas Caucus
United States Senators Mary L. Landrieu, D-La., and Saxby Chambliss, R-Ga., today announced the creation of the bipartisan Senate Natural Gas Caucus.
“When we produce natural gas in America, we produce jobs in America,” said Sen. Landrieu, Co-Chair of the Senate Natural Gas caucus. “A reliable and affordable supply of U.S. energy has profound impacts on every sector of our economy and is the backbone of the U.S. employment base. Natural gas is a clean burning, low-carbon fuel that is predominantly produced here at home. This caucus will serve to investigate and debate the economic and national security implications of the newfound abundance of natural gas in the United States.”
“America has an abundant supply of clean, natural gas and has the means to access these resources in an environmentally friendly way,” said Chambliss. “Increasing domestic production is a critical component of a comprehensive energy policy that will reduce America’s dependence on foreign sources for our energy needs. I’m pleased to join Senator Landrieu in creating this caucus. It is my hope that we can start a serious conversation in the Senate about our nation’s energy policy.”
Natural gas is produced in 33 states and relied upon as an energy source in many others. Over 20 percent of the electricity in the United States is generated by natural gas. Natural gas is also an important feedstock in chemical and fertilizer production, and is used to eliminate soot in clean diesel fuel. Natural gas is used as a raw material that goes into lightweight cars, wind power blades, solar panels and energy-efficient materials.
In 2008, nearly 90 percent of the natural gas consumed in the United States came from domestic U.S. supplies. Thanks to technological advances, the U.S. now has triple the amount of natural gas than was estimated in 1966, and 40 percent more than previously believed just a couple of years ago.
Approximately 1.3 million people are employed directly by the companies that drill, ship and supply natural gas to American consumers, with another 2.7 million Americans employed in supporting positions indirectly created by the development of America's domestic energy supplies. The combined economic impact of natural gas development, exploration, production and usage to the U.S. economy in 2008 was $385.5 billion.
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“When we produce natural gas in America, we produce jobs in America,” said Sen. Landrieu, Co-Chair of the Senate Natural Gas caucus. “A reliable and affordable supply of U.S. energy has profound impacts on every sector of our economy and is the backbone of the U.S. employment base. Natural gas is a clean burning, low-carbon fuel that is predominantly produced here at home. This caucus will serve to investigate and debate the economic and national security implications of the newfound abundance of natural gas in the United States.”
“America has an abundant supply of clean, natural gas and has the means to access these resources in an environmentally friendly way,” said Chambliss. “Increasing domestic production is a critical component of a comprehensive energy policy that will reduce America’s dependence on foreign sources for our energy needs. I’m pleased to join Senator Landrieu in creating this caucus. It is my hope that we can start a serious conversation in the Senate about our nation’s energy policy.”
Natural gas is produced in 33 states and relied upon as an energy source in many others. Over 20 percent of the electricity in the United States is generated by natural gas. Natural gas is also an important feedstock in chemical and fertilizer production, and is used to eliminate soot in clean diesel fuel. Natural gas is used as a raw material that goes into lightweight cars, wind power blades, solar panels and energy-efficient materials.
In 2008, nearly 90 percent of the natural gas consumed in the United States came from domestic U.S. supplies. Thanks to technological advances, the U.S. now has triple the amount of natural gas than was estimated in 1966, and 40 percent more than previously believed just a couple of years ago.
Approximately 1.3 million people are employed directly by the companies that drill, ship and supply natural gas to American consumers, with another 2.7 million Americans employed in supporting positions indirectly created by the development of America's domestic energy supplies. The combined economic impact of natural gas development, exploration, production and usage to the U.S. economy in 2008 was $385.5 billion.
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Monday, September 21, 2009
Isakson, Chambliss Urge Administration to Open New Areas for Natural Gas, Oil Development
Expansion Would Create Jobs, Lessen Dependence on Foreign Oil
U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., today joined with 33 of their Senate colleagues in a bipartisan letter to the Administration expressing their strong support for a proposal by the Minerals Management Service to open up new offshore areas for natural gas and oil leasing and development.
“Environmentally responsible exploration of our offshore oil and natural gas resources is a critical part of a comprehensive policy that will enable the United States to become energy independent,” Isakson said. “I hope Secretary Salazar and President Obama will move quickly to utilize these resources, which are important to our national security and economic well-being.”
“It’s important that we utilize all of our domestic energy sources in an environmentally friendly way so that America can become energy independent,” said Chambliss. “Moving forward with the proposed program to lease areas in the Outer Continental Shelf for oil and gas exploration and development is a step in the right direction.”
The full text of the letter to Interior Secretary Ken Salazar is below:
Dear Mr. Secretary:
We are writing to convey our strong support for the Draft Proposed Outer Continental Shelf (OCS) Oil and Gas Leasing Program (DPP) proposed by the U.S. Minerals Management Service (MMS). By opening up new offshore areas for natural gas and oil leasing and development and also allowing for the development of renewable energy as proposed in the DPP, the Department of the Interior can provide the United States with an opportunity to responsibly produce our own energy. This development will bolster our nation’s economy, create new jobs and decrease our dependence on foreign sources of energy.
It is more important than ever that the federal government allow for development of domestic offshore energy supplies made available in the DPP. By offering new leasing opportunities, the DPP is appropriately expansive and provides the Department with maximum flexibility to properly utilize our nation’s domestic resources.
Now is the appropriate time to promote long-term policies that responsibly encourage job creation while growing the economy. Important offshore areas, like those in Alaska, offer tremendous natural gas and oil resources. By some estimates, the Chukchi Sea alone off Alaska’s coast contains as much natural gas and oil as the country has produced in the Gulf of Mexico since 1942.
Additionally, we urge MMS to move forward with the 2007-2012 Leasing Program while working to approve and finalize the new DPP. Implementing a sensible, forward-thinking energy policy will allow for responsible leasing and development of America’s energy resources and will help industries and businesses here at home that rely heavily on natural gas and crude oil. It will also further our national security and energy security interests and, of course, spur jobs and economic growth as we open new areas to leasing and development.
In conclusion, we are pleased to see that the MMS has included new leasing areas in the DPP and has acknowledged the need for the United States to begin responsibly developing the abundant energy resources located off our coasts. We believe that the DPP is an important step in creating a robust, diverse, national energy policy which will help secure our energy future.
We urge you to move forward on the DPP as you work to finalize a new five-year OCS plan. Thank you for your attention to this important matter. Please do not hesitate to contact us if we can be of assistance to you.
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U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., today joined with 33 of their Senate colleagues in a bipartisan letter to the Administration expressing their strong support for a proposal by the Minerals Management Service to open up new offshore areas for natural gas and oil leasing and development.
“Environmentally responsible exploration of our offshore oil and natural gas resources is a critical part of a comprehensive policy that will enable the United States to become energy independent,” Isakson said. “I hope Secretary Salazar and President Obama will move quickly to utilize these resources, which are important to our national security and economic well-being.”
“It’s important that we utilize all of our domestic energy sources in an environmentally friendly way so that America can become energy independent,” said Chambliss. “Moving forward with the proposed program to lease areas in the Outer Continental Shelf for oil and gas exploration and development is a step in the right direction.”
The full text of the letter to Interior Secretary Ken Salazar is below:
Dear Mr. Secretary:
We are writing to convey our strong support for the Draft Proposed Outer Continental Shelf (OCS) Oil and Gas Leasing Program (DPP) proposed by the U.S. Minerals Management Service (MMS). By opening up new offshore areas for natural gas and oil leasing and development and also allowing for the development of renewable energy as proposed in the DPP, the Department of the Interior can provide the United States with an opportunity to responsibly produce our own energy. This development will bolster our nation’s economy, create new jobs and decrease our dependence on foreign sources of energy.
It is more important than ever that the federal government allow for development of domestic offshore energy supplies made available in the DPP. By offering new leasing opportunities, the DPP is appropriately expansive and provides the Department with maximum flexibility to properly utilize our nation’s domestic resources.
Now is the appropriate time to promote long-term policies that responsibly encourage job creation while growing the economy. Important offshore areas, like those in Alaska, offer tremendous natural gas and oil resources. By some estimates, the Chukchi Sea alone off Alaska’s coast contains as much natural gas and oil as the country has produced in the Gulf of Mexico since 1942.
Additionally, we urge MMS to move forward with the 2007-2012 Leasing Program while working to approve and finalize the new DPP. Implementing a sensible, forward-thinking energy policy will allow for responsible leasing and development of America’s energy resources and will help industries and businesses here at home that rely heavily on natural gas and crude oil. It will also further our national security and energy security interests and, of course, spur jobs and economic growth as we open new areas to leasing and development.
In conclusion, we are pleased to see that the MMS has included new leasing areas in the DPP and has acknowledged the need for the United States to begin responsibly developing the abundant energy resources located off our coasts. We believe that the DPP is an important step in creating a robust, diverse, national energy policy which will help secure our energy future.
We urge you to move forward on the DPP as you work to finalize a new five-year OCS plan. Thank you for your attention to this important matter. Please do not hesitate to contact us if we can be of assistance to you.
---
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