DALLAS (PRNewswire-FirstCall) Atmos Energy Corporation said that its Atmos Power Systems, Inc., subsidiary has been selected to build for lease a 21 megawatt natural-gas-fired electric power plant for an industrial customer in Tennessee.
The plant, costing approximately $8 million, will be leased for 10 years with an option for the customer to purchase it after five years.
The plant will consist of 12 Cummings natural-gas-fired engines, developing a total of 28,100 horsepower. The units have been permitted by the Tennessee Department of Environment and Conservation to run up to 1,200 hours a year. Operation is set to begin in July.
Woodward Marketing, L.L.C., a unit of Atmos Energy Marketing, will manage the fuel requirements for the power plant. The plant will operate primarily during periods of curtailment by the Tennessee Valley Authority and will consume more than 200 million cubic feet of natural gas per hour at maximum output. It also is expected to operate whenever it is economical to replace TVA-supplied power at lower costs.
Woodward Marketing currently provides natural gas for the customer’s existing load. With the addition of the power plant, the customer’s natural gas hourly consumption will double during power-generation operation.
“Atmos Power Systems and Woodward Marketing are pleased to be selected to develop this project,” said J.D. Woodward, senior vice president, nonutility operations, of Atmos Energy Corporation. “This project will provide the customer with greater flexibility and reliability in managing its electricity supply.
“The new plant will allow the customer to reduce its energy costs by being able to generate a portion of its own power during peak periods. This should help reduce the customer’s product costs and make it more competitive in its industry,” Woodward said.