CPS Energy strikes new deal to buy power from ‘clean coal’

By James Aldridge
San Antonio Business Journal

October 6, 2014 – CPS Energy will buy 200 megawatts of electricity from Summit Power Group’s Texas Clean Energy Project, the utility said Monday.

Summit is building what industry officials call an integrated combined-cycle coal gasification plant that can produce electricity from clean coal. While coal has a reputation of being a major source of pollution 90 percent of the carbon released from the plant will be captured and used for enhanced oil recovery in the Permian Basin in West Texas.

CPS Energy and Summit had a previous purchase power agreement in place, but that agreement expired at the end of 2013. The two companies have been working to hammer out a new agreement ever since. Summit will build the plant about 15 miles west of Odessa, Texas. It should be online by 2019.

San Antonio customers will benefit from this low-carbon source of power, CPS Energy CEO Doyle Beneby said in a news release.

“Adding clean coal to our portfolio dovetails with our strategies to diversify and reduce the carbon intensity of the power we supply to our customers,” he said.