PGE assumes control of Carty Generating Station construction
Removal of general contractor clears way for project completion
Dec. 21, 2015
Portland, Ore. — Portland General Electric has declared the contractor responsible for engineering, procurement and construction of the company’s Carty Generating Station in default of their construction agreement with PGE and removed them from the project. The contractor had ceased construction activities on the project on Monday, December 14. The utility assumed control of the construction site on Friday, December 18.
PGE is building a team comprised of engineering companies and contractors to establish a new construction management team and update work plans at Carty before putting crews back to work on the 440-megawatt, natural gas-fired power plant. Initial work has begun to prepare the site for construction to resume.
“We’ve been monitoring progress at Carty carefully throughout the project,” said Jim Piro, PGE’s president and CEO. “The plant is in an advanced state of construction, with all major components on site and installed or being installed. Our responsibility to our customers and our investors requires us to step in now and assume control so construction can get back underway.”
PGE announced selection of the Carty project in 2013 after a rigorous competitive bidding process. Abeinsa Abener Teyma General Partnership, an affiliate of Abengoa S.A. won the contract as a turn-key project and began construction in January 2014. However, Abengoa S.A. recently initiated a process to seek restructuring of its debt under the bankruptcy law of Spain, where it is headquartered.
PGE has initiated discussions with Liberty Mutual Surety and Zurich North America, the sureties who provided a performance bond of $145.6 million under the original construction agreement, and with contractors, to enter into agreements to complete work on construction of the project.
Carty is estimated to be about 75 percent complete, and was expected to be online during the second quarter of 2016 at a cost of up to $514 million. Once construction has resumed and PGE has completed an assessment of the current status of the project, the company will provide an update on the expected costs and completion date for the project.
PGE’s own team of onsite project managers and engineers will continue to monitor progress at the site, focusing on continuity, quality, safety, and timely project completion.
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About Portland General Electric Company
Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, serving approximately 885,000 customers in 51 cities. For more than 130 years, PGE has been delivering safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. With approximately 2,900 employees across the state, PGE is committed to helping its customers and the communities it serves build a clean energy future. For more information, visit PortlandGeneral.com/CleanVision.
For more information contact Steve Corson, PGE, 503-464-8444, Steven.Corson@pgn.com