Luminant affiliate permitting new gas-fired turbines at Valley plant

The Texas Commission on Environmental Quality said in a Jan. 13 notice that it has gotten an application for an air permit on new gas-fired peaking capacity in Fannin County.

Valley NG Power Company LLC has applied to the Texas Commission on Environmental Quality (TCEQ) for issuance of Air Quality Permit Number 128432, which would authorize construction of two natural gas-fired simple cycle combustion turbine generating units at the Valley Steam Electric Station located at 1040 CR 1225, Savoy, Fannin County, Texas 75479,” said the notice, without adding further detail about these capacity additions.

This application was received by the TCEQ on December 23, 2014. The listed company contact is: Valley NG Power Company LLC, 1601 Bryan Street, Dallas, Texas 75201-3430, Jeremy Halland, Luminant Generation Co. LLC, (214) 812-1275.

Both Luminant and Valley NG Power, along with their parent, Energy Future Holdings, are all currently in chapter 11 bankruptcy protection. Energy Future has said it is permitting new gas-fired capacity in the state in case the market demands it, with no firm commitments to add that capacity.

Said Energy Future in a November 2014 Form 10-Q filing at the SEC about this gas addition program: “In October 2014, the TCEQ granted air permits to Luminant to build two natural gas combustion turbine generation units totaling 420 MW to 460 MW at its existing Lake Creek generation facility. In August 2014, Luminant filed an air permit application with the TCEQ to build a combined cycle natural gas generation unit totaling 730 MW to 810 MW at its existing DeCordova generation facility. In August 2013, the TCEQ granted air permits to Luminant to build two natural gas combustion turbine generation units totaling 420 MW to 460 MW at its existing DeCordova generation facility. The proposed combined cycle natural gas generation unit would be an alternative to the natural gas combustion turbine generation units at DeCordova. In February 2014, the TCEQ granted air permits to Luminant to build two natural gas combustion turbine generation units totaling 420 MW to 460 MW at its existing Tradinghouse generation facility. In January 2014, Luminant filed an air permit application with the TCEQ to build a combined cycle natural gas turbine generation unit totaling 730 MW to 810 MW at its existing Eagle Mountain generation facility. While we believe current market conditions do not provide adequate economic returns for the development or construction of these facilities, we believe additional generation resources will be needed to support future electricity demand growth and reliability in the ERCOT market.”

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.