—Units to Provide 360 Megawatts of Fast-Start Power to the Region
When Use Is High—
PRINCETON, N.J.--(BUSINESS WIRE)--Nov. 5, 2014--
NRG Energy, Inc. (NYSE:NRG) today announced that construction has begun
on an approximately 360 megawatt1, natural gas-fired peaking
plant at a site near Bacliff, Texas, southeast of Houston. When
completed, the units will produce enough electricity to power an
additional 72,000 Texas homes when needed most during times of peak
demand.
“NRG is working hard to meet the electricity needs of the Houston area
today and in the future as our region continues to grow,” said John
Ragan, executive vice president of NRG and president of NRG’s Gulf Coast
Region. “The Houston area and, in fact the entire state, is challenged
with shrinking reserve margins. Rather than building costly new
transmission lines and impacting hundreds of private property owners,
NRG is investing in new generation, close to the homes and businesses
that need it. This is the most efficient, cost-effective way to ensure
reliability for this region.”
The new facility will be located on a 230-acre site which was once part
of the former PH Robinson power plant. It will use natural gas to power
six GE 7E, economical, fast-start combustion turbines. The units require
no water for cooling making them well-suited to operate in
water-constrained Texas. With their fast-start capability, the peaking
units have the potential to help integrate renewable power from
intermittent wind and solar generation into the ERCOT grid. The air
permitting process began in 2013 and was granted by the Texas Commission
on Environmental Quality in August 2014.
The project will benefit from a number of unique advantages which allow
NRG to construct the project at a cost of approximately $400 per
kilowatt, a significant discount to typical new build costs.
Specifically, the gas turbines will be relocated from a site in New
Albany, Mississippi to the Houston area at a location NRG already owns
and is immediately adjacent to the switchyard where they expect to
connect to the transmission grid.
“While Texas needs this additional, flexible power, the low price of
power in the state makes it very difficult to finance and build new
power plants,” added Ragan. “We have worked hard to make these units
economic so that we can add them with no ratepayer dollars involved.”
The facility will be built by a partnership between BTEC Turbines and
Rockland Capital, the current owners of the New Albany plant. BTEC is
experienced in upgrading and relocating gas turbines. For the Bacliff
project, BTEC will perform the engineering, procurement and construction
of the new power plant which includes the dismantling and shipment of
the turbines from Mississippi. The plant is expected to be transferred
to NRG upon completion. BTEC estimates the plant will generate
approximately 200 jobs at the peak of construction and is anticipated to
be completed in late 2015.
In addition, NRG is in final stages of the permitting process for two
large natural gas-fired plants in the Houston region. The company has
been granted a permit from the Texas Commission on Environmental Quality
for a new 850 megawatt combined cycle plant and expects to receive
environmental permits for a second 850 megawatt facility in early 2015.
“When economics allow us to build these additional units, NRG wants to
be ready to bring them online as quickly as possible to meet the growing
demand in Houston with new natural gas plants,” Ragan added.
About NRG
NRG is leading customer-driven change in the U.S. energy industry by
delivering cleaner and smarter energy choices, while building on the
strength of the nation’s largest and most diverse competitive power
portfolio. A Fortune 250 company, we create value through reliable and
efficient conventional generation while driving innovation in solar and
renewable power, electric vehicle ecosystems, carbon capture technology
and customer-centric energy solutions. Our retail electricity providers
serve almost 3 million residential and commercial customers throughout
the country. More information is available at www.nrg.com.
Connect with NRG Energy on
Facebook and follow us on Twitter @nrgenergy and @NRGMedia.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements are
subject to certain risks, uncertainties and assumptions and include
NRG’s expectations regarding the Bacliff facility and permitting for new
facilities in the Houston region and forward-looking statements
typically can be identified by the use of words such as “expect,”
“believe,” and similar terms. Although NRG believes that its
expectations are reasonable, it can give no assurance that these
expectations will prove to have been correct, and actual results may
vary materially. Factors that could cause actual results to differ
materially from those contemplated above include, among others, general
economic conditions, hazards customary in the power industry,
competition in wholesale power markets, the volatility of energy and
fuel prices, failure of customers to perform under contracts, changes in
the wholesale power markets, changes in government regulation of markets
and of environmental emissions, and our ability to achieve the expected
benefits and timing of our projects. NRG undertakes no obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. The foregoing review of
factors that could cause NRG’s actual results to differ materially from
those contemplated in the forward-looking statements included in this
news release should be considered in connection with information
regarding risks and uncertainties that may affect NRG’s future results
included in NRG’s filings with the Securities and Exchange Commission at www.sec.gov.
1 Represents average annual peaking capacity
Source: NRG Energy, Inc.
NRG Energy, Inc.
Media:
Dave Knox, 832-357-5730
Pat
Hammond, 713-537-2157
or
Investors:
Chad Plotkin,
609-524-4526