AEP joins PJM: American Electric Power and the PJM Interconnection have entered into a memorandum of understanding that would provide for AEP to join PJM. AEP expects to transfer functional control of its transmission facilities in its seven eastern states and to become fully operational within PJM and its energy market within a six- to 12-month time frame.

FirstEnergy joins Midwest ISO: FirstEnergy Corp. subsidiary American Transmission Systems has entered into a memorandum of understanding to join the Midwest Independent Transmission System Operator. The memorandum will allow American Transmission Systems to participate in the ISO as either a transmission owner or as part of an independent transmission company.

Open season at Lake Erie: Hydro One Delivery Services Inc. and TransEnergie U.S. Ltd. announced the open season of the Lake Erie link project. The sale of transmission rights will be managed through a three-phase open season. Phase one opened in June and includes the submission of bidder qualification forms. The project sponsors will notify qualified bidders before the start of phase two.

NYISO files tariff changes: The New York Independent System Operator has filed with the Federal Energy Regulatory Commission requesting tariff changes to guarantee that energy from generators who have supplied installed capacity loads in a different control area will be assured delivery when needed.

Consortium seeks SeTrans: A consortium formed by Marketplace Company Development Ltd., NordPool Consulting and LECG has been short-listed for the independent system administrator of the SeTrans Regional Transmission Organization.

Projects & contracts

Allegheny builds Indiana plant: Allegheny Energy Supply, the generating and trading subsidiary of Allegheny Energy Inc., has begun construction of a 630 MW natural gas, combined-cycle generating facility in St. Joseph County, Ind. The output from the facility will support Allegheny Energy Supply’s growth strategy of owning or controlling more than 14,500 MW of generating capacity by 2005.

Sargent & Lundy garners contract: Sargent & Lundy LLC has been awarded a contract by Salt River Project to perform engineering, procurement support, construction support and start-up support for the Santan Expansion Project. The new 825 MW combustion turbine combined-cycle facility will be installed at the existing Santan Generating Station in Gilbert, Ariz. Commercial operation is scheduled for 2005.

Washington Group selected by W.E. Power: Washington Group International has been selected to provide engineering, procurement and construction services to W.E. Power LLC for a new 500 MW, combined-cycle, natural gas-fueled power plant to be built at Port Washington, Wis.

PSE&G, El Paso announce restructuring: PSE&G, a subsidiary of Public Service Enterprise Group, and El Paso Merchant Energy, a subsidiary of El Paso Corp., have amended their non-utility generation power purchase agreements for El Paso’s Camden, Bayonne and Eagle Point cogeneration facilities. The new terms increase El Paso’s flexibility in supplying electricity to PSE&G. In return, El Paso affiliates paid PSE&G $166.5 million and agreed to provide minimum supply during peak summer months regardless of the availability of facilities.

Mergers & acquisitions

Framatome acquires Duke Engineering: Framatome ANP, an AREVA and Siemens Co., has completed its purchase of Duke Engineering & Services, a subsidiary of Duke Energy Corp. The purchase includes three former business groups of Duke Engineering & Services: nuclear, federal, and energy and environmental. The new division will be called Framatome ANP DE&S.

Aquila gets Avon: FirstEnergy Corp. has completed the sale of a 79.9 percent interest in its Avon Energy Partners Holdings subsidiary to Aquila Inc. for approximately $264 million. As a result of this transaction, Avon’s debt of approximately $1.7 billion will no longer be included on FirstEnergy’s balance sheet.

Dominion, Mirant complete sale: Mirant has completed the sale of Mirant State Line Ventures to Dominion for approximately $182 million. Through the sale, Dominion acquires 100 percent ownership of the assets from Mirant, including the 515 MW, coal-fired State Line power plant near Hammond, Ind., and a power purchase contract with Exelon, the sole purchaser of the plant’s output. Under the terms of the power purchase agreement, which expires in 2012, Exelon will continue to provide 100 percent of the coal and its transportation to the plant.

Legal & regulatory

Andersen found guilty: Accounting firm Arthur Andersen has been found guilty of obstruction of justice, facing probation and a fine up to $500,000. The obstruction charge stems from Andersen’s dealings with Enron and subsequent shredding of related documents. At press time, a sentence had not been handed down in the case.

NERC supports reliability legislation: NERC sent a letter in support of reliability legislation to the Senate conferees and relevant leaders in the House of Representatives on behalf of a number of industry, state and consumer groups, including the American Public Power Assn., Canadian Electricity Assn., EEI, IEEE and Southern Co. The letter stated that the organizations support the electric reliability language contained in section 206 of H.R. 4, as passed by the Senate.

Executive appointments

AES Corp.: Co-founder and CEO Dennis W. Bakke stepped down; Paul T. Hanrahan is the new president and CEO.

Babcock & Wilcox: Richard E. Reimels is president of B&W Canada.

Utility Automation Integrators: Craven Crowell, former chairman of the Tennessee Valley Authority, has joined the board of directors.

FirstEnergy Nuclear: Gary R. Leidich is executive vice president; Lew W. Myers is chief operating officer. L. William Pearce has been promoted to vice president; Mark B. Bezilla is vice president.

Allegheny Energy: Peter J. Dailey and Terence A. Burke have been named vice presidents.

Black & Veatch: William Fredrickson is vice president of sales and marketing.

Energy Group International: Robert E. Ross joins to company as managing partner.

Itron: Leroy Nosbaum has been elected chairman.

Electric Reliability Council of Texas (ERCOT): Mike Greene is the new chairman; Bob Manning is vice chair.

American Electric Power: Michael J. Assante has joined the company as vice president and chief information security officer.

Trans-Elect: S.K. Smith is vice chairman of the board.

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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

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