Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power, is advancing with its plans to boost its energy portfolio by introducing new natural gas projects in Texas, pending crucial regulatory approvals. These integrations aim to meet customer capacity demands in an economical way.
Focus on Future Technologies
Brett Mattison, SWEPCO's President and Chief Operating Officer, emphasized the importance of a diverse generation portfolio, stating, “The future growth of new technologies and continued service to our customers are priorities that will require a diverse generation portfolio.” Mattison further highlighted the company's dedication to delivering dependable and cost-effective power whenever needed.
Investing in Texas Energy Infrastructure
A key part of SWEPCO's initiative is the redevelopment of a decommissioned site in Hallsville, Texas, which will house a 450-Megawatt (MW) natural gas plant. Concurrently, regulatory approval is being sought to convert two coal-fired burners at the Welsh Power Plant near Cason, Texas, to utilize natural gas. “We’re excited to bring new life to the Hallsville site and proactively extend the service from our Welsh plant,” Mattison noted, reiterating the commitment to a diverse energy mix.
SWEPCO’s Power Generating Assets
Dispatchable generation, including natural gas, is crucial as it allows grid operators to adjust production as electricity demand fluctuates. Natural gas, accounting for 48% of SWEPCO’s current power generation assets, plays a significant role due to its reliability and swift response capabilities. These projects will bolster SWEPCO's ability to meet current and future energy needs.
Advancing Texas's Energy Future
Senator Bryan Hughes lauded the initiative, saying, “Texas must have reliable power that is there when we need it. SWEPCO is giving us that by expanding energy production for the future.” The use of clean natural gas was praised for supporting both the economy and the electrical grid.
Economic Impact and Job Creation
State Representative Jay Dean underscored the economic benefits of dispatchable generation, noting, “By investing in these energy projects, we are creating local jobs and supporting our workforce, while providing the reliable power that businesses and families depend on.” He emphasized the projects’ potential to strengthen Texas's economy and energy security.
Governance and Broader Implications
Governor Greg Abbott emphasized the significance of SWEPCO’s new plants, saying, “These two SWEPCO natural gas plants are a key component to meet our state’s growing power needs. SWEPCO’s commitment to deliver reliable, affordable, and dispatchable energy will help ensure we can continue to power a bigger, better Texas for generations to come.”
Details of Proposed Projects
SWEPCO has laid out ambitious plans for two major projects:
- 450-MW Hallsville Natural Gas Plant: Planned for operation by 2027, this plant will utilize two General Electric combustion gas turbines and existing infrastructure to curtail costs, contingent on regulatory clearances in Arkansas, Louisiana, and Texas.
- 1,053-MW Welsh Natural Gas Conversion Project: Starting in 2027, SWEPCO intends to convert existing coal-fired boilers at Welsh Power Plant to run on natural gas, enhancing operational efficiency and environmental sustainability.
Additionally, a short-term capacity agreement for a natural gas facility in Texas has been selected through a competitive bid process to bridge to more permanent resource enhancements.
Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power, is excited to announce the ongoing development of new generation projects, pending regulatory approval.
These initiatives are designed to enhance SWEPCO's diverse energy portfolio by adding natural gas facilities, addressing the capacity demands of the customers in a cost-effective manner.
Future growth of new technologies
“The future growth of new technologies and continued service to our customers are priorities that will require a diverse generation portfolio,” stated Brett Mattison, SWEPCO President and Chief Operating Officer.
“Today’s announcement helps deliver on our commitment to delivering reliable, affordable, and dispatchable power whenever and wherever it is needed.”
SWEPCO’s commitment
The announcement includes future development at the decommissioned facility in Hallsville, Texas
As part of SWEPCO’s commitment to the communities, the announcement includes future development at the decommissioned facility in Hallsville, Texas, that will feature a 450-Megawatt (MW) natural gas plant.
It would also include the conversion of two coal-fired burners to natural gas at the Welsh Power Plant near Cason, Texas, pending regulatory approval.
“We’re excited to bring new life to the Hallsville site and proactively extend the service from our Welsh plant to further enhance our energy portfolio, ensuring we’re meeting our customers' needs and providing a diverse energy portfolio,” Mattison added.
SWEPCO’s existing power generation portfolio
Dispatchable generation refers to energy sources, like natural gas, that grid operators can control based on demand. This means that when electricity consumption rises, operators can quickly ramp up production from these resources to meet the need.
Natural gas is the pioneering fuel for electric generation nationwide, accounting for 48% of SWEPCO
The reliability and stability of dispatchable generation are increasingly important as the demand for electricity continues to grow.
Natural gas is the pioneering fuel for electric generation nationwide, accounting for 48% of SWEPCO’s existing power generation portfolio. Its turbines offer a reliable and dispatchable energy source, capable of ramping up within minutes.
SWEPCO’s generation projects
Each of SWEPCO’s generation projects represents an important addition to the diverse generation fleet in service to the customers. Integrating these generation plants is essential to meet customer needs both now and in the future.
“Texas must have reliable power that is there when we need it,” said Senator Bryan Hughes. “SWEPCO is giving us that."
"They're expanding energy production for the future, repurposing existing facilities in East Texas, and using clean, reliable natural gas as the power source. I'm grateful for these investments to support our economy and the grid.”
Reliable energy supply
Dispatchable generation is vital not only for ensuring a reliable energy supply but also for driving economic growth
Dispatchable generation is vital not only for ensuring a reliable energy supply but also for driving economic growth in the communities, said state Representative Jay Dean.
“By investing in these energy projects, we are creating local jobs and supporting our workforce, while providing the reliable power that businesses and families depend on,” he said. “This commitment to a diverse energy portfolio strengthens our economy and helps secure a brighter future for all Texans.”
Two SWEPCO natural gas plants
“Texas continues to add more reliable, dispatchable power to meet the demand of our growing state and keep our economy the envy of the nation,” said Governor Greg Abbott.
“These two SWEPCO natural gas plants are a key component to meet our state’s growing power needs and will help provide Texans with the power they need for their homes and businesses."
"SWEPCO’s commitment to deliver reliable, affordable, and dispatchable energy will help ensure we can continue to power a bigger, better Texas for generations to come.”
New Proposed Natural Gas Projects
- 450-MW Hallsville Natural Gas Plant: SWEPCO is initiating a transformative project at the site of the retired H.W. Pirkey Power Plant. This facility is expected to begin operations in 2027, pending regulatory approval from utility regulators in Arkansas, Louisiana, and Texas, as detailed in filings submitted on Dec. 16. The Hallsville Natural Gas Plant will feature two General Electric combustion gas turbine generators and will utilize existing water intake structures and site infrastructure to minimize project costs.
- 1,053-MW Welsh Natural Gas Conversion Project: On Dec. 17, SWEPCO also submitted filings for a fuel conversion project at the Welsh Power Plant, located northwest of Cason, Texas. Pending regulatory approval, this initiative will convert the existing coal-fired boilers of Units 1 and 3 to burn natural gas, with Unit 1 conversion anticipated in 2028 and Unit 3 in 2027.
In addition to these projects, SWEPCO has selected a short-term capacity agreement with a natural gas facility in Texas as part of a competitive bid process. The agreement will help serve as a bridge to more permanent resource additions.
