KANSAS CITY, Mo., Dec. 28, 2006 (PRIME NEWSWIRE) -- Aquila Inc. (NYSE:ILA) announced today that it has contracted power from multiple suppliers to fulfill its capacity needs for summer 2007. This move is part of the company's contingency plan following the sale of Calpine Corp.'s 580-megawatt Aries Energy Center to another bidder via an auction completed earlier this month. Aries Energy Center is a natural gas-fired power-plant in Pleasant Hill, Mo.
"We were prepared for the scenario where the bidding reached a point that it did not make economic sense for us to continue. We feel this particular option of purchasing power makes better economic sense for our customers," said Keith Stamm, Aquila's senior vice president and chief operating officer.
Aquila's portfolio of capacity includes base load, intermediate and peaking generation from self generation, jointly owned units with neighboring utilities and purchase power agreement from both utilities and independent power producers.
"We will continue to evaluate our options looking past 2007," Stamm added. "This includes continuing with purchase power agreements or building new generation facilities."
Communities in the company's Missouri service area continue to grow, some at double-digit rates, increasing the demand for electricity to meet customer needs. To meet those growing needs, Aquila recently added the South Harper peaking facility to its fleet of power plants. The company also is participating in the expansion of the Iatan coal-fired plant being built by KCP&L near Weston, MO.
Based in Kansas City, Missouri, Aquila owns electric power generation and operates electric and natural gas utilities serving nearly 1 million customers in Colorado, Iowa, Kansas, Missouri and Nebraska. More information is available at aquila.com.
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