Austin buys troubled power plant for $460M
The city of Austin has purchased an East Austin renewable power plant for $460 million as a means to escape from a punitive contract. The deal reached late Wednesday wiped out some of the financial hit of the remainder of a 20-year, $2.3 billion contract set to run through 2032, the head of Austin Energy said.
Austin Energy General Manager Jackie Sargent told the American-Statesman that the utility expects to save $275 million by buying the Nacogdoches Generating Facility, a wood chip-fueled biomass power plant that the city has used sparingly because the facility was often too expensive to run. The city has been the plant’s only customer since 2012.
The American-Statesman first reported April 5 the possibility that the city would purchase the plant. At the time, city officials were bound by a strict confidentiality agreement that prevented them from acknowledging a possible sale. In actuality, though, the Austin City Council had already voted during a closed session on March 28 to buy the facility.
Southern Company, the plant’s owner, accepted the offer this week, notifying Austin Energy at 10:40 p.m. Wednesday night.
Read more: https://www.statesman.com/news/20190418/breaking-austin-buys-troubled-power-plant-for-460m
