ALLENTOWN, Pa.--- PP&L Global, Inc., a subsidiary of PP&L Resources, Inc. (NYSE: PPL), plans to build a gas-fired power plant near Kingman, Ariz., with nominal base load capacity of 520 megawatts and a maximum output capability of 650 megawatts.
Robert D. Fagan, president of PP&L Global, said the proposed powerplant, which is known as the Griffith Energy Project, is an excellent opportunity for the company. PP&L Global, which is headquartered in Fairfax, Va., has $635 million in investments and commitments around the world.
"As the generation of electricity is deregulated in the United States, PP&L Global is seeking to develop and acquire power plants in key areas of the country," said Fagan. "The Griffith Energy Project site is an excellent location, in a region with significant growth in demand for electricity. In addition, the project should improve electricity transmission capability in the Kingman and Lake Havasu City region."
The Arizona Corporation Commission's Siting Committee on Monday (9/14) gave unanimous approval to PP&L Global's plans for the facility. The committee's approval was required for the project to move forward.
"We are very pleased with the expeditious action of the Siting Committee, which will allow us to proceed with our project work without delay," said Fagan. "The local support that we have been receiving from the Mohave County Economic Development Authority and the leaders of Mohave County also has been instrumental in PP&L Global pursuing this project. Work on the environmental impact study and air-quality permits are moving forward rapidly."
Fagan said PP&L Global is working with the Western Area Power Administration on interconnection, construction and services agreements for the electrical interconnection to Western's regional transmission system. The company also is negotiating with a construction contractor to build the facility.
NP Energy, the Louisville, Ky.-based energy marketing company owned 50 percent by National Power, plc, has agreed to purchase between 240 and 520 megawatts of the electricity produced by the facility, Fagan said. NP Energy, which is a major wholesale marketer in the Western United States, then will market the electricity through the region.
PP&L Global has formed an operating subsidiary, Griffith Energy LLC, to oversee construction of the project and to operate and maintain the powerplant. When complete, the plant is expected to employ about 25 people.
Kingman is located near Arizona's border with Nevada, about 50 miles south of Lake Mead.
PP&L Global, in partnership with Stone & Webster, also is in negotiations to build a natural gas-fired power plant in the town of Wallingford, Conn.
The Griffith Energy and Wallingford projects would mark PP&L Global's first ventures in the United States. PP&L Global has ownership interests in, and participates in the management of, companies in the United Kingdom, Chile, El Salvador, Peru, Argentina and Brazil, which together serve about 3 million electric distribution customers. In addition, PP&L Global owns interests in electric generation facilities in Spain, Portugal, Bolivia and Peru.