BLOOMINGTON, IN. – Hoosier Energy, a Bloomington-based generation and transmission (G&T) cooperative, has completed the purchase of a peaking power plant from Williams Energy and has terminated a requirements-type power supply contract with the Tulsa-based company.
Under the agreement, Hoosier Energy has acquired a 170-megawatt gas-fired generating plant in Worthington, Indiana, which will be used by Hoosier Energy to meet a portion of its peaking power needs for member distribution cooperatives. Following the January 31 cancellation of the requirements contract, Williams no longer supplies any portion of the G&T’s load, power supply or energy marketing needs.
“This arrangement mutually benefits Hoosier Energy and Williams,” said Steve Smith, Hoosier Energy’s Chief Executive Officer. “Hoosier Energy adds a needed peaking power resource to its portfolio of generation assets, and the transaction eliminates Hoosier Energy’s credit exposure with Williams.”
The $67 million payment and termination of the power supply agreement will improve Williams' liquidity position.
The Worthington plant becomes part of Hoosier Energy’s existing generating resources: the 1,016-megawatt Merom Generating Station in Sullivan County and the 250-megawatt Ratts Generating Station in Pike County.
The Worthington power plant in Greene County, Indiana, began operation in June 2000. It is connected to the power grid through Hoosier Energy’s 138-kilovolt transmission lines and adjacent primary substation.
About
Hoosier Energy
Hoosier Energy is a generation and transmission cooperative providing
electric power and services to 16 member distribution cooperatives in
48 central and southern Indiana counties. Hoosier Energy's power
production and delivery system includes two coal-fired generating
plants – the 1,070 megawatt Merom Station and the 250-megawatt Ratts
Station – and 1,400-mile transmission system. Hoosier Energy
information is available at
http://www.hepn.com.