The Lower Colorado River Authority (LCRA) this month signed a purchase power agreement (PPA), and an acquisition agreement with Sandy Creek Energy Associates (SCEA) for a combined 22.28 percent of the total plant output from the Sandy Creek Energy Station, a 900-MW pulverized coal facility under construction near Waco.

In accordance with the Texas Commission on Environmental Quality (TCEQ) and the U.S. Environmental Protection Agency requirements, the facility will employ the best available control technology to minimize emissions and ensure the facility is protective of the environment.

“As the Central Texas economy and population continue to grow, so does the need for new sources of cleaner power,” said Rebecca A. Klein, LCRA’s Board chair. “The Sandy Creek Energy Station will extend LCRA’s ability to keep costs down for our wholesale power customers. Adding coal-fueled base-load generation helps reduce LCRA’s reliance on power from natural gas, which has more price volatility.”

LCRA is a nonprofit entity that provides electricity at cost-based rates.

Under the agreement, LCRA will purchase an estimated 100 MW (11.14 percent) of energy and capacity under a 30-year PPA and an additional 100 MW (11.14 percent) in an equity ownership position. LCRA’s equity interest would be governed by the terms of a participation agreement which LCRA is joining with SCEA and other project owners.

“Given Texas’ robust population and economic growth, and the expected retirement of older, inefficient plants, we are going to need everything, including new nuclear, clean coal, gas, renewables, energy efficiency, and advanced meters, to satisfy our future demand for electricity,” said Barry T. Smitherman, chairman of the Public Utility Commission of Texas. “An over-reliance on any one source of energy places consumers at risk. I support the addition of new, cleaner coal plants like the Sandy Creek Energy Station, and continue to encourage research, development and investment in new clean coal-related technologies.”

“As a wholesale electric customer of the Lower Colorado River Authority, the City of La Grange welcomes LCRA’s partnership with SCEA,” said Shawn Raborn, La Grange city manager. “The Sandy Creek Energy Station will bring long-term, competitively priced electricity to thousands of Texas homes and businesses, many of hich are located in La Grange.”

The Sandy Creek Energy Station’s environmental controls will include selective catalytic reduction to control nitrogen oxide (NOx) emissions, a scrubber to reduce sulfur dioxide (SO2) emissions, and a halogenated activated carbon injection system and fabric filters to reduce mercury emissions and particulates.

As part of the latest generation of efficient coal plant technology, Sandy Creek Energy Station will emit less carbon dioxide (CO2) per kilowatt-hour than any coal plant currently operating in Texas. SCEA received its air permit from the TCEQ on July 18, 2006.

Construction at the Sandy Creek Energy Station began last fall in McLennan County and operations are scheduled to commence in 2012.