There’s one key requirement when building merchant power plants in Texas: think big, real big. FPL Energy LLC clearly followed that condition in announcing yesterday that it will take a lead role in building a 1,789 MW gas-fired merchant plant in the Dallas-Fort Worth area. It will be one of the largest independent generation projects in the state.

With the capacity to power more than one million Texas homes, electricity generated at the Forney, TX, site, 20 miles east of Dallas, will be sold primarily in the state’s wholesale market. Initially designed by the Cobisa Corp., FPL Energy purchased 95% of the project and assumed the lead development role and management of the project at the end of last year. Cobisa retains a 5% interest in the project. Construction of the advanced technology, combined-cycle facility is targeted to begin in June 2001. The plant is expected to begin commercial operation in the second quarter of 2003.

“We are excited about this new opportunity to provide low-cost, clean energy to the high-growth Texas regional market. This project significantly enhances our portfolio in Texas, which is forecasting significant population growth and increased need for electricity and where state regulators are encouraging development of a robust wholesale market, particularly in renewable sources and clean-burning natural gas,” said FPL Energy President Lew Hay.

The Dallas/Fort Worth metropolitan area, in particular, is seeing rapid gas and power demand growth. The growth recently prompted Falcon Gas Storage to purchase the Hill Lake gas storage facility and plan a conversion to a high-deliverability storage operation to support numerous power plants being built in the area (see Daily GPI, April 4).

FPL Energy owns and operates a 1,000 MW gas-fired plant in Paris, TX, and the 75 MW Southwest Mesa Wind Farm in West Texas. It has two plants currently under construction: a 535 MW natural gas plant in Bastrop, near Austin, and the 160 MW Woodward Mountain wind power facility in the Midland-Odessa area. In addition, the company recently announced the development of a 278 MW wind energy facility on King Mountain, also in the Midland-Odessa area. With the addition of the Forney plant, FPL Energy will have 3,800 gross (3,400 net) MW in its Texas portfolio of projects operating, under construction or in advanced stages of development.

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