Falcon Gas Storage to provide services for Encogen power plant

HOUSTON, Sept. 13, 2001 – Falcon Gas Storage Company, Inc. today announced that Duke Energy Trading and Marketing, L.L.C., fuel manager for the 245 MW Encogen I Power Plant near Abilene, Texas, has contracted with Falcon for load following and load balancing services from Falcon’s Hill-Lake gas storage facility in Eastland County, Texas.

Falcon began providing natural gas load following services for the Encogen Power Plant in August to match the plant’s peak hourly natural gas needs with its power output profile. Operations at the Encogen Plant were recently revamped to supply peaking electric power on the TXU Electric system.

“We anticipate that we will see a greater requirement for these intra-day load balancing services as more of the planned gas-fired power projects in Texas come on line over the next few years,” said Jeff Foutch, executive vice president of Falcon Gas Storage. “The intrastate pipelines have traditionally required that gas supplies be transported in equal hourly quantities throughout the day, but the electric power demands on the power generation plants require that they burn gas on a non-ratable basis. Therefore, high deliverability, multi-cycle gas storage is needed to balance the difference.”

Falcon is developing several high deliverability, multi-cycle gas storage facilities in Texas and the Northeast to provide intra-day balancing services to the electric generation industry.

About Falcon Gas Storage Company

Houston-based Falcon Gas Storage Company is the largest independent owner and operator of high-deliverability, multi-cycle natural gas storage capacity in the Southwest. The company has more than 20 Bcf of working gas storage capacity with in excess of 600,000 Mcf/d of peak-day deliverability as well as six additional HDMC gas storage projects in various stages of development in Texas, New York, and the Rocky Mountains.


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