2 March 2006 Colorado Bend Energy Center to Begin Construction 1Q2006
FOR IMMEDIATE RELEASE
COLORADO BEND ENERGY CENTER TO BEGIN CONSTRUCTION FIRST QUARTER 2006
(WHARTON, TEXAS - March 2, 2006) --- Navasota Wharton Energy Partners LP formally announced today that Colorado Bend Energy Center has received its air permit from the Texas Commission of Environmental Quality and will commence construction in Wharton in the first quarter of 2006.
Once completed, Colorado Bend Energy Center will be a 550 megawatt, gas-fired, combined cycle power plant that will be built in two separate 275 megawatt phases and will be located in Wharton, just southwest of Houston. According to Navasota President Frank Giacalone, Wharton was chosen for a number of reasons including its proximity to Houston, its readily available natural gas supplies, its existing electrical infrastructure and the receptiveness of the community.
All capital required for the development and construction of the Colorado Bend facility was arranged by Willow Bend Capital Management of Dallas, Texas. Willow Bend will also provide owner's oversight services.
The new facility 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. The initial staff on site will consist of at least 14 highly-skilled employees and there will be between 150 and 200 employed at the peak of each construction phases.
Navasota will start construction this quarter on not just Colorado Bend Energy Center, but also its Quail Run Energy Center in Odessa, Texas. These are the first non-utility, natural gas-fired plants to be started since 2003.
According to the independent grid operator ERCOT, the closing of aging plants over the last few years will cut the reserve margins to below the 12 percent minimum requirement as early as mid-2007 - four years earlier than expected.
"This is all about replacing old, inefficient gas units and taking advantage of growth in Texas,'' said Dan Hudson, Chief Financial Officer for Navasota. "The majority of the state's proposed facilities will not be online until 2010-2011 and Navasota will have the only large plants coming online in 2007 and maybe 2008.''
Even with the property tax abatement incentives from the county government, Navasota could join the top 10 property taxpayers in Wharton County.
"Wharton Economic Development Corporation (WEDC) worked closely with Navasota as well as city, county and education officials to bring the power plant here," said David Schroeder, Executive Director for the WEDC.
Navasota Energy Partners LP is a Houston-based energy development and asset management company.
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Contact: Christi Callicoatte 432.368.5483 PublicRe@navasotaenergy.com
