will build six natural-gas-fired power plants that will generate electricity to be sold by a unit of
under a 16-year agreement, announced Wednesday by the two companies.
Terms of the agreement were not disclosed. But Kinder Morgan CEO Richard D. Kinder said in a release, "Fee-based earnings from these new plants are expected to drive significant growth in our power segment in 2002 and beyond.''
The power generators will be built over the next four years in the Midwest and Southeast. The first of the six facilities is under construction in Jackson, Mich. It is expected to go online during the second quarter of 2002. Two more generators will open in the second-quarter of 2003, and the final three will be running by the second-quarter of 2004.
Together, the plants will produce 3,300 megawatts.
Williams, which is based in Tulsa, Okla., transports and sells natural gas and petroleum. Kinder Morgan, based in Houston, is an operator of natural gas and petroleum pipelines.
Kinder Morgan gained $1.19, or 2.1%, to $57.18 during recent trading on the
New York Stock Exchange
. Williams gained 13 cents, or 0.3%, to $42.39.