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Geothermal energy producer Calpine Corp. recently announced that is planning to perform a second expansion into Texas in 2012, when it plans to purchase a natural gas powered generation facility for $432 million, the Fort Worth Star Telegram reports.
According to the media outlet, the company also increased capacity at its Texas plants by 520 megawatts, which it says is due to the tightening supplies of electricity in Texas as demand for power continues to grow. This could have a major effect on electricity prices, however, residents who have switched energy providers will continue to receive the best electricity rates.
In a statement CEO Jack Fusco made on the deal, he said that the plan is "consistent with our strategy to boost capacity in Texas as electric demand rises and reserve margins tighten," and that it "presents a great opportunity for Calpine to add generation capacity at an important time in the evolution of one of our core markets and at a discount to replacement cost."
According to the media outlet, the Electric Reliability Council of Texas has warned that the state's electricity supply could be severely strained by 2014.