FERC approves Entergy to acquire 146-MW gas-fired peaking facility in Texas

The Federal Energy Regulatory Commission approved Entergy Texas Inc.'s application to acquire the 146-MW Cypress Peaking Power plant from East Texas Electric Cooperative Inc.

The transaction (EC20-85) includes the sale of the facility in Hardin County, Texas, and associated assets for net book value from the cooperative, according to a Jan. 21 FERC filing. Entergy Texas applied for the application in July 2020.

The transaction is part of a broader deal between the Entergy Corp. subsidiary and East Texas Electric related to a settlement agreement between the two parties that resolves certification of Entergy Texas' 993-MW Montgomery County Power Station also in Texas.

As part of the settlement, Entergy Texas will sell a partial interest in the combined-cycle Montgomery facility equivalent to 75 MW and will allow a power purchase agreement for 73 MW to expire.

Entergy Texas began commercial operations at the Montgomery plant earlier in January.

The Cypress facility supplies grids operated by Southwest Power Pool and the Midcontinent ISO. The Montgomery plant is within the MISO balancing area.