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Published on: 6/7/2002
Last Visited: 6/7/2002
Construction on a 280 megawatt, coal-fired power plant near Wright should start this summer, North American Power Group Vice President Daniel Yueh said Thursday.With funding for the $450 million project in place thanks to a much-awaited partnership between NAPG and Michigan-based DTE Energy Services, Yueh said on-site construction is pending the finalization of several business contracts.At the Wyoming Counties for Responsible Energy Development meeting May 30 in Wheatland, Yueh outlined those last details, which couldn't be resolved until a partner was lined up.
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DTE will oversee the construction of and then operate and manage the Wright plant, named Two Elk Unit One, Yueh said."We're delighted to have DTE involved in Two Elk Unit One," Yueh said."They bring an incredible amount of resources."
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Bechtel Power Corp. will be the construction contractor for Two Elk Unit One, and PacifiCorp has secured transmission service out of eastern Wyoming, Yueh said.All major federal and state permits are in place, except the one which would allow Two Elk Unit One to transmit power across several miles of national grassland to the Antelope Substation, Yueh said.That permit must be approved by the U.S.Forest Service Douglas Ranger District.Yueh confirmed the project will apply for additional government bonds to fund the work.Already, $126 million in tax-exempt bonds have been issued by Campbell County.Two Elk Unit One construction will take 30-36 months, Yueh said.The unionized construction force will peak at 750 workers, who will likely reside in modular project housing in Wright with some spill over in Converse County, Newcastle and Gillette.Once construction is complete, the plant will employ about 50 full-time people.Two Elk Unit One will use an estimated 1.5 to 1.6 million tons of coal annually, converting mine waste product into electricity.NAPG and DTE have contracted with Arch Coal for the noncommercial grade material, Yueh said.NAPG has a permit in hand for a backup gas turbine generator which would operate off pipeline-quality gas, Yueh said.Also on NAPG's table is a large capacity transmission line and two commercial grade coal generator plants in the Powder River Basin.The estimated $375 million 345 kilovolt (KV) transmission line would span the 350 miles between the Powder River Basin and Colorado's Front Range, Yueh said.The line would start in Campbell County and end at the Western Area Power Administration's Ault substation in Weld County, Colo.The exact route has not been finalized, and that has delayed the permitting process, but NAPG and WAPA are collaborating on the project's environmental impact statement, Yueh said.Other projects include two 500 megawatt commercial coal plants.Middle Bear would be located next to Kennecott holdings, and Two Elk Unit Two would be adjacent to Two Elk Unit One and in proximity to Black Thunder, Jacob's Ranch and North Antelope/Rochelle Complex mines.For both projects, NAPG already has air quality permit applications in to the Department of Environmental Quality.