Priority Power Management Secures 10-Year Electrical Infrastructure and Services Agreement with Lucid Energy WesTex, LLC
By Business Wire News
By Business Wire News
MIDLAND, Texas & ARLINGTON, Texas
Priority Power Management, LLC (“PPM”), a Texas-based leading independent energy management and consulting services firm, has entered into an agreement with Lucid Energy WesTex, LLC (“Lucid”) to build, own, operate and maintain a 1.4-mile 138 kV transmission line and a 138 kV/25 kV 66//122 MVA high voltage substation (the “Project Facility”) and lease the Project Facility to Lucid for its exclusive use.
PPM’s Project Facility provides the electrical capacity needed to meet Lucid’s initial and future electrical demands at its new 200 million cubic feet per day (MMcf/d) cryogenic processing plant located 10 miles southeast of the town of Big Lake, Reagan County, Texas, in the heart of the Permian’s Midland Basin. The Project Facility was completed and commercial operations began May 1, 2015.
Under the terms of the agreement, PPM was responsible for the design, engineering, equipment procurement, construction, testing and commissioning of the Project Facility, as well as ongoing operations and maintenance. PPM also interfaced with the electric utility company and coordinated the 138 kV interconnection of the Project Facility.
PPM and Lucid also entered into a separate agreement whereby PPM provides Lucid with energy supply management services. Under this agreement, PPM provides strategic planning, procurement, contract negotiations, and risk management services for the competitive electricity supply to Lucid’s Big Lake plant.
“Our team has been working with Lucid for quite some time now, evaluating various electric energy delivery and supply combinations, as well as value engineering electric infrastructure service options to meet their initial and future requirements,” said John Bick, managing principal of PPM. “We are excited about providing critical electric energy infrastructure and supply management services to Lucid in support of their development programs.”
“With significant power demands for our new Big Lake Plant, it was important to understand all of our power options and develop a plan – for supply, delivery and infrastructure – that would provide reliable and low cost electricity when we needed it,” said Jay Langham, Lucid’s Managing Director and Chief Operating Officer. “PPM provided us with a level of expertise required to meet our goals, and we are pleased to have them as a valuable partner.”
About Priority Power Management
Priority Power Management, LLC (www.PriorityPower.net) is a leading Texas-based independent energy management and consulting services firm to large commercial, industrial and government customers. Priority Power Management provides unbiased and objective energy management services in the areas of energy information, supply and risk management, demand-side management and energy infrastructure solutions. Since its establishment in 2001, Priority Power Management has grown to procure and manage approximately $1 billion of annual energy spend on behalf of clients from its offices in Midland/Odessa, Dallas/Fort Worth, Houston and Abilene.
About Lucid Energy WesTex, LLC
Lucid Energy WesTex, LLC is an operating subsidiary of Lucid Energy Group, LLC, a Dallas-based midstream services company operating gas gathering, gas processing and oil gathering assets in the Midland Basin. Lucid’s business philosophy is focused on finding creative solutions for its customers and excellence in project execution. Lucid is led by Managing Directors Michael J. Latchem, W. Kyle Bebee and Jay L. Langham and supported with capital commitments from EnCap Flatrock Midstream of San Antonio. Visit www.Lucid-Energy.com for more information.
Priority Power Management, LLC
John J. Bick, 972-314-9040