Although such toll agreements, including provisions that give buyers control over production, are increasingly common in purchasing Energy inbuver Osprey and have had no justification regardless of the transaction.  Indeed, the toll agreement was to expedite FERC`s authorization for the transaction by allowing Duke to prove that it “already controls” Osprey, so that “no new damage could be caused by the direct acquisition of Duke Osprey.”  By quickly creating a prototype of the core of an energy conversion agreement for an existing CCGT facility, Quorum International Power and T-Power were able to demonstrate that implementing the Sentinel implementation system would be fast and accurate and minimized risks and costs. Quorum and Sentinel were chosen to do the work. The Uk`s Multi-Utility Centrica has signed a toll agreement to acquire the entire 400 MW Rijnmond 2 CCGT power, to be built by InterGen, near Rotterdam, the Netherlands. The toll system, in which Centrica also supplies gas to the facility and provides the necessary excess CO2 allowances, will last 15 years and will have the option to extend for a further five years. A centrica spokesman said the company was unable to provide details on the price structure of the deal. The first production of the facility, which will be in InterGen`s possession and operation, is scheduled for 2009/2010. InterGen is currently proposing an engineering, procurement and construction contract for the facility, which is expected to be completed by September 2009. The new facility will be located on the same site as InterGen`s existing 800 MW Rijnmond 1 gas-fired power plant. Rijnmond 2`s production would be equivalent to about 80% of the Dutch distribution company Oxxio, which currently represents Oxxio`s state-of-the-art electricity needs.
Oxxio supplies about 640,000 customers with gas and electricity, mainly in domestic and small business. Centrica bought Oxxio last year for 137 million euros. The spokesman said it was “too early to say” where the gas would source to power the plant, but noted that in 2004, the year before the acquisition of Centrica, Oxxio came from Gasunie Trade and Supply (now GasTerra) for most of its gas needs. Jake Ulrich, Managing Director of Europe at Centrica, said: “This agreement strengthens our commercial partnership with InterGen and builds on our current toll contract with the 860 MW Spalding power plant in the UK.” In a statement, Centrica called the Netherlands a “key market” because of its proximity to the UK and because it is “liberalised faster than elsewhere in continental Europe.” The spokesman said the company made the investment because “we believe that only integrated positions can work against integrated players,” adding that the company was interested in developing its Dutch presence.