Tenaska, Brownsville Public Utilities Board Announce Agreement for Development of an Electric Generating Station in Texas

BROWNSVILLE, Texas – Tenaska, one of the nation’s largest independent developers of electric power generating stations, and the Brownsville Public Utilities Board (BPUB) announced Monday that they have entered into a development and purchase agreement for construction of a proposed 800-megawatt (MW) natural gas-fueled electric generating station in Brownsville, Texas.

Under the agreement signed Friday, BPUB would have an ownership interest in the proposed plant that entitles it to receive 200 MWs. BPUB will also supply water to the facility as well as provide the natural gas interconnection under the agreements. Tenaska is actively working to subscribe the remaining capacity of the facility. With increased scarcity pricing and decreased operating reserves in ERCOT the project is well positioned for success.

“We are pleased to have the Brownsville Public Utilities Board as an anchor customer for the plant,” said Greg Kelly, Tenaska vice president of Development. Tenaska and BPUB have benefited from a strong business relationship, dating back to 1997. Our affiliate Tenaska Power Services Co. (TPS) has helped BPUB successfully manage its power supply for more than 15 years.”

Kelly said that the proposed project, referred to as the Tenaska Brownsville Generating Station, would be a clean-burning, natural gas-fueled combined-cycle power plant. The 22- to 26-month construction period would provide about 600 to 700 jobs at peak, with the plant providing approximately 25 full-time operations jobs.

Tenaska has selected a site of approximately 270 acres in north Brownsville on the north side of the 511 Corridor at Old Alice Road. After securing the appropriate permits and securing
contracts with customers to purchase the remainder of the power, Tenaska could begin construction as early as 2014, with completion as early as 2016. The location has been specifically chosen for its proximity to Eagle Ford Shale gas supplies, the ongoing transmission system improvements in the Rio Grande Valley, and the tremendous growth the region has seen in recent years.

“Tenaska and its affiliates have expertise in the Texas energy market, including owning and operating power plants and marketing electricity,” said BPUB General Manager and CEO John Bruciak, P.E. “That expertise will provide significant value to BPUB in the Tenaska Brownsville Generating Station.”

Omaha, Neb.-based Tenaska has developed more than 9,000 MW of generating capacity in the United States and internationally, including four plants in Texas, during its 25-year history. It currently oversees safe, efficient and reliable operations at 14 plants with capacity totaling approximately 11,000 MW.

About Tenaska
Tenaska, based in Omaha, Neb., is one of the leading independent power producers in the U.S., with regional offices in Dallas, Denver, Pittsburgh and Calgary and Vancouver, Canada. Forbes magazine ranks Tenaska 35th among the largest privately-held U.S. companies, based on 2011 revenues. Tenaska and its affiliates have developed approximately 9,000 MW of natural gas-fueled and renewable power generation, and manage operations for approximately 11,000 MW of power generation consisting of 14 power plants, seven of which are owned by Tenaska in partnership with other companies and seven of which are private equity investments managed by affiliate Tenaska Capital Management, LLC. Tenaska is repeatedly listed in benchmarking studies by the Natural Resources Defense Council as having among the best fleet-wide records in the United States for controlling emissions. The company also markets natural gas, biofuels and electric power, and provides energy risk management services. Tenaska is involved in asset acquisition, fuel supply, natural gas exploration, production and transportation systems, and electric transmission development. For more information about Tenaska, visit the company’s website at www.tenaska.com.

About the Brownsville Public Utilities Board (BPUB)
The BPUB is an agency of the City of Brownsville, Texas, created under the city’s Home Rule Charter to manage and control Brownsville’s municipally owned electric, water and wastewater systems. The electric system was established in 1904 to provide street lighting and electric service to the area. The BPUB provides electric service to approximately 46,000 industrial, commercial and residential customers inside the city’s corporate boundaries and to the Port of Brownsville and its industrial tenants. BPUB believes in creating value for customers and the community as the provider of choice for utility services. The BPUB has built its reputation on providing quality electric, water, and wastewater services at affordable rates. For more information, please visit www.brownsville-pub.com.