Dallas-based Vistra Energy, parent company for TXU Energy and Luminant, will buy a 1,054 MW combined cycle, combustion turbine power plant in Odessa, Texas, from a unit of Koch Ag & Energy Solutions, LLC. The $350 million purchase price for the 16-year-old plant is around $332 per installed kilowatt.
The Odessa plant brings geographic diversity to the Luminant fleet. Its West Texas location means it can capture natural gas price advantages in the Permian Basin. Vistra says it expects this price advantage to continue for the next several years until pipeline infrastructure can move associated gas out of the region.
The utility estimates it is buying the plant at a nearly 60% discount to the cost of new construction. The new owner also expects to conduct routine gas turbine parts replacements during scheduled outages in 2019 and 2020 that could reduce the frequency of scheduled routine maintenance.
The upgrades also could improve the plant's heat rate from 7.1 to 6.9 million British thermal units per megawatt-hour, and improve its ability to operate at the original nameplate capacity of 1,150 MW. The utility also expects to reduce the plant's nitrogen oxide emissions per megawatt hour of generation.
The power plant is being bought with cash on hand. The deal could close in the third quarter.
To contact the author of this article, email david.wagman@ieeeglobalspec.com
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