More New Generation Announced for ERCOT; Tenaska to Develop 800 MW

Tenaska and the Brownsville Public Utilities Board (BPUB) announced Monday that they have entered into a development and purchase agreement for construction of a proposed 800-megawatt (MW) natural gas-fueled electric generating station in Brownsville, Texas.

Under the agreement signed Friday, BPUB would have an ownership interest in the proposed plant that entitles it to receive 200 MWs. BPUB will also supply water to the facility as well as provide the natural gas interconnection under the agreements.

Tenaska is actively working to subscribe the remaining capacity of the facility.

"With increased scarcity pricing and decreased operating reserves in ERCOT the project is well positioned for success," Tenaska said in a news release.

Tenaska projected a 22- to 26-month construction period for the combined-cycle power plant.

After securing the appropriate permits and securing contracts with customers to purchase the remainder of the power, Tenaska could begin construction as early as 2014, with completion as early as 2016.

Tenaska has selected a site of approximately 270 acres in north Brownsville on the north side of the 511 Corridor at Old Alice Road. The location has been specifically chosen for its proximity to Eagle Ford Shale gas supplies, the ongoing transmission system improvements in the Rio Grande Valley, and the tremendous growth the region has seen in recent years.