Puget Sound Energy (PSE) signed a contract to buy the natural gas-fired power plant from the owner Sumas Cogeneration Company. PSE will also acquire part ownership in the plant’s feeder pipeline that ties into the main Canadian supply line.
The power plant, built in 1993 north of Seattle near the US-Canada border, is a combined-cycle cogeneration facility, capable of generating electricity using both a natural gas cycle and a steam cycle.
PSE had been purchasing the output of the Sumas power plant under a 20-year contract since the facility’s opening. The two companies began negotiations on a purchase-sale of the facility last summer. The transaction is awaiting review and approval from the Federal Energy Regulatory Commission. PSE expects the transaction to close in late 2008.
Kimberly Harris, vice president and chief resource officer of PSE, said: Sumas is a good fit for us. PSE will acquire an efficient, clean-burning source of power right inside our service area.
