Competitive Power Ventures announced plans for the plant near Vinco in June.
Now, the Cambria Somerset Authority says it has a deal to supply up to seven million gallons of water a day to the power plant, tentatively set to open in 2019. The water would be pumped from the Quemahoning Reservoir and raise about $500,000 in annual revenue for the taxpayer-funded authority.
The company is acquiring land to add eight miles of water supply lines to the plant.
The company expects major permits to be filed by year's end. The company hopes to start building the plant in 2017.