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TXU may fall behind on plant schedules

7 November 2006 -- Acquiring the permits for construction of TXU's nine planned coal-fired plants may cause delays in the company's ambitious building plans. Reuters reported that Dallas, Texas-based TXU has yet to receive any of the necessary final permits for its proposed projects.

TXU previously announced target permit dates in June for the first two plants with a completion date in 2009. The other seven projects are still on schedule, but are not planned to come online until late 2009 at the earliest.

The first unit on the Texas utility's list, Sandow 5, does have an existing air permit, but its completion has been held up in court. TXU wanted to extend the deadline for construction, but a federal judge denied the company's request. The 600-MW plant is part of a settlement between Alcoa Inc. and environmental groups and was due to come online in March 2009.

The second plant on TXU's schedule, the 1,600 MW Oak Grove plant, has been delayed by at least three months. The Texas Commission for Environmental Quality announced that it would not decide on the air permit until next year.

A TXU spokesperson told Reuters that the company has not altered its aggressive construction schedule. The utility hopes to build each plant in 48 months.

Yesterday, TXU released a detailed vision for the company's future ambitions at the Edison Electric Institute's Annual Financial Conference. The 17-page paper can be downloaded here.




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