Southern Power, a subsidiary of investor-owned Southern Company, on June 13 completed the previously announced sale of the Nacogdoches Generating Facility to Texas public power Austin Energy for $460 million, subject to customary working capital adjustments.
Austin Energy on April 18 said that it had reached an agreement with Southern Power to acquire the Nacogdoches Generating Facility, a wood waste biomass-fueled power plant in East Texas, for $460 million.
The 115-megawatt plant, which commenced commercial operation in 2012, currently provides 100 megawatts of renewable power to Austin Energy under a 20-year power purchase agreement.
The transaction will allow Austin Energy to avoid approximately $275 million in additional costs over the remaining term of the agreement.
While Austin Energy will take ownership of the plant, no immediate changes to the operation of the facility are expected, and its long-term status will be addressed in Austin Energy’s future resource planning efforts.
Austin Energy has a target of offsetting 65 percent of its customers' energy needs with renewable resources by 2027. In 2018, wind, solar and biomass energy combined to offset 38 percent of the energy needed to serve Austin Energy’s customers.