Enron Mail

From:ben.jacoby@enron.com
To:christi.nicolay@enron.com
Subject:Re: Tennessee Valley Authority Plans New Natural-Gas Fired Plant
Cc:joe.hartsoe@enron.com, cynthia.sandherr@enron.com, james.fallon@enron.com,steven.kean@enron.com, richard.shapiro@enron.com, sarah.novosel@enron.com, elizabeth.sager@enron.com, david.delainey@enron.com, mike.miller@enron.com, barbara.hueter@enron.com
Bcc:joe.hartsoe@enron.com, cynthia.sandherr@enron.com, james.fallon@enron.com,steven.kean@enron.com, richard.shapiro@enron.com, sarah.novosel@enron.com, elizabeth.sager@enron.com, david.delainey@enron.com, mike.miller@enron.com, barbara.hueter@enron.com
Date:Thu, 13 Jan 2000 01:20:00 -0800 (PST)

FYI, the article is not really accurate in that TVA is currently constructing
a total of 600MWs of peakers which will be on-line by summer '00. These
peakers consist of 300MW expansions at each of their Johnsonville and
Gallatin plants.

Regards,

Ben Jacoby





From: Christi L Nicolay 01/13/2000 08:57 AM


To: Joe Hartsoe/Corp/Enron@Enron, Cynthia Sandherr/Corp/Enron@Enron, James B
Fallon/HOU/ECT@ECT, Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES,
Sarah Novosel/Corp/Enron@Enron, Elizabeth Sager/HOU/ECT@ECT, David W
Delainey/HOU/ECT@ECT, Mike J Miller/HOU/ECT@ECT, Ben F Jacoby/HOU/ECT@ECT,
Barbara A Hueter/DUB/EES@EES, Joe Hillings/Corp/Enron@ENRON, Jeffrey
Keeler/Corp/Enron@Enron, Greg Whalley/HOU/ECT@ECT, Cliff Baxter/HOU/ECT@ECT,
Mark E Haedicke/HOU/ECT@ECT, Kevin P Hannon/HOU/ECT@ECT, Kathleen E
Magruder/HOU/EES@EES, Kathleen Wagner/HOU/EES@EES, Kevin M
Presto/HOU/ECT@ECT, Lloyd Will/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect,
Richard Ingersoll/HOU/ECT@ECT, Charles Yeung/HOU/ECT@ECT, Janine
Migden/DUB/EES@EES, Dave Mangskau/Corp/Enron@Enron, Thomas S
Reichelderfer/DUB/EES@EES
cc:
Subject: Tennessee Valley Authority Plans New Natural-Gas Fired Plant

FYI
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 01/13/2000
08:55 AM ---------------------------


"Tracey Bradley" <tbradley@bracepatt.com< on 01/13/2000 08:15:04 AM
To: "Jeffrey Watkiss" <dwatkiss@bracepatt.com<, Christi L
Nicolay/HOU/ECT@ECT, jharts@enron.com, Sarah Novosel/Corp/Enron@ENRON
cc:
Subject: Tennessee Valley Authority Plans New Natural-Gas Fired Plant



I've highlighted the portion of the article that discusses Enron.

********************************************

Tennessee Valley Authority Plans New Natural-Gas Fired Plant
Dave Flessner , Chattanooga Times/Free Press

( January 13, 2000 )

Jan. 13--The Tennessee Valley Authority is preparing to locate its first new
power plant in a generation.

But unlike the massive and controversial nuclear plants TVA proposed in the
1960s, the newest power generating facility will be much smaller and less
controversial than any plant TVA has erected in the past half century.

TVA is proposing to build a natural gas-fired plant on farmland in Haywood
County, Tenn., about 40 miles north of Memphis. TVA has optioned to buy any
of three different farms near Brownsville, Tenn., to locate a plant capable
of generating between 1,000 megawatts and 1,700 megawatts of electricity.

The preferred plant size would be a Westinghouse unit costing TVA over $200
million and capable of generating 1,400 megawatts of power -- slightly more
than what each reactor at the Sequoyah Nuclear Plant produces at full power.

But the new plant will generate power less than 30 percent of the year when
TVA's power demand is at its peak.

"We need additional peaking power in the western portion of our service
territory and these sites are well located near natural gas pipelines and one
of TVA's 500-kilovolt transmission lines," said Roy V. Carter, project leader
for the proposed new plant.

Mr. Carter said the natural gas-powered plant won't have the pollution
problems of either coal or nuclear plants. The new plant would be the first
that TVA has ever built not on a river or lake. But the underground water
supplies should be adequate since the plant will typically operate only a few
hours a day, even during the summer and winter peak demand periods.

Environmentalists who have fought TVA's nuclear and coal plants in the past
are welcoming the switch to natural gas.

"We support TVA getting a larger share of generation from natural gas because
it is a much cleaner source of fuel," said Dr. Steve Smith, executive
director of the Tennessee Valley Energy Reform Coalition, a consumer and
environmental advocacy group. "We would hope that TVA will try to use these
type of plants to replace some of the dirtier coal plants, which are major
sources of air pollution in the Valley. These shouldn't just be used to
generate more and more power for TVA to sell without any type of demand
management strategy to also encourage consumers to use less electricity."

But TVA officials insist the extra power is needed just to keep pace with
rising power consumption in TVA's 7-state service territory. Electricity
consumption in the Valley -- already one of the highest regions in the
country -- is growing twice as fast as the national average.

TVA has signed option purchase agreements to buy power from other producers.
Enron has even built three natural gas-fired plants on the western edge of
the TVA territory. The energy company built a 475-megawatt peaking plant in
Brownsville, Tenn., last year near where TVA wants to build its newest plant.
Last year, Enron also began operations on a 475-megawatt plant in Caledonia,
Miss., and a 390-megawatt plant in New Albany, Miss.

"We will continue to buy power, when needed, from other sources," TVA
spokesman John Moulton said. "But we've found that in the crunch times in the
summer it is good to have your own power source."

A hearing on TVA's new plant is scheduled in Brownsville at 5:30 p.m.
tonight. But because the new plant is located in a rural area and will
generate only between 12 and 30 permanent jobs, it has not attracted much
public comment yet, Mr. Carter said.

The environmental review is expected to be completed this summer and the
plant should be in operation by June 2001.

-----

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&copy; 2000, Chattanooga Times/Free Press, Tenn.