Valley NG retires 1,069 MW of gas-fired steam capacity in Texas

Valley NG Power Co. LLC on July 2 asked the Public Utility Commission of Texas to let it drop its power generator registration, since effective June 3 all of its units have been retired.
Valley NG originally registered with the commission in 2005 under the name TXU Valley Co. LLC. As of the most recent generating capacity report (for calendar year 2014), Valley NG owned and operated three natural gas-fired steam units - Valley Steam Electric Station Units 1, 2 and 3 - for a total capacity of 1,069 MW. "These units were each mothballed for the entire year of 2014 and have now been retired," said the July 2 notice.
A company contact is: Vicki R. Oswa, VP-Regulatory Policy, Energy Future Holdings Corp.
The Texas Commission on Environmental Quality said in a Jan. 13 notice that it has gotten an application from a Luminant/Energy Future affiliate for an air permit on new gas-fired peaking capacity in Fannin County. "Valley NG Power Company LLC has applied to the Texas Commission on Environmental Quality (TCEQ) for issuance of Air Quality Permit Number 128432, which would authorize construction of two natural gas-fired simple cycle combustion turbine generating units at the Valley Steam Electric Station located at 1040 CR 1225, Savoy, Fannin County, Texas 75479," said the notice, without adding further detail about these capacity additions.
In the March 31 Form 10-K statement, Energy Future said about new gas capacity permitting: "In 2013 and 2014, the TCEQ granted air permits to Luminant to build two natural gas combustion turbine generation units totaling 420 MW to 460 MW at each of Luminant's existing DeCordova, Tradinghouse and Lake Creek generation facilities. In 2014 and 2015, Luminant filed air permit applications with the TCEQ to build two natural gas combustion turbine generation units totaling 420 MW to 460 MW at each of its existing Valley and Permian Basin generation facilities. In 2014, Luminant filed air permit applications with the TCEQ to build a combined cycle natural gas generation unit totaling 730 MW to 810 MW at each of its existing Eagle Mountain and DeCordova generation facilities. In 2015, Luminant filed an air permit application with the TCEQ to build two combined cycle natural gas generation units totaling 1460 MW to 1620 MW at its Tradinghouse generation facility. The proposed combined cycle natural gas generation units would be an alternative to the natural gas combustion turbine generation units at DeCordova and Tradinghouse. We believe current market conditions do not provide adequate economic returns for the development or construction of these facilities; however, we believe additional generation resources will be needed in the future to support electricity demand growth and reliability in the ERCOT market."
Company spokesman Brad Watson said in an April 1 e-mail to GenerationHub that Luminant has notified ERCOT that it will permanently retire four mothballed natural gas steam units at two plant sites.
•At the Valley plant in Fannin County, Units 1, 2 and 3 will be retired; and
•At the Permian Basin plant in Ward County, Unit 6 will be retired.
"These units have been mothballed since 2010 and have been determined by ERCOT not to be needed for reliability," Watson added at the time. "The units’ capacity is not counted in ERCOT’s calculated reserve margin. The designation change will be effective in June. After a review, Luminant decided to retire the units due to their age, maintenance cost while mothballed and the potential cost of preparing them to return to service."

This article was republished with permission from

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