Calpine will supply power to SPS beginning January 1, 2012. The energy purchased will be enough to power approximately 200,000 homes in the parts of the Texas Panhandle and eastern New Mexico located on the Southwest Power Pool (SPP) grid.
Fully owned by Calpine, the Oneta Energy Center is a combined-cycle natural gas plant with 1,134MW of generating capacity. The facility entered commercial operation in 2002.
Thad Hill, chief commercial officer of Calpine, said: “We are pleased to enhance our already strong relationship with Xcel Energy by providing a reliable, cost-effective option to help fulfill SPS’ comprehensive power plans for the region.
“SPS’ selection of Calpine through a competitive process demonstrates our ability to tailor contract terms and products to meet our customers’ individual requirements.”
Calpine said that it will furnish all fuel under the contract and will provide dispatch flexibility for SPS’ energy needs. The contract resulted from a request for proposals issued by SPS, and the New Mexico Public Regulatory Commission must approve the deal. SPS must also secure firm transmission service from the SPP by July 1, 2011.
