Austin Buys East Texas Power Plant

AUSTIN (AP) – Energy officials say Austin has bought a wood chip-fueled biomass power plant in East Texas for $460 million to break away from a punitive contract. Southern Company accepted Austin Energy’s bid for the Nacogdoches Generating Facility, a wood chip-fueled biomass power plant. The 115-megawatt plant, one of the largest biomass power plants in the United States, rarely operates because it is too expensive to run. Austin Energy is also acquiring the plant’s holding company. The Austin American-Statesmen reports that Austin Energy General Manager Jackie Sargent says the city is now off the hook for escalating annual payments under a 20-year, $2.3 billion agreement slated to run through 2032.