Natural Gas Prices Spur TXU Drive for Coal Plant in Robertson County
Posted on: Thursday, 28 July 2005, 18:00 CDT
Jul. 28--TXU Corp. wants to build Texas' first new coal plant in more than a decade, responding to skyrocketing natural gas prices and dwindling power supplies across the state.
The Dallas-based power company filed an application with the state for an air permit to build a 1,720-megawatt lignite plant in Robertson County, about 120 miles south of Dallas.
Two other companies have filed for permits to build coal plants in Texas, despite the prospect of a lengthy government approval process and opposition from community and environmental groups.
TXU plans to build the plant with other companies, perhaps even municipal utilities or cooperatives. It's still in discussions with potential partners, spokesman Chris Schein said.
TXU, the state's largest power company, said it would build the new Oak Grove plant on the site of a project that stalled in the 1990s.
The company said the existing facilities -- such as lignite mines, rail lines and water supplies -- would help lower the project's cost and construction time.
Texas' last new coal plant went online in 1992 for San Antonio's city-owned utility.
Despite its abundance, coal lost popularity in the 1990s as natural gas prices fell and investors turned to building cleaner gas-fired generators.
Some officials say that the shift has led to an overreliance on natural gas, contributing to sharply higher electricity prices.
"This is going to contribute to the needed fuel diversity in the state," Mr. Schein said of the coal project.
Texas power companies have retired or mothballed older, inefficient gas plants in recent years. That could push the state's cushion of excess power capacity below minimum levels as early as 2007 unless the plants return to service or new units are built.
If approved by the Texas Commission on Environmental Quality, construction could begin next year and conclude by the end of the decade, TXU said.
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Source: The Dallas Morning News
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