Entergy plans combined-cycle unit for Ninemile site

Entergy Louisiana LLC, a unit of Entergy Corp. (NYSE: ETR), has asked the Louisiana Public Service Commission to approve a $721 million, 550 MW natural gas-fired unit at the existing Ninemile Point plant in Louisiana. The plant would cost $1,310/kW.

While the emission-controlled, combined cycle Unit 6 is designed to use natural gas as its main fuel, it will also be able to use ultralow sulfur fuel oil for short periods. The design will allow the plant to adjust its output to meet demand as a load-following plant or operate around the clock as a base load plant if required.

Construction is expected to begin in 2012 and it is scheduled to reach full operations by mid-2015. Unit 6 replaces Ninemile Point’s 50 MW Unit 1 and 60 MW Unit 2, both of which burned oil and natural gas, had been operating since the 1950s and have since been deactivated. Units of the Shaw Group Inc. (NYSE: SGR) will provide engineering, procurement and construction services for the new construction.

Entergy Gulf States Louisiana and Entergy New Orleans will buy a portion of the plant’s output.

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