Energy Future Holdings last week filed a third amended joint reorganization plan and related disclosure statement with the U.S. Bankruptcy Court in Delaware.
EFH is set to begin its latest attempt to exit bankruptcy this month after the deal at the center of a prior plan fell apart after it had been confirmed by Bankruptcy Court Judge Christopher S. Sontchi.
Energy Future, the largest power company in Texas, filed for Chapter 11 in April 2014 after it failed to meet its debt obligations as electricity prices weakened. The bankruptcy is one of the largest ever in the United States.
More: Bankrupt Company News
Troubled Kemper Needs Another Month, $43 Million
The controversial, multi-billion-dollar Kemper Power Plant, which began making synthetic gas from coal July 14, will take an additional month to finish and cost an extra $43 million, Mississippi Power Co. announced last week.
The oft-delayed coal gasification plant, whose costs have increased to $6.8 billion, is now planned for a Halloween completion. The most recent cost overruns prompted Mississippi Power Co. to write off $81 million in losses in its second quarter.
Mississippi Power parent Southern Company said it needs the additional month to achieve “sustainable operations” by adjusting the two gasifiers that transform soft lignite coal into synthetic gas and to complete testing on the technology that removes carbon dioxide from the gas.
More: Jackson Free Press
Black Hills Energy Starts $54 Million Tx Project
Black Hills Energy started construction on a $54 million, 147-mile transmission line running from eastern Wyoming to western South Dakota. Planning for the project took 10 years, and construction crews started cleaning land on the route last week.
Most of the land is owned by the state or federal governments, but agreements were reached with 24 property owners to allow access to their land. A company spokesman said it would be completed by mid-2017.
More: Rapid City Journal
Chesapeake Gives Up Barnett Assets to Private Group
Chesapeake Energy Corp. said it has agreed to hand over its Barnett Shale holdings to a private-equity-backed operator. The move allows Chesapeake to avoid almost $2 billion in pipeline contracts.
Chesapeake issued a statement saying it will give its interests in the North Texas Barnett region, estimated to be worth as much as $1 billion, to First Reserve Corp.-backed Saddle Operating LLC. The move will cut Chesapeake’s shipping and processing costs by $715 million between now and the end of 2017 and will eliminate $1.9 billion in long-term pipeline agreements.
The Barnett Shale, once at the forefront of the U.S. shale boom, lost its competitive advantage when gas prices collapsed and it was eclipsed by lower-cost production areas closer to Eastern markets. The Barnett is Chesapeake’s second-smallest production region, accounting for 10% of the company’s output.
More: Bloomberg
Duke Issuing $3.75 Billion in Debt to Finance Piedmont
Duke Energy will issue three series of unsecured bonds, totaling $3.75 billion, to help finance its $4.9 billion purchase of Piedmont Natural Gas. The first series, with an interest rate of 1.8%, will be due in 2021; the second series, at 2.65%, will be due in 10 years. A third series, carrying the highest interest rate of 3.75%, will be due in 30 years.
The company said it expects the purchase to close by the end of this year, but it could come as soon as the North Carolina Utilities Commission approves the merger. Hearings on the purchase concluded last month, and briefs are due at the end of this month.
More: Charlotte Business Journal
SolarCity Panel Plant Start Date Moved Up
SolarCity plans to make solar panels in its Buffalo factory by the end of next June, several months earlier than its previous estimate.
Improvements in the equipment the factory will use, and a more efficient plant layout, should allow the factory to make more solar panels than would have been possible under its original design. The plant’s capacity was pegged initially at 1 GW, and company officials would not say how much extra capacity it will add.
SolarCity initially had planned to start making solar panels this year, but slower growth and financial constraints delayed some investment, pushing the production timetable until late 2017.
More: The Buffalo News
Exelon Outlines Growth Strategy, Continues to Push Reforms
At Exelon’s Analyst Day last week in Philadelphia, the company outlined a growth strategy that includes investing in its six electric and gas utilities and adopting innovative technology.
Exelon plans to invest $25 billion in infrastructure and smart grid technology over the next five years.
The company also said it will continue to push policy and market reforms to preserve nuclear plants that face economic challenges.
More: Business Wire
Fire at Four Corners Plant in NM During Decommissioning Work
A chemical fire broke out during the decommissioning of three units at the Four Corners Power Plant in northwestern New Mexico Aug. 11, forcing the plant’s evacuation. The fire was reported at 10:54 a.m. and was extinguished shortly after 1 p.m.
A spokesman for Arizona Public Service Co., which operates the plant, said the fire erupted as crews were working to dismantle a crystalline brine concentrating tower used to purify water for cooling equipment.
APS does not expect the incident to impair its plans to close the units by the end of the year. The remaining two units were offline for maintenance and not affected by the fire.
More: Farmington Daily Times
DTE Plant in St. Clair Burns for 12 Hours
A fire at DTE Energy’s St. Clair County coal-fired power plant burned for 12 hours Thursday night into Friday morning before firefighters were able to extinguish the blaze. There were no injuries at the plant, which is located on the St. Clair River in East China Township.
The fire was reported about 6:30 p.m. Thursday, and all employees were evacuated after shutting down all remaining units. Company and state officials continued to work to determine the cause of the blaze.
The plant is among three slated for retirement by 2023.
More: The Detroit News
