SAN DIEGO, July 19, 2005 (PRIMEZONE) -- Sempra Generation, a subsidiary of Sempra Energy (NYSE:SRE), today announced plans to develop and construct a 600-megawatt (MW) expansion of its Twin Oaks Power plant near Bremond, Texas, tripling the plant's 305 MW total capacity to 900 MW.
The announcement coincides with the filing of an air-permit application the company submitted last week to the Texas Commission on Environmental Quality (TCEQ). This filing began the process of securing the required state and federal regulatory approvals for the expansion project. The expansion involves the construction of a third power-producing unit at a cost of $750 million to $800 million. Construction is expected to begin in 2007, with commercial start-up of the new generating unit slated for 2011.
"This expansion will employ clean, efficient power-producing technology and enhance Twin Oaks Power's established reputation as a provider of stable, affordable, efficient and reliable energy," said Michael R. Niggli, president of Sempra Generation.
Twin Oaks Power will continue to operate as one of the cleanest, most efficient coal-fired plants in the nation, Niggli said.
The existing power plant's units have been operational since early 1991 and are fueled by lignite coal from a nearby mine. The new unit will be permitted to utilize either Texas lignite coal or coal delivered by rail.
Located in Robertson County, Twin Oaks Power is about 100 miles east of Austin, 150 miles south of Dallas and 160 miles north of Houston. Electricity from the plant will continue to be sold to wholesale electric customers served from the state's electricity grid, which is administered by the Electric Reliability Council of Texas.
The expansion will have significant positive economic impacts on Robertson County, Niggli said. Construction will provide an average of approximately 700 jobs, peaking to about 1,500 workers. About 40 to 45 permanent plant positions would be created in addition to the 60 permanent positions currently at the plant.
The air-quality permit review, comment and approval process is expected to continue for one to two years. The start of construction depends upon the execution of contracts for the plant's expanded output.
"We are dedicated to providing detailed information on this expansion and plant operations, in general, to Twin Oaks' neighbors, community leaders and other interested parties throughout the application process and beyond," said Charles Neal, project development manager for Sempra Generation. "The more the public knows about this project and the proposed expansion, the better."
Sempra Generation acquired Twin Oaks Power, formerly known as TNP One, from Texas-New Mexico Power Company in November 2002.
A megawatt is enough energy for about 800 homes.
Sempra Generation develops, acquires, operates and maintains power plants and energy infrastructure for competitive markets.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' 13,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company's Web site, www.sempra.com.
Sempra Generation is not the same company as the utilities SDG&E/SoCalGas, and it is not regulated by the California Public Utilities Commission.