The Public Utility Commission of Texas has approved Entergy Texas’s proposal to build Montgomery County Power Station, a 993MW combined-cycle natural gas power plant in the US state.
Entergy Texas had filed its proposal to construct the MCPS in October last year.
The plant is estimated to offer a savings of $1.7bn for Entergy Texas' customers over 30 years.
Entergy Texas CEO and president Sallie Rainer said: "Southeast Texas has some of the fastest growing areas in the nation. Entergy Texas is committed to meeting our customers' energy needs now and in the future.
“This investment will provide customers a new source of reliable power that reduces costs and lowers emissions, while also benefitting the southeast Texas economy.”
The fuel savings generated by the plant is expected to result in paying off the cost of construction after less than 10 years of operation.
According to a study by TXP, the construction of the facility will lead to $1bn in economic activity across Texas.
Rainer expects the construction on the combined-cycle natural gas power plant to start in the first quarter of 2019.
The facility is expected to be completed by summer 2021.
Rainer said: "We are very pleased that this project received support of the parties and over 70 cities in the region.
“This overwhelming support demonstrates that the Commission and stakeholders recognize the importance of a modern and efficient plant such as this to the region and to Texas.”
Currently, Entergy Texas, a subsidiary of Entergy, supplies electricity to over 440,000 customers in 27 counties.
Entergy owns and operates power plants with a capacity of nearly 30,000MW, including nearly 9,000MW of nuclear power.
In June, Entergy has received an approval from the Louisiana Public Service Commission to build the Lake Charles Power Station, a 994MW combined-cycle power plant in Westlake, Louisiana.
Image: The facility is expected to be completed by summer 2021. Photo courtesy of Entergy Corporation.