Sempra Energy Resources Completing Acquisition of a 350MW Power Plant in Texas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The sale of TNP One Power Station, in Bremond, Texas, currently owned by Texas-New Mexico Power Company (Fort Worth, Texas) to Sempra Energy Resources, Incorporated, the power generation subsidiary of Sempra Energy (NYSE:SRE) (San Diego, California), will be finalized by the end of October 2002 for $120 million.

The plant, which burns lignite coal and natural gas, consists of two 165MW Westinghouse steam turbine/generators and two Combustion Engineering dry bottom boilers. The plant was put on sale due to the deregulated electric market in Texas, which began on January 1, 2002.

The Texas Electric Choice Act imposes an obligation on electric utilities to separate their business activities into a power generation company, a retail electric provider, and a transmission and distribution utility.

Sempra proproses to change the plant's name to Twin Oaks Power Station and plans to use Sterling Energy Resources for future building and planning.

Electricity from the station will continue to be sold into the Texas grid.