By Corey Paul
October 7, 2014 – Summit Power Group reached a new agreement with CPS Energy of San Antonio to sell the utility electricity from the planned clean-coal plant in Odessa, according to a Monday announcement from the companies that showed consumer confidence in the stalled project.
CPS Energy of San Antonio will begin purchasing 200 megawatts of electricity per year from Summit in 2019, a year after developers expect the Texas Clean Energy Project, or TCEP, to come online.
That represents all of the electricity the $2.5 billion plant would produce, enough to power roughly 150,000 to 200,000 homes. Summit and CPS representatives declined to disclose the financial arrangement between the companies.
CPS Energy had allowed its contract with Summit to expire at the end of 2013. At the time, utility officials cited an abundant supply of natural gas to fuel power plants as a result of the shale boom.
Plans call for construction of the TCEP at a 600-acre site about 15 miles outside of Odessa near Penwell. The 400 megawatt plant would capture 90 percent of the CO2 it produces burning coal and sell that to the oil companies for enhanced recovery operations.