LCRA Transmission Services Corp. on Dec. 8 filed with the Texas Public Utility Commission a revision to 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.
The revision includes a one-year delay, from the original June 1, 2017, to a new date of June 1, 2018, as the target date for commercial operation of this project.
Said the original 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.
Said Calpine in its Oct. 30 quarterly Form 10-Q report: “In April 2015, we executed an agreement with Guadalupe Valley Electric Cooperative (‘GVEC’) that will facilitate the construction of a 418 MW natural gas-fired peaking power plant to be co-located with our Guadalupe Energy Center. Under the terms of the agreement, construction of the Guadalupe Peaking Energy Center (‘GPEC’) may commence at our discretion, so long as the power plant reaches COD between the dates of 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 capable of responding to peaks in power demand. This project represents a mutually beneficial response to our customer’s desire to have direct access to peaking generation resources, as it leverages the benefits of our existing site and development rights and our construction and operating expertise, as well as our customer’s ability to fund its investment at attractive rates, all while affording us the flexibility of timing the plant’s construction in response to market pricing signals.”