LS Power to Develop PC Plant Using PRB, 'Opportunity Fuels'

(January 23, 2006, as appeared in Platts Coal Outlook)

LS Power's Plum Point Energy Associates will break ground this spring on a 665-MW pulverized-coal plant along the Mississippi River in Arkansas, the company said last week.

The project has been in the planning stages for about five years, with the company originally considering generating capacity in the range of 1,000 MW-1,600 MW (CO 10/29/01). "Our air permit was issued to give us the flexibility" of different plant sizes, Eric Crawford, director of project development, told Platts Coal Outlook.

"Our site footprint has been designed so that it can accommodate a second unit. Our primary fuel supply is Powder River Basin coal. We do have the flexibility to burn some 'opportunity fuels', such as Illinois Basin coal."

The plant will use just under 3 million tons/year of PRB coal, Crawford said.

The plant will be near the Mississippi River city of Osceola, Ark., and will have both river and BNSF Railway delivery options, Crawford said.

PPEA has executed a contract with Plum Point Power Partners, a joint venture of Zachry Construction, Black & Veatch and Gilbert Central Corp., for the engineering, procurement and construction of the project, PPEA said. Engineering and procurement-related activities are starting. The project is scheduled to begin commercial operation in early 2010.

"Plum Point is finalizing definitive arrangements with a number of municipal utilities, electric cooperatives and other entities for joint ownership in the project and/or long-term power sales agreements," LS Power said.

LS Power has "multiple coal-fired projects in advanced development in Texas, Georgia and Nevada," the company said. Most recently, the company said it would pursue a 1,600-MW coal-fired project in White Pine County, Nev., even as Sierra Pacific Resources said it would pursue a similar-sized project in the same county (CO 1/16). LS Power is looking at a variety of western coals for its project, and SPR is looking strictly at Utah coal.

Copyright 2006, Platts Coal Outlook