Interconnect deal worked out for Calpine’s Guadalupe peaking project in Texas

LCRA Transmission Services Corp. on May 15 filed with the Texas Public Utility Commission a Generation Interconnection Agreement with the Guadalupe Peaking Energy Center LLC affiliate of Calpine Corp. (NYSE: CPN) for a 454-MW project in Guadalupe County, Texas.

Said the agreement: “The Plant is a simple cycle combustion turbine facility with two Points of Interconnection to the grid. The Plant maximum winter rating will be approximately 454 MW of AC power at 0 degrees F at the Points of Interconnection. The Plant will consist of 454 MW from 2 simple cycle gas turbines.” These two turbines are the General Electric 7FA.05 model. 

The project’s scheduled commercial operation date is June 1, 2017.

A project contact listed in the GIA is: Guadalupe Peaking Energy Center LLC, Attn: Asset Manager, 717 Texas Ave, Houston, TX, 77002, Fax (713) 570-4545, Phone: 713-570-4785, Micheal.elias@calpine.com.

Calpine Corp. said May 1 in a quarterly earnings report that it has made progress on several fronts lately, including joint development of an expansion of its Guadalupe gas-fired power plant in Texas.

Thad Hill, Calpine President and Chief Executive Officer, said: “We sourced more than 700 MW of new [power purchase agreements] with Texas public power customers, including one for 270 MW with Guadalupe Valley Electric Cooperative that will not only allow us to serve them from our existing fleet but will also facilitate the construction of a 418 MW natural gas-fired peaking power plant. We expect this jointly owned project to allow us to capture significant value from our development efforts and existing site, while providing us the flexibility to begin operations at our election over a three-summer period from 2017-2019, to better coincide with market pricing signals.”

In April 2015, Calpine said it executed an agreement with Guadalupe Valley Electric Cooperative (GVEC) that will facilitate the construction of a 418-MW natural gas-fired peaking plant to be co-located with Calpine’s Guadalupe Energy Center. Construction of the Guadalupe Peaking Energy Center (GPEC) may commence at Calpine’s discretion, so long as the power plant reaches commercial operation between June 1, 2017, and June 1, 2019. When the power plant begins commercial operation, GVEC will purchase a 50% ownership interest in GPEC. Once built, GPEC will feature two fast-ramping combustion turbines. This project represents a mutually beneficial response to a customer desire to have direct access to peaking generation resources, as it leverages the benefits of the existing site and development rights and Calpine’s construction and operating expertise, as well as the customer’s ability to fund its investment at attractive rates, all while affording Calpine the flexibility of timing the plant’s construction in response to market pricing signals.

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.