East Texas Electric Cooperative Moves Forward with New Peaking Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--Plans by East Texas Electric Cooperative (ETEC) (Nacogdoches, Texas) are moving forward to build two new peaking plants to provide 336 megawatts (MW) of capacity in southeast Texas. ETEC is a generation and transmission cooperative formed in 1987 from 10 east Texas electric cooperatives. In order to replace existing power supply contracts expiring at the end of 2009, ETEC will be responsible for securing 250 MW of capacity. As a result, the cooperative will soon relocate four natural-gas-fired combustion turbine generator sets from a decommissioned power plant in Mississippi to two new plants in Texas. Current plans call for two of the combustion turbines to be installed at a site near Shepherd, Texas, while the remaining equipment will be installed at a site near Kountze, Texas.

ETEC currently owns 25% of the Warren Power Project, while the remaining 75% is owned by Warren Power LLC, an affiliate of Entergy Services Incorporated, a subsidiary of Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana). Construction of the Warren Project began in 2000, and commercial operation started in 2001. ETEC has reached an agreement with Entergy to acquire their 75% stake in the plant. Commercial operation of the Warren Power Project is expected to cease after the summer peak season this year, and the plant will begin to be dismantled in October.

The Jacinto Peaking Power Plant will be located on a 42-acre site five miles south of Shepherd in San Jacinto County, Texas. At this site, two 84-MW General Electric (NYSE:GE) MS7001EA combustion turbines will be installed. The turbines will utilize dry low Nox combustions to reduce nitrogen oxide emissions. A 500-foot transmission tap will be necessary to tie into a 138kV transmission line that runs across the property. The Cypress Peaking Power Plant, near Kountze in Hardin County, Texas, will be identical to Jacinto in terms of capacity and equipment. Both plants will rely solely on natural gas as a fuel source. The decision not to use fuel oil as a backup was made to keep emissions to a minimum and to avoid the necessity to build storage tanks.

ETEC selected GDS Associates Incorporated (Marietta, Georgia) to act as owner's engineer for the projects. In turn, GDS awarded the design and detailed engineering contract to Zachry Engineering Corporation. Wood Group Power Solutions, a subsidiary of Wood Group plc (LON:WG) (Aberdeen, Scotland), will provide construction services. Construction of both plants is expected to commence during fall 2008, with the Shepherd Plant beginning commercial operation late Spring 2009, followed by the Cypress Plant approximately three months later.

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