NavasotaEnergy

14 August 2008 - HOUSTON, Aug 14 (Reuters) - Privately held Navasota Energy Partners LP said on Thursday it will build a third natural gas-fired power plant in Texas and expand two existing gas plants to meet the state's need for new electric supply.

Houston-based Navasota expected to obtain a state air permit soon to build the 550-megawatt Madison Bell Energy Center near Madisonville, midway between Dallas and Houston, said Dan Hudson, Navasota Energy's chief financial officer.

Navasota's expanded output, along with a small number of gas and coal-fired units, will help bolster the state's electric reserve margin, which has been shrinking since 2003, when an oversupply of new generation sent wholesale electricity prices tumbling.

While numerous companies continue to evaluate the state's need for power, Navasota is one of only a few moving quickly to build generation.

"Nobody else is moving forward," said Hudson. "A lot of people don't understand the dynamics of this market."

Navasota's third gas plant will be identical to the company's existing facilities, the Quail Run Energy Center in Ector County and the Colorado Bend Energy Center in Wharton County, said Hudson.

Both plants began producing power in 2007 and were expanded this summer to produce 550 MW. The plants were the first new gas-fired generation added in the state since 2003.

Navasota Energy received air permits in May to expand each location by another 275 MW, to a total of 825 MW per site. Operations could begin in 2010.

The Colorado Bend facility, southwest of Houston, supports growing energy demand in the Houston zone while the Quail Run facility, in the state's west power zone, supports growing demand from oil service companies and to support abundant wind generation in that area, Navasota said.

Warnings about the shrinking reserve margin from the Electric Reliability Council of Texas (ERCOT) prompted companies, including FPL Group (FPL.N), Exelon (EXC.N) and Calpine Corp (CPN.N), to propose as much as 12,000 MW of new gas generation in the state. But many developers have not committed to build due to worry about rising wind output, soaring construction costs and financial-market turmoil.

Even so, enough new gas and coal projects are expected to be completed to keep the summer reserve margin above the minimum needed to avoid blackouts through 2012, ERCOT said.

Summer demand reached 62,124 MW in early August, shy of the ERCOT record of 62,339 set in August 2006 and below ERCOT's 2008 forecast of more than 64,000 MW. (Reporting by Eileen O'Grady; Editing by Walter Bagley)

 

© Thomson Reuters 2009 All rights reserved

 

10 April 2008 - FOR IMMEDIATE RELEASE

NAVASOTA ENERGY ANNOUNCES REVIEW OF STRATEGIC ALTERNATIVES

HOUSTON, TX (April 10, 2008) – Navasota Energy Partners LP (“Navasota” or the “Company”) announced today that it is undertaking a review of monetization alternatives in connection with its wholly owned interests in two newly constructed combined-cycle generating projects, Colorado Bend Energy Center (“CBEC”) located in Wharton, Texas, and Quail Run Energy Center (“QREC”) located in Odessa, Texas. Navasota’s plants are the latest generation additions in ERCOT. The plants employ highly efficient GE turbine technology and are configured to be the most dynamic and rapid response units currently operating in ERCOT.

The development of each plant (QREC and CBEC) has been performed in three individual phases. Phases I, II and III for each plant consist of 275MW, for a total design capacity at each plant of 825MW and a total portfolio capacity of 1,650MW. An overview of the development program is provided here:

Phase I of each plant has been operating since June 2007 (550MW total) Phase II of QREC and CBEC are each in final construction stages and are scheduled for commercial operation in May and June of 2008, respectively (550MW total) Phases III of each plant are in the advanced stages of the required permitting process. Commercial operations are projected for late 2009 for each plant (550MW total)

The Company has engaged JPMorgan as its exclusive financial advisor in connection with this strategic review. For additional information, please contact one of the following individuals:

Sean O’Donnell, (212) 622 – 6824, sean.odonnell@jpmorgan.com

Dheeraj Verma, (212) 622 – 0666, dheeraj.verma@jpmorgan.com

ABOUT NAVASOTA ENERGY Navasota Energy Partners LP is a Houston-based energy development and asset management company founded in May 2005. Navasota builds and manages power plants throughout the state of Texas. For more information, visit www.navasotaenergy.com. ##

19 April 2007 - Mr. Neil McDonald, Director of Economic Development Odessa Chamber of Commerce 700 N. Grant, Ste. 200 Odessa, Texas 79761

Dear Neil,

We are pleased to advise you that due to the progress of Phase I of the Quail Run Energy Center and favorable conditions in general, we are delighted to announce that we are ready to release Phase II of the project and expand the combined cycle plant from the current 275-megawatt capacity to its full capacity of 550-megawatts. The second phase of the facility, just like the first, will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. As you know, all of the permitting and infrastructure to support our Phase II expansion is already in place due in large part to your help and support. We are pleased with the partnership we have formed with the development corporation and the City of Odessa to make Quail Run Energy Center a reality. Thank you for your dedication and for the support of the Odessa community. We are looking forward to coming online with the first phase in the spring and the positive impact to the community by adding Phase II.

Sincerely,
Dan Hudson, Chief Financial & Investment Officer

19 April 2007 - Mr. David L. Schroeder, Director of Economic Development Wharton Economic Development 1944 North Fulton Street Wharton, Texas 77488

Dear David,

We are pleased to advise you that due to the progress of Phase I of the Colorado Bend Energy Center and favorable conditions in general, we are delighted to announce that we are ready to release Phase II of the project and expand the combined cycle plant from the current 275-megawatt capacity to its full capacity of 550-megawatts. The second phase of the facility, just like the first, will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. As you know, all of the permitting and infrastructure to support our Phase II expansion is already in place due in large part to your help and support. We are pleased with the partnership we have formed with the development corporation, Judge Murrile, the county commissioners, and the City of Wharton to make Colorado Bend Energy Center a reality. Thank you for your dedication and for the support of the Wharton community. We are looking forward to coming online with the first phase in the spring and the positive impact to the community by adding Phase II.

Sincerely,

Dan Hudson, Chief Financial & Investment Officer