RE: Okay... so what is core again? & mdaAs far as I know, TCPL is divesting of everything except their core transmission buisness AND power generation. The power plants held in the limited partnership performed exceptionally well last year and TCPL holds about 30% of this. It would be crazy to sell them due to their excellent profitability. (The Ocean State Power plant that was just totally acquired is not part of the limited partnership and is wholly owned by TCPL. ) Furthermore, TCPL is undergoing a massive restructuring and the power plants and the compressor stations are now becoming more and more integral, sharing staff and resources to streamline both operations.
I would anticipate that if possible, all future power plants aquired or built by TCPL or TCP.LP will be in Canada. Alberta and Ontario (November) will be particularly attractive as a result of deregulation of the hydro monopolies. The main reason I assume this is because of the method used for power production in many of the plants in the limited partnership.
In most cases, gas turbines used to pump the natural gas across the country emit incredible amounts of waste heat to the atmosphere through thier exhaust. A once through steam generator (similar to a conventional boiler) is erected at the exhaust of these turbines to capture this waste heat and use it to convert water to steam. This steam in turn is used to power a steam turbine coupled to a generator which on average produces about 7 Megawatts. There are anywhere from 1 to 3 of these applications at the sites which do this, 4 of which are in
Ontario. Remember, there is no direct cost in making this power as the heat source is essentially free.
Gas turbines are also used for power production (generally 1 per site) and the exhaust of these is also used for heat for additional power production. The turbines are coupled to a generator rather than a compressor and can make upwards of 25 to 50 MW on average. They consume a significant amount of fuel to operate (6,000 to 9,000 GJ / day) which increases the load on the compressors, which creates more exhaust heat, which enables the steam turbines to create more power. It's really a win-win situation.
Although I'm not really familiar with the operations in Alberta, I know that one Ontario plant that is nearly completed does not use a gas turbine for power generation. Although it does use the waste heat from 2 compressors, its primary steam source is from a wood boiler using wood waste from the area mills. The cost of this wood is almost negligible so along with the +free+ heat from the compressor station this 40+MW plant should also prove to be extremely profitable.
I don't have the figures available from last year's revenues but I can assure you that they were very good and an improvement over 1998's revenues which were very good as well.
I think this speaks for itself as to why TCPL does not wish to divest of its power operations. Keep in mind that this is merely my own opinion and opinions are like a$$holes - everyone has one!