Panda, Arizona Public Service sign power transmission contract
Panda Energy International (Dallas, TX) recently signed a firm electrical transmission services agreement with Arizona Public Service (APS). As part of the agreement, Panda also plans to build a 2,000 MW plant in Gila Bend.
The Arizona Plant and Transmission Line Siting Committee unanimously approved the first step in building the new transmission line—a Certificate of Environmental Compatibility—and passed its recommendation along to the Arizona Corporation Commission for action.
Panda, through its project affiliate company, Panda Gila River, plans to start commercial operations in 2002 when the facility goes into service. The electricity will be transmitted by APS to the wholesale market through its Palo Verde substation near Phoenix. Garry Hubbard, senior vice president of merchant plant development for Panda, said the company expects to start construction on the new plant later this year.
Hubbard said he is especially pleased with the contract, which he called "a critical step forward for this plant." He also expressed appreciation to the leaders and citizens of Gila Bend "for their unwavering support of this facility."
Hubbard noted specifically the unanimous decision by the Town Council to rezone the plant site portion of Panda's property as heavy industrial, the Planning and Zoning Commission's approval of the company's site plan and the Town Council's approval of an annexation and development agreement signed by Mayor Chuck Turner.
"These actions demonstrate a strong commitment to us on their part," Hubbard said. "And we intend to respond by building an environmentally sound facility that will use the most advanced technology available today."
Rep. Mike Gleason applauded the facility and the benefits it will bring to Gila Bend and the state. "I view this facility as a foundation project upon which the community can build and a tremendous asset that will help us accelerate our regional economic development efforts," he said.
Taylor Cheek, senior project director, expressed Panda's appreciation for Rep. Gleason's support for the project and his help with some power plant issues during the 2000 legislative session.
The plant design consists of eight, GE 7 FA natural gas turbines, considered to be among the most fuel-efficient machines in the world. They will be incorporated into a combined cycle design that requires only 1/3 of the fuel and water normally used in the production of electricity, Cheek said. The plant's water needs will be met by an aquifer on the plant site previously used for farming.
Cheek said about 1,000 people will be employed during construction phases with an estimated payroll of US$50 million. During normal operation, about 60 full-time jobs will be created.
When construction begins, the company expects to purchase up to US$15 million in local materials and services and an additional US$5 million to US$8 million in local purchases per year after the plant goes into service. The facility will also contribute about US$3 million annually in taxes to the community and schools.
Edited by April C. Murelio
Managing Editor, Power Online