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Neil McDonald: 1-877-363-3772 • Fax: 432-333-7858 • info@odessaecodev.com [mailto:info@odessaecodev.com] click logo to return to home page back to News Releases New Electric Plant to Help Diversify Economy (ODESSA, TEXAS) Residents of Ector County will get a triple economic benefit from a new 1,000-megawatt, natural gas-fueled electric power generating plant to be constucted here to serve Texas consumers. The new plant will bring hundreds of jobs during the construction phase, provide an ongoing long-term market for natural gas and offer scores of permanent jobs for skilled local workers. Texas Independent Energy, a joint venture of Panda Energy International, Inc. of Dallas and PSEG Global of New Jersey, has announced plans to design, build and operate the merchant power plant in the Odessa industrial complex area south of IH-20, adjacent to TU’s Odessa switching station. The project, to be known as Odessa/Ector Power Partners, represents a total investment by Texas Independent Energy in excess of $300 million. The partnership recently announced similar projects to be constructed in Guadalupe and Archer Counties. Taylor Cheek, Texas Independent Energy’s director of business development, said the project will generate an estimated 650 jobs during peak construction, representing a payroll of $30 million to $35 million for area residents. In addition, Cheek said he expects the facility to create approximately 45 permanent jobs for skilled workers and to pay salaries and benefits of $2.3 million annually. Plant construction is expected to begin in December 1999, with commercial operations beginning in the summer of 2001. "All the resources we need to make this project a success are available in Odessa," Cheek said. "The skilled workforce, the natural resources and the spirit of entrepreneurship combine to make Ector County a prime location for our expansion to serve thneeds of Texas consumers. We look forward to working with area leaders to complete plans." The plant will employ the most advanced natural gas-fired combustion turbine generation technology in the production of electric power. "With this new technology, we will be using one-third less fuel and water in the production of electricity than in a traditional steam plant," Cheek said. The project is one of a new breed of merchant power plants authorized by federal legislation to generate and sell electric power in the wholesale market. The plant will feed power into the Electric Reliability Council of Texas (ERCOT) grid for sale to any of its members, which include Texas Utilities and West Texas Utilities, along with numerous other utilities and co-ops across the state. "With 3000 megawatts of state-of-of-the-art technologhy on line by 2001, Texas Independent Energy will have the most efficient generation fleet in ERCOT," said Jeffrey Moore, regional vice president–US Mardet for PSEG Global’s North and South American subsidiary. The plant has the enthusiastic support of local elected officials and business leaders. "This is an ideal new business for our county," said Precinct 4 County Commissioner Wilmer Ray. "We are bringing an efficient, clean enterprise to our industrial area which will take advantage of al our strengths," he said. "Lately we have seen the consequences of having our economy so closely tied to the oil and gas business, and this new venture will help provide economic diversity. I have confidence in Texas Independent Energy and believe that this project is a win-win situation for them and the citizens of Ector County." Neil McDonald, director of economic development for the Odessa Chamber of Commerce, said the plant will provide more than just a one-time economic boost. "Not only will Odessa/Ector Power Partners have a positive, measurable impact on the local economy, but it also will provide an efficient new way to convert natural gas to electricity, which could end up benefiting everyone through lower costs and increased reliability," he said. McDonald said that above and beyond the millions of dollars spent on new jobs during the construction phase, area businesses can expect to see more than $10 million spent locally on products and services during construction, and an additional $3 million to $5 million spent each year once the plant is operational, based on similar projects. McDonald noted that an economic impact study using formulas developed by noted Odessa economist M. Ray Perryman indicated that the project would add 242.7 indirect jobs in the area. The project is expected to utilize gas from either the nearby El Paso or KN Eergy pipelines, and to purchase water from the Colorado river Municipal Water District (CRMWD). Texas Independent Energy and CRMWD are studying ways to maximize the use of cooling water, including the use of recycled and reused water. "We have an ample supply of water available from several sources, and selling this untreated water to the plant will not affect our ability to provide water to the people of Odessa," said City Councilman Billy Cleaver, whose district includes part of the project site. Cleaver recently toured a Panda generating plant in Maryland and was impressed. "The plant was clean as a whistle, and it operated very efficiently," Cleaver said. "It was so quiet that we were able to walk around the entire facility and talk in a normal tone of voice," he said. "I feel real good about this project. It’s something we’ve needed." Joe Molina, vice chairman of the Odessa Economic Development Corporation, also toured the Maryland Plant and came back with a positive impression. "I was very, very impressed with the facility," Molina said. "The design and operations were engineered to create a very environmentally compatible project, and they seemed interested in their neighbors," he said. Molina also met with workers at the plant. "From what I observed, the jobs that will be created here will be good paying, highly technical, skilled jobs," he said. "I believe this will be a real good project for our area, and I think it will get the ball rolling to draw other prospects here." Panda Energy International has been a recognized leader among the new breed of independent power producers and was the principal developer of a similar project in Guadalupe County. PSEG Global, a subsidiary of the multi-billion dollar Public Service Enterprise Group (NYSE:PEG), has nearly 15 years of independent power development, operating and financing experience. Panda and PSEG Global recently announced a 50-50 joint venture which encompasses the Odessa/Ector Power Partners facility as well as similar projects in Archer and Guadalupe Counties.