Sequent Energy Management Selected as Fuel Manager for New York City Power Plants
February 5, 2007
HOUSTON – Feb. 5, 2007 - Sequent Energy Management, a wholly owned subsidiary of AGL Resources (NYSE: ATG), has been selected as fuel manager for three New York City power plants.
The long-term contract, awarded by US Power Generating Company, calls for fuel management services to Astoria Generating Station in Queens, and the Gowanus and Narrows Generating Stations in Brooklyn. These three generating assets have a combined capacity of approximately 2,200 megawatts, representing 23 percent of New York City’s existing generating capacity.
“We are pleased to name Sequent as our new fuel manager,” said Jeff Hunter, executive vice president of corporate development for US Power Generating Company. “We are excited to have a fuel manager whose primary business is that of a midstream asset manager. We find this approach very refreshing and the entire Sequent team was professional as well as creative during the negotiation process.”
“Sequent will utilize its broad portfolio of transportation and storage assets along with dedicated personnel to provide reliable fuel services consistent with US Power Generating Company’s requirements. This deal illustrates our commitment to the physical energy market and specific energy solutions for our clients”, said Michael Brown, lead negotiator for Sequent. “We believe it is this unique combination that ultimately led USPG to choose Sequent as its new fuel manager.”
US Power Generating Company was formed in 2003 by Jacob J. Worenklein to acquire U.S. merchant power projects and other unregulated power assets. On Feb. 23, 2006, in conjunction with Madison Dearborn Partners, LLC, they completed the acquisition of 100 percent of the interest in Astoria Generating Company, L P. and Orion Power Operation Services Astoria, Inc. from Reliant Energy. These entities own the asset and employ the plant personnel that comprise the 2,200MW New York City Asset portfolio.
About Sequent Energy Management
Sequent Energy Management, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), is a Houston-based entity focusing on asset management and optimization, producer services, wholesale marketing and risk management. For more information, visit www.sequentenergy.com.
About AGL Resources
AGL Resources (NYSE: ATG), an Atlanta-based energy services company, serves more than 2.2 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the nation. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.