Koch subsidiary to buy Texas natural gas-fired plant

A Koch Energy Services LLC subsidiary has agreed to buy an existing 1,055-MW combined-cycle natural gas plant in Odessa, Texas, from Energy Capital Partners.

The transaction is subject to customary conditions and regulatory approvals and could close late in the fourth quarter of 2013 or early in the first quarter of 2014. Financial terms of the transaction were not disclosed.

Koch Energy Services is an indirect subsidiary of Koch Industries, which is based in Wichita, Kan. Since 2003, Koch companies have invested about $50bn in acquisitions and other capital expenditures.

The electric power generating facility, located in the Permian Basin region of West Texas, began commercial operations in 2001, Koch Industries noted in an Oct. 8 statement. The Energy Capital Partners website indicated that the firm purchased Odessa Power Holdings in July 2011.  

The facility provides electric power to the Electric Reliability Council of Texas (ERCOT) system, a power market serving 23 million Texas customers and representing 85% of the state’s electric load.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.