Entergy Corp. on Monday announced a request for proposals seeking gas-fired power generation in southeast Texas to meet 1 GW of new demand, pointing to “significant industrial and residential growth” in its service territory.
Entergy Texas serves about 538,000 customers in the Midcontinent Independent System Operator region. The RFP will help determine the “most effective path forward to support reliable, affordable and sustainable service,” Abby Weaver, vice president of business operations and strategy of Entergy Texas, said in a statement.
The utility said it is seeking combined cycle combustion turbine resources beginning 2032 or sooner. The RFP is a “market test” to evaluate the potential development of a new CCCT power station, Entergy said, as it looks to meet projected load growth by 2030.
The request aligns with the utility’s Southeast Texas Energy Plan, which anticipates energy demand in the region growing 40% in four years.
An initial bidders’ conference was held Feb. 12 and a second is scheduled for Wednesday, Entergy said. The conference will cover evaluation criteria and key milestones, and allow for bidders to engage with utility experts. Any new resources will need to be approved by the Public Utility Commission of Texas.
Entergy has launched a building spree in Texas, as it works to meet growing demand.
In September, the PUCT approved a pair of new Entergy gas plants with a $2.4 billion price tag, but imposed a “hard cap” on costs due to regulator concerns that the utility did not take steps to ensure the projects were cost effective.
In October, regulators authorized Entergy to develop the Southeast Texas Area Reliability Project, or SETEX, which includes a 145-mile, 500-kV transmission line and other associated equipment and will reportedly cost an estimated $1.4 billion.
