South Texas co-op eyes two new members, building coal plant

South Texas co-op eyes two new members, building coal plant

Philadelphia (Platts)--12Apr2005


The South Texas Electric Cooperative may add two new members within the next
several days, and is in the early stages of planning a 550-MW coal plant at a
yet-to-be-determined site, the six-member co-op group's general manager said
Tuesday. 

Michael Packard said that under a recently signed memorandum of understanding,
the Hondo-based Medina Electric Cooperative and the Mercedes-based Magic
Valley Electric Cooperative will vote on Apr 16 and Apr l8 respectively on
whether to join STEC and gradually turn over control of their generation and
transmission assets to the co-op. The addition of the Medina and Magic Valley
co-ops would roughly double the number of customers served by STEC's members
and make it feasible for the group to co-develop a large coal plant, Packard
said. 

STEC and its current and prospective members are developing a timeline for the
development of the new coal plant, and expect to have that timeline in place
by early 2006, Packard said. The plant is likely to begin commercial
operations between 2010 and 2012, he said.

This story was originally published in Platts Electricity Alert
http://www.electricityalert.platts.com

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