July 6, 2017
TXU Parent To Buy Odessa Gas-Fired Power Plant
The parent company of TXU and Luminant says it's buying a power plant in Odessa from a subsidiary of Koch Ag & Energy Solutions LLC.
Dallas-based Vistra Energy said Thursday it's entered into an agreement to acquire a more-than-one-gigawatt combined cycle, combustible turbine power plant at a cost of $350 million.
The company said it's using cash on hand to buy the plant, which began commercial operation in 2001.
The plant will allow Vistra to take advantage of the "deeply discounted" natural gas supply available in West Texas, while reducing the company's dependence on coal for electricity generation.
Vistra CEO Curt Morgan said "the Odessa plant is an efficient, well-maintained asset that will provide critical, flexible generation capabilities to Luminant's ERCOT portfolio."
The sales price includes an earn-out payable "if market conditions meaningfully improve," Vistra said.
Vistra made news most recently back in May, when it was said to be preparing a takeover bid for Houston's Dynegy, an effort that didn't pan out.
Kansas-based Koch Ag & Energy Solutions LLC is an indirect wholly-owned subsidiary of the famous Koch Industries.
By Mike Shiloh
Copyright July 06, 2017, Mike Shiloh, Texas Energy Report LLC, www.texasenergyreport.com, All rights are reserved
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