Texas’ power generation capacity continues to grow with two newmerchant plants, one just coming on line and one announced foroperation next year.

California-based Calpine Corp. said its 240 MW gas-firedPasadena 1 Power Plant began producing power for the deregulatedTexas wholesale market, just in time to help meet peak summer powerdemand. The plant, under construction since 1997, came on-linethree months ahead of schedule and about $21 million under budget.The $131 million power plant is selling power under short-, mid-and long-term contracts and into the open market. Pasadena 1 willgenerate up to 240 MW.

West Texas Utilities, a Central and South West Corp. operatingcompany, is buying 50 MW of capacity through the end of 1998. InSeptember, Pasadena 1 will begin providing 90 MW of electricity and200,000 pounds/hour of steam to Calpine’s anchor tenant, thePhillips Petroleum Houston Chemical Complex. Calpine is sellingpower to the open market and under short-, mid- and long-termcontracts. Texas Utilities Electric Co. will also participate inthe Pasadena 1 power marketing program, purchasing up to 150 MW ofelectricity under a two-year agreement beginning Dec. 1, 1999.

More merchant capacity is yet to come. CSW Energy Inc., asubsidiary of Central and South West Corp., plans to beginconstruction next month of a 500 MW merchant plant in the RioGrande Valley of Texas. The gas-fired, combined-cycle facility isto be on line by the end of 1999. Additionally, part of thefacility, two 170 MW gas turbines, will begin partial operation bysummer 1999. Cost is expected to be $200 million. The project,known as Frontera, will be near the city of Mission in HidalgoCounty.

“The Rio Grande Valley has seen rapid growth over the last fewyears and is expected to need more power to meet its requirements,”said Terry Dennis, CSWE CEO. “Although announcements of other powerplant projects recently have been made to address this shortage,CSWE’s Frontera project is the only one with the potential to beginoperation by the 1999 summer peak season. By locating the FronteraProject in the Valley, we expect to improve the reliability of theValley’s electric system and be able to supply customers throughoutthe state.”

Frontera will be CSWE’s third merchant plant in Texas. In April,CSWE dedicated the Sweeny Cogeneration Facility, Brazoria County.The 330 MW plant provides 90 MW of electricity to PhillipsPetroleum Company’s nearby refining and petrochemicals complex andoffers the remainder of its capacity to electric utilities andpower marketers on a merchant basis. The Newgulf Project, nearBoling, Texas, which began commercial operation in 1997, is thestate’s first exempt wholesale generator, intended to takeadvantage of power market fluctuations. The plant is generating 85MW.

Joe Fisher, Houston

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