Construction on the Largest Non-Utility Electric Generation Plant will Begin Immediately

Tenaska Frontier Partners Ltd. and Power Team recently announced that financing has been secured and construction on the Tenaska Frontier Generation Station, the largest non-utility electric generation plant in the U.S., will begin immediately. The 830-megawatt (MW) natural gas-fired, combined-cycle electric generation facility will be constructed near Shiro, TX.

Power Team, a division of PECO Energy will market the entire facility's output in the Electric Reliability Council of Texas (ERCOT) and all of the Eastern Interconnect.

Construction and term loan financing is being arranged and underwritten by Credit Lyonnais. GBV-Texas L.P., a Texas limited partnership, has been selected as the engineering, procurement and construction (EPC) contractor for the facility. General Electric will provide three gas-fired combustion turbine generators and one steam turbine generator for the facility. Tenaska Inc., an independent power company, developed the project and formed Tenaska Frontier Partners Ltd., a Texas limited partnership, to build, own and operate the facility.

The partnership is comprised of affiliates of Tenaska Inc.; Continental Energy Services Inc., a subsidiary of Montana Power Company of Butte, Montana; and Illinova Generating Company, a subsidiary of Illinova Corporation of Decatur, Illinois. Tenaska VI Partners L.P., an affiliate of Tenaska, is the managing partner responsible for overall project development including site development, financing and construction, and project management and operations when construction is completed.