Landfill gas displaces coal at TEP

London (Platts)--29Nov2005

Tucson Electric Power said that an ongoing program to capture and burn
landfill gas has allowed the Arizona utility avoid burning a total of 100,000
tons of coal over seven years. 

"TEP passed the milestone this fall as its landfill gas program entered its
seventh year of operation," the utility said Monday. "The system captures
methane gas from the city of Tucson's Los Reales landfill and carries it
through a 3.5-mile pipeline to TEP's H. Wilson Sundt generating station, where
it is burned along with coal in the boiler of unit 4."

"We expect [methane production from the landfill] to be available for about
another 20 years, but it only accounts for about 1% of our residential
customer generation, [so] this project won't replace our need for coal," TEP
spokesman John Brown told Platts Coal Trader. "It helps the city of Tucson
with its emissions credits."

TEP continues construction on the new 400-MW unit 3 at its Springerville
station, which takes Peabody Energy coal from Wyoming's Powder River Basin and
New Mexico (PCT 9/13).

The Sundt plant has been receiving about 300,000 tons/year under a three-year
contract extension from Peabody's Twentymile mine in Colorado (CO 9/15/03).
The current pact expires in January 2007. Union Pacific Railroad delivers the
coal.

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