Kern River launches $1.2 billion expansion

SALT LAKE CITY, Aug. 14, 2002 — Officials from Kern River Gas Transmission Company recently kicked off a $1.2 billion expansion of its existing 926-mile interstate natural gas pipeline at a groundbreaking ceremony held at the Utah Industrial Depot in Tooele, Utah.

The Kern River 2003 Expansion Project will more than double the amount of natural gas transported on the pipeline, bringing additional supplies of natural gas to customers in Utah, Nevada and California.

“Recently marks an important milestone in Kern River’s history as we build upon an already great legacy,” said Robert L. Sluder, president of Kern River. “Over the past 10 years, the Kern River pipeline system has demonstrated its value as an integral part of the energy infrastructure serving the western U.S. markets. This expansion will provide new access for gas producers in Wyoming and Utah to premium markets in the West.

“By directly serving nearly 6,000 megawatts of new electric generation, the Kern River expansion will help promote energy price stability and reliability throughout the Western market,” Sluder said, adding the project will also help communities along the pipeline meet critical peak day needs.

When the expansion is completed in May 2003, the pipeline will be capable of transporting 1.73 billion cubic feet per day of natural gas, an increase of 906 million cubic feet over its existing capacity.

An additional 717 miles of loop pipeline will be constructed adjacent to the existing pipeline in Wyoming (Lincoln and Uinta counties); Utah (Summit, Morgan, Salt Lake, Utah, Juab, Millard, Beaver, Iron, Washington counties); Nevada (Lincoln and Clark counties); and California (San Bernardino and Kern counties).

In addition, 163,700 horsepower of compression will be added at three new and six existing compressor stations, and five existing meter stations will be modified. The new compressor stations will be constructed in Uinta County, Wyoming; Salt Lake County, Utah; and Clark County, Nevada.

The expanded pipeline system will contribute approximately $12 million annually in new property tax revenue to counties along the Kern River system. In addition, Kern River will employ approximately 35 percent of the project workforce from local labor pools to construct the pipeline and compression facilities. The project is expected to generate about $9.5 million in sales and use taxes in Wyoming, Utah, Nevada and California during construction.

Kern River received approval to proceed with the expansion from the Federal Energy Regulatory Commission on July 17, 2002. The short time frame in which the FERC certification process took place was unprecedented as a result of the cooperation among Kern River, the FERC and other government agencies involved. This was a model example of industry and government working together to meet the critical energy needs of the western United States.

Kern River Gas Transmission Company owns and operates a 926-mile interstate natural gas pipeline between southwestern Wyoming and Southern California. With headquarters in Salt Lake City, Kern River currently delivers more than 845.5 million cubic feet per day of natural gas to expanding markets in Utah, Nevada and California. Kern River is a subsidiary of MidAmerican Energy Holdings Company. Information about Kern River is available on the Internet at www.kernrivergas.com .

MidAmerican Energy Holdings Company is based in Des Moines, Iowa, and is a privately owned global provider of energy services. Through its energy- related business platforms — CalEnergy Generation, Kern River Gas Transmission Company, MidAmerican Energy and Northern and Yorkshire Electric — MidAmerican provides electric and natural gas service to 5 million customers worldwide. Information on MidAmerican is available on the Internet at www.midamerican.com .

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  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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