TXU may build new power plants to maintain surplus of electricity in Texas
By Dan Piller, Fort Worth Star-Telegram, Texas Knight Ridder/Tribune Business News - May 21
TXU Corp. is considering building new coal-fired generating plants as the state's surplus of electricity is expected to lessen through the end of the decade, chief executive John Wilder told shareholders Friday.
Texas has boasted having as much as 20 percent more generating capacity than
its peak loads of about 60,000 megawatts, which generally occur during summer
air-conditioning season. That reserve, created largely by the construction of 70
generators during the 1990s, has been a major reason Texas has avoided steep
price spikes like those that occurred in California four years ago or the kind
of blackout that shut down much of the Northeast two summers ago.
But officials with the state's electricity grid have warned that increasing
demand is eating up more power.
Wilder said at the meeting that TXU has ruled out another nuclear plant to go
with the one it has at Glen Rose and that is it not likely to build another
natural-gas-fired plant because natural gas prices have tripled since 2000.
TXU's current generating capacity includes four lignite-fired plants near
mines in East Texas. Wilder said that some of the plants burn a combination of
lignite and low-sulphur coal from Wyoming.
He said that before TXU would begin a coal-fired generating project, it would
seek assurance from state and federal regulators that environmental laws and
regulations would remain constant through the lengthy permit and construction
process.
TXU has reduced its generating capacity in recent years with the sales of
generators at Handley in east Fort Worth and Mountain Creek Lake in Dallas
County to Exelon Corp. of Philadelphia. Together, they provided about half of
the electricity needed for the Metroplex.
In addition, TXU has closed its century-old North Main generating station in
downtown Fort Worth. The site is to become a new campus for Tarrant County
College.
TXU has asked to close or mothball eight older generating plants strung along
its system that extends from East Texas to Midland. The Electric Reliability
Council of Texas, operator of the state grid, has delayed approval of the
closings pending a review of the state's reserve situation.
Also at Friday's meeting, Fort Worth native Erle Nye said he will end his
45-year career with TXU, the last decade as chairman, this month. Nye will
remain a director and act as a consultant on community matters.
Wilder was elected to the chairman's post, adding to his position as CEO.
Wilder came to TXU from Entergy Corp. of New Orleans in Feburary 2004.
"TXU is in very good hands," Nye told the audience. And as a slide
image of his grandchildren appeared on a giant screen behind him, the
67-year-old Nye said, "This is where I'll be spending most of my
time."
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