Tenaska, Brownsville Public Utilities Board Announce Agreement For Development Of An Electric Generating Station In Texas

Brownsville, TX - Tenaska, one of the nation’s largest independent developers of electric power generating stations, 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.

“We are pleased to have the Brownsville Public Utilities Board as an anchor customer for the plant,” said Greg Kelly, Tenaska vice president of Development. Tenaska and BPUB have benefited from a strong business relationship, dating back to 1997. Our affiliate Tenaska Power Services Co. (TPS) has helped BPUB successfully manage its power supply for more than 15 years.”

Kelly said that the proposed project, referred to as the Tenaska Brownsville Generating Station, would be a clean-burning, natural gas-fueled combined-cycle power plant. The 22- to 26-month construction period would provide about 600 to 700 jobs at peak, with the plant providing approximately 25 full-time operations jobs.

Tenaska has selected a site of approximately 270 acres in north Brownsville on the north side of the 511 Corridor at Old Alice Road. 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. 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.

“Tenaska and its affiliates have expertise in the Texas energy market, including owning and operating power plants and marketing electricity,” said BPUB General Manager and CEO John Bruciak, P.E. “That expertise will provide significant value to BPUB in the Tenaska Brownsville Generating Station.”

Omaha, Neb.-based Tenaska has developed more than 9,000 MW of generating capacity in the United States and internationally, including four plants in Texas, during its 25-year history. It currently oversees safe, efficient and reliable operations at 14 plants with capacity totaling approximately 11,000 MW.