Bethlehem Steel to Sell Land to Conectiv for Power Generation Plant
Bethlehem Steel Corporation
For Immediate Release
BETHLEHEM, Pa., July 13, 2000 -- Bethlehem Steel Corporation has signed a letter of intent with Conectiv Energy Supply, Inc., Wilmington, Del., for the sale of a 30-acre parcel of land in the Bethlehem Commerce Center for the development of a 500- megawatt, natural gas-fired, combined cycle generating plant.
Duane R. Dunham, Bethlehem Steel Corporation's chairman, president and chief executive officer said, "The Conectiv project is a major step forward in the development of the Bethlehem Commerce Center. Coupled with the opening of the BethIntermodal rail facility last year, this project demonstrates that momentum is building for further development and the ultimate economic revitalization of Bethlehem's South Side. And, with the approval of the $110 million bond issue for county infrastructure and economic development projects, planning for the Bethlehem Commerce Center's continued development can proceed with greater confidence."
"Conectiv is delighted to be part of the redevelopment of this historic industrial site that will energize the economy of the entire region," said Thomas S. Shaw, executive vice president. The project fits well with Conectiv's long-range plans to concentrate on the mid-merit energy market -- those plants that can quickly come on line and produce electricity when demand is greatest," Shaw said.
Conectiv, a Fortune 500 company headquartered in Wilmington, provides regulated electric and natural-gas utility services and is also engaged in telecommunications and other non-regulated activities. Conectiv serves more than one million customers in New Jersey, Delaware, Maryland, Virginia and Pennsylvania.
Conectiv plans to build a $300 million state-of-the-art electric generation facility on the Bethlehem site to supply merchant power to the PJM Interconnection. The first phase, installation of gas-fired combustion turbines, will come on line in the simple cycle mode as early as 2002. In the second phase, a steam turbine-generator will be added to recover waste heat and allow combined cycle operation the following year.
Although initial plans call for construction of a 500 MW plant, the site is suitable for expansion up to 1100 MW. During construction, from 200 to 400 craft labor personnel will be employed. When fully operational, the facility will employ about 30.
Combined cycle plants, considered the cleanest power generating technology in the world, can be operated using either natural gas or low sulfur fuel oil and can be started quickly to take advantage of favorable market opportunities.
Spearheaded by Northampton County Executive, Glenn Reibman and County Council President, Wayne Grube, the bond issue will provide the Bethlehem Commerce Center with $17 million of infrastructure improvements. According to Mr. Reibman, "We are pleased that Bethlehem Steel and Conectiv have agreed to move forward with this important investment for Bethlehem and Northampton County. ndoubtedly, the prospect of future bond issue infrastructure funding will help spur further development at the Bethlehem Commerce Center."
Don Cunningham, mayor, city of Bethlehem, said, "This type of project provides the type of industrial development that is necessary within the city. It is essential for the long-term economic health of the city to have a foundation of industrial tax base. The Bethlehem Commerce Center site provides the perfect location for a mix of tax-generating, job producing developments, including this type of industrial reuse of the land," he said.
As part of the agreement, Bethlehem will provide assistance to Conectiv in securing all necessary environmental permits to develop and operate the facility. Conectiv has also agreed that the development will be subject to the Act 2 process administered by the Pennsylvania Department of Environmental Protection.
The 30-acre parcel is located in the City of Bethlehem just off Applebutter Road, within the 1,600 acres of the former Bethlehem Steel plant site that are being developed as the Bethlehem Commerce Center to include distribution, transportation, warehousing and industrial businesses. Currently, BethIntermodal, a subsidiary of Bethlehem Steel's subsidiary railroads, is servicing Norfolk Southern freight at the intermodal center, which opened in August 1999, establishing Bethlehem as a leading rail hub for the Northeastern United States.
The adjoining 160-acre tract of Bethlehem Steel property known as Bethlehem Works, is being developed as a mixed-use development that will retain historic and architecturally significant steelmaking-related buildings that will be complemented with new structures, all with new uses. Bethlehem Works will feature entertainment, recreation, retail and restaurants, and cultural venues, and will be anchored by the National Museum of Industrial History in association with the Smithsonian Institution. The museum's Preview Center is planned to open in summer 2001 and other major components, including movies, retail, restaurants and a family fun center, are also expected to open in summer 2001.
Bethlehem Works and Bethlehem Commerce Center are being developed as a public/private partnership to expand the community's economic base and to return jobs to the 1,800-acre site. The Enterprise Development Company, under contract to Bethlehem Steel, is the master developer and owner's representative for the two-tract project.