14 August 2008
Navasota Energy to build third Texas power plant
HOUSTON, Aug 14 (Reuters) - Privately held Navasota Energy Partners LP said on Thursday it will build a third natural gas-fired power plant in Texas and expand two existing gas plants to meet the state's need for new electric supply.
Houston-based Navasota expected to obtain a state air permit soon to build the 550-megawatt Madison Bell Energy Center near Madisonville, midway between Dallas and Houston, said Dan Hudson, Navasota Energy's chief financial officer.
Navasota's expanded output, along with a small number of gas and coal-fired units, will help bolster the state's electric reserve margin, which has been shrinking since 2003, when an oversupply of new generation sent wholesale electricity prices tumbling.
While numerous companies continue to evaluate the state's need for power, Navasota is one of only a few moving quickly to build generation.
"Nobody else is moving forward," said Hudson. "A lot of people don't understand the dynamics of this market."
Navasota's third gas plant will be identical to the company's existing facilities, the Quail Run Energy Center in Ector County and the Colorado Bend Energy Center in Wharton County, said Hudson.
Both plants began producing power in 2007 and were expanded this summer to produce 550 MW. The plants were the first new gas-fired generation added in the state since 2003.
Navasota Energy received air permits in May to expand each location by another 275 MW, to a total of 825 MW per site. Operations could begin in 2010.
The Colorado Bend facility, southwest of Houston, supports growing energy demand in the Houston zone while the Quail Run facility, in the state's west power zone, supports growing demand from oil service companies and to support abundant wind generation in that area, Navasota said.
Warnings about the shrinking reserve margin from the Electric Reliability Council of Texas (ERCOT) prompted companies, including FPL Group (FPL.N), Exelon (EXC.N) and Calpine Corp (CPN.N), to propose as much as 12,000 MW of new gas generation in the state. But many developers have not committed to build due to worry about rising wind output, soaring construction costs and financial-market turmoil.
Even so, enough new gas and coal projects are expected to be completed to keep the summer reserve margin above the minimum needed to avoid blackouts through 2012, ERCOT said.
Summer demand reached 62,124 MW in early August, shy of the ERCOT record of 62,339 set in August 2006 and below ERCOT's 2008 forecast of more than 64,000 MW. (Reporting by Eileen O'Grady; Editing by Walter Bagley)
© Thomson Reuters 2009 All rights reserved
10 April 2008
Navasota Energy Announces Review of Strategic Alternatives
FOR IMMEDIATE RELEASE
NAVASOTA ENERGY ANNOUNCES REVIEW OF STRATEGIC ALTERNATIVES
HOUSTON, TX (April 10, 2008) – Navasota Energy Partners LP (“Navasota” or the “Company”) announced today that it is undertaking a review of monetization alternatives in connection with its wholly owned interests in two newly constructed combined-cycle generating projects, Colorado Bend Energy Center (“CBEC”) located in Wharton, Texas, and Quail Run Energy Center (“QREC”) located in Odessa, Texas. Navasota’s plants are the latest generation additions in ERCOT. The plants employ highly efficient GE turbine technology and are configured to be the most dynamic and rapid response units currently operating in ERCOT.
The development of each plant (QREC and CBEC) has been performed in three individual phases. Phases I, II and III for each plant consist of 275MW, for a total design capacity at each plant of 825MW and a total portfolio capacity of 1,650MW. An overview of the development program is provided here:
Phase I of each plant has been operating since June 2007 (550MW total) Phase II of QREC and CBEC are each in final construction stages and are scheduled for commercial operation in May and June of 2008, respectively (550MW total) Phases III of each plant are in the advanced stages of the required permitting process. Commercial operations are projected for late 2009 for each plant (550MW total)
The Company has engaged JPMorgan as its exclusive financial advisor in connection with this strategic review. For additional information, please contact one of the following individuals:
Sean O’Donnell, (212) 622 – 6824, sean.odonnell@jpmorgan.com
Dheeraj Verma, (212) 622 – 0666, dheeraj.verma@jpmorgan.com
ABOUT NAVASOTA ENERGY Navasota Energy Partners LP is a Houston-based energy development and asset management company founded in May 2005. Navasota builds and manages power plants throughout the state of Texas. For more information, visit www.navasotaenergy.com. ##
19 April 2007
Navasota Energy Announces Phase II of Power Plant near Odessa
Mr. Neil McDonald, Director of Economic Development Odessa Chamber of Commerce 700 N. Grant, Ste. 200 Odessa, Texas 79761
Dear Neil,
We are pleased to advise you that due to the progress of Phase I of the Quail Run Energy Center and favorable conditions in general, we are delighted to announce that we are ready to release Phase II of the project and expand the combined cycle plant from the current 275-megawatt capacity to its full capacity of 550-megawatts. The second phase of the facility, just like the first, will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. As you know, all of the permitting and infrastructure to support our Phase II expansion is already in place due in large part to your help and support. We are pleased with the partnership we have formed with the development corporation and the City of Odessa to make Quail Run Energy Center a reality. Thank you for your dedication and for the support of the Odessa community. We are looking forward to coming online with the first phase in the spring and the positive impact to the community by adding Phase II.
Sincerely,
Dan Hudson, Chief Financial & Investment Officer
19 April 2007
Navasota Energy Announces Phase II of Power Plant near Wharton
Mr. David L. Schroeder, Director of Economic Development Wharton Economic Development 1944 North Fulton Street Wharton, Texas 77488
Dear David,
We are pleased to advise you that due to the progress of Phase I of the Colorado Bend Energy Center and favorable conditions in general, we are delighted to announce that we are ready to release Phase II of the project and expand the combined cycle plant from the current 275-megawatt capacity to its full capacity of 550-megawatts. The second phase of the facility, just like the first, will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. As you know, all of the permitting and infrastructure to support our Phase II expansion is already in place due in large part to your help and support. We are pleased with the partnership we have formed with the development corporation, Judge Murrile, the county commissioners, and the City of Wharton to make Colorado Bend Energy Center a reality. Thank you for your dedication and for the support of the Wharton community. We are looking forward to coming online with the first phase in the spring and the positive impact to the community by adding Phase II.
Sincerely,
Dan Hudson, Chief Financial & Investment Officer
6 November 2006
Eagle Energy Partners to Provide Energy Management Services for Navasota\'s Texas Portfolio
EAGLE ENERGY PARTNERS TO PROVIDE ENERGY MANAGEMENTS SERVICES FOR NAVASOTA’S TEXAS PORTFOLIO
(MONDAY, November 6, 2006 – Houston, TX) -- Eagle Energy Partners I, L.P. of Houston has been chosen to manage ERCOT’s newest combined-cycle facilities, Navasota Holdings Texas Partners LP’s Quail Run and Colorado Bend Energy Centers. Eagle will optimize and dispatch Navasota’s energy and risk management portfolio, which includes natural gas, power and transportation contracts. The Colorado Bend facility, located in Wharton County, Texas, and the Quail Run facility, near Odessa, Texas, are both under construction and Phase I (275 Mw) will be operational prior to summer 2007 and Phase II (275 Mw) prior to summer 2008.
Dan Hudson, Navasota’s Chief Financial Officer, said that, “Eagle is going to be a large part of our success story. We believe they are uniquely positioned to serve our best interests, capture the value of our investment, and provide to us the responsiveness and detail we need.”
Cliff Hare, President of Eagle, notes that, “Eagle’s continuing effort to build a world class asset management and customer focused company is gaining momentum, and Navasota is the latest example.” Privately held Eagle currently manages or contracts for approximately 5400mw of generation, 3600mw of load, 35 BCF of natural gas storage and moves over 1.6 BCF/d. Navasota Energy Partners LP is a Houston-based energy development and asset management company.
Contact info:
Eagle Energy Cliff Hare 281-781-0335 cliff.hare@eagleenergypartners.com
Navasota Energy Christi Callicoatte 432-368-5483 PublicRe@navasotaenergy.com
1 June 2006
ERCOT sees margin below minimum by 2008
HOUSTON, June 1 (Reuters) - The Electric Reliability Council of Texas warned on Thursday that the state's summer reserve margin will shrink below the minimum level needed to avoid blackouts by 2008 as growing electric demand outpaces construction of new power plants.
The latest calculation from the state grid operator of reserve-margin -- the amount of electricity available above the projected peak -- shows the amount will fall to 11.8 percent by 2008. ERCOT has set 12.5 percent as the minimum reserve needed in July and August when power demand soars to run air conditioners.
The margin will fall further to 8.9 percent in 2009; 7.2 percent in 2010 and 4.9 percent in 2011, ERCOT said in a report released at a meeting Thursday in Austin.
To avoid blackouts, power regions need a surplus of electricity in case extreme weather significantly increases power consumption or if power plants or lines trip offline unexpectedly .
Economic growth has increased Texans' appetite for electricity, ERCOT said. It projects power demand will grow by 2.3 percent annually in the future, up from 1.8 percent growth used last year.
Texas already set new hourly power consumption records in April and May when temperatures rose above 90 degrees Fahrenheit. In April, ERCOT was forced to implement "rolling blackouts" during an early heat wave that strained the state's power resources at time when many plants were shut for seasonal maintenance.
ERCOT said demand this summer may reach 61,656 MW, 1,382 MW above the all-time peak set in 2005.
The reserve margin this summer will be 16.9 percent, thanks to the return of 2,100 megawatts of previously mothballed generation. About 7,000 MW remains mothballed for economic reasons, ERCOT said. Another 3,100 MW has been retired permanently.
Without the return of mothballed units, ERCOT's reserve margin would have fallen to 13.3 percent this summer.
ERCOT said available generation will total 70,756 MW this summer, up from 69,287 MW a year ago.
In 2007, the reserve margin is expected to be 15.2 percent, ERCOT said. If no mothballed units can run, the margin shrinks to 12 percent in 2007 and as low as 9 percent in 2008, according to ERCOT's low-case scenario.
"We think the low case is the most realistic," said Dan Hudson, chief financial officer of Navasota Energy Partners LP. "Those steam plants aren't coming back." Last month, Houston-based Navasota Energy broke ground on two 550-MW, natural gas-fired power plants, the state's first new gas units to be built since 2003.
The facilities, located in Ector and Wharton counties, will begin producing power in April 2007, Hudson said.
Texas regulators last month approved the first of more than a dozen coal-fired plants announced in Texas, but no new coal plants are expected to produce electricity before 2010.
A power-plant building boom in the late 1990s added 32,000 megawatts, giving Texas a 35 percent reserve margin. The excess supply forced wholesale prices so low that some new plants were unable to cover capital costs and didn't operate. Dozens of proposed projects were canceled.
The situation began to reverse when a surge in natural gas prices, the most common fuel used to generate power in Texas, made aging, inefficient gas plants too costly to operate.
18 May 2006
Navasota Energy Partners LP to Break Ground on Power Plant in Wharton, Texas
NAVASOTA ENERGY PARTNERS LP TO BREAK GROUND ON POWER PLANT IN WHARTON, TEXAS
(WHARTON, TEXAS - MAY 18, 2006) --- Navasota Odessa Energy Partners LP officially announced today that Colorado Bend Energy Center in Wharton, Texas, will break ground on Friday, May 26th. The ceremony will take place at the site (see map attached) at 10:00 a.m. and will be attended by local and state officials. Construction activities began at the site in early March.
Once completed, Colorado Bend Energy Center will be a 550-megawatt, gas-fired, combined cycle power plant that will be built in two separate 275 megawatt phases and will be located in Wharton, just southwest of Houston. Colorado Bend received its air permit from the Texas Commission of Environmental Quality in February 2006.
The new facility will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. The initial staff on site will consist of at least 14 highly-skilled employees and there will be between 150 and 200 employed at the peak of each construction phases.
Navasota will also break ground this month on Quail Run Energy Center in Odessa, Texas. These are the first significant non-utility, natural gas-fired plants to be started since 2003. "The majority of the state's proposed facilities will not be online until 2010-2011 and Navasota will have the only large plants coming online in 2007 and maybe 2008," said Dan Hudson, Chief Financial Officer for Navasota.
"Wharton Economic Development Corporation (WEDC) worked closely with Navasota as well as city, county and education officials to bring the power plant here," said David Schroeder, Executive Director for the WEDC.
According to Navasota President Frank Giacalone, Wharton was chosen for a number of reasons. "The proximity of Wharton to Houston and its readily available natural gas supplies as well as existing electrical infrastructure made the site very attractive, and the receptiveness of the Wharton community really helped seal the deal."
Navasota Energy Partners LP is a Houston-based energy development and asset management company.
18 May 2006
Navasota Energy Partners LP to Break Ground on Power Plant in Odessa, Texas
NAVASOTA ENERGY PARTNERS LP TO BREAK GROUND ON POWER PLANT IN ODESSA, TEXAS
(ODESSA, TEXAS - MAY 18, 2006) --- Navasota Odessa Energy Partners LP officially announced today that Quail Run Energy Center in Odessa, Texas, will break ground on Wednesday, May 24th. The ceremony will take place at the site (see map attached) at 10:00 a.m. and will be attended by local and state officials. Construction activities began on site in early March.
Once completed, Quail Run Energy Center will be a 550-megawatt, gas-fired combined cycle power plant that will be built in two separate 275 megawatt phases and will be located in the newly-expanded Odessa Business Park. Quail Run received its air permit from the Texas Commission of Environmental Quality in February 2006.
The new facility will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. The initial staff on site will consist of at least 14 highly-skilled employees and there will be between 150 and 200 employed at the peak of each construction phases.
Navasota will also break ground this month on Colorado Bend Energy Center southwest of Houston. These are the first significant non-utility, natural gas-fired plants to be started since 2003. "The majority of the state's proposed facilities will not be online until 2010-2011 and Navasota will have the only large plants coming online in 2007 and maybe 2008," said Dan Hudson, Chief Financial Officer for Navasota.
The Odessa Development Corporation was instrumental in bringing Quail Run to Odessa, said Neil McDonald, Director of Economic Development for the Odessa Chamber of Commerce. "The partnership with ODC, Odessa Industrial Development Corporation, the Chamber of Commerce and the City of Odessa has made Quail Run Energy possible here in Odessa. We all look forward to this new venture together." The Odessa Development Corporation was also responsible for bringing what will now be Quail Run Energy's neighbor, Odessa Ector Power Partners.
"We were looking for a community that wanted us, and Odessa knew how to respond," said Giacalone. "The economic development staff here really guided us through the process and gave us the opportunity to work with the City of Odessa, Ector County, the Odessa Chamber of Commerce, ODC, OIDC, Odessa Junior College, Ector County Hospital District, and other officials. We have been very happy with city's attitude and commitment to economic growth.
Navasota Energy Partners LP is a Houston-based energy development and asset management company.
17 May 2006
Navasota Energy Partners LP Announce Power Plant Contractors
(ODESSA, TEXAS - May 17, 2006) --- Navasota Odessa Energy Partners LP formally announced today the contractors selected for both of their power plant projects in Odessa and Wharton, Texas.
General Contractor - the general contractor for both facilities is PCL/Teton Industrial Construction of Alpharetta, Georgia. Teton will be supported by MMR Group of Baton Rouge, Louisiana for electrical work at both facilities.
Engineering Firm - PB Power (Sacramento, California), a division of Parsons Brinckerhoff Quade and Douglas has been selected as the engineer for the Quail Run Energy Center in Odessa and the Colorado Bend Energy Center in Wharton. Pipeline - Engineered Pipeline Systems of Odessa will be providing and installing pipelines for water and gas for both projects. Substations & GSUs - Equisales Associates of Houston will be providing equipment and services for the installation of substations and GSU's at each project site. Civil Engineering Firm - Landgraf Crutcher & Associates is providing survey and civil engineering services in Odessa. Project Manger - Design Build Professionals of Matawan, New Jersey is the project manager for both projects.
The gas-fired, combined cycle power plants, Quail Run Energy Center in Odessa and Colorado Bend Energy Center southwest of Houston (Wharton) received their air permits from the Texas Commission of Environmental Quality in March. Each facility has been permitted to produce 550 megawatts each and will be constructed in two phases of 275 megawatts.
The new facilities will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for plants of this type. The initial staff on site for each project will consist of at least 14 highly-skilled employees and there will be between 150 and 200 employed at the peak of each construction phases.
Navasota Energy Partners LP is a Houston-based energy development and asset management company.
2 March 2006
Colorado Bend Energy Center to Begin Construction 1Q2006
FOR IMMEDIATE RELEASE
COLORADO BEND ENERGY CENTER TO BEGIN CONSTRUCTION FIRST QUARTER 2006
(WHARTON, TEXAS - March 2, 2006) --- Navasota Wharton Energy Partners LP formally announced today that Colorado Bend Energy Center has received its air permit from the Texas Commission of Environmental Quality and will commence construction in Wharton in the first quarter of 2006.
Once completed, Colorado Bend Energy Center will be a 550 megawatt, gas-fired, combined cycle power plant that will be built in two separate 275 megawatt phases and will be located in Wharton, just southwest of Houston. According to Navasota President Frank Giacalone, Wharton was chosen for a number of reasons including its proximity to Houston, its readily available natural gas supplies, its existing electrical infrastructure and the receptiveness of the community.
All capital required for the development and construction of the Colorado Bend facility was arranged by Willow Bend Capital Management of Dallas, Texas. Willow Bend will also provide owner's oversight services.
The new facility will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. The initial staff on site will consist of at least 14 highly-skilled employees and there will be between 150 and 200 employed at the peak of each construction phases.
Navasota will start construction this quarter on not just Colorado Bend Energy Center, but also its Quail Run Energy Center in Odessa, Texas. These are the first non-utility, natural gas-fired plants to be started since 2003.
According to the independent grid operator ERCOT, the closing of aging plants over the last few years will cut the reserve margins to below the 12 percent minimum requirement as early as mid-2007 - four years earlier than expected.
"This is all about replacing old, inefficient gas units and taking advantage of growth in Texas,'' said Dan Hudson, Chief Financial Officer for Navasota. "The majority of the state's proposed facilities will not be online until 2010-2011 and Navasota will have the only large plants coming online in 2007 and maybe 2008.''
Even with the property tax abatement incentives from the county government, Navasota could join the top 10 property taxpayers in Wharton County.
"Wharton Economic Development Corporation (WEDC) worked closely with Navasota as well as city, county and education officials to bring the power plant here," said David Schroeder, Executive Director for the WEDC.
Navasota Energy Partners LP is a Houston-based energy development and asset management company.
2 March 2006
Quail Run Energy Center to Begin Construction 1Q2006
FOR IMMEDIATE RELEASE
QUAIL RUN ENERGY CENTER TO BEGIN CONSTRUCTION FIRST QUARTER 2006
(ODESSA, TEXAS - March 2, 2006) --- Navasota Odessa Energy Partners LP formally announced today that Quail Run Energy Center has received its air permit from the Texas Commission of Environmental Quality and will commence construction in Odessa in the first quarter of 2006.
Once completed, Quail Run Energy Center will be a 550 megawatt, gas-fired combined cycle power plant that will be built in two separate 275 megawatt phases and will be located in the newly-expanded Odessa Business Park. According to Navasota President Frank Giacalone, Odessa was chosen for a number of reasons including its access to the electric grid, the water needed for the cooling process and proximity to sources of natural gas.
The new facility will be designed using state-of-the-art emissions control technology that meets or exceeds all state and federal regulations for a plant of this type. The initial staff on site will consist of at least 14 highly-skilled employees and there will be between 150 and 200 employed at the peak of each construction phases.
All capital required for the development and construction of the Colorado Bend and Quail Run facilities was arranged by Willow Bend Capital Management of Dallas, Texas. Willow Bend will also provide owner's oversight services.
Navasota will start construction this quarter on not just Quail Run Energy Center, but also its Colorado Bend Energy Center southwest of Houston. These are the first significant non-utility, natural gas-fired plants to be started since 2003.
According to the independent grid operator ERCOT, the closing of aging plants over the last few years will cut the reserve margins to below the 12 percent minimum requirement as early as mid-2007 - four years earlier than expected.
"This is all about replacing old, inefficient gas units and taking advantage of growth in Texas,'' said Dan Hudson, Chief Financial Officer for Navasota. "The majority of the state's proposed facilities will not be online until 2010-2011 and Navasota will have the only large plants coming online in 2007 and maybe 2008.''
The Odessa Development Corporation was instrumental in bringing Quail Run to Odessa, said Neil McDonald, Director of Economic Development for the Odessa Chamber of Commerce. "The partnership with ODC, Odessa Industrial Development Corporation, the Chamber of Commerce and the City of Odessa has made Quail Run Energy possible here in Odessa. We all look forward to this new venture together." The Odessa Development Corporation was also responsible for bringing what will now be Quail Run Energy's neighbor, Odessa Ector Power Partners.
"We were looking for a community that wanted us, and Odessa knew how to respond," said Giacalone. "The economic development staff here really guided us through the process."
Recently, Quail Run was included in a proposal put forward by the Permian Basin Council of Governments as the site for the FutureGen Texas initiative. That initiative is intended to convert efficient gas-fired power plants into clean coal technology IGCC plants as part of our national effort to reduce dependence on foreign fuel sources. Navasota intends to set the benchmark for future environmentally-sound solid fuel plants in Texas.
Navasota Energy Partners LP is a Houston-based energy development and asset management company.
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Contact: Christi Callicoatte CVA Advertising & Marketing 432.368.5483 PublicRe@navasotaenergy.com